Fox Corp. recently released its fiscal third-quarter results, showcasing a dip in revenue compared to the previous year, primarily due to a decline in advertising revenue. The company reported sales of $3.45 billion, meeting the expectations set by Wall Street. However, this figure marked a decrease from the $4.1 billion reported in the same quarter of the previous year.
Despite the drop in revenue, Fox Corp. saw a significant increase in net income for the March quarter, reaching $704 million. This surge in profit contrasted sharply with the $50 million loss reported in the corresponding period last year. The notable improvement in net income was attributed mainly to the absence of significant charges associated with legal settlements. Particularly significant was the absence of a charge related to a legal settlement with Dominion Voting Services, for which Fox paid close to $800 million.
While affiliate fees experienced a 4% rise, driven by pricing benefits from recent renewals, advertising revenue saw a notable decline. Advertising revenue totaled $1.24 billion, down from $1.88 billion in the prior year quarter. This decrease was primarily due to the absence of the previous year’s Super Bowl broadcast and a reduction in the number of NFL games aired on Fox Sports. Excluding these comparisons, total ad revenue would have experienced a slight increase.
In response to the financial results, Fox Corp. CEO Lachlan Murdoch highlighted the company’s unique strategy, which focuses on core brands, live content, and must-have event programming. Murdoch emphasized that this strategy is valued by audiences, advertisers, and distribution partners alike. He also underscored the company’s consistent financial delivery, supported by investments in innovation, particularly in the digital portfolio led by Tubi.
Murdoch further emphasized Fox Corp.’s balanced capital allocation approach and strong balance sheet, which enables the company to drive long-term value creation for shareholders. Executives are set to discuss the financial results and outlook in detail during an upcoming conference call scheduled for 8:30 AM.
