Fox CEO Lachlan Murdoch noted reinvigorated ratings and share growth at Fox News last quarter and said the company is looking at major momentum at the cable news network and at Fox TV stations heading into a heated election cycle.
Fox this morning posted a mixed fiscal fourth quarter with total sales of $3.09 billion for the three months ended in June, up 2% from the year before and about in line with Wall Street estimates. Ad revenue was flat as Fox said gains at Fox Sports and Tubi were offset by a dip at the Fox Network.
“Tubi continues to go from strength to strength,” Murdoch said on a call after the numbers.
Net income of $320 million fell from $369 million the year earlier including the change in fair value of company investments, it said. EPS was 68 cents a share from 74 cents. Adjusted EPS was 90 cents vs. 88 cents, above expectations. The shares were off 2.4% in premarket trading.
Affiliate fee revenues increased 5%, driven by 9% growth at the Television segment and 2% growth at the Cable Network Programming segment.
Advertising revenues were flat with the prior year quarter, as Fox Sports’ Summer of Soccer, including the broadcasts of the UEFA European Championship and Copa América, along with continued growth at Tubi were offset by lower ratings and pricing at the Fox Network.
“Other” revenues were $226 million as compared to the $253 million reported in the prior year quarter, primarily due to a lower volume of third-party content sales in the current year quarter.
“Fiscal 2024 was another successful year for FOX with very clear achievements across our portfolio, including delivering strong total company affiliate revenue growth each quarter from our ongoing renewals, cementing Tubi’s position as the most watched free TV and movie streaming service in the United States, and generating reinvigorated ratings and share growth at FOX News,” said Murdoch.
“We now carry this momentum into another major event cycle with fiscal 2025 featuring the Presidential Election and Super Bowl. The soundness of our strategy, the consistency of our delivery and the strength of our financial position have never distinguished us more and underpin our confidence in the future at FOX and in delivering shareholder value.”
The numbers hit at an interesting moment for the company on a few fronts. As noted, the presidential race is set to boost political advertising and buoy ratings into the fall, by a lot as Kamala Harris entering the race for the Dems scrambled the Republican campaign of Fox News favorite Donald Trump.
Meanwhile, a behind- the-scenes family battle is playing out. Patriarch Rupert Murdoch is trying to settle succession and had Lachlan control of the family business, alienating his three other children, who were promised a vote in a so-called irrevocable trust that he’s trying to undo in probate court. The outcome of the fight could determine the future of the profitable Conservative juggernaut of Fox News.
On sports, Fox and its partners Disney/ESPN and Warner Bros. Discovery now have a name and price for their news sports streaming JV. Venu Sports will launch this fall at $43.99 a month. Streaming rival Fubo is in a New York Court this morning, challenging the new bundle.
Execs are currently hosting a call with analysts.
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