Fox Corporation posted a major increase in revenue last quarter due to strong television advertising, though its income fell.
Total revenues were US$4.37 billion, up 27% year-over-year. This was driven by a surge in television revenue, which rose by $766 million to reach $2.70 billion around February's Super Bowl LIX.
“Our strong fiscal third quarter underscored the central role Fox plays in informing and entertaining America, and our financial performance, highlighted by record free cash flow, once again illustrates the strength of the Fox platform,” said Fox CEO Lachlan Murdoch.
“Whether it is our market leading coverage of a sustained, active news cycle or our broadcast of a record-breaking Super Bowl, we deliver for our audiences, advertisers and distribution partners. We are confident that our best-in-class assets, deliberate strategy and robust balance sheet position us strongly to drive long-term value for our shareholders.”
Net income was US$354 million, dropping from $704 million year-over-year. Adjusted earnings per share were US$1.10, rising 0.9% and beating Zacks estimates by 18.3%.
Adjusted EBITDA was US$856 million, down from $891 million one year ago.
Television revenues were bolstered by a large increase in advertising, with advertising revenue up 77% year-over-year to $1.66 billion. This was mainly due to Super Bowl LIX, which was televised in the United States by Fox.
Cable network revenues were US$1.64 billion, rising from $1.47 billion the previous year. Affiliate fees, its largest segment, grew from $1.10 billion to $1.14 billion.
Murdoch also said on an earnings call that the company would launch a new streaming service, known as Fox One, before National Football League games kick off in September.
Fox One will include live and on-demand content from brands like Fox Sports, Fox Business, and Fox News, as well as the company’s local U.S. stations. Fox has yet to announce pricing for the service.
Fox Corporation’s (NASDAQ: FOXA) share price closed at US$52.42, up from its previous close at $50.24. Its market capitalisation is $22.9 billion.
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