FOX Reports 9 Percent Revenue Jump

Fox Corporation today reported financial results for the three months ended December 31, 2021.

The Company reported total quarterly revenues of $4.44 billion, a 9% increase from the $4.09 billion reported in the prior year quarter. Affiliate revenues increased 11% with 12% growth at the Cable Network Programming segment and 10% growth at the Television segment. Advertising revenues increased 6%, primarily due to continued pricing strength at the FOX Network, underpinned by the strength of the Company's sports portfolio, and continued growth at Tubi. Other revenues increased 20%, led by higher sports sublicensing revenues at the Cable Network Programming segment which were impacted by Coronavirus Disease 2019 ("COVID-19") in the prior year quarter.

The quarterly net loss was $73 million compared to net income of $230 million reported in the prior year quarter. The variance was primarily due to the change in fair value of the Company's investments recognized in Other, net. The net loss attributable to Fox Corporation stockholders was $85 million ($(0.15) per share) as compared to net income attributable to Fox Corporation stockholders of $224 million ($0.37 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders1 was $77 million ($0.13 per share) as compared to the $93 million ($0.16 per share) reported in the prior year quarter.

Quarterly Adjusted EBITDA2 increased 2% to $310 million from $305 million reported in the prior year quarter, led by higher contributions at the Cable Network Programming segment.

Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said:

Lachlan Murdoch

"Against the high bar we set in our fiscal second quarter last year, we have once again delivered revenue and Adjusted EBITDA growth in the second quarter of our 2022 fiscal year, while continuing to invest in our digital growth initiatives. These strong results and broad-based operating momentum are underpinned by the most valuable news franchise in the country, the leading live sports franchise, our top broadcast network reinforced by a strategic stations portfolio, as well as the emerging leader in AVOD. This focused portfolio is delivering consistent growth for our shareholders in a thoughtful and disciplined manner."

Cable Network Programming reported quarterly segment revenues of $1.64 billion, an increase of $150 million or 10% from the amount reported in the prior year quarter. Affiliate revenues increased $111 million or 12%, primarily due to contractual price increases, including the impact of distribution agreement renewals, and the absence of the prior year accrual for potential distribution credits as a result of cancelled college football games. Advertising revenues increased $13 million or 3%, primarily due to continued pricing strength at FOX News Media, despite the absence of the prior year election cycle, and stronger pricing and additional MLB playoff games at the national sports networks. Other revenues increased $26 million or 22%, driven by higher sports sublicensing revenues, which were impacted by COVID-19 in the prior year quarter, and higher FOX Nation subscription revenues.

Television reported quarterly segment revenues of $2.76 billion, an increase of $203 million or 8% from the amount reported in the prior year quarter. Advertising revenues increased $113 million or 6% despite the comparative impact of record political advertising revenues in the prior year quarter. This growth was primarily due to continued pricing strength at the FOX Network, underpinned by the strength of the Company's sports portfolio, continued growth at Tubi, and the benefit of the ongoing recovery in the base market at the FOX Television Stations following the disruptions caused by COVID-19 in the prior year quarter. Affiliate revenues increased $59 million or 10%, driven by higher average rates at the Company's owned and operated television stations and increases in fees from third-party FOX affiliates. Other revenues increased $31 million or 25%, primarily due to higher content revenues at FOX Entertainment, as well as the acquisitions of MarVista Entertainment and TMZ.