Fox Corporation (Nasdaq: FOXA, FOX) reported robust financial results for the quarter ended March 31, 2025, underscoring its dominant role in the American media landscape. The company reported total revenues of \(4.37 billion, marking a significant 27% increase (\)924 million) compared to the prior year quarter. This revenue surge was primarily driven by a 65% increase in advertising revenues, fuelled notably by the landmark broadcast of Super Bowl LIX, as well as sustained digital growth spearheaded by the Tubi AVOD platform and higher news ratings. Affiliate fees also contributed positively with a 3% increase, reflecting a 4% uplift in Television and 3% in Cable Network Programming segments. Other revenues, including sports sublicensing, rose 20%.
Despite the revenue growth, net income for the quarter was \(354 million, down from \)704 million in the prior year, largely impacted by higher expenses related to sports programming rights amortization and production costs associated with Super Bowl LIX, alongside increased digital content and marketing costs. Net income attributable to Fox Corporation stockholders stood at \(346 million (\)0.75 per share), down from \(666 million (\)1.40 per share) in the prior year quarter. Adjusted net income remained stable at \(507 million (\)1.10 per share) versus \(520 million (\)1.09 per share) the previous year, reflecting the company’s ability to manage from an operational standpoint after adjustments.
The company’s adjusted EBITDA was \(856 million, slightly below the prior year's \)891 million, owing to the impact of increased programming and production expenses. The Cable Network Programming segment posted \(1.64 billion in quarterly revenues (11% increase YoY) and an EBITDA of \)878 million, reflecting 7% growth. Television segment revenues surged 40% to \(2.70 billion, driven by a 77% increase in advertising revenue largely due to Super Bowl LIX, digital growth, and a 4% increase in affiliate fee revenues; however, EBITDA for the segment fell from \)145 million to $60 million due to the elevated expenses.
Fox also remains committed to enhancing shareholder value, having repurchased approximately \(5.35 billion of Class A common stock and \)1 billion of Class B common stock to date, with \(650 million in remaining authorization. During the quarter, approximately \)250 million of Class A stock was repurchased.
The operating margin for Q1 2025 stands at 11.7%, down from 20.35% in Q1 2024, signaling heightened cost pressures, especially related to high-profile sporting events and digital expansion. The company’s balance sheet remains strong with cash and cash equivalents increasing to $4.815 billion as of March 31, 2025.
Lachlan Murdoch, Executive Chair and CEO, commented, “Our strong fiscal third quarter underscored the central role FOX plays in informing and entertaining America, and our financial performance, highlighted by record free cash flow, once again illustrates the strength of the FOX platform. Whether it is our market-leading coverage of a sustained, active news cycle or our broadcast of a record-breaking Super Bowl, we deliver for our audiences, advertisers and distribution partners. We are confident that our best-in-class assets, deliberate strategy and robust balance sheet position us strongly to drive long-term value for our shareholders.”
Notably, this quarter’s impressive advertising revenue highlights the significance of marquee events such as Super Bowl LIX and the impressive digital growth trajectory via the Tubi AVOD service, aligning with prior earnings calls where management emphasized digital expansion and increased ad pricing as pivotal growth drivers. These dynamics, coupled with affiliate fee growth, confirm Fox’s resilient and multifaceted revenue model even amid an evolving media consumption landscape.
For further detail, consult Fox Corporation’s official earnings release document here: Fox Q1 2025 Earnings Release.
Tags: FoxCorporation, SuperBowlLIX, AdvertisingRevenueGrowth, DigitalMediaExpansion, ShareRepurchase