Fox Revenue Surged 25% Last Quarter As It Beats Estimates On Strong Ad Growth Driven By Super Bowl

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Fox said revenue for its fiscal third quarter ending in March jumped 25% to $3.44 billion, beating estimates, as ad revenues swelled 44% on SuperBowl LIV.

The company announced numbers after the closing bell. Shares had ended up more than 3% ahead of earnings and poppped another 3.6% after.

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Adjusted EPS of $0.93 also beat Wall Street’s expectations.

The company showed viewer and ratings strength across its portfolio of entertainment and news content.

Affiliate revenues increased 10%, led by increases at the television segment due to higher fees from third-party Fox affiliates and higher average rates per subscriber, partially offset by net subscriber declines at its owned and operated stations.

Quarterly net income fell sharply to $90 million from $539 million in the prior-year quarter, primarily due to a loss on the change in fair value of the company’s former investment in Roku (which it sold last quarter to buy streaming service Tubi). Costs were higher with Fox operating as a standalone public company following the sale of its entertainment assets to Walt Disney last March.

“We delivered exceptional operational and financial results in the quarter, highlighted by our successful
broadcast of Super Bowl LIV on FOX. While we remain focused on continuing to execute against the strategy
that drove this strong performance, we are acutely mindful of the global health crisis and its countless impacts.
Our highest priority remains the safety and well-being of our employees and their families,” said Fox CEO Lachlan Murdoch.

“Due to the selfless dedication of many of our colleagues, the strength of FOX has been on display throughout the crisis as we continue to provide news, information, entertainment and assistance to communities around the country. As we eventually emerge, we are confident that FOX’s focused collection of assets – centered on live and event programming – will be even more in-demand by advertisers and audiences alike, positioning us well for the future and enabling us to maximize long-term shareholder value.”

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