Forward, Fox Sports’ US Soccer Star ball is awoken during the 2022 Macys Thanksgiving Day Parade outside Columbus Circle in honor of the US Men’s National Team competing in the 2022 FIFA World Cup in Qatar on 24 November 2022 in New York.
Ira L. Black | Getty Images
Fox Corporation said on Wednesday it would rake in a record amount of Super Bowl ad revenue as it announced an increase in its fiscal second-quarter results.
The strong quarter was due in large part to a slate of sporting events that included the Men’s World Cup and NFL Sunday games. The company’s Class A shares rose about 5% on Wednesday.
The company said its advertising revenue in the quarter rose 4%, attributing it to live events like the Qatar World Cup, which aired in November and December. Ad revenue was also boosted by political advertising due to the midterm elections, as well as Fox’s ad-supported free streamer, Tubi.
The positive advertising image came as the industry grappled with a tough advertising market. In recent months, major media companies like World Paramount And Discovery of Warner Bros.which own portfolios of entertainment cable TV channels in addition to sports and news channels, warned of a deteriorating advertising market weighing on their businesses.
NFL and college football games have helped boost ratings and ad revenue, Fox executives said Wednesday.
Fox CEO Lachlan Murdoch said Wednesday that the company hasn’t seen the weak advertising market its peers have described in recent months. Instead, he said, they see the market being “fluid and the money coming in late,” but Fox is still hitting its targets and revenue targets, attributing it to its sports and entertainment portfolio. live news.
The company’s broadcast network will air the Super Bowl on Sunday, which is known to be the showpiece event for advertisers. Murdoch said Wednesday it would be a record Super Bowl for the company with about $600 million in gross ad revenue.
“The money came in late for the Super Bowl ad, so we had some nervous moments,” Murdoch said. “But this will be a record Super Bowl for us in terms of total revenue and what we’ve achieved for each spot.”
Performance of Fox A class shares
Fox said it was sold out on Super Bowl commercial spots, with prices peaking at more than $7 million for 30-second spots.
Fox said its fiscal second-quarter revenue rose 4% to $4.61 billion from the same period last year.
Murdoch said in a call with investors Wednesday that the company has “thrivened” since divesting its entertainment assets to Disney, as it focuses on live sports and news.
The company’s free streaming service, Tubi, continued to be a bright spot as Fox’s response to the streaming wars. Tubi saw a 25% increase in ad revenue in the quarter and an increase in viewership, with December being its highest viewership and engagement month ever. Murdoch said the company will continue to invest and grow Tubi, noting that it requires minimal investment compared to its peers in the streaming space.
On Wednesday, Murdoch also briefly explained that he and his father had canceled the proposed merger between Fox and press company in recent weeks after determining that the timing was not optimal for the combination to take place. He added that the rationale for the deal was scale, flexibility and synergies.
Murdoch added that the company is open to potential merger and acquisition opportunities. “We don’t have anything on the table today, but I think we’re in a strong position,” Murdoch said.
