Although Fox warned the coronavirus pandemic could have adverse affects on its bottom line going forward, the company managed to come slightly ahead of Wall Street expectations in reporting its fourth quarter earnings.
For the three months ending on June 30, representing the company’s fourth fiscal quarter for 2020, Fox reported $2.42 billion in revenue, topping analyst estimates of $2.4 billion. Fox also posted an adjusted earnings per share of 62 cents, which beat projections of 57 cents. Compared to the year-ago quarter, revenue was down 4% from 2.51 billion. This is the first fourth quarter since 2017 that Fox was not airing a World Cup. For the full fiscal 2020 year, Fox reported $12.30 billion in revenue, an 8% increase from the $11.39 billion from the prior year.
Fox also saw its net income for the quarter decrease by more than $300 million from the prior year ($454 million to $122 million), largely do to its decision to exit its rights deal with the U.S. Golf Association, which NBCUniversal took over.
“Fox delivered strong results for the fourth quarter and full fiscal year, even in spite of the unprecedented environment in which we all continue to operate,underscoring the strength of our brands and content offering,” CEO Lachlan Murdoch said. “We continue to expand the way audiences interact and connect with our brands while simultaneously diversifying and enhancing our revenue base. We entered the COVID-19 crisis on sound operational and financial footing and we expect to emerge from this pandemic more competitive, more focused and even more strongly positioned to deliver value for our viewers, partners and shareholders in the years ahead.”
The majority of the impact from COVID-19 was felt on the television segment’s advertising revenue, which dropped by 22% due to fewer local advertisers and the loss of sports and entertainment programming, the former of which only recently has returned. The ad revenue loss would have been worse if not for higher fees from Fox News, the company said.
Though Fox has finally begun airing MLB games — multiple positive tests on multiple teams have put the season in jeopardy, however — and the NFL is on schedule to kick off in September, Fox warned that the pandemic could have major impacts going forward.
“Following the COVID-19 outbreak, sports events to which the Company has broadcast rights have been cancelled or postponed and the production of certain entertainment content the Company distributes has been suspended. Although some of these sports events and productions have resumed or are expected to resume during the first quarter of fiscal 2021, there may be additional content disruptions in the future,” the company wrote said. “Depending on their duration and severity, these disruptions could materially adversely affect the Company’s future advertising revenues and, over a longer period oftime, its future affiliate fee revenues. To the extent the pandemic further negatively impacts the Company’s ability to air sports events, particularly MLB, NFL or college sports, it could result in a significantly greater adverse effect on the Company’s business, financial condition or results of operations than the Company has experienced thus far.”
Fox executives will hold a call with analysts at 5:30 p.m. ET.
Notable Athletes Who Have Opted Out of 2020 Seasons Over COVID-19 Concerns (Photos)
Major U.S. professional sports like the NBA and MLB have returned (the NFL is getting started on it 2020 season), but not everyone will play over concerns of the coronavirus pandemic.
Buster Posey
The six-time All Star catcher with the San Francisco Giants opted out of the 2020 season after he and his wife planned to adopt two identical twin girls who were, a journalist for The Athletic reported.
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David Price
David Price, a pitcher formerly for the Boston Red Sox who this season was traded to the Los Angeles Dodgers, opted out of the season on July 4 out of the interest of the his health and his family's.
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Ian Desmond
Ian Desmond, an outfielder for the Colorado Rockies, opted out in part because of his pregnant wife and four young children. It was reported that he'd be sacrificing $5.55 million in pro-rated salary for 2020.
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Ryan Zimmerman
Ryan Zimmerman, the 35-year-old first baseman for the World Series champs Washington Nationals, clarified that he would not be retiring by opting out this season. He forfeited $740,000 of pro-rated salary.
Atlanta Braves outfielder Nick Markakis opted out of the 2020 season after seeing his teammate Freddie Freeman contract the coronavirus and be sidelined with symptoms of COVID-19. "Just hearing him, the way he sounded on the phone, it was tough," Markakis said in a press conference. "It was kind of eye-opening. With everything that's going on, not just with baseball but all over the world, it makes you open your eyes."
(Update: Markakis pulled a surprise move on July 29 and decided to rejoin the team for the remainder of the season).
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Mike Leake
Arizona Diamondbacks pitcher Mike Leake, 32, became the first known MLB player to opt out of the 2020 season on June 29. He was scheduled to make $16 million in a full season and is a free agent in 2021.
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Felix Hernandez
Felix Hernandez, a longtime pitcher and All Star for the Seattle Mariners, opted out of the 2020 season on July 4. He signed a minor league contract with the Atlanta Braves this season and was competing for a rotation spot.
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Joe Ross and Tyson Ross
Joe Ross, 27, and Tyson Ross, 33, two brothers and MLB pitchers for the Washington Nationals and a free agent respectively, both signed out of the 2020 season.
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Jordan Hicks
St. Louis Cardinals pitcher Jordan Hicks, 23, opted out of the season after being identified as a high-risk player due to his Type 1 diabetes. He's also recovering from Tommy John surgery.
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Michael Kopech
Michael Kopech, 24, a pitcher for the Chicago White Sox, announced on July 10 through the team's general manager that he would be sitting out the 2020 season. Kopech was recovering from Tommy John surgery that kept him sidelined in 2019.
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Yoenis Cespedes
Before New York Mets slugger Yoenis Cespedes opted out of the season, the team was alarmed to find that Cespedes did not report to the ballpark and that he and his belongings were missing from his hotel room. The team was not made aware of his decision to opt out prior to his absence.
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Marcus Stroman
Stroman became the second Met to opt out in the middle of the season. Stroman never threw a pitch this season, beginning the year on the Injured List. He cited concerns over the outbreaks on the St. Louis Cardinals and Miami Marlins as his reason for sitting out.
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Lorenzo Cain
A week into the season, Milwaukee Brewers outfielder Lorenzo Cain opted out of the season after the team's home opener against the St. Louis Cardinals was postponed due to a COVID-19 outbreak among Cardinals players.
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Willie Cauley-Stein
Cauley-Stein opted out on June 25 because he and his partner are expecting a baby in July.
Dinwiddie is one of the few players that won't be playing due to a positive COVID-19 test. On July 7 the Nets' doctors advised Dinwiddie he should not play out of an abundance of caution.
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Avery Bradley
Bradley, a vocal critic of the NBA's restart taking attention away from the nationwide social justice movement, opted out on June 23 in order to remain with his wife and three children.
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Wilson Chandler
Chandler opted out on June 28 so he could remain with his family and grandmother.
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Thabo Sefalosha
Sefalosha opted out on July 1, though a specific reason was not given. He had previously expressed concerns over playing in the bubble amid the pandemic.
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DeAndre Jordan
Like his teammate Dinwiddie, Jordan also will sit out the rest of the 2020 campaign after revealing he tested positive for the disease.
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Victor Oladipo
The Indiana Pacers star had just come back from a ruptured quad tendon before the shutdown. He cited the uncertainty of the Orlando bubble as part of his reason for opting out, but he reversed course and ultimately played in the first game for the Indiana Pacers' restart.
(Update: Oladipo joined the Pacers in Orlando and played in scrimmages, but it is still unclear if he'll be part of the season restart).
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Trevor Ariza
Ariza opted out June 22 in order to commit to a one-month visitation window with his young son. Families are not allowed inside the NBA bubble until the end of August.
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Andre Smith
Smith was set to play for the Baltimore Ravens this season.
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De'Anthony Thomas
Baltimore Ravens
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Star Lotulelei
Buffalo Bills
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Jordan Mack
Mack, an undrafted rookie with the Carolina Panthers, decided on July 28 to forgo his rookie season out of uncertainty from the virus.
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Eddie Goldman
The Chicago Bears defensive tackle opted out on July 28 citing health concerns.
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Stephen Guidry
Another undrafted rookie, this one with the Dallas Cowboys. Guirdry is one of two Cowboys to opt out, joining Maurice Canady.
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Devin Funchess
Funchess is skipping his first season with the Green Bay Packers over COVID-19 concerns. He had family members that contracted the virus.
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Laurent Duvernay-Tardif
The Kansas City Chiefs' starting lineman was the first NFL player to opt out of the season. Duvernay-Tardif spent the offseason as medical volunteer at a long-term care facility in Montreal that was treating coronavirus patients.
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Michael Pierce
Pierce, one of the Minnesota Vikings' big offseason signings, has respiratory concerns and is considered high-risk.
The New York Giants' star lineman has a son who is currently battling cancer. Solder is also a cancer survivor himself.
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Marquise Goodwin
The new Philadelphia Eagles receiver has a 5-month daughter after his wife previously had three miscarriages.
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Chance Warmack
Warmack missed of all 2019 and was set to compete for a roster spot on the Seattle Seahawks. He is a former top-10 draft pick.
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Ja'Wuan James
Denver Broncos
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Ash Barty
The top-ranked female tennis player in the world is skipping the U.S. Open in New York next month. The Australian cited concerns of traveling to a COVID-19 hotspot.
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Rafael Nadal
Nadal will also skip the U.S. Open over COVID-19 concerns. Nadal won the tournament last year and is seeking to tie Roger Federer's record for Grand Slam wins.
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U.S. pro sports are back in action, but many are deciding to sit out
Major U.S. professional sports like the NBA and MLB have returned (the NFL is getting started on it 2020 season), but not everyone will play over concerns of the coronavirus pandemic.