Stryker, U.S. by Fox Sports at the 2022 Max Thanksgiving Day Parade near Columbus Circle in honor of the U.S. Men’s National Team competing in the 2022 FIFA World Cup in Qatar on November 24, 2022 in New York City. The soccer star balloon is waking up.
Ira L. Black Getty Images
Fox Corporation said Wednesday that the Super Bowl will drive a record amount of ad revenue as it reported an increase in its fiscal second-quarter results.
The strong quarter was due in large part to a slate of sporting events that included the Men’s World Cup and NFL Sunday games. The company’s shares rose more than 4 percent on Wednesday.
The company said its advertising revenue rose 4 percent during the quarter, attributable to live events such as the Qatar World Cup, which aired during November and December. Ad revenue also got a boost from the midterm elections, as well as political ads from Fox’s free ad-supported streamer Tubi.
The positive advertising image comes as the industry contends with a challenging advertising market. In recent months, as have major media companies Paramount Global And Warner Bros. Discoverywhich has portfolios of sports and news outlets as well as entertainment cable TV channels, has warned that a deteriorating advertising market is weighing on its business.
Fox executives said Wednesday that NFL and college football games helped boost ratings and ad revenue.
Fox CEO Lachlan Murdoch said Wednesday that the company is not seeing the soft advertising market that its peers have described in recent months. Instead, he said, he sees “liquidity and money coming late” to the market, but Fox is still hitting goals and revenue targets, thanks to its live sports and news portals. is from folio.
The company’s broadcast network will air Sunday’s Super Bowl, known as a blockbuster event for advertisers. Murdoch said Wednesday that it would be a record Super Bowl for the company, with ad revenue of about $600 million.
“The money for Super Bowl advertising came late, so we had some nervous moments,” Murdoch said. “But it’s going to be a record Super Bowl for us in terms of total revenue and what we’ve achieved per venue.”
Fox A class shares performance.
Fox has said it has sold out of Super Bowl commercials, costing more than $7 million for 30 seconds.
Fox said revenue for its fiscal second quarter rose 4 percent to $4.61 billion from the same period last year.
Murdoch said on a call with investors on Wednesday that the company has “grown” since handing over its entertainment assets to Disney, as it focuses on live sports and news.
The company’s free streaming service, Tobi, has been a bright spot as Fox’s answer to the streaming wars. Tubi saw a 25% increase in ad revenue during the quarter, and an increase in viewership, with December being its highest viewership and engagement month ever. Murdoch said the company will continue to invest in and develop Tobi, noting that it requires minimal investment compared to its peers in the streaming space.
On Wednesday, Murdoch also briefly addressed how he and his father called off a proposed merger between Fox and him. News Corporation After determining in recent weeks that this was not the best time to combine. He added that the rationale behind the deal was about scale, flexibility and coordination.
Murdoch added that the company is open to potential merger and acquisition opportunities. “We have nothing on the table today but I think we are in a strong position,” Murdoch said.
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