Fox beats Q4 estimates as World Cup drives advertising boom

MUMBAI: When the final whistle blows, the real winner can sometimes be the broadcaster. For Fox Corp, the FIFA World Cup turned into far more than a football spectacle, delivering a flood of viewers, advertisers and streaming subscribers that powered one of its strongest quarters in recent years.

Fox Corp reported fourth-quarter revenue of $4.21 billion, comfortably beating analysts’ expectations of $3.64 billion, while adjusted earnings per share came in at $1.79, also ahead of market forecasts. Investors welcomed the results, sending the company’s shares more than 5 per cent higher in trading.

The standout performer was advertising. Backed by exclusive English-language broadcast rights for the FIFA World Cup in the United States, Fox saw advertising revenue surge 78 per cent year on year to $1.92 billion, making it the biggest contributor to the quarter’s growth.

The tournament attracted unprecedented audiences, with nearly 63 million viewers in the United States tuning in for the final, making it the country’s most-watched FIFA World Cup final on record. Fox also benefited from additional commercial inventory created through hydration breaks during matches, giving advertisers more opportunities to reach viewers.

Beyond television, the World Cup also boosted Fox’s digital platforms. Free ad-supported streaming service Tubi recorded 35 per cent revenue growth, improving on the previous quarter’s performance, while the company’s direct-to-consumer platform Fox One enjoyed its strongest month since launch.

Chief Executive Lachlan Murdoch said the tournament helped accelerate subscriber acquisition while improving customer retention. Fox One recorded 2.8 million sign-ups in June, marking a record month for the streaming service.

The results reinforce Fox’s strategy of building its business around premium live sports and news programming, with assets including Fox News, Fox Sports, Tubi and Fox One forming the backbone of its media portfolio.

Murdoch also confirmed that discussions with the National Football League (NFL) concluded without changes to Fox’s existing media rights agreement, ensuring continuity ahead of the new football season.

The broadcaster is also expanding its digital ambitions beyond live events. Earlier this year, Fox announced plans to acquire Roku, a move designed to strengthen its position in the connected TV market and broaden its streaming distribution network.

While the World Cup delivered an exceptional quarter, Fox’s longer-term challenge will be sustaining digital growth as pay-TV audiences continue to shrink and sports rights become increasingly expensive. For now, however, the company has shown that when sport captures the world’s attention, it can still be a powerful engine for both advertising and streaming growth.