Fox Q3 Results Top Estimates
(RTTNews) - Fox Corp. (FOXA, FOX) on Tuesday reported a net loss for the third quarter compared to a profit last year, primarily reflecting charges associated with legal settlement costs at FOX News Media. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also authorized a $7 billion stock repurchase program.
In pre-market trading on the Nasdaq, Fox shares are up $1.93 or 6.00 percent to $34.10.
"Our fiscal third quarter once again demonstrated the effectiveness of FOX's strategy to leverage the power of compelling live events to deliver for our viewers, advertisers, and distributors at scale," said Lachlan Murdoch, Executive Chair and CEO.
"During the quarter, the largest audience in U.S. television history gathered to watch FOX Sports' broadcast of Super Bowl LVII, underpinning our delivery of double-digit revenue growth, and providing a promotional gateway to FOX's entertainment and news brands," added Murdoch.
For the third quarter, the company reported a net loss attributable to Fox stockholders of $54 million or $0.10 per share, compared to net income of $283 million or $0.50 per share in the year-ago quarter.
Excluding items, adjusted earnings for the quarter were $0.94, compared to $0.81 per share in the prior-year quarter.
On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter increased 18 percent to $4.08 billion from $3.46 billion in the same quarter last year, as advertising revenues increased 43 percent, primarily reflecting the impact of Super Bowl LVII, a higher volume of NFL games and continued growth at Tubi. Analysts had a consensus revenue estimate of $4.03 billion for the quarter.
Affiliate fee revenue increased 3 percent to $1.86 billion from last year and Advertising revenue grew 43 to $1.88 billion from last year.
Revenue for Cable Network Programming edged down to $1.57 billion from $1.58 billion last year, while revenue for Television grew 36 percent to $2.48 billion from last year.
The Company also authorized a $7 billion stock repurchase program.
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