Fox Corp (FOXA) Q3 Fiscal 2024 Earnings: Surpasses Analyst Revenue Forecasts

Strong Performance Despite Advertising Revenue Decline

  • Revenue: Reported at $3.45 billion, slightly above estimates of $3.445 billion.
  • Net Income: Reached $704 million, significantly above estimates of $485.65 million.
  • Earnings Per Share (EPS): Achieved $1.40, exceeding the estimated $0.96.
  • Adjusted EBITDA: Increased to $891 million, up 7% from the previous year.
  • Advertising Revenue: Declined to $1.24 billion from $1.88 billion year-over-year, primarily due to fewer NFL games and no Super Bowl broadcast.
  • Affiliate Fee Revenue: Grew by 4%, with a notable 9% increase in the Television segment.
  • Stock Repurchase: $250 million of Class A common stock repurchased during the quarter, with $1.65 billion remaining under the current authorization.
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On May 8, 2024, Fox Corp (FOXA, Financial) announced its financial results for the third quarter of fiscal year 2024, revealing significant achievements and operational highlights. The company reported a total quarterly revenue of $3.45 billion, aligning closely with the estimated revenue of $3.45 billion projected by analysts. This figure, however, represents a decrease from the $4.08 billion reported in the same quarter of the previous year. The detailed earnings can be explored in the company's 8-K filing.

Fox operates primarily through two segments: Cable Networks, including Fox News and Fox Business, and Television, which features the Fox broadcast network and the streaming platform Tubi. The company's focus on live news and sports content has been pivotal, especially after divesting most of its entertainment assets to Disney in 2019.


Financial Highlights and Operational Performance

Fox Corp reported a robust increase in net income to $704 million, a significant recovery from a net loss of $50 million in the prior year's quarter. This improvement was largely due to the absence of charges related to legal settlements at FOX News Media. Adjusted EBITDA also saw a 7% increase to $891 million. Notably, the earnings per share (EPS) stood at $1.40, substantially higher than the estimated $0.96, showcasing a strong profitability metric for the quarter.

Despite challenges in the advertising sector, with revenues dropping to $1.24 billion from $1.88 billion due to the absence of events like Super Bowl LVII and fewer NFL games, Fox managed to mitigate some impacts through growth in affiliate fee revenues, which increased by 4%. This was supported by a 9% growth in the Television segment, demonstrating resilience in other areas of operation.

Strategic Decisions and Future Outlook

Lachlan Murdoch, Executive Chair and CEO, commented on the company's strategic positioning, stating:

“FOX’s fiscal third quarter results once again demonstrate how our unique strategy continues to distinguish FOX from our peers. The strength and leadership of our core brands, coupled with our focus on live content and must-have event programming, is clearly valued by our audiences, advertisers and distribution partners. The consistent financial delivery from this strategy supports our investments in innovation which are driving momentum in our digital portfolio, led by Tubi. Our balanced capital allocation approach, fortified by our strong balance sheet, underpins our ability to drive long-term value creation for our shareholders."

This statement underscores Fox's commitment to leveraging its core competencies in live broadcasting and digital innovation to sustain growth and shareholder value.

Capital Management and Shareholder Returns

The company also highlighted its ongoing share repurchase program, with approximately $4.35 billion of its Class A common stock repurchased to date. This reflects Fox's proactive capital management strategy and its focus on enhancing shareholder returns.

In conclusion, Fox Corp's third-quarter results for fiscal 2024 reflect a company that is navigating industry challenges with strategic precision and operational efficiency. The alignment with analyst revenue forecasts and substantial earnings beat demonstrates Fox's robust business model and its ability to adapt to dynamic market conditions.

Explore the complete 8-K earnings release (here) from Fox Corp for further details.