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Fox Corp. Profits Fall Despite 17% Ad Revenue Increase

Fox

Fox Corp. reported lower net income in its fiscal first quarter despite jump in ad revenue.

Net income dropped to $701 million, or $1.21 a share from $1.11 billion, or $183 per share, a year ago, when the company recognized a $462 million gain from a payment from The Walt Disney Co.

Revenue rose 12% to $3.05 billion.

Costs were also up as sports and other programming expenses returned to pre-pandemic levels.

Ad revenue rose 17% to $1.13 billion compared to a year ago, when COVID-19 impacted spending. The company credited the gain to growth at streaming platform Tubi, plus a full schedule of games for Fox Sports.

Affiliate revenue increased 9% to 1.667 million, with a 14% gain at Fox’s Television segment and 5% from the cable network programming group.

Earnings before interest, taxes, depreciation and amortization at Fox’s cable network programming segment fell to $774 million from $781 million. Revenue rose to $1.4 billion from $1.3 billion.

Television segment EBITDA dropped to $359 million from $457 million. Revenue rose to $1.6 billion from $1.4 billion.

“We have made a strong start to the 2022 fiscal year with broad-based operating momentum led by the return of a full slate of live events at Fox Sports, ratings leadership at Fox News and exceptional progress at Tubi,” said CEO Lachlan Murdoch. “As audiences migrate to live news, sports and streaming, it underscores the strategy and priorities that have defined our short history at Fox. We remain focused on bolstering our core brands and leveraging the unique assets that distinguish us to further propel growth and drive value for our shareholders.”