Fox Revenue Jumps 22% To $4.57 Billion As World Cup Lifts Television EBITDA 134%
Net income rose to $957 million from $609 million as advertising revenue climbed 47% in the quarter ended September 30.
Fox Corporation, the owner of the FOX broadcast network, FOX News and the Tubi streaming service, reported revenue of $4.57 billion for the quarter ended September 30, up $833 million or 22% from a year earlier. Net income reached $957 million, against $609 million, as the FIFA Men's World Cup and political advertising drove a 47% jump in ad sales, the company said Monday.
Advertising did the heavy lifting
Advertising revenue reached $2.08 billion from $1.41 billion. The company credited the World Cup broadcast, higher political advertising and continued digital growth led by Tubi. Distribution revenue, the fees paid by cable, satellite and streaming distributors, rose 9% to $2.08 billion.
Adjusted EBITDA, a measure of operating profit that leaves out depreciation, restructuring, interest, taxes and non-operating items, rose $576 million or 54% to $1.64 billion. Higher sports rights amortization and production costs, led by the World Cup, and higher digital content costs absorbed part of the revenue gain.
Net income attributable to Fox stockholders was $943 million, or $2.20 per share, versus $599 million, or $1.32. On an adjusted basis it was $1.09 billion, or $2.54 per share, against $686 million, or $1.51.
Television segment more than doubles
Television segment EBITDA climbed 134% to $934 million from $399 million. Segment revenue rose 32% to $2.71 billion, with advertising up $641 million or 60%. Lower NFL costs, tied to the timing of games, partly offset the higher World Cup expenses.
Cable Network Programming, home to FOX News, FOX Business and FS1, grew more slowly. Revenue rose 8% to $1.80 billion, with distribution up 10% on contractual price increases and more subscribers. Segment EBITDA rose 7% to $859 million, and advertising there was partly held back by lower digital news advertising.
CEO Lachlan Murdoch, who is also executive chair, called it an "outstanding start to fiscal 2027" with first-quarter records for revenue and Adjusted EBITDA.
Cash flow turns positive
Operating activities produced $616 million of cash, compared with a $130 million outflow a year earlier. Cash stood at $4.54 billion on September 30, up from $4.21 billion at June 30, against borrowings of $6.61 billion.
The company repurchased no shares in the quarter, after buying back $250 million a year earlier. Weighted average shares fell to 428 million from 455 million.
Fox's release lists the pending Roku transaction among the risks that could cause actual results to differ from its forward-looking statements.
Sources
- 8-K Filing — Fox Corp (FOXA) — SEC EDGAR
- Exhibit foxearningsreleaseq127.htm — Fox Corp 8-K exhibit — SEC EDGAR
- Fox Corp. Q1 Sees Profit Hike on World Cup, Political Ads — variety.com
- How Did Fox Stock Leave Its Industry Behind? — Yahoo Finance
- Fox: Fiscal Q1 Earnings Snapshot – WTOP News — wtop.com
- Fox News ratings sink 27% in October, still on top of CNN, MS NOW — washingtontimes.com
- FOX REPORTS FIRST QUARTER FISCAL 2027 REVENUE OF $4.57 BILLION, NET INCOME OF $957 MILLION, AND ADJUSTED EBITDA OF $1.64 BILLION — prnewswire.com
