#United States #New York #Financial Performance #earnings report #Fox Corporation

Fox Corporation's Financial Performance in Q3 2025

On May 12, 2025, Fox Corporation (NASDAQ: FOXA, FOX) announced its financial results for the quarter ending March 31, 2025, revealing a notable increase in revenues and a strong market position. This quarter marked a significant achievement for the company, with total revenues reaching $4.37 billion, which represents a 27% increase or $924 million compared to the same period the previous year.

Revenue Highlights

The quarterly results were buoyed by several factors:

• - Affiliate Fee Revenues rose by 3%, reflecting a 4% increase in the Television segment and a 3% increase in the Cable Network Programming segment.
• - Advertising Revenues saw a remarkable 65% increase. This surge was largely attributed to the exceptionally high viewership from Super Bowl LIX, the ongoing digital expansion led by the Tubi AVOD service, and higher ratings and pricing for news segments.
• - Additionally, Other Revenues increased by 20%, driven primarily by enhanced sports sublicensing revenues.

The total revenue boosts underscore Fox's effective strategies in leveraging its platforms to maximize audience engagement and advertiser interest, particularly during high-profile events like the Super Bowl.

Net Income and Earnings Per Share Metrics

Despite the impressive revenue growth, Fox Corporation reported a net income of $354 million, down from $704 million in the prior year quarter. When focusing on net income attributable to Fox shareholders, the figure was $346 million, translating to $0.75 per share, a notable decrease from $1.40 per share the previous year.

For investors, adjusted net income attributable to shareholders stood at $507 million or $1.10 per share compared to $520 million and $1.09 per share in the same quarter last year.

This variance in net income is largely attributed to elevated costs incurred from increased sports programming rights amortization and production expenses related to Super Bowl LIX, all of which are part of the expanding digital content strategy efforts.

Adjusted EBITDA Analysis

Fox's Adjusted EBITDA for this quarter was reported at $856 million, down from $891 million year-over-year. While revenue increases were encouraging, rising expenses curtailed the EBITDA gains. The costs were largely linked to sports programming and heightened digital marketing expenses due to the company's ongoing strategies aiming to capture a larger share of the digital audience.

Executive Commentary

Reflecting on the results, Executive Chair and CEO Lachlan Murdoch commented, "Our strong fiscal third quarter underscored the central role FOX plays in informing and entertaining America, and our financial performance… delivers for our audiences, advertisers, and distribution partners."

The confidence expressed by Murdoch highlights the belief in Fox’s robust platform and long-term strategic planning, which aims to create enduring value for shareholders in an evolving media landscape.

Segment Performance Breakdown

Cable Network Programming

• - Generated revenues of $1.64 billion, up by 11% from the last year. This segment’s growth was supported by a 3% rise in affiliate fee revenues and a 26% increase in advertising revenues, climbing from strong ratings. EBITDA in this segment enhanced to $878 million, a 7% rise year-on-year despite cost increases.

Television Segment

• - Reported revenues of $2.70 billion, a substantial 40% increase driven primarily by vastly improved advertising revenues, which surged 77% due to Super Bowl LIX. The television segment’s EBITDA stood at just $60 million, considerably below the $145 million in the prior year, as expenses related to programming costs surged following the high-profile event.

Overall, Fox Corporation is demonstrating resilience and adaptability in a dynamic media industry. While facing hurdles such as increasing operational costs, the strategic focus on digital growth and major events like the Super Bowl positions the company for future success. With a strong financial foundation and a deliberate approach to enhancing shareholder value, Fox remains committed to leading in both engagement and profitability.