Fox Corp. Reports Decline in Profit and Revenue in Third Fiscal Quarter Due to Absence of Super Bowl Broadcast
Fox Corp. experienced a decline in profit and revenue in its third fiscal quarter due to the absence of a Super Bowl broadcast. The company reported a revenue decrease to $3.99 billion compared to $4.37 billion in the previous year. Despite an increase in distribution revenue by 3% from cable operations, it was not enough to offset the comparisons with the previous year. Advertising revenue also saw a decrease to $1.56 billion from $2.04 billion in the same period last year.
Fox CEO Lachlan Murdoch highlighted the upcoming FIFA Men's World Cup as a significant sporting event for the company. He emphasized their commitment to delivering long-term shareholder value and mentioned the strong balance sheet. The net income attributable to shareholders was $166 million, or 38 cents per share, down from $346 million, or 75 cents per share, in the previous year.
The impact of not having a Super Bowl telecast was most evident in the traditional TV operations of the company, where revenue dropped to $2.2 billion from $2.7 billion in the previous year. Ad revenue also decreased to $1.17 billion from $1.66 billion, partially offset by the broadcast of an additional NFL Wild Card game. Distribution revenue increased to $858 million from $870 million.
On the other hand, the cable properties of Fox Corp. showed more positive results. Revenue from cable operations increased by $105 million to $1.74 billion. Distribution revenue rose by 5%, or $64 million, while ad revenue increased by 5%, or $18 million, mainly driven by better pricing at Fox News and its related portfolio.
Overall, Fox Corp. faced challenges in its third fiscal quarter due to the absence of a Super Bowl broadcast, leading to a decline in profit and revenue. Despite this setback, the company remains focused on delivering value to shareholders and highlighted the upcoming FIFA Men's World Cup as a significant event. The impact was more pronounced in traditional TV operations, while cable properties showed more positive results.