Fox Corporation has reported financial results for the three months and 12 months ended June 30, 2021. The US entertainment business produces and delivers content across Fox News, Fox Entertainment, Fox Sports, and the Fox Television Stations.
Executive chairman and chief executive officer Lachlan Murdoch said: “Our exceptional Fiscal 2021 financial results highlight the strength of our distinct strategy and serve as a foundation for sustained operating momentum. Despite the challenges presented by Covid, our businesses continued to inform and entertain households across the country.
“In the midst of it all, we strengthened our core brands and expanded our digital capabilities, which together provide a robust platform for future growth. We look forward to the year ahead, anticipating the return of normalised sports and entertainment calendars and the start of the midterm election cycle. Fox’s core live event programming, coupled with its growing digital businesses, will continue to deliver audiences on an unmatched scale for our advertising and distribution partners.”
Total quarterly revenues increased 20% to US$2.89 billion with strong growth across all revenue categories. Affiliate revenues increased 10% with 16% growth at the Television segment and 6% growth at the Cable Network Programming segment.
Advertising revenues increased 38%, reflecting 51% growth at the Television segment and 17% growth at the Cable Network Programming segment. Other revenues increased by $56 million or 30%.
Cable Network Programming reported full year segment revenues of $5.68 billion, an increase of $191 million or 3% from the amount reported in the prior year. Advertising revenues increased $173 million or 15%, primarily due to stronger linear and digital results at Fox News Media, including the impact of the presidential election cycle. Affiliate revenues increased $125 million or 3% as increases in affiliate revenues were partially offset by the impact of an accrual for potential distribution credits as a result of cancelled college football games due to Covid-19.
Other revenues were $351 million as compared to the $458 million reported in the prior year, primarily due to the timing of sports sublicensing revenues and pay-per- view boxing content at Fox Sports as a result of Covid-19.
Cable Network Programming reported full year segment EBITDA of $2.88 billion, an increase of $170 million or 6% from the amount reported in the prior year, primarily due to the revenue increases noted above.
Television reported full year segment revenues of $7.05 billion, an increase of $387 million or 6% from the amount reported in the prior year. Affiliate revenues increased $402 million or 20%, driven by increases in fees from third-party Fox affiliates and higher average rates at the company’s owned and operated television stations.
Other revenues increased $60 million or 13%, primarily due to higher content revenues at Bento Box. Advertising revenues were $4.09 billion as compared to the $4.17 billion reported in the prior year, as the impact of the consolidation of Tubi and record political advertising revenues at the Fox Television Stations were more than offset by the absence of the prior year’s broadcast of Super Bowl LIV.
Television reported full year segment EBITDA of $555 million, an increase of $125 million or 29% from the amount reported in the prior year, as the revenue increases noted above were partially offset by higher expenses. The increase in expenses primarily reflects the consolidation of Tubi and contractual annual rights escalators at FOX Sports, partially offset by the absence of the prior year’s broadcast of Super Bowl LIV.