Fox Corp. reported a 28% increase in overall revenue, reaching $4.21 billion, with advertising revenue soaring 78% to $1.92 billion, primarily due to the FIFA Men's World Cup. The tournament averaged 7.7 million viewers across 104 matches on Fox's platforms, with the final match attracting nearly 39 million viewers, according to Nielsen.
This surge in viewership underscores the value of live sports in attracting large audiences and, consequently, advertising revenue. Fox CEO Lachlan Murdoch characterized the fiscal year as one of 'record financial performance,' noting that the results were impressive even when compared to a strong prior year that included the Super Bowl and presidential election.
The company has faced challenges with traditional pay TV subscriber losses and stagnant streaming service growth, making advertising revenue increasingly vital. Fox's focus on sports and news has provided a consistent revenue stream, especially after selling its entertainment assets to Disney in 2019.
The company also reported a successful upfront advertising season, with double-digit growth in volume. Additionally, Fox's proposed $22 billion acquisition of Roku could further enhance its advertising capabilities.
Tubi, which relies solely on advertising, has been growing its younger viewer base, and the World Cup significantly boosted its traffic, with over 20 million viewers engaging with its World Cup hub.
Murdoch indicated that the launch of Fox One, a new streaming service, has not cannibalized traditional pay TV subscriptions, suggesting a strategic approach to expanding its streaming offerings without undermining its existing business