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Fox (FOXA) Q4 Earnings Top Estimates, Revenues Increase Y/Y
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Fox Corporation (FOXA - Free Report) reported fourth-quarter fiscal 2021 adjusted earnings of 65 cents, which beat the Zacks Consensus Estimate by 16.07%. The figure increased 4.8% year over year.
Revenues were up 19.5% year over year to $2.8 billion. The figure surpassed the consensus mark by 5.4%.
Affiliate fees (57.6% of revenues) rose 9.6% to $1.6 billion. Meanwhile, advertising (34% of revenues) revenues increased 37.9% to $982 million. Other revenues (8.4% of revenues) increased 29.9% from the year-ago quarter’s levels to $243 million.
Fox became a standalone, publicly-traded company on Mar 21, 2019, following the merger of Disney and Twenty-First Century Fox, Inc.
Standalone Fox’s portfolio comprises Twenty-First Century Fox’s news, sports and broadcast businesses. These include FOX News, FOX Business, FOX Broadcasting Company (the FOX Network), FOX Sports, FOX Television Stations Group, sports cable networks like FS1, FS2, FOX Deportes and Big Ten Network as well as certain other assets.
Cable Network Programming (48.4% of revenues) revenues increased 10.1% year over year to $1.39 billion. Advertising revenues increased 16.7%, primarily due to continued digital monetization at FOX News Media and the impact of additional live events and studio shows at FOX Sports in the current year quarter against postponements and cancellations in the prior- year quarter as a result of COVID-19.
Revenues from Affiliate fees increased 6% year over year driven by contractual price increases, including the impact of distribution agreement renewals.
Other revenues increased 73.5% on a year-over-year basis, driven by higher subscription revenues at FOX News Media.
Television (50.1% of revenues) revenues increased 30% from the year-ago quarter’s figure to $1.44 billion. Advertising revenues increased 50.8% year over year primarily due to a recovering base market at the FOX Television Stations, continued growth at Tubi and strong pricing at FOX Entertainment.
Affiliate fees and other revenues increased 16% and 17.6%, respectively. Affiliate revenues were driven by increases in fees from third-party FOX affiliates and higher average rates at the company’s owned and operated television stations.
Increase in other revenues was primarily due to higher content revenues at Bento Box and FOX Entertainment.
Operating Details
In fourth-quarter fiscal 2021, operating expenses increased 38% year over year to $1.6 billion. As a percentage of revenues, operating expenses expanded 760 basis points (bps) to 56.7%.
Selling, general & administrative (SG&A) expenses increased 9.3% year over year to $540 million. As a percentage of revenues, SG&A expenses contracted 170 bps to 18.7%.
Total adjusted EBITDA decreased 3.4% year over year to $707 million. EBITDA margin contracted 590 bps to 24.8%.
Cable Network Programming EBITDA remained flat year over year at $674 million. EBITDA margin contracted 490 bps to 48.2%.
Television EBITDA declined 12.4% to $148 million. EBITDA margin contracted 500 bps to 10.2%.
Balance Sheet
As of Jun 30, 2021, Fox had $5.88 billion in cash and cash equivalents compared with $5.7 billion as of Mar 31, 2021.
Long-term debt as of Jun 30, 2021 was $7.20 billion, which remained flat sequentially.
Image: Shutterstock
Fox (FOXA) Q4 Earnings Top Estimates, Revenues Increase Y/Y
Fox Corporation (FOXA - Free Report) reported fourth-quarter fiscal 2021 adjusted earnings of 65 cents, which beat the Zacks Consensus Estimate by 16.07%. The figure increased 4.8% year over year.
Revenues were up 19.5% year over year to $2.8 billion. The figure surpassed the consensus mark by 5.4%.
Affiliate fees (57.6% of revenues) rose 9.6% to $1.6 billion. Meanwhile, advertising (34% of revenues) revenues increased 37.9% to $982 million. Other revenues (8.4% of revenues) increased 29.9% from the year-ago quarter’s levels to $243 million.
Fox became a standalone, publicly-traded company on Mar 21, 2019, following the merger of Disney and Twenty-First Century Fox, Inc.
Standalone Fox’s portfolio comprises Twenty-First Century Fox’s news, sports and broadcast businesses. These include FOX News, FOX Business, FOX Broadcasting Company (the FOX Network), FOX Sports, FOX Television Stations Group, sports cable networks like FS1, FS2, FOX Deportes and Big Ten Network as well as certain other assets.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Top-Line Details
Cable Network Programming (48.4% of revenues) revenues increased 10.1% year over year to $1.39 billion. Advertising revenues increased 16.7%, primarily due to continued digital monetization at FOX News Media and the impact of additional live events and studio shows at FOX Sports in the current year quarter against postponements and cancellations in the prior- year quarter as a result of COVID-19.
Revenues from Affiliate fees increased 6% year over year driven by contractual price increases, including the impact of distribution agreement renewals.
Other revenues increased 73.5% on a year-over-year basis, driven by higher subscription revenues at FOX News Media.
Television (50.1% of revenues) revenues increased 30% from the year-ago quarter’s figure to $1.44 billion. Advertising revenues increased 50.8% year over year primarily due to a recovering base market at the FOX Television Stations, continued growth at Tubi and strong pricing at FOX Entertainment.
Affiliate fees and other revenues increased 16% and 17.6%, respectively. Affiliate revenues were driven by increases in fees from third-party FOX affiliates and higher average rates at the company’s owned and operated television stations.
Increase in other revenues was primarily due to higher content revenues at Bento Box and FOX Entertainment.
Operating Details
In fourth-quarter fiscal 2021, operating expenses increased 38% year over year to $1.6 billion. As a percentage of revenues, operating expenses expanded 760 basis points (bps) to 56.7%.
Selling, general & administrative (SG&A) expenses increased 9.3% year over year to $540 million. As a percentage of revenues, SG&A expenses contracted 170 bps to 18.7%.
Total adjusted EBITDA decreased 3.4% year over year to $707 million. EBITDA margin contracted 590 bps to 24.8%.
Cable Network Programming EBITDA remained flat year over year at $674 million. EBITDA margin contracted 490 bps to 48.2%.
Television EBITDA declined 12.4% to $148 million. EBITDA margin contracted 500 bps to 10.2%.
Balance Sheet
As of Jun 30, 2021, Fox had $5.88 billion in cash and cash equivalents compared with $5.7 billion as of Mar 31, 2021.
Long-term debt as of Jun 30, 2021 was $7.20 billion, which remained flat sequentially.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer discretionary sector are WW International, Inc. (WW - Free Report) , CuriosityStream Inc. (CURI - Free Report) and NeoGames S.A. . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CuriosityStream and WW International are slated to report quarterly earnings on Aug 10 while NeoGames S.A. is scheduled to report on Aug 11.