Rupert Murdoch’s Fox has beaten second quarter revenue estimates off the back of strong advertising during the FIFA World Cup and the US midterm elections.
Ad revenue for the quarter rose 4 per cent to A$3.61 billion, well above Wall Street estimates of A$3.45 billion.
In addition, online platform Tubi’s ad revenue rose 25 per cent, while Fox’s television business posted an overall revenue jump of 6 per cent.
Overall business revenue hit A$6.66 billion (try not to read into that) after rising 3.8 per cent for the quarter, above analysts expectations of A$6.61 billion.
Adjusted earnings were in line with Wall Street, at 69.3 cents per share.
In light of these favourable numbers, Fox expanded its share buyback plan by A$4.3 billion to A$10.1 billion.
Chief Executive Officer Lachlan Murdoch credited “a compelling fall sports schedule, combined with an active midterm political news cycle” for the impressive quarter.
“We’ll be looking at M&A and other opportunities to use to deploy our capital against,” he told investors on the post-earnings call.
Analysts say Fox could face pressure in the coming months as the advertising boost from the World Cup fades and the political news cycle slows down.
The US advertisement market is expected to grow 5.9% this year, lower than the 9% growth seen in 2022, according to industry body Interactive Advertising Bureau. Advertising on broadcast and cable TV is expected to decline 6.3%.
Lachlan said in November that he expects growth in digital ads on the back of online streaming service Tubi to partially offset the softness.
