Fox Corp. Sees Q3 Profits Dip Due to FanDuel Stake, Despite Revenue Gains

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Fox Corporation said profit dipped in its third fiscal quarter due to declines in value of some of its outside investments, even as revenue increased at its mainstay cable and broadcast operations.

The owner of the Fox broadcast network, Fox Sports and Fox News Channel said net income attributable to shareholders came to $283 million, or 50 cents per share, compared with $567 million, or 96 cents per share, in the year-earlier period. The company has a sizable stake in Flutter Entertainment, the sports-betting company that controls FanDuel. Meanwhile, the company enjoyed a 7% increase in revenue, which rose to $3.46 billion from $3.22 billion a year earlier.

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In a statement, Fox CEO Lachlan Murdoch cited “pricing strength in both distribution and advertising revenues across our leadership brands, complemented by the powerful momentum we continue to see at Tubi,” the company’s streaming hub, as reasons for the revenue gains.

Revenue at Fox’s cable operations rose 8%, or $112 million, to $1.58 billion during the period, largely due to a 20% increase in ad revenue and a 3% hike in revenue from affiliate fees. Fox said its cable business was also buoyed by higher revenue from its Fox Nation streaming service and the timing of sports events.

Revenue at the company’s broadcast operations rose 7%, or $125 million, to $1.82 billion during the period, owing to advertising growth at Tubi and an extra week of the NFL regular season, as well as an 8% increase in affiliate fees.

During a call with investors, Murdoch said the company’s strategy of focusing on live programming, such as sports and news, was proving itself. The executive said Fox expected to do well in the industry’s looming “upfront’ ad-sales marketplace because it would be selling inventory in an array of top live events including the Super Bowl, the World Cup and news coverage of the coming 2022 midterm elections. He also said Fox Sports had won rights to show an incremental NFL game on Christmas Day as part of the league’s next season.

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