Fox Corp. delivered impressive earnings in the second quarter, surpassing analysts’ expectations. Earnings per share came in at 74 cents, beating the target of 72 cents and showing significant growth from 55 cents in the same period last year. Although revenue remained flat compared to the previous year, the company saw a 3% increase in affiliate fee revenue, driven by a 9% surge in the Television division. However, advertising revenue declined by 4%, primarily due to the absence of political spending at the company’s local stations compared to the 2022 midterm cycle. Additionally, the impact of increased supply in the direct response marketplace at Fox News Media was cited as a contributing factor.
Fox Corp. is considered a bellwether in the video advertising industry due to its strong presence in the pay-TV bundle and ad-supported streaming. As media companies navigate a challenging economic landscape and face tough comparisons with the election-boosted 2022, Fox’s performance is closely watched.
In April, the company agreed to pay $787.5 million to settle a lawsuit brought by Dominion Voting Systems. While this amount surprised some analysts, it is worth noting that it is tax deductible, as confirmed by FilmmakerFocus. Fox Corp. also faces additional legal challenges related to its coverage of the 2020 election and the airing of unsubstantiated claims of fraud on Fox News.
Overall, Fox Corp.’s earnings report showcases its resilience and ability to adapt to the evolving media landscape.
