Fox reported total quarterly revenue of $3.99 billion for its fiscal third quarter ended in March, down from $4.37 billion the year earlier as ad sales dipped due to tough comparison given the absence of Super Bowl in the current vs last year.
Distribution revenue increased 3%, driven by 5% growth at the cable network programming segment. Advertising revenue was $1.56 billion, down from $2 billion on the Super Bowl comps, partly offset by the impact of an additional NFL Wild Card game and continued digital growth at Tubi.
Content and other revenue increased 12% on higher sports sub-licensing sales.
“Our fiscal third quarter results once again demonstrate continued strength and momentum across our business. This strong performance, led by robust core advertising trends, underscores FOX’s leadership in live programming, bolstered by continued strength at our leading free streaming service, Tubi,” said CEO Lachlan Murdoch. “Against this backdrop, we are proud to be bringing the world’s biggest sporting event to American homes with the FIFA Men’s World Cup hosted here in North America across June and July. Meanwhile we remain steadfast in our commitment to delivering long-term shareholder value supported by our strong balance sheet.”
Adjusted EBITDA of $954 million rose by $98 million or 11% as the revenue dip was more than offset by lower expenses. Adjusted net income of $1.32 a share also beat forecasts.
Net income fell to $175 million from $354 million
Cable Network Programming reported quarterly segment revenue of $1.74 billion, an increase of $105 million or 6% from the amount reported in the prior year quarter.
Distribution revenue increased $64 million or 5% as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenue increased $18 million or 5%, primarily due to higher news pricing partially offset by lower ratings, and the current year broadcast of the World Baseball Classic. Content and other revenue increased $23 million or 24%, primarily due to higher sports sub-licensing revenue.
Cable profits rose to $884 million, up by $6 million, offset by higher expenses driven by higher sports programming rights amortization.
Television segment revenue of $2.2 billion was down from $2.70 billion reported in the prior year quarter. Advertising revenue was $1.17 billion as compared to the $1.66 billion reported in the prior year quarter, primarily due to the absence of the prior year broadcast of Super Bowl LIX, partially offset by the broadcast of an additional NFL Wild Card game and growth at Tubi. Distribution revenue was $858 million as compared to the $870 million on net subscriber declines. Content and other revenue increased $3 million or 2%, primarily due to higher entertainment content revenue.
Television reported quarterly segment EBITDA of $191 million, an increase of $131 million from the amount reported in the prior year quarter, as the revenue decrease noted above was more than offset by lower expenses. The decrease in expenses was driven by lower sports programming rights amortization and production costs, led by the absence of the prior year broadcast of Super Bowl LIX, partially offset by the broadcast of an additional NFL Wild Card game.
Execs will hold a call at 8:30 am ET.
More to come
English (US) ·