Fox posts upbeat results on Tubi strength, higher distribution fees

By Jaspreet Singh

May 11 (Reuters) - Fox ‌Corp beat ​analysts' estimates ​for third-quarter revenue and profit on Monday, driven by robust growth in its Tubi streaming service and increased fees from cable ‌and satellite subscribers.

Shares of the company rose more than 3% ⁠as Fox executives expressed optimism about a "very healthy upfront" market, with strong underlying advertising trends.

Overall ad ‌revenue declined about 24% in ‌the three months ended March 31, compared with the same quarter last year when the company broadcast "Super Bowl LIX."

"Excluding the impact of the Super ​Bowl and other NFL (National Football League) post-season schedule changes, our total company advertising revenue would have grown (by) double digits over the prior year quarter," ⁠CFO Steve Tomsic said on a post-earnings call.

CEO Lachlan Murdoch said Fox is aware of speculation regarding ​the NFL's potential interest in renegotiating and extending current deals, but the company has had "no substantive discussions" with the league.

Fox ​acquired the rights to two more NFL regular-season ‌games, including one overseas, creating a historic triple-header on broadcast TV.

"The dramatic rights increases that are upcoming will make ⁠it challenging for Fox to keep offering this much sports without absorbing financial losses," said Ross Benes, senior analyst at Emarketer.

Revenue of $3.99 billion beat LSEG-compiled analysts' average estimate of $3.82 ⁠billion. Its adjusted profit per share of $1.32 exceeded estimates of 97 cents.

Ad revenue for ​its cable network programming rose 5%, primarily driven by increased news pricing and the broadcast of the World Baseball Classic, despite being partially offset by lower ratings.

Tubi's quarterly revenue rose ‌23% and total view time increased by 19%, helped by an expanded library of creator-led titles and Tubi originals. ‌It now features more than 220 creators with over 17,000 episodes.

Fox expects strong political ⁠ad revenue in the upcoming ‌midterm election cycle, with ​local stations in key battlegrounds like Florida and Georgia expected to be strong beneficiaries.

(Reporting by Jaspreet Singh in Bengaluru; Editing by ‌Maju Samuel)

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