Plus Pages

Thursday, November 4, 2021

Fox Sales and Earnings Top Estimates


Fox Corp. reported quarterly sales and earnings that beat analysts estimates, thanks to soaring advertising sales for sports and other shows.

Bloomberg reports the parent of Fox News and the Fox broadcast network reported earnings of $1.11 a share excluding some items for the first quarter ended Sept. 30, beating the $1.04 a share average of estimated compiled by Bloomberg. Sales grew to $3.05 billion, topping Wall Street projections of $2.94 billion, in part due to revenue from its streaming business, Tubi.
See details here.

Key Insights
  • The return of live sports and other network programing helped deliver a 17% increase in advertising revenue. Affiliate fees collected from cable TV distributors also rose.
  • Programming costs increased in the period, leading to a drop in adjusted earnings before interest, taxes, depreciation. Broadcast expenses rose largely due to sports programming, such as college football and baseball’s All-Star game. Cable profit was crimped by continued investment in new initiatives.
  • The media giant controlled by the Murdoch family has focused on live sports and news after selling the bulk of its entertainment properties to Walt Disney Co.
“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,” Lachlan Murdoch, Fox’s CEO and executive chairman, said. 

“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.”

Fox shares were little changed in after hours trading. They were down 2 cents to $41.58 at the close in New York and were up 43% this year through Wednesday.

Meanwhile, Fox has acquired the next two European Championships in 2024 and 2028 as part of a six-year rights deal with the Union of European Football Associations (UEFA). Along with the highly-prized tournament, which is considered the second-biggest international soccer competition behind the World Cup, Fox also gains rights to the UEFA Nations League, and all other UEFA national team competitions including friendlies and World Cup qualifiers.

No deal terms were disclosed.

No comments:

Post a Comment