May 11 (Reuters) – Fox Corp beat Wall Street estimates for third-quarter revenue and profit on Monday, driven by robust growth in its Tubi streaming service and increased fees from cable and satellite subscribers.
Shares of the company rose more than 3% as Fox executives expressed optimism about a “very healthy upfront” market, with strong underlying advertising trends across its news, sports and streaming divisions.
Overall ad revenue declined 24% in the three months ended March 31, compared with the same quarter last year when the company broadcast ‘Super Bowl LIX,’ which helped it attract more marketing.
“Excluding the impact of the Super Bowl and other NFL (the National Football League) post-season schedule changes, our total company advertising revenue would have grown double-digits over the prior year quarter,” finance chief Steve Tomsic said on a post-earnings call.
The company expects strong political ad revenue in the upcoming midterm election cycle, with local stations in key battleground states like Florida and Georgia expected to be strong beneficiaries, further bolstered by “issue money” flowing into states such as California.
Fox reported revenue of $3.99 billion, compared with analysts’ average estimate of $3.82 billion, according to data compiled by LSEG. Its adjusted profit per share of $1.32 exceeded estimates of 97 cents per share.
The company said advertising revenue for its cable network programming rose 5%, primarily boosted by increased news pricing and the broadcast of the World Baseball Classic, despite being partially offset by lower ratings.
CEO Lachlan Murdoch said Fox is aware of speculation regarding the NFL’s potential interest in renegotiating and extending current deals, but the company has had “no substantive discussions” with the league.
Fox acquired the rights to two more NFL regular-season games, including one overseas, creating a historic triple-header on broadcast TV, he said.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel)
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