The fourth quarter results of Fox Corp exceeded market expectations because of rising advertising and affiliate revenue while the company increased its share repurchase program by $5 billion.
The company generated $3.29 billion in revenue during the quarter which exceeded the predicted $3.12 billion according to LSEG data. The company achieved a 7.1% increase in advertising revenue because Tubi’s free ad-supported streaming service grew while news ratings improved and the company received higher advertising rates. The affiliate fees increased by 2.6% throughout the cable and television units.
The expansion of Tubi has enabled Fox to attract more younger viewers who cut their cable subscriptions while strengthening its position in the ad-supported streaming market. The company will introduce its subscription service Fox One on August 21 at $19.99 monthly to generate additional revenue streams.
The June acquisition of Caliente TV in Mexico by Fox expanded its sports business operations. The company delivered $1.27 in adjusted earnings per share which exceeded the predicted $0.99 per share.
