Fox Sales and Earnings Top Estimates as TV Ad Market Recovers

(Bloomberg) -- Fox Corp. reported quarterly sales and earnings that beat analysts estimates, thanks to soaring advertising sales for sports and other shows.

• The parent of Fox News and the Fox broadcast network reported earnings of $1.11 a share excluding some items for the first quarter ended Sept. 30, beating the $1.04 a share average of estimated compiled by Bloomberg. Sales grew to $3.05 billion, topping Wall Street projections of $2.94 billion, in part due to revenue from its streaming business, Tubi.
• See details here.

Key Insights

• The return of live sports and other network programing helped deliver a 17% increase in advertising revenue. Affiliate fees collected from cable TV distributors also rose.
• Programming costs increased in the period, leading to a drop in adjusted earnings before interest, taxes, depreciation. Broadcast expenses rose largely due to sports programming, such as college football and baseball’s All-Star game. Cable profit was crimped by continued investment in new initiatives.
• The media giant controlled by the Murdoch family has focused on live sports and news after selling the bulk of its entertainment properties to Walt Disney Co.

Market Reaction

• Fox shares were little changed in after hours trading. They were down 2 cents to $41.58 at the close in New York and were up 43% this year through Wednesday.

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• See the estimates here

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