Fox Corp. Q3 Profit Misses Estimates; Revenues Up 7%

(RTTNews) - Fox Corporation (FOXA, FOX) said it recorded a 7% topline growth in the third quarter, propelled by pricing strength in both distribution and advertising revenues across its leadership brands, complemented by the continued momentum at Tubi. However, adjusted EBITDA declined to $811 million from $899 million, last year, as the revenue increases were more than offset by higher expenses. The company said the increase in expenses primarily reflects increased digital investment, higher sports programming rights amortization and production costs, and the write-down of certain scripted entertainment programming.

Adjusted net income attributable to Fox stockholders was $459 million or $0.81 per share compared to $523 million or $0.88 per share, a year ago. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $0.88, for the quarter. Analysts' estimates typically exclude special items.

Net income attributable to Fox stockholders was $283 million or $0.50 per share compared to $567 million or $0.96 per share, a year ago. The company noted that the variance was primarily due to the change in fair value of the investments recognized in Other, net.

Total quarterly revenues were $3.46 billion, a 7% increase from $3.22 billion, last year. Affiliate revenues increased 5% with 8% growth at the Television segment and 3% growth at the Cable Network Programming segment. Advertising revenues increased 9%, primarily due to stronger pricing and higher ratings at FOX News Media and continued growth at Tubi. Analysts on average had estimated $3.39 billion in revenue.

Shares of Fox Corporation were down 5% in pre-market trade on Tuesday.