Fox Corp. on Tuesday said revenue rose 5% in the first quarter of television giant’s fiscal year to $3.19 billion, getting a lift from hefty ad spending ahead of the midterm elections.
That was on par with the $3.17 billion expected, on average, by Wall Street analysts.
Ad spending rose 8 percent in the quarter to $1.22 billion, the owner of the Fox broadcast network, Fox News, Fox Sports and Tubi said.
The New York-based company reported net income attributable to Fox shareholders of $605 million, or $1.10 per share, for the three months ended Sept. 30. That was down 16% from $701 million, or $1.21 per share, in the first quarter of last year.
On an adjusted basis, however, net income of $1.21 per share came in above the $1.14 per share forecast by analysts.
“While we are mindful of current macroeconomic conditions, the durability of our brands and Fox’s ability to deliver audiences at scale position us well to navigate this uncertainty while continuing to create value for our shareholders,” said CEO Lachlan Murdoch in a prepared statement.
While the results were broadly positive, anticipation is set for the company’s conference call later Tuesday morning, when it is expected to announce progress on exploration of a recombination Fox with News Corp, the publishing arm and parent of the New York Post that was spun off in 2013. Fox founder Rupert Murdoch, 91, is executive chair of both companies. His son Lachlan is co-chair of News Corp as well as Fox executive chair and CEO. The company formed a special committee to review a remarriage last month. Shareholders will have the ultimate say in any move to bring the companies back together.
Shares of Fox spiked 2.5% to $29.60 in pre-market trading ahead of the opening bell
Fox said affiliate fees edged up 2.6% higher, to $1.71 billion.
Television saw an 8% revenue increase, as advertising revenue leaped 11% to $86 million for the quarter. The increase reflected higher political advertising revenue at Fox television stations and continued growth at Tubi, Fox’s nascent streaming app.