Fox Corporation has reported steady first-quarter revenues but a sharp decline in net income as costs rose and its FOX Television Stations generated lower revenues from political advertising.
The media giant said this was offset by advertising revenue from the broadcast of the FIFA Women’s World Cup at FOX Sports and continued growth at its Tubi streaming platform.
For the three months to September 30, 2023, Fox posted revenues of $3.21 billion, up from $3.19 billion a year earlier.
Attributable net income fell 33% to $407 million as expenses increased, primarily due to higher sports programming rights amortization and production costs, including the broadcast of the Women's World Cup and the renewed NFL contract. It also spent more on digital investments.
Adjusted net income per share declined by 10% to $1.09 per share, beating the consensus forecast for $0.96 per share, according to Zacks Investment Research.
“In the first quarter, we saw increased engagement at FOX Sports, driven by our broadcast of the FIFA Women's World Cup and the start of college football, and at Tubi, which continues to drive impressive growth in viewing in an increasingly crowded marketplace,” commented Lachlan Murdoch, who recently succeeded his father Rupert Murdoch as chairman of Fox, in addition to his role as CEO.
“Taken as a whole, FOX continues to leverage the strength of its leadership brands while driving meaningful growth across our digital assets."
The company’s shares traded 2.1% up at $31.10 by midday in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com