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Fox's (FOXA) Business Network Outpaces Competitor Once Again

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Fox Corporation (FOXA - Free Report) recently recorded that its Fox Business Network (“FBN”) outpaced Comcast’s (CMCSA - Free Report) CNBC with total viewers in January for 10 consecutive months, according to Nielsen Media Research.

FBN's Business Day programming in January totaled 201,000 total viewers compared to CNBC’s 169,000.

The growth was primarily driven by FBN’s top show, Kudlow and Varney& Co., which finished first and second on the business television ranker for the month, drawing 287,000 and 275,000 total viewers, respectively.

Both shows have outperformed CNBC’s Closing Bells, which recorded 182,000 viewers.

Fox Business Network to Contribute to the Company’s Top Line

FBN recorded a successful year as it earned 3.3 billion multiplatform minutes and 1.9 billion multiplatform views in 2022, the highest since its launch in 2007.

To further boost this, FBN launched two new shows on its platform in January, The Big Money Show hosted by Bloomberg Television’s Taylor Riggs and The Bottom Line co-hosted by Dagen McDowell and Sean Duffy.

These shows have been designed to focus on different perspectives on financial and economic news around the globe that could potentially attract a new audience and also retain old ones on the platform. The results have already started to show as The Big Money Show witnessed a strong debut by acquiring 165,000 viewers in its first week while The Bottom Line secured double-digit growth year over year with 236,000 viewers.

The growth in these shows is expected to benefit the overall viewership at FBN, which declined to 134,000 total viewers in 2022 compared to 180,000 in 2021. This will also help aid the company’s top line in the coming quarters, which showed slow growth, with 4.8% year-over-year growth in revenues for the first quarter of 2023 compared with 12% growth in the first quarter of fiscal 2022.

The decline in viewership comes as a result of cord-cutting. Per Techjury, 55.1% of U.S. consumers have cut the cord by 2022 and are accessing TV content through the Internet. This is a prolonged threat to the company as cord-cutting rates are expected to increase in the future.

Shares of Fox have declined 16.6% in the past year compared with the Zacks Consumer Discretionary sector, which fell 19.8% in the same time frame.

Zack Rank & Stocks to Consider

Fox currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the same sector are Manchester United (MANU - Free Report) and Stride (LRN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).

Shares of Manchester United have gained 64.8% in the past year. The Zacks Consensus Estimate for earnings is pegged at a loss of 1 cent, which has been constant over the past 30 days.

Shares of Stride have gained 18.5% in the last year. Its earnings are estimated at $1.08 per share, which increased by 13.6% over the past 30 days.


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