Fox News, a cable news giant managed by Rupert Murdoch, continued to flash its parent company for the first three months of the year, showing a slight increase in profits and sales despite a decline in viewership. ..
Overall, Fox Corporation exceeded Wall Street’s expectations, with profits up seven-fold to $ 567 million and revenues down 6.5% to $ 3.2 billion compared to the year-ago quarter. Changes in the way companies value some of their assets were the main reason for the surge in profits. Investors wanted a profit of $ 332 million and sales of $ 3.1 billion.
However, as Fox did not host the Super Bowl this year, fewer viewers watched its cable channels and Fox broadcast network, resulting in lower revenues for most businesses. Total advertising revenue was down 24% to $ 1.2 billion, with cable segment, primarily Fox News, down 7% to $ 283 million in advertising revenue.
The decrease in advertising Other Media conglomerates are spotlighting major changes in the advertising market.Advertising revenue soared Facebook, Google There were also smaller digital publishers in the first quarter as advertisers were willing to spend their budget on digital platforms at the expense of television.
Fox News still accounts for the majority of Fox Corporation’s profits. The cable sector, which houses the news network, generated $ 899 million in pre-tax profit, accounting for 95% of the company’s total pre-tax profit. The company’s business includes several sports cable networks and the free streaming platform Tubi.
The company also announced on Wednesday the acquisition of OutKick Media, the publisher of the sports news site of the same name. The company is run by sports commentator Clay Travis, who is known for his controversial remarks. Last year he called the coronavirusOverestimationI downplayed the seriousness of the brewing pandemic.
In a statement announcing the acquisition, Lachlan Murdoch, CEO of Fox Corporation and son of Rupert Murdoch, welcomed Travis. “Clay and his team quickly made OutKick a content powerhouse with a huge number of loyal and enthusiastic viewers.”
Despite the decline in viewership on Fox News, the network has benefited from the price increases caused by the contracts cable operators pay to carry channels. License fees increased 6% to $ 1.07 billion. Despite charging a higher ad fee, the ad fell.
Young Murdoch claimed Fox News’ victory over a phone call with investors after reporting earnings.
“Fox News has regained leadership position as America’s No. 1 cable news network and the hottest cable network in prime time,” he said before taking a jab to his rivals.
“MSNBC lost more than one-third of its viewers and CNN lost more than half,” he said. “More than half.”
Fox Revenue: Fox Acquires OutKick As Profit Soars
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