We've Got Hollywood Covered

Fox Lost $85 Million Last Quarter Despite Jump in Revenue

Thank goodness for adjustments

Fox shareholders lost $85 million last quarter. The home to Fox broadcast network, Fox News, Fox Sports and Tubi considers the three-month period ending Dec. 31 to be its second (fiscal) quarter of the year.

Wall Street expected Fox to report Q2 2022 earnings per share (EPS) of 4 cents on $4.26 billion in revenue, according to a consensus of media analysts’ estimates. Fox actually reported a net loss of 15 cents per share on $4.44 billion in revenue. With some key adjustments, excluding the losses from its affiliates, Fox was able to report adjusted earnings per share of 13 cents and adjusted net income of $77 million.

All told, Fox’s revenue rose 9% from the same quarter last year, with cable, broadcast and Tubi all pitching in. Advertising revenue was up 6% to $2.4 billion and affiliate revenues increased 11% to nearly $1.7 billion. Unfortunately, expenses climbed as well.

“Against the high bar we set in our fiscal second quarter last year, we have once again delivered revenue and adjusted EBITDA growth in the second quarter of our 2022 fiscal year, while continuing to invest in our digital growth initiatives,” Fox Executive Chair and CEO Lachlan Murdoch said in a statement accompanying the financial results. “These strong results and broad-based operating momentum are underpinned by the most valuable news franchise in the country, the leading live sports franchise, our top broadcast network reinforced by a strategic stations portfolio, as well as the emerging leader in AVOD. This focused portfolio is delivering consistent growth for our shareholders in a thoughtful and disciplined manner.”

Shares in Fox rose about 6% by midday on Wednesday to $39.55.

Fox executives will host a conference call at 8:30 a.m. ET to discuss the quarter in greater detail.