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Fox (FOXA) Q4 Earnings Beat Estimates, Ad Revenues Decline
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Fox Corporation (FOXA - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings per share (EPS) of 88 cents, which beat the Zacks Consensus Estimate by 23.94%. The figure increased 18.9% year over year.
Revenues remained flat year over year to $3.03 billion, which beat the consensus mark by 0.37%.
Affiliate fees (58.4% of revenues) rose 2.6% to $1.77 billion, with 8.9% growth in the Television segment.
Advertising (33.2% of revenues) declined 4.5% year over year to $1 billion as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media.
Other revenues (8.3% of revenues) inched up 0.4% year over year to $253 million.
Cable Network Programming (46.5% of revenues) revenues decreased 3.4% year over year to $1.41 billion. Advertising revenues dropped 10.6%, whereas revenues from Affiliate fees decreased 1.5% year over year. Other revenues increased 6.8% on a year-over-year basis.
Television (52.3% of revenues) revenues gained 4.1% from the year-ago quarter’s figure to $1.58 billion. Advertising revenues declined 1.4% year over year. Affiliate fees increased 8.9% year over year. Other revenues increased 7.6% year over year.
Operating Details
In fourth-quarter fiscal 2023, operating expenses increased 3.7% year over year to $1.77 billion. As a percentage of revenues, operating expenses increased 210 basis points (bps) to 58.6%. The increase in expenses includes increased digital investment at Tubi and higher programming rights amortization and production costs at FOX Sports.
Selling, general & administrative (SG&A) expenses decreased 5.3% year over year to $523 million. As a percentage of revenues, SG&A expenses declined 100 bps to 17.2%.
Total adjusted EBITDA decreased 4.5% year over year to $735 million. Adjusted EBITDA margin contracted 110 bps to 24.2%, primarily due to higher expenses.
Cable Network Programming EBITDA decreased 6.8% year over year to $585 million. Television EBITDA reported $227 million of adjusted EBITDA, up 0.4% year over year.
Balance Sheet
As of Jun 30, 2023, Fox had $4.27 billion in cash and cash equivalents compared with $4.15 billion as of Mar 31.
Long-term debt, as of Jun 30, 2023, was $7.44 billion, higher than $7.21 billion as of Mar 31.
LiveOne (LVO - Free Report) , DouYu International (DOYU - Free Report) and On Holding (ONON - Free Report) are scheduled to report the quarterly results on Aug 10, Aug 14 and Aug 15, respectively.
The Zacks Consensus Estimate for LVO’s second-quarter 2023 EPS is pegged at a loss of 2 cents, unchanged over the past 30 days.
The Zacks Consensus Estimate for DOYU’s second-quarter 2023 EPS is pegged at 2 cents, up from a loss of 2 cents over the past 30 days.
The Zacks Consensus Estimate for ONON’s second-quarter 2023 EPS is pegged at 13 cents, up 18.2% over the past 30 days.
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Fox (FOXA) Q4 Earnings Beat Estimates, Ad Revenues Decline
Fox Corporation (FOXA - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings per share (EPS) of 88 cents, which beat the Zacks Consensus Estimate by 23.94%. The figure increased 18.9% year over year.
Revenues remained flat year over year to $3.03 billion, which beat the consensus mark by 0.37%.
Affiliate fees (58.4% of revenues) rose 2.6% to $1.77 billion, with 8.9% growth in the Television segment.
Advertising (33.2% of revenues) declined 4.5% year over year to $1 billion as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media.
Other revenues (8.3% of revenues) inched up 0.4% year over year to $253 million.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Top-Line Details
Cable Network Programming (46.5% of revenues) revenues decreased 3.4% year over year to $1.41 billion. Advertising revenues dropped 10.6%, whereas revenues from Affiliate fees decreased 1.5% year over year. Other revenues increased 6.8% on a year-over-year basis.
Television (52.3% of revenues) revenues gained 4.1% from the year-ago quarter’s figure to $1.58 billion. Advertising revenues declined 1.4% year over year. Affiliate fees increased 8.9% year over year. Other revenues increased 7.6% year over year.
Operating Details
In fourth-quarter fiscal 2023, operating expenses increased 3.7% year over year to $1.77 billion. As a percentage of revenues, operating expenses increased 210 basis points (bps) to 58.6%. The increase in expenses includes increased digital investment at Tubi and higher programming rights amortization and production costs at FOX Sports.
Selling, general & administrative (SG&A) expenses decreased 5.3% year over year to $523 million. As a percentage of revenues, SG&A expenses declined 100 bps to 17.2%.
Total adjusted EBITDA decreased 4.5% year over year to $735 million. Adjusted EBITDA margin contracted 110 bps to 24.2%, primarily due to higher expenses.
Cable Network Programming EBITDA decreased 6.8% year over year to $585 million. Television EBITDA reported $227 million of adjusted EBITDA, up 0.4% year over year.
Balance Sheet
As of Jun 30, 2023, Fox had $4.27 billion in cash and cash equivalents compared with $4.15 billion as of Mar 31.
Long-term debt, as of Jun 30, 2023, was $7.44 billion, higher than $7.21 billion as of Mar 31.
Zacks Rank & Stocks to Consider
Fox currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Consumer Discretionary sector are LiveOne (LVO - Free Report) , DouYu International (DOYU - Free Report) and On Holding (ONON - Free Report) . DouYu sports a Zacks Rank #1 (Strong Buy), while LiveOne and On Holding carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LiveOne (LVO - Free Report) , DouYu International (DOYU - Free Report) and On Holding (ONON - Free Report) are scheduled to report the quarterly results on Aug 10, Aug 14 and Aug 15, respectively.
The Zacks Consensus Estimate for LVO’s second-quarter 2023 EPS is pegged at a loss of 2 cents, unchanged over the past 30 days.
The Zacks Consensus Estimate for DOYU’s second-quarter 2023 EPS is pegged at 2 cents, up from a loss of 2 cents over the past 30 days.
The Zacks Consensus Estimate for ONON’s second-quarter 2023 EPS is pegged at 13 cents, up 18.2% over the past 30 days.