Fox Corp. Q2 Results Beat View

Fox Corp. (FOXA,FOX) reported that its second-quarter net income attributable to stockholders declined to $224 million or $0.37 per share from $300 million or $0.48 per share in the prior year quarter. The decrease in net income was primarily due to higher gains recognized in Other, net in the prior year quarter.

Adjusted net income attributable to stockholders increased 45% to $93 million from the $64 million reported in the prior year quarter. Adjusted earnings per share increased to $0.16 per share from $0.10 in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share. Analysts’ estimates typically exclude special items.

Total quarterly revenues increased 8% to $4.09 billion from last year’s $3.78 billion driven by revenue growth at the Television and Cable Network Programming segments. Analysts expected revenues of $3.99 billion for the second-quarter.

Advertising revenues increased 14%, primarily due to record political advertising revenues at the FOX Television Stations, continued linear and digital growth at FOX News Media and the impact of the consolidation of Tubi Inc.

Affiliate revenues increased 6% led by growth at the Television segment. The Company also reported a 14% decrease in other revenues, primarily due to lower sports sublicensing revenues at the Cable Network Programming segment as a result of cancelled college football games in the quarter due to COVID-19. The lower sports sublicensing revenues at the Cable Network Programming segment were offset by a corresponding reduction in sports programming rights amortization.

Cable Network Programming segment’s quarterly revenues were $1.49 billion, an increase of $19 million or 1% from the amount reported in the prior year quarter, as higher advertising revenues were largely offset by lower affiliate and other revenues.

Television segment’s quarterly segment revenues were $2.56 billion, an increase of $290 million or 13% from the amount reported in the prior year quarter, primarily reflecting increases in advertising and affiliate revenues. Advertising revenues increased $168 million or 10%, primarily due to record political advertising revenues at the FOX Television Stations and the impact of the consolidation of Tubi.

The company has declared a dividend of $0.23 per Class A and Class B share. This dividend is payable on April 7, 2021 with a record date for determining dividend entitlements of March 10, 2021.

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