FX.co ★ Fox Q1 Results Top Estimates

Fox Corporation (with stock ticker symbols: FOXA, FOX) announced on Monday a more than twofold increase in net profit for the first quarter compared to the previous year. This growth primarily stemmed from an 11% boost in revenue, driven by unprecedented political advertising and continued expansion at Tubi. Both adjusted earnings per share and quarterly revenue exceeded analyst predictions.

The surge in profits was further enhanced by an increased fair value of the company's investments, categorized as net non-operating other income.

Fox shares, during Nasdaq pre-market trading, advanced to $44.00, marking a rise of $2.12 or 5.06%.

"Fiscal 2025 has begun strongly for our portfolio, showcasing robust audience growth at FOX News, record political advertising company-wide, accelerating revenue growth at Tubi, and a promising start to our fall sports calendar," stated Lachlan Murdoch, Executive Chairman and CEO.

For the first quarter, Fox reported a net income of $827 million attributable to its stockholders, equating to $1.78 per share, a significant climb from $407 million or $0.82 per share in the same quarter the previous year.

Excluding specific items, adjusted earnings amounted to $1.45 per share, compared to $1.09 per share in the prior year's quarter.

A survey of 17 analysts by Thomson Reuters anticipated earnings of $1.11 per share for the quarter, typically excluding special items from their estimates.

Quarterly revenue ascended 11% to $5.56 billion from $3.21 billion in the corresponding quarter last year. This increase was largely attributed to an 11% rise in advertising revenues, driven mainly by higher political advertising at FOX Television Stations and Tubi's growth. Analysts had estimated revenue at $3.37 billion for the quarter.

Affiliate fee revenue grew by 6% to $1.84 billion year-on-year, propelled by a 10% surge in the Television segment and a 3% increase in the Cable Network Programming segment.

Advertising revenue rose by 11% to $1.33 billion compared to last year, spurred by heightened political advertising at FOX Television Stations, sustained growth at Tubi, improved ratings, increased pricing in the direct response marketplace at FOX News Media, and the influence of the "Summer of Soccer" at FOX Sports.

Other revenues saw a 47% increase, reaching $392 million, primarily due to increased sports sublicensing revenues at national sports networks.

Revenue from Cable Network Programming saw a 15% uplift to $1.60 billion compared to last year, while revenue for Television enhanced 10% to $1.95 billion from the previous year.