Fox revenues reach US$4.1B as ad spend, TV and cable segments grow

Fox Corp. revenues reached US$4.09 billion in the second quarter of 2021 as the mass media giant benefited from higher ad spend and growth in its television and cable network ...
February 9, 2021

Fox Corp. revenues reached US$4.09 billion in the second quarter of 2021 as the mass media giant benefited from higher ad spend and growth in its television and cable network programming segments.

Total quarterly revenues were up 8% from $3.78 billion in the year-ago quarter, while advertising revenues rose 14% — which the company attributed to “record” political ad revenues at the Fox Television stations, linear and digital growth at Fox News Media and the impact of the consolidation of Tubi.

Affiliate revenues increased 6% led by growth in the television segment, which posted revenues of $2.56 billion, an increase of $290 million (13%) from the year prior.

Advertising revenues, meanwhile, ballooned by $168 million (10%) in the television segment, while affiliate revenues surged $111 million (23%).

Television reported a quarterly segment EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss of $185 million, partially offset by the postponement of certain scripted programming at Fox Entertainment due to COVID-19.

Cable network programming reported quarterly segment revenues of $1.49 billion, a 1% increase of $19 million from the prior year quarter.

Advertising revenues for the segment were up $104 million, or 31%, and were driven by linear and digital growth at Fox News Media; while affiliate revenues decreased $29 million, or 3%.

Fox also reported a 14% decline in other revenues, primarily due to lower sports sublicensing revenues in the cable network programming segment as a result of canceled college football games in the quarter due to the ongoing pandemic.

The company stated it continues to experience disruption resulting from the COVID-19 pandemic and its impact on the financial market, which has led some of Fox’s advertisers to reduce their spending.

“Depending on the duration and severity of the recession, it could lead to changes in consumer behavior, including increasing numbers of consumers canceling or foregoing subscriptions to multi-channel video programming distributor services, that adversely affect the company’s affiliate fee and advertising revenues,” the Q2 report stated.

Executive chairman and CEO Lachlan Murdoch said in a statement: “Once again, the company delivered exceptional operating and financial results. Fox Television Stations, Fox News Media and Tubi all experienced record highs in the December quarter, led by an unprecedented political advertising cycle at our local television stations, strong digital growth at Fox News Media and an influx of new advertisers at Tubi. We are looking forward to a return to normal entertainment and sports production schedules, and we are grateful to our colleagues and business partners who, during the pandemic, have ensured that our viewers are informed and engaged. Through it all, the fundamentals of our business and our strategic focus have never been stronger.”

In December, Fox Entertainment and Pepsi announced a partnership for the upcoming primetime trivia game show Cherries Wild, created by Wes Kauble (Beat Shazam, Supermarket Sweep) and hosted by American Pie actor Jason Biggs.

The format is produced by produced by Fox Alternative Entertainment (FAE), Fox Entertainment’s in-house unscripted studio. The studio also produces shiny-floor formats The Masked Singer and I Can See Your Voice, hosted by Ken Jeong (pictured).

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