Fox Corporation Posts Revenue & Profit Gains

Fox Corporation has reported total quarterly revenues of $3.03 billion, a 5 percent increase from the prior-year period.

Executive Chair and CEO Lachlan Murdoch said: “We completed another successful year at FOX, with fiscal 2022 results demonstrating the strength and durability of our core brands and their ability to deliver consistent audiences across the entirety of FOX. These results validate the strategy we embarked on three years ago—to focus on live news and sports while investing in high growth digital initiatives to create a platform for ongoing growth. We begin fiscal 2023 with strong momentum, supported by an enviable schedule of live sporting events and the mid-term election cycle, and bolstered by a best-in-class balance sheet. These attributes will serve us well in navigating any macroeconomic uncertainty while continuing to create value for our shareholders.”

Affiliate fee revenues were up 4 percent, with 7 percent growth at the television segment and 2 percent growth at the cable network programming segment. Advertising revenues increased 7 percent, driven by stronger pricing and higher ratings at FOX News Media, higher political advertising revenues at the FOX television stations and continued growth at Tubi. Other revenues increased 4 percent, primarily due to the impact of the consolidation of entertainment production companies and higher FOX Nation subscription revenues, partially offset by the timing of sports sub-licensing revenues. The company reported a quarterly net income of $308 million, compared to the $272 million reported in the prior-year quarter.

Television reported quarterly segment revenues of $1.53 billion, up 5 percent. Advertising revenues increased 4 percent, driven by higher political advertising revenues at the FOX television stations, continued growth at Tubi and the addition of the USFL at FOX Sports, partially offset by lower ratings at FOX Entertainment. Affiliate fee revenues were up 7 percent, driven by higher average rates at the company’s owned and operated television stations and increases in fees from third-party FOX affiliates. Other revenues increased 3 percent, primarily due to the impact of the consolidation of MarVista Entertainment, TMZ and Studio Ramsay Global.

Television reported quarterly segment EBITDA of $226 million, up 53 percent. The increased digital investment at Tubi was offset by the timing of programming rights amortization at FOX Entertainment.

Cable network programming posted quarterly segment revenues of $1.46 billion, up 4 percent. Affiliate fee revenues increased 2 percent, advertising revenues grew by 14 percent, and other revenues were essentially flat. Quarterly segment EBITDA of $628 million were down from the $674 million in the prior-year quarter, as revenue increases were more than offset by higher expenses.

The company reported total full-year revenues of $13.97 billion, an 8 percent increase, and full-year net income of $1.23 billion, down from the $2.2 billion reported in the prior year.