In its Q3 earnings report released on Tuesday (May 10), Fox Corp. reported quarterly revenues of US$3.46 billion, up 7% from the prior year quarter. But it also reported a quarterly net income of $290 million, a drop from the $582 million reported in the prior year quarter, with net income attributable to Fox Corp. stockholders down to $283 million from $567 million in the prior year quarter.
In the earnings report, Fox attributed the income drop to a change in fair value of some of the company’s investments.
Affiliate revenues, meanwhile, increased 5%, with the company also experiencing 8% growth in its Television segment and 3% growth in the Cable Network Programming segment. Advertising revenues grew 9% due to stronger pricing and higher ratings at Fox News Media, along with the continuing growth of AVOD platform Tubi. Fox’s other revenues also increased 18%, driven by sports sub-licensing revenues in the Cable Network Programming segment, which had been affected by COVID-19 in the prior year quarter. It was also boosted by the consolidation of entertainment prodcos and content companies in the roster including MarVista Entertainment, Studio Ramsay Global and TMZ in the Television segment.
Advertising revenues in the Cable Network Programming segment also saw a 20% increase, thanks to continued strong pricing and higher ratings, partially offset by higher pre-emptions associated with Fox News Media breaking news coverage. Quarterly segment revenues increased 8% to $1.58 billion. Fox’s cable operations experienced a strong quarter thanks to sports events as well as higher subscription revenues from the Fox Nation streaming service.
Fox executive chairman and CEO Lachlan Murdoch said in an official statement that the company’s Q3 results demonstrated the company’s capacity to deliver sustained, strong revenue growth.
“In the three years since the formation of Fox we have seen rapid industry change. Our focused portfolio and clear strategy underpin our success today, and continue to distinguish Fox from its peers,” Murdoch said. “The power of our brands and the scaled audiences that they serve continue to provide a uniquely strong platform to strategically manage our businesses for long-term growth in a thoughtful and disciplined manner.”