Summary
Fox Corporation (FOXA) reported solid revenue growth of 18% year-over-year for the third quarter ended March 31, 2023, reaching $4.1 billion. This surge was largely driven by a substantial increase in advertising revenue, which climbed 43%, significantly boosted by the broadcast of Super Bowl LVII and a higher volume of NFL games, alongside continued growth at its AVOD service, Tubi. Affiliate fee revenue also saw a modest 3% increase. Despite the revenue gains, the company experienced a net loss of $50 million for the quarter, a reversal from a $290 million net income in the prior year. This swing was primarily attributable to significant legal settlement costs at FOX News Media, which were partially offset by a higher gain from the sale of its investment in Flutter Entertainment plc and strong performance in Segment EBITDA. For the nine-month period, net income was $884 million, a 4% decrease year-over-year, also impacted by the aforementioned legal costs but supported by the Super Bowl and political advertising. From a segment perspective, the Television segment showed remarkable revenue growth of 36% for the quarter, driven by Super Bowl LVII and increased NFL coverage, while the Cable Network Programming segment experienced a slight 1% revenue decline. Management highlights strong liquidity with approximately $4.1 billion in cash and an undrawn $1.0 billion credit facility.
Financial Highlights
51 data points| Revenue | $4.08B |
| SG&A Expenses | $528.00M |
| Interest Expense | $86.00M |
| Net Income | -$54.00M |
| EPS (Basic) | $-0.10 |
| EPS (Diluted) | $-0.10 |
| Shares Outstanding (Basic) | 521.00M |
| Shares Outstanding (Diluted) | 521.00M |
Key Highlights
- 1Total revenues increased by 18% to $4.1 billion for the three months ended March 31, 2023, compared to the prior year, driven by strong advertising and affiliate fee revenues.
- 2Advertising revenue saw a significant 43% increase ($568 million), largely due to the broadcast of Super Bowl LVII ($550 million), higher NFL game volumes, and growth at Tubi.
- 3The company reported a net loss of $50 million for the quarter, a substantial decrease from a net income of $290 million in the prior year, primarily due to higher legal settlement costs at FOX News Media.
- 4The Television segment's revenue grew by 36% for the quarter, fueled by Super Bowl LVII and NFL advertising, while Cable Network Programming revenue saw a slight 1% decrease.
- 5Adjusted EBITDA increased by 3% to $833 million for the quarter, indicating operational resilience despite the net loss.
- 6Net cash provided by operating activities increased by 37% to $1.3 billion for the nine months ended March 31, 2023, compared to the prior year period, aided by higher Segment EBITDA and lower programming costs.
- 7The company repurchased approximately $1.8 billion of common stock during the nine months ended March 31, 2023, under its expanded $7 billion stock repurchase program.