Summary
Fox Corporation (FOXA) reported a significant increase in net income for the three and nine months ended March 31, 2021, driven primarily by a substantial reimbursement from Disney related to the Divestiture Tax and unrealized gains on investments. Total revenues saw a modest increase for the nine-month period, but a decrease for the quarter, primarily due to lower advertising revenue, which was partially offset by increased affiliate fees and the performance of Tubi. The company is navigating the ongoing impacts of the COVID-19 pandemic, which has affected advertising spend and content production, particularly sports events, although many have resumed. Operationally, the Cable Network Programming segment showed growth in Segment EBITDA, benefiting from higher affiliate fees and advertising revenue, while the Television segment experienced a notable decline in Segment EBITDA for the quarter due to lower advertising revenue and increased programming costs, despite overall revenue flatness for the nine months. The company maintains a strong liquidity position with substantial cash reserves and an undrawn revolving credit facility, positioning it to manage operational needs and potential future investments.
Financial Highlights
50 data points| Revenue | $3.21B |
| SG&A Expenses | $437.00M |
| Interest Expense | $98.00M |
| Net Income | $567.00M |
| EPS (Basic) | $0.96 |
| EPS (Diluted) | $0.96 |
| Shares Outstanding (Basic) | 589.00M |
| Shares Outstanding (Diluted) | 593.00M |
Key Highlights
- 1Net income attributable to stockholders more than doubled for the nine months ended March 31, 2021 ($1.9 billion) compared to the prior year ($877 million), significantly boosted by a $462 million reimbursement from Disney and strong performance in equity investments.
- 2Total revenues for the nine months ended March 31, 2021, increased by 1% to $10.02 billion, though revenues for the third quarter decreased by 7% to $3.22 billion, primarily due to a 24% drop in advertising revenue.
- 3The Cable Network Programming segment demonstrated resilience, with Segment EBITDA growing 7% for the quarter and 8% for the nine months, driven by increased affiliate fees and advertising revenue, despite a slight decline in overall subscribers.
- 4The Television segment's Segment EBITDA decreased significantly by 40% in the quarter, largely due to a 28% drop in advertising revenue and higher programming costs, though it saw a 56% increase for the nine-month period due to strong affiliate fees and overall lower expenses.
- 5The company continues to manage the impacts of COVID-19, noting disruptions to advertising and sports content, but has seen a resumption in most events and productions. Affiliate fee credits were recorded due to the under-delivery of college football games.
- 6Fox Corporation maintained a strong liquidity position with $5.8 billion in cash and cash equivalents and an undrawn $1.0 billion revolving credit facility as of March 31, 2021.
- 7The company repurchased approximately $725 million of its common stock during the nine months ended March 31, 2021, under its authorized repurchase program.