The high-profile settlement between Fox Corp. and Dominion Voting Systems had a significant ipact on Fox’s bottom line last quarter, with the company reporting a $50 million loss “primarily due to charges associated with legal settlement costs at Fox News Media.”
The earnings report is the first since Fox Corp. settled its defamation lawsuit with Dominion. That settlement was for more than $787 million.
However, Fox’s broadcast of the Super Bowl in the quarter saw the company’s advertising revenue rise by 43% to $1.86 billion, with total revenues in the quarter of $4.08 billion.
According to The Hollywood Reporter, had it not been for the settlement, an increase in both distribution and advertising revenue would have given Fox a healthy profit in the quarter.
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| Lachlan Murdoch |
“Additionally, the momentum at Tubi continued in the quarter where its stellar growth has led to its emergence as the most watched Free-Advertising-Supported-Television service in the United States. Against a backdrop of macroeconomic uncertainty, our portfolio of leadership brands combined with our balance sheet strength position us well to allow us to focus on creating shareholder value for the long term.”
The company noted that Fox News seems to facing a softer ad environment.
“Advertising revenues were $316 million as compared to $339 million in the prior year quarter as the continued impact of elevated supply in the direct response marketplace at Fox News Media was partially offset by the broadcast of the World Baseball Classic at Fox Sports,” the company reported in a footnote to its cable network earnings figures.
It was the broadcast network (and specifically the Super Bowl and NFL playoffs) and Tubi that were responsible for a great deal of the company’s growth.
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