Fox Corp.'s sales rose 5% in the recently ended quarter as the advertising market showed signs of strength despite macroeconomic worries.
The company posted revenue of $3.03 billion for the three months ended June 30, below Wall Street expectations for revenue of $3.05 billion. Fox posted revenue of $2.89 billion a year ago.
The company said advertising revenue rose about 7%, primarily due to stronger pricing and higher ratings at Fox News Media, higher political advertising revenue at the Fox Television Stations and continued growth at its ad-supported streaming service Tubi.
Fox News parent Fox Corp. and Wall Street Journal parent company News Corp share common ownership.
In Fox's cable network programming business, revenue rose 4%, boosted by advertising strength at Fox News Media, which was partially offset by the impact of higher pre-emptions associated with breaking news coverage, due to fewer ads as the network covered the war in Ukraine, for instance. Affiliate revenue rose 2%, mostly due to contractual price increases.
The segment's earnings fell as higher revenue was more than offset by surging costs tied to increased digital investment and higher costs at Fox News Media, including those associated with breaking news coverage.
Fox's television business posted 5% growth in revenue as affiliate fee revenue rose 7%, boosted by higher average rates at owned and operated TV stations and higher fees from third-party Fox affiliates. Advertising revenue rose 4%, mostly due to higher political advertising revenues at the Fox Television Stations, growth at Tubi and the addition of the United States Football League at Fox Sports, partially offset by lower ratings at Fox Entertainment.
Earnings for the segment surged 53% as expenses remained largely unchanged.
Overall for the fiscal fourth quarter, Fox posted a profit attributable to stockholders of $306 million, or 55 cents a share, compared with $253 million, or 43 cents a share, a year earlier. Stripping out one-time items, adjusted earnings came to 74 cents a share, a penny short of Wall Street expectations.
Shares fell 1% in premarket trading to $31.09. The stock is down almost 9% so far this year, outperforming the S&P 500's nearly 14% decline over that same period.