Fox Corp. said it swung to a profit in its fiscal third quarter despite slumps in advertising revenue, largely due to the absence of charges associated with a massive legal setback tied to Fox News Channel and a boost in affiliate fees.
The owner of Fox News Channel and the Fox broadcasting network said overall revenue fell to about $3.45 billion, compared to approximately $4.08 billion in the year-earlier period.
Fox was crimped by comparisons with the year-earlier quarter, which featured a Super Bowl broadcast, but it was also boosted by the lack of charges associated with a settlement of more than $787 million to the voting technology firm Dominion Voting Systems, which wiped out profit at the company and spurred a loss of more than $50 million in its previous third fiscal quarter despite increases in revenue from advertising and distribution.
Fox swung to a profit of $704 million in the most recent quarter. Adjusted earnings came to$1.09 a share.
In a statement, Fox CEO Lachlan Murdoch noted the company’s “focus on live content and must-have event programming, is clearly valued by our audiences, advertisers and distribution partners.”
Revenue at the company’s cable operations fell to $1.47 billion, compared with $1.57 billion a year earlier. Fox said an increase in affiliate fees was offset by lower advertising, which was spurred by the absence of last year’s “World Baseball Classic,” lower revenue from digital advertising and continued but moderating price declines in direct-response commercials that make up a portion of the base of sponsors for Fox News.
Revenue also fell at the company’s linear TV properties, totaling $1.94 billion compared to nearly $2.48 billion in the year-earlier period. Fox said ad revenue fell year over year due to the absence of the Super Bowl in the current fiscal year. Advertising revenues slipped to $939 million, compared with $1.56 billion reported in the year-earlier period.
During a call with investors, Murdoch indicated Fox would place new emphasis on Tubi, its free streaming-video hub as well as a new streaming sports joint venture with Warner Bros. Discovery and Disney that is slated to launch in the fall. The executive said the new service is aimed at consumers who are not subscribing to cable or satellite services, and believed any cannibalization of those customers would be minimal.
