Fox Corp. Reports Dip in Quarterly Profits

Fox Corporation took a hit in profit in its second fiscal quarter due in part to a 20 percent drop in advertising revenue.

The company reported total quarterly revenues of $4.23 billion, compared to the $4.61 billion reported in the prior year quarter.

Affiliate fee revenues increased 4 percent, driven by 10 percent growth at the TV segment.

Advertising revenues decreased 20 percent, primarily due to the absence of the FIFA Men’s World Cup at FOX Sports, lower political advertising revenues at the FOX Television Stations due to the absence of the 2022 midterm elections, and the impact of elevated supply in the direct response marketplace, lower ratings and higher preemptions associated with breaking news coverage at FOX News Media.

Other revenues increased 14 percent, primarily due to higher sports sublicensing revenues at the national sports networks, partially offset by lower content revenues at the entertainment production companies as a result of industry guild labor disputes.

Net income attributable to Fox Corporation stockholders was $109 million, compared to the $313 million in the prior-year quarter.

Lachlan Murdoch, executive chair and CEO, said: “At the halfway point in our fiscal year, our results demonstrate the strength and durability of our core brands and their ability to deliver solid audiences across our portfolio. FOX Sports continues to benefit from the power of live sports programming and FOX News has maintained its leadership in cable news, while Tubi has been resilient in an increasingly competitive market. Combining this steadfast portfolio of assets with a best-in-class balance sheet underpins our ability to deliver value for our shareholders.”

Cable network programming reported quarterly segment revenues of $1.66 billion, up 2 percent. Affiliate fee revenues increased $5 million, with contractual price increases partially offset by the impact of net subscriber declines. Advertising revenues were $348 million as compared to the $451 million reported in the prior-year quarter. Other revenues increased 80 percent. Cable network programming reported quarterly segment EBITDA of $564 million, up 60 percent.

Television revenues were $2.54 billion, compared to the $2.93 billion reported in the prior-year quarter. Advertising revenues were $1.65 billion, down from $2.05 billion. Affiliate fee revenues increased 10 percent, while other revenues were $132 million, down from $196 million. Television reported a quarterly segment EBITDA loss of $138 million, as compared to an EBITDA contribution of $256 million in the year-ago quarter.