Film Production
Fox revenue dips as Super Bowl boost disappears in Q3
Advertising falls to $1.56 billion as broadcaster misses Super Bowl lift
MUMBAI: Turns out the biggest hole in television is shaped exactly like the Super Bowl. Fox Corp. felt the absence of America’s biggest sporting spectacle in its third fiscal quarter, with revenue and profit slipping sharply after last year’s Super Bowl-fuelled bumper performance. The media giant, which owns Fox News Channel and the Fox broadcast network, reported quarterly revenue of $3.99 billion, down from $4.37 billion in the same period last year. Net income attributable to shareholders also dropped to $166 million, or 38 cents per share, compared to $346 million, or 75 cents per share, a year earlier.
The biggest drag came from advertising. Ad revenue fell to $1.56 billion from $2.04 billion last year hardly surprising given Fox had previously revealed that its broadcast of Super Bowl LIX generated a staggering $800 million in gross revenue.
Without the Super Bowl comparison, however, the picture looked less gloomy. During the company’s investor call, Fox CEO Lachlan Murdoch said advertising revenue would have grown by “double digits” if last year’s Super Bowl boost was excluded from the equation.
The impact was most visible in Fox’s traditional television business. Revenue from the segment dropped to $2.2 billion from $2.7 billion a year ago, while advertising revenue declined to $1.17 billion from $1.66 billion. Fox noted that the absence of Super Bowl revenue was partially cushioned by the broadcast of an additional NFL Wild Card game.
Distribution revenue from television operations stood at $858 million, slightly lower than last year’s $870 million.
Cable, meanwhile, delivered a steadier performance. Revenue from Fox’s cable operations rose by $105 million, or 6.5 per cent, to $1.74 billion. Distribution revenue climbed 5 per cent, or $64 million, while advertising revenue also increased 5 per cent, adding $18 million, driven largely by stronger pricing at Fox News and its related portfolio.
Murdoch also shifted attention towards the next major sporting prize on Fox’s calendar, the FIFA Men’s World Cup, which will take place across North America in June and July.
“We are proud to be bringing the world’s biggest sporting event to American homes,” Murdoch said, while reiterating the company’s focus on long-term shareholder value.
For Fox, the quarter served as a reminder of just how much modern media economics can hinge on one giant game. One year you’re riding a Super Bowl wave. The next, you’re explaining the hangover.
