ADVERTISEMENT

Fox Tops Estimates as Tubi, Live Sports Fuel Advertising Rebound

Fox Tops Estimates as Tubi, Live Sports Fuel Advertising Rebound

Fox Corp. reported sales and profit that beat Wall Street’s expectations as the media company saw a surge in advertising revenue.

  • Fiscal fourth-quarter sales rose about 20% to $2.89 billion. That was higher than the average analyst estimate of $2.75 billion. Adjusted profit was 65 cents a share, exceeding the estimate of 57 cents.
  • See more details.

Key Insights

  • Two years after selling its entertainment properties to Walt Disney Co., Fox is trying to build new businesses in streaming and sports betting as the cable-TV business declines. That includes Fox Nation and Tubi, the free streaming service that Fox acquired last year.
  • Ad sales rose 38% in the quarter as marketers resume spending after pulling back at the height of the pandemic-driven recession in 2020. The company also credited the growth of Tubi and the return of live sports that were postponed last year for the higher advertising revenue.
  • Affiliate revenues rose 10%, driven by rate increases as part of new agreements that Fox made with its pay-TV distributors.

Market Reaction

  • Fox shares are up about 20% so far this year, compared with a 17% gain in the S&P 500. Fox’s A shares were unchanged at$34.91 as of 4:11 p.m. in New York.

Get More

  • Read the statement.
  • See analysts’ estimates.

©2021 Bloomberg L.P.