Politics appear to be fueling the corporate engines at Fox Corporation.
The owner of the Fox News Channel and Fox broadcast network said revenue in its fiscal first quarter was boosted by political advertising at its local stations and subscription revenues to its streaming Fox Nation service, which incorporates content tailored to aficionados of Fox News Channel. Profit in the quarter, however, fell due to the absence of gains present in the year-earlier period.
Overall revenue rose to $3.19 billion in the first quarter, up 5% from the $3.05 billion generated a year earlier.First-quarter net income came to $605 million, compared with $701 million in the year-earlier period.
The results mark “a strong start to what promises to be a notable fiscal year of prominent scheduled events across the company underscoring the importance of our live and event programming to viewers,” said Lachlan Murdoch, the company’s CEO, in a prepared statement. “While we are mindful of current macroeconomic conditions, the durability of our brands and Fox’s ability to deliver audiences at scale position us well to navigate this uncertainty while continuing to create value for our shareholders.
Fox’s results surface as the company is considering a tie-up with News Corp., a separate corporate sibling also controlled by the Murdoch family. Last month, both companies — once part of a single entity — said their boards had formed special committees to explore the idea of a new combination. Fox said Tuesday that its board “has not made any determination at this time, and there can be no certainty that the company will engage in such a transaction.” On a call with investors Tuesday, Lachlan Murdoch said he was “not in a position” to take questions on the matter.
Revenue rose slightly at the company’s cable networks, rising to $1.43 billion, up 1% from the amount reported in the year earlier period. Fox said affiliate fees increased $3 million, primarily due to contractual price increases, while advertising revenues increased $5 million, led largely by activity at Fox News, despite “lower ratings and lower digital advertising revenues.” Fox Nation, the subscription-based streaming service, saw an increase in subscriptions and hours spent watching content on the service, Murdoch told investors, though he did not disclose how many subscribers the outlet had in total.
Revenue at the company’s TV operations rose $133 million, up 8% from the year-earlier period. . Advertising revenues rose $86 million or 11%, primarily due to higher political advertising revenues at Fox’s local TV stations and extra Major League baseball broadcasts during the quarter.
