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Fox (FOXA) Q1 Earnings Beat Estimates, Revenues Increase Y/Y
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Fox Corporation (FOXA - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate by 5.22%. The figure increased 9% year over year.
Revenues were up 4.8% year over year to $3.19 billion, which matched the consensus mark.
Affiliate fees (53.6% of revenues) rose 2.6% to $1.71 billion led by 6% growth at the Television segment. Meanwhile, advertising (38.2% of revenues) increased 8% to $1.22 billion, primarily due to higher political advertising revenues at the FOX Television Stations, continued strength in pricing across the company’s news and sports brands, and continued growth at TUBI.
Other revenues (8.2% of revenues) increased 5.2% from the year-ago quarter’s levels to $261 million, primarily due to higher FOX Nation subscription revenues.
Cable Network Programming (44.8% of revenues) revenues inched up 1.1% year over year to $1.43 billion. Advertising revenues increased 1.6%, primarily due to FOX News Media, where continued strength in linear pricing was partially offset by lower ratings and lower digital advertising revenues. In addition, advertising revenues associated with the national sports networks were lower in the quarter due to the absence of prior-year international soccer matches.
Revenues from Affiliate fees increased 0.3% year over year, primarily due to contractual price increases, partially offset by the impact of net subscriber declines. Other revenues increased 8.9% on a year-over-year basis, primarily due to higher FOX Nation subscription revenues.
Television (53.7% of revenues) revenues increased 8.4% from the year-ago quarter’s figure to $1.71 billion. Advertising revenues increased 10.5% year over year, primarily due to higher political advertising revenues at the FOX Television Stations, continued growth at TUBI and continued strength in pricing, partially offset by lower ratings, at the FOX Network. The FOX Network also benefitted from additional MLB broadcasts in the reported quarter.
Affiliate fees increased 6% year over year, driven by increases in fees from third-party FOX affiliates and higher average rates, partially offset by the impact of net subscriber declines, at the company’s owned and operated television stations.
Other revenues increased 5% year over year, primarily due to the impact of the consolidation of TMZ and entertainment production companies at FOX Entertainment.
Operating Details
In first-quarter fiscal 2023, operating expenses increased 5.4% year over year to $1.65 billion. As a percentage of revenues, operating expenses expanded 30 basis points (bps) to 51.9%.
Selling, general & administrative (SG&A) expenses increased 8% year over year to $448 million. As a percentage of revenues, SG&A expenses expanded 40 bps to 14%.
Total adjusted EBITDA increased 2.6% year over year to $1.09 billion. EBITDA margin contracted 70 bps to 34.2%.
Cable Network Programming EBITDA decreased 4.1% year over year to $742 million. EBITDA margin contracted 280 bps to 51.9%.
Television EBITDA jumped 13.9% to $409 million. EBITDA margin expanded 120 bps to 23.9%.
Balance Sheet
As of Sep 30, 2022, Fox had $4.95 billion in cash and cash equivalents compared with $5.2 billion as of Jun 30, 2022.
Long-term debt, as of Sep 30, 2022, was $7.20 billion, which remained flat sequentially.
The company has authorized a $4 billion stock repurchase program. To date, the company has repurchased $2 billion of its Class A common stock and $860 million of its Class B common stock.
AMC Entertainment, Reservoir Media and American Public Education are each scheduled to report their quarterly results on Nov 8.
The Zacks Consensus Estimate for AMC Entertainment’s third-quarter 2022 loss is pegged at 27 cents per share, down from 25 cents over the past 30 days.
The Zacks Consensus Estimate for Reservoir Media’s third-quarter 2022 earnings is pegged at 5 cents per share, unchanged over the past 30 days.
The consensus mark for American Public Education’s third-quarter 2022 earnings is pegged at 25 cents per share, unchanged in the past 30 days.
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Fox (FOXA) Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Fox Corporation (FOXA - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate by 5.22%. The figure increased 9% year over year.
Revenues were up 4.8% year over year to $3.19 billion, which matched the consensus mark.
Affiliate fees (53.6% of revenues) rose 2.6% to $1.71 billion led by 6% growth at the Television segment. Meanwhile, advertising (38.2% of revenues) increased 8% to $1.22 billion, primarily due to higher political advertising revenues at the FOX Television Stations, continued strength in pricing across the company’s news and sports brands, and continued growth at TUBI.
Other revenues (8.2% of revenues) increased 5.2% from the year-ago quarter’s levels to $261 million, primarily due to higher FOX Nation subscription revenues.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Top-Line Details
Cable Network Programming (44.8% of revenues) revenues inched up 1.1% year over year to $1.43 billion. Advertising revenues increased 1.6%, primarily due to FOX News Media, where continued strength in linear pricing was partially offset by lower ratings and lower digital advertising revenues. In addition, advertising revenues associated with the national sports networks were lower in the quarter due to the absence of prior-year international soccer matches.
Revenues from Affiliate fees increased 0.3% year over year, primarily due to contractual price increases, partially offset by the impact of net subscriber declines. Other revenues increased 8.9% on a year-over-year basis, primarily due to higher FOX Nation subscription revenues.
Television (53.7% of revenues) revenues increased 8.4% from the year-ago quarter’s figure to $1.71 billion. Advertising revenues increased 10.5% year over year, primarily due to higher political advertising revenues at the FOX Television Stations, continued growth at TUBI and continued strength in pricing, partially offset by lower ratings, at the FOX Network. The FOX Network also benefitted from additional MLB broadcasts in the reported quarter.
Affiliate fees increased 6% year over year, driven by increases in fees from third-party FOX affiliates and higher average rates, partially offset by the impact of net subscriber declines, at the company’s owned and operated television stations.
Other revenues increased 5% year over year, primarily due to the impact of the consolidation of TMZ and entertainment production companies at FOX Entertainment.
Operating Details
In first-quarter fiscal 2023, operating expenses increased 5.4% year over year to $1.65 billion. As a percentage of revenues, operating expenses expanded 30 basis points (bps) to 51.9%.
Selling, general & administrative (SG&A) expenses increased 8% year over year to $448 million. As a percentage of revenues, SG&A expenses expanded 40 bps to 14%.
Total adjusted EBITDA increased 2.6% year over year to $1.09 billion. EBITDA margin contracted 70 bps to 34.2%.
Cable Network Programming EBITDA decreased 4.1% year over year to $742 million. EBITDA margin contracted 280 bps to 51.9%.
Television EBITDA jumped 13.9% to $409 million. EBITDA margin expanded 120 bps to 23.9%.
Balance Sheet
As of Sep 30, 2022, Fox had $4.95 billion in cash and cash equivalents compared with $5.2 billion as of Jun 30, 2022.
Long-term debt, as of Sep 30, 2022, was $7.20 billion, which remained flat sequentially.
The company has authorized a $4 billion stock repurchase program. To date, the company has repurchased $2 billion of its Class A common stock and $860 million of its Class B common stock.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector include AMC Entertainment (AMC - Free Report) , Reservoir Media (RSVR - Free Report) and American Public Education (APEI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMC Entertainment, Reservoir Media and American Public Education are each scheduled to report their quarterly results on Nov 8.
The Zacks Consensus Estimate for AMC Entertainment’s third-quarter 2022 loss is pegged at 27 cents per share, down from 25 cents over the past 30 days.
The Zacks Consensus Estimate for Reservoir Media’s third-quarter 2022 earnings is pegged at 5 cents per share, unchanged over the past 30 days.
The consensus mark for American Public Education’s third-quarter 2022 earnings is pegged at 25 cents per share, unchanged in the past 30 days.