Fox said the absence of a Super Bowl broadcast in the third quarter led to lower profits and revenue, even though its cable business showed growth in key areas.
The owner of Fox News Channel and Fox Broadcasting Networks said revenue for the period fell to $3.99 billion from $4.37 billion a year earlier. And while distribution revenue increased 3% thanks to activity in the company’s cable business, there was nothing to truly offset the year-over-year comparison. Advertising revenue was $1.56 billion ($2.04 billion in the same period last year).
Fox announced last year that it had gross revenue of $800 million from its LIX Super Bowl telecast. Fox CEO Lachlan Murdoch said on an investor call Monday that the Super Bowl overhang was expected and that without the comparison, ad revenue would have increased by “double digits” in the third quarter.
In his prepared remarks, Murdoch highlighted another major upcoming sporting event for Fox. “The FIFA Men’s World Cup will be held here in North America in June and July, and we are proud to bring the world’s biggest sporting event to American homes,” he said. “Meanwhile, we remain steadfast in our commitment to delivering long-term shareholder value, supported by a strong balance sheet.”
The company said net income attributable to shareholders totaled $166 million, or 38 cents per share, compared with $346 million, or 75 cents per share, in the same period last year.
The loss of the Super Bowl telecast was felt most acutely in the company’s traditional TV business, where revenue fell to $2.2 billion from $2.7 billion a year earlier. Advertising revenue fell to $1.17 billion from $1.66 billion a year ago, and Fox noted that the lack of Super Bowl revenue was partially offset by the broadcast of an additional NFL Wild Card game. Distribution revenue increased from $870 million to $858 million.
The company’s cable properties saw more robust activity. Revenue from cable operations increased by .65 ($105 million) to $174 million. Distribution revenue increased 5% ($64 million) and advertising revenue increased 5% ($18 million). This is primarily due to improved pricing for Fox News and its associated portfolio.
