Fox Corporation (NASDAQ: FOXA) (NASDAQ: FOX) reported second-quarter 2023 revenues of $4.23 billion, down from $4.61 billion a year ago, almost in line with the consensus of $4.21 billion.
Affiliate fee revenues increased by 4%, driven by 10% growth in the Television segment.
Advertising revenues decreased by 20%, primarily due to the absence of the FIFA Men's World Cup at FOX Sports, lower political advertising revenues at the FOX Television Stations due to the absence of the 2022 midterm elections, and the impact of elevated supply in the direct response marketplace, lower ratings and higher preemptions associated with breaking news coverage at FOX News Media.
Expenses decreased in the quarter, primarily due to lower entertainment and sports programming rights amortization and production costs, led by fewer hours of original scripted programming and the absence of the Men's World Cup, partially offset by the renewed NFL contract.
"At the halfway point in our fiscal year, our results demonstrate the strength and durability of our core brands and their ability to deliver solid audiences across our portfolio. FOX Sports continues to benefit from the power of live sports programming, and FOX News has maintained its leadership in cable news, while Tubi has been resilient in an increasingly competitive market," said Executive Chair and CEO Lachlan Murdoch.
Adjusted net income was $165 million ($0.34 per share), beating the consensus of $0.11, down from $259 million ($0.48 per share) a year ago.
The latest quarterly results come as Fox is teaming up with Warner Bros. Discovery Inc (NASDAQ: WBD) and Walt Disney Co (NYSE: DIS) on a new sports streaming joint venture to put ESPN, TNT and Fox Sports on a standalone app.
Price Action: FOXA shares are up 0.69% at $29.54 on the last check Wednesday.