Key Takeaways:
Fox Corp. (FOXA) reported third-quarter revenue of $3.99 billion, beating Wall Street estimates as growth in its streaming and cable divisions helped offset a steep advertising decline from the absence of the Super Bowl.
"This strong performance, led by robust core advertising trends, underscores FOX's leadership in live programming, bolstered by continued strength at our leading free streaming service, Tubi," CEO Lachlan Murdoch said in a statement.
The company's revenue fell 9% from the prior year, primarily due to a 24% drop in advertising revenue from the comparison against last year's broadcast of Super Bowl LIX. Adjusted earnings per share of $1.32, however, easily surpassed analyst estimates of 97 cents, while adjusted EBITDA increased 11% year-over-year to $954 million.
Shares rose around 6% in premarket trading on the news. The results highlight Fox's pivot toward its Tubi streaming service and live programming to counter headwinds in the traditional media landscape.
The decline in top-line advertising was partially offset by a 5% increase in the Cable Network Programming segment, which benefited from higher news pricing and the broadcast of the World Baseball Classic. Distribution revenues also climbed 3% to $2.11 billion.
The company did not disclose forward guidance. The strong performance of Tubi, which now reaches over 100 million monthly active users, signals its growing importance to Fox's strategy. Investors will look to the upcoming FIFA World Cup 2026 as the next major catalyst for advertising and distribution revenue.
This article is for informational purposes only and does not constitute investment advice.
