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Fox CEO Lachlan Murdoch confirmed the company will not renegotiate its current NFL media rights deal early. While the league has reportedly talked with broadcasters about paying more money now in exchange for longer contracts, Fox plans to stick to its existing terms until closer to 2030.
This is a disciplined move for Fox. Live sports are the most expensive part of its business, and avoiding an early price hike helps protect its profits. By waiting, Fox keeps its costs predictable while rivals might be tempted to overpay for long-term security.
Source: CNBC
Tubi, the free streaming arm of Fox, is partnering with Gracenote to use its data for better content discovery and advertising. Gracenote is a branch of Nielsen that helps categorize shows and movies so viewers can find what they want and advertisers can show more relevant commercials. This matters because Tubi relies entirely on advertising rather than monthly subscriptions. By making its ad slots more precise and valuable for brands, Fox can earn more revenue from each hour of television watched even as more people move away from traditional cable.
Source: PRNewsWire
Fox reported quarterly earnings of $1.79 per share, which was well ahead of the $1.44 analysts expected. Revenue reached $4.21 billion for the quarter, driven by a year that included the FIFA Men's World Cup. The company is also launching a new streaming service called FOX One to reach more viewers outside of traditional cable.
The biggest news is the planned acquisition of Roku, a company that makes streaming devices and software. This is a major shift for Fox, which has historically stayed smaller than rivals like Disney. By owning Roku, Fox gains direct control over how millions of people access streaming apps, which should help it grow its own ad-supported services like Tubi.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company is scheduled to report its results for the quarter today. Analysts expect earnings of about 1.44 dollars per share on roughly 3.64 billion dollars in revenue. Fox has a long streak of beating these analyst targets, having done so in each of the last eight quarters.
Beyond the headline numbers, the focus remains on how well the company is managing the shift away from cable. We will be watching for updates on Tubi, its free streaming service, and any news on the pending deal to buy Roku. These digital efforts are the key to replacing the profits lost as fewer people pay for traditional television bundles.
Roku announced it will release its quarterly results today but will skip the usual conference call and financial forecast. This is a standard move for a company that has already agreed to be bought by another firm. Fox reached a deal to acquire Roku in June as part of its plan to expand its digital reach.
For Fox, this deal is about owning the platform where people watch streaming television. By combining Roku's hardware and software with its own content like Fox News and Tubi, the company aims to control more of the advertising revenue that is moving away from traditional cable channels.
Source: Business Wire
Management has cleared the bar eight quarters in a row, often by a wide margin. This suggests they are conservative with their forecasts and the business is performing better than analysts expect.
| Expectation | |
|---|---|
| EPS | $1.97 |
| Revenue | $4.31B |
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