Fox Corp. beat Wall Street expectations in its second fiscal quarter, with revenue of nearly $4.1 billion improving 8% from the year-earlier period.
On an adjusted basis, earnings per share rose to 16 cents from 10 cents a year ago.
The consensus forecast from analysts called for revenue of $4 billion and a loss of 3 cents a share.
Advertising revenue rose 14% in the quarter, helped by a record haul of political advertising by Fox stations. The effects of Covid-19 on the college football season hurt results in the quarter, though, with “other” revenues dipping 14% due to games canceled by virus outbreaks.
The company’s cable networks saw a 31% rise in ad revenue as political spending reached its peak, but affiliate and other revenue declined, leading to a slim 1% increase in overall revenue in the segment. Fox News has slipped from its No. 1 ratings perch since the November 3 presidential election. The network has also been sued by voting software firm Smartmatic for $2.7 billion over on-air claims about the company by Fox hosts and guests.
Fox News Seeks Dismissal Of Smartmatic Lawsuit, Claiming First Amendment Protection For Coverage Of Donald Trump’s Accusations
Despite headwinds from the lawsuit, which the company filed a motion to dismiss late Monday, the company’s stock climbed 5% in pre-market trading, past $34 a share. It closed Monday at its highest point in nearly a year.
Fox’s Television division, the largest in the company and the one where the stations and broadcast network are housed, posted a 13% increase in revenue. On top of ad gains, affiliate sales rose 23%, with Fox crediting higher fees from third-party Fox affiliates and higher subscriber rates for the company’s owned and operated TV stations.
An EBITDA loss in the Television unit of $185 million stemmed from higher programming rights amortization at Fox Sports, led by contractual rights increases for the NFL. The consolidation of ad-supported streaming service Tubi, which Fox acquired last year, also made a dent.
This article is auto-generated by Algorithm Source: deadline.com