Fox sees profits decline in the fourth quarter despite an increase in revenue

Fox Corporation said its fourth-quarter net profit fell due to a change in the value of its investment in online gambling company Flutter, as the company grappled with challenges in winning advertising and saw an increase in its distribution revenue stream.

Sports proved to be a key driver of results during that period, particularly Fox’s broadcasts of the UEFA European Championship and the CONMEBOL Copa América.

Earnings were $319 million, or 68 cents per share, compared with $375 million, or 74 cents per share, in the same period a year earlier.

Revenue rose 2%, or $60 million, to $3.09 billion in the period. Fox said the increase was largely driven by a 5% increase in affiliate fees, but noted that advertising revenue in the period was basically flat compared to results a year earlier.

On a Tuesday call with investors, Fox CEO Lachlan Murdoch said the company was encouraged that the advertising market appeared healthier than six months ago and pointed to the 2024 U.S. presidential election, which he said would boost sales. local stations of the company. Murdoch also said that Tubi, the company’s free, ad-supported streaming hub, continued to see momentum in terms of usage and interest from advertisers.

More to come…