Fox Corporation said fourth-quarter net income slipped due to a change in value of its investment in the online-gambling company Flutter as the company grappled with challenges in capturing advertising and saw a boost in revenue flow from distribution.
Sports proved to be a key driver of results in the period, particularly Fox’s broadcasts of the UEFA European Championship and ConMEBOL Copa América.
Earnings came to $319 million, or 68 cents per share, compared with $375 million, or 74 cents per share, in the year-earlier period.
Revenue in the period rose 2%, or $60 million, to $3.09 billion. Fox said the increase was largely driven by a 5% increase in affiliate fees, but noted that ad revenue in the period was basically flat with year-earlier results.
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During a Tuesday call with investors, Fox CEO Lachlan Murdoch said the company was encouraged that the advertising market seemed healthier than it had been six months ago, and pointed to the 2024 presidential election in the U.S, which he projected would drive sales results at the company’s local stations. Murdoch also said that Tubi, the company’s free, ad-supported streaming hub, continued to see momentum in terms of usage and advertiser interest.
The company’s cable networks saw revenue rise 2%, or $28 million, to $1.44 billion. Affiliate fees rose 2$, or $21 million, due to price increases, while ad revenue rose 3%, or $8 million, largely due to the company’s summer soccer broadcasts.
Fox’s traditional TV operations saw revenue rise 2%, or $28 million, to $1.62 billion. Ad revenue slipped to $679 million, compared with $688 million in the year-earlier period. Affiliate fees rose 9%, or $67 million.
