Fox reported lower first-quarter earnings as revenues rose.
Net income dipped to $605 million, or $1.10 a share, from $701 million, or $1.21 a share, a year ago. The company said net income was lower because of gains recognized last year in the company’s investment in Flutter.
Adjusted net income was $670 million, up from $642 million a year ago.
Revenue rose 5% to $3.19 billion.
Affiliate revenues rose 3%, with a 6% increase in the company’s television segment.
Advertising revenue rose 8%, led by higher political spending at the Fox Television stations and growth at Tubi, which racked up a 30% gain in the quarter.
On the company's earnings call, CEO Lachlan Murdoch said that the proposal by Rupert Murdoch and the Murdoch family trust to combine Fox with News Corp. was being considered by special committees of the boards of both companies, but no determination has been made and that there was no certainty a transaction would happen.
Fox said its cable-network programming unit’s profit rose fell to $742 million from $774 million as the company invested in digital products and sustained higher costs with breaking news coverage at Fox News Channel.
Revenues were up 1% to $1.43 billion. Affiliate-fee revenues were flat at $1.3 billion and advertising revenues rose 2% to $316 million.
On the television side, Lachlan Murdoch said the company's stations have already recorded record political advertising.
Tubi revenues were up 30% in the first quarter and are pacing at a 40% rate in Q2, he said, despite weakness in digital advertising at other companies.
"Once again, Fox delivered solid operational and financial results in our fiscal first quarter,” Lachlan Murdoch said.
“These results demonstrate the continued strength of our established businesses along with the momentum across our digital portfolio,” he said. ”It is a strong start to what promises to be a notable fiscal year of prominent scheduled events across the company underscoring the importance of our live and event programming to viewers. While we are mindful of current macroeconomic conditions, the durability of our brands and Fox’s ability to deliver audiences at scale position us well to navigate this uncertainty while continuing to create value for our shareholders.” ■
