Fox Corp. said high ratings at Fox News Channel and growing advertiser interest at its Tubi streaming service bolstered performance in its fiscal fourth quarter, with the company’s focus on live programming, sports and news shielding it from some of the challenges its rivals are facing in an era when more consumers are using on-demand broadband for more of their video entertaiment.
The owner of the Fox broadcast network and Fox Sports said revenue in the period rose 6%, or $195 million, to $3.29 billion, largely on the strength of advertiser interest in Tubi and Fox News. Ad revenues rose 7% during the period, Fox said, while affiliate revenue rose 3%.
“We remain confident that our focused strategy, leadership position in key verticals and strong balance sheet will continue to deliver value to all shareholders,” Lachlan Murdoch, Fox’s CEO, said in a statement.
Fox said its fourth quarter net income came to $717 million, or $1.57 per share, compared with $319 million, or $.68 per share, in the year-earlier period. Excluding items, Fox reported adjusted earnings of $581 million, or $1.27 per share.
While Disney, NBCUniversal and others have put many of their resources toward building out new streaming venues, Fox has maintained a hold in the linear world, still focused on drawing large, simultaneous audiences to everything from IndyCar racing to Greg Gutfeld’s 10 p.m. program on Fox News Channel each weekday night. To be sure, Fox has launched streaming outlets, including Tubi and Fox Nation, but they are largely seen as complementary to the company’s linear outlets — not a substitute for them.
Those dynamics may be set to change. Fox intends to unveil a new streaming outlet, Fox One, in the next few weeks. The service will make its linear sports and news offerings — as well as other content — available via streaming, though Murdoch has said the company’s intent is to court audiences who do not already have subscriptions to cable or satellite services and otherwise might not watch Fox programming.
More to come….