Fox Corporation Reports 11% Revenue Growth to $3.564 Billion, Net Income Increases 100% to $832 Million in Q3 2024

Fox Corporation reported significant financial growth for the three months ended September 30, 2024, with total revenues reaching $3,564 million, an increase of $357 million or 11% compared to $3,207 million in the same period of 2023. This growth was driven by a $103 million rise in affiliate fee revenue, attributed to higher average rates per subscriber, and a $129 million increase in advertising revenue, primarily from political advertising related to the 2024 elections and growth at Tubi. Other revenues also saw a notable increase of $125 million, largely due to enhanced sports sublicensing revenue.

Net income for the quarter was $832 million, a substantial increase of $417 million from $415 million in the prior year. This rise in profitability was supported by an unrealized gain from the investment in Flutter Entertainment plc and higher Segment EBITDA, which increased to $1,048 million, up $179 million or 21% from $869 million in 2023. The income before income tax expense also saw a significant increase, rising to $1,113 million, up 98% from $561 million in the previous year.

Operating expenses increased by $156 million, primarily due to a $100 million rise in sports programming rights amortization. Selling, general, and administrative expenses rose by $22 million, mainly due to increased legal costs at FOX News Media and higher employee costs at Tubi. The effective tax rate for the quarter was 25%, slightly lower than the previous year's 26%.

As of September 30, 2024, Fox Corporation reported total assets of $22,538 million, up from $21,972 million as of June 30, 2024. Total stockholders’ equity increased to $11,276 million, compared to $10,714 million in the prior quarter. Cash and cash equivalents decreased to $4,052 million from $4,319 million at the end of June 2024.

In terms of strategic developments, Fox Corporation did not make any acquisitions during the quarter but announced a joint venture with ESPN and Warner Bros. Discovery to form "Venu Sports," a digital distribution platform focused on sports. However, a preliminary injunction was granted in August 2024 to block the joint venture from launching, pending appeal.

The company also continued its stock repurchase program, repurchasing approximately 6 million shares of Class A Common Stock for about $250 million during the quarter, with approximately $1.15 billion remaining under the authorization. The Board of Directors has approved a stock repurchase program for up to $7 billion of Class A and Class B Common Stock.