Aug 6 (Reuters) – Fox Corp beat Wall Street estimates for fourth-quarter revenue and profit on Thursday, as the FIFA World Cup boosted advertising sales during a busy news cycle, sending its shares around 5% higher.
The company held the exclusive U.S. English-language broadcast rights for the World Cup and benefited from strong viewership as well as new so-called hydration breaks that created more ad opportunities by splitting matches into four commercial windows.
Nearly 63 million viewers in the U.S. watched Spain defeat Argentina in the World Cup final in July, setting a new U.S. viewership record for the tournament.
Fox’s revenue of $4.21 billion beat analysts’ average estimate of $3.64 billion, according to LSEG-compiled data. Adjusted earnings per share of $1.79 exceeded estimates of $1.42.
“At a time when audiences are increasingly fragmented, the World Cup demonstrated the unique power of Fox to deliver live premium sports that bring people together at scale,” CEO Lachlan Murdoch said on a post-earnings call.
In a crowded market, companies are seeking larger audiences by increasing their coverage of major events like the U.S.-Israeli war with Iran and sporting tournaments.
Fox benefits from its portfolio of brands, including Fox News, Fox Sports, Tubi and FOX One, alongside rights to major sports leagues such as the NFL.
“In advance of the (NFL) season, we’ve had recent, thorough, and productive discussions with the league. As a result, we will not be making any amendments to our existing contractual relationship,” Murdoch said.
Fox One recorded 2.8 million sign-ups in June, its strongest month since the service’s launch in August and more than double the 1.1 million sign-ups generated during NFL Playoffs in January, according to industry tracker Antenna.
Fox said its advertising revenue surged 78% to $1.92 billion. Its cable network programming unit’s revenue grew 9%.
Tubi revenue grew 35% from a year earlier, compared with 23% growth in the prior quarter, company executives said.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)
Comments