Fox Corp. Closes Fiscal Year On High Note, Beating Q4 Estimates On Advertising Bounce-Back

Fox Corp
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Fox Corp. closed its fiscal year with a solid performance in its fourth quarter, beating Wall Street revenue and earnings forecasts.

The TV and streaming company thrived on a bounce-back for advertising compared with the depths of Covid-19 a year ago. Total revenue climbed 20% to $2.89 billion and earnings per share came in at 65 cents, up from 62 cents in the year-ago period.

“We are in a very good place, with new momentum starting the fiscal year,” CEO Lachlan Murdoch said Wednesday at the start of the company’s earnings call with analysts.

Revenue jumped 20% to $2.89 billion, with the company indicating the strength was spread across several segments. Affiliate revenue rose 10%, while advertising revenues spiked 38% — a rise of 51% in the Television segment and 17% at the Cable Network Programming segment.

The dominant Television division, which includes the flagship broadcast network and local station portfolio, saw revenue rise 30% to $1.45 billion. The step-up in advertising included continued growth at free, ad-supported streaming service Tubi and strong pricing at Fox Entertainment. Tubi revenue came in at around $100 million in the quarter, which is typically its softest of the year, and full-year revenue soared 177% to about $400 million. Fox acquired Tubi in early 2020 for $440 million.

Affiliate revenue in the television unit increased $88 million or 16%, driven by increases in fees from third-party Fox affiliates and higher average rates at the stations. Other revenues increased $21 million or 18%, primarily due to higher content revenues at Bento Box and Fox Entertainment.

In the cable network programming unit, quarterly revenue increased 10% from $1.4 billion. Affiliate revenue increased $58 million or 6%, driven by contractual price increases, including the impact of distribution agreement renewals. Advertising revenues increased $45 million or 17%, which the company said was primarily due to continued digital monetization at Fox News Media and the impact of live events’ return at Fox Sports.

This article was printed from https://deadline.com/2021/08/fox-corp-closes-fiscal-year-beating-q4-estimates-advertising-bounce-back-1234809116/