Fox Corp. Earnings Boosted by Roku Investment

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Fox. Corp's quarterly revenue rose 5 percent to $3.78 billion compared to a year-earlier $3.58 billion

Fox Corp., led by CEO and executive chairman Lachlan Murdoch, on Wednesday reported sharply higher second quarter earnings on valuation changes and higher advertising revenue.

Fox — which, after Rupert Murdoch agreed to sell most of 21st Century Fox to Walt Disney for $71 billion, became a standalone company mostly focused on news and sports — reported net income of $314 million for the latest quarter, or 48 cents per share, compared with $24 million in the year-ago period, or 1 cents a share.

The company also reported advertising revenue of $2.01 billion, up from a year-earlier $1.98 billion. MoffettNathanson analyst Michael Nathanson in his earnings preview noted positive momentum at the Fox network. "Among broadcast networks, Fox was the lone bright spot with 6 percent growth in the quarter," he wrote.

Barclays analyst Kannan Venkateshwar noted that "Fox are likely to have some tailwinds from NFL ratings, but cable networks are likely to remain weak." And he added: "While Fox News ratings have been strong, the impeachment-driven news cycle has likely resulted in more than usual pre-emption, which likely capped benefits."

 

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