Fox Corporation Beats Estimates in Q4

Fox Corporation today reported financial results for the three months and twelve months ended June 30, 2023.

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

“Fiscal 2023 showcased the very best of FOX’s portfolio while achieving record annual revenue and EBITDA. From the exceptional sports calendar that included Super Bowl LVII and the FIFA Men’s World Cup, to the record-breaking political midterm cycle and the impressive growth seen at Tubi, the power of the FOX platform was on full display. We enter Fiscal 2024 with a focused strategy and best-in-class balance sheet as we continue to drive shareholder value.”

FOURTH QUARTER COMPANY RESULTS

• The Company reported total quarterly revenues of $3.03 billion, consistent with the prior year quarter. Affiliate fee revenues increased 3%, driven by 9% growth at the Television segment. Advertising revenues decreased 4% as continued growth at  Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media. Other revenues were essentially unchanged from the prior year quarter. 
• The Company reported quarterly net income of $369 million as compared to the $308 million reported in the prior year quarter. The variance includes restructuring charges and the change in fair value of the Company’s investments recognized in Other, net. 
• Net income attributable to Fox Corporation stockholders was $375 million ($0.74 per share) as compared to the  $306 million ($0.55 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation  stockholders was $443 million ($0.88 per share) as compared to the $413 million ($0.74 per share) reported in the prior year quarter.
• Quarterly Adjusted EBITDA was $735 million as compared to the $770 million reported in the prior year quarter, primarily due to higher expenses. The increase in expenses includes increased digital investment at Tubi and higher programming rights amortization and production costs at FOX Sports.

FULL YEAR COMPANY RESULTS

• The Company reported total full year revenues of $14.91 billion, a 7% increase from the $13.97 billion reported in the prior year. Affiliate fee revenues increased 3%, led by 8% growth at the Television segment. Advertising revenues increased 12%,  primarily reflecting the broadcasts of Super Bowl LVII and the FIFA Men's World Cup ("World Cup") at FOX Sports, continued growth at Tubi, and higher political advertising revenues at the FOX Television Stations, partially offset by the absence of Thursday Night Football. Other revenues increased 5%, driven by the full year impact of the prior year consolidation of entertainment production companies and higher FOX Nation subscription revenues.
• The Company reported full year net income of $1.25 billion as compared to the $1.23 billion reported in the prior year. The variance includes charges associated with legal settlement costs at FOX News Media and the change in fair value of the Company’s investments recognized in Other, net. Net Income attributable to Fox Corporation stockholders was $1.24 billion ($2.33 per share) as compared to the $1.21 billion ($2.11 per share) reported in the prior year. Adjusted net income attributable  to Fox Corporation stockholders was $1.87 billion ($3.51 per share) as compared to the $1.59 billion ($2.79 per share) reported in the prior year.
• Full year Adjusted EBITDA was $3.19 billion, an 8% increase from the $2.96 billion reported in the prior year, primarily due to the revenue increases noted above, partially offset by higher expenses. The increase in expenses primarily reflects higher programming rights amortization and production costs at FOX Sports driven by the broadcasts of Super Bowl LVII and the  World Cup, as well as increased digital investment at Tubi, partially offset by the absence of Thursday Night Football.