Fox Corporation’s third-quarter financial results, released on Thursday (May 6) showed a net increase for income to $582 million at the broadcaster, even as revenues dropped.
The lack of a Super Bowl broadcast this year was the main factor Fox attributed its declining Q3 revenues, from the start of the year to March 31. Fox aired Super Bowl LIV in 2020, but this year it was CBS’ turn to pick up the championship game. In all, the Fox Corporation’s quarterly revenue dropped to $3.22 billion from $3.44 billion the prior year for Q3 covering the first three months of 2021.
Fox also saw advertising revenues dip to $283 million from $304 million the prior year. The company reported that even as linear pricing at Fox News Media stayed strong, it was more than offset by a slower news cycle this year, relative to the COVID-19 pandemic’s spread in early 2020.
Advertising revenues also dropped due to the Super Bowl’s absence, but Fox reported this was partially offset by the consolidation of Tubi, Inc. into the company, and the impact of additional NFL regular season and playoff broadcasts this quarter.
But nevertheless, quarterly net income for the company rose to $582 million compared to $90 million in the prior year quarter. The company’s report attributed the income increase to improved value in some of the company’s other investments.
Revenues at Fox’s affiliates also increased six per cent compared to last year, driven by renewed distribution agreements and contractual price increases.
Lachlan Murdoch, Fox’s executive chairman and CEO, praised the company for continuing to deliver operationally and financially, pacing well ahead of the previous year despite the COVID-19 pandemic and comparing themselves against a previous year where they aired the Super Bowl.
Murdoch said he was also happy with FOX News, calling it the country’s number one cable news network, and with FOX Sports for reaching an agreement with the NFL to extend the network’s rights package with the league, including expanded digital rights.
“These strategic milestones, coupled with a slate of complementary, high-growth, digital-focused assets, led by continued record growth at Tubi, provide a powerful platform to grow our business for the long-term,” Murdoch said in a statement.