Fox ($FOXA, $FOXA) has announced impressive growth in its fiscal first-quarter results, driven by unprecedented revenue from political advertising as the US presidential elections approach. The company reported a revenue increase to $3.56 billion for the three months ending on Sept. 30, up from $3.21 billion in the same period last year, surpassing the average analyst estimate of $3.37 billion on Capital IQ.
Adjusted earnings per share showed a notable increase to $1.45 from $1.09, exceeding the expected forecast of $1.12. Following this news, shares of Fox experienced a rise of approximately 4% in Monday trading. The increase in advertising revenue, which jumped 11% to $1.33 billion, was significantly attributed to the influx of political advertisements at the Fox Television Stations and the continued growth of its streaming service, Tubi.
Chief Executive Lachlan Murdoch noted during a conference call, "During this election cycle, Americans have turned to Fox News more than any other service to cover the key issues and events leading up to tomorrow's election," highlighting a 40% year-over-year increase in the total news audience. Murdoch remarked, "From a revenue perspective, it's the local stations that are election heroes, but it's not just our stations that are benefiting from strong political spend." He further emphasized the role of Tubi, stating it was also a "material recipient of political advertising" in this quarter.
He pointed out that Tubi's substantial but challenging target audience, along with its advanced targeting and geo-targeting capabilities, have set it apart for campaigns aiming to enhance reach and efficiency. In this remarkable quarter, the media giant achieved record political revenue across the company.
Additional boosts to advertising revenue came from a newly added National Football League broadcast window and international soccer championships. Moreover, affiliate fee revenue grew by 6%, reaching $1.84 billion..