Fox Corp. said profit in its fiscal first quarter fell due higher content expenses and comparisons with a sizable gain in the year-earlier period, even as revenue in the quarter was bolstered by advertising and distribution fees.
The owner of Fox News Channel, Fox Sports and the Fox broadcast network said net income attributable to shareholders in the period came to $701 million, or $1.21 a share, compared with $1.11 billion, or $1.83 a share in the year-earlier quarter. The figures were affected by the presence of a one-time payment from Walt Disney Co. a year earlier tied to its purchase of cable and studio assets previously owned by Fox.
Revenue, meanwhile, rose 12% to $3.05 billion, compared with $2.72 billion in the year-earlier quarter. Fox cited ad spending on Tubi, its ad-supported streaming video hub; the return of sports after the coronavirus pandemic; upticks in fees from cable distributors; and higher revenue from its Fox Nation subscription service as factors in the increase.
“We have made a strong start to the 2022 fiscal year with broad-based operating momentum led by the return of a full slate of live events at Fox Sports, ratings leadership at Fox News and exceptional progress at Tubi,” said Lachlan Murdoch, Fox Corp’s CEO, in a statement. ” As audiences migrate to live news, sports and streaming, it underscores the strategy and priorities that have defined our short history at Fox. We remain focused on bolstering our core brands and leveraging the unique assets that distinguish us to further propel growth and drive value for our shareholders.”
More to come…