NFL and World Cup ad revenue growth results
Striker, a Fox Sports American football star balloon, awakens at the Macys 2022 Thanksgiving Parade past Columbus Circle in honor of the US Men’s National Team participating in the 2022 FIFA World Cup in Qatar on November 24, 2022 in New York City .
Ira L. Black | Getty Images
Fox Corp said on Wednesday that he would receive a record amount of Super Bowl advertising revenue as he announced an increase in his financial second quarter results.
The strong quarter was heavily tied to sporting events, which included the Men’s World Championship and Sunday NFL games. The company’s shares rose more than 4% on Wednesday.
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The company said its ad revenue increased 4% for the quarter, driven by live broadcasts such as the Qatar World Cup, which aired in November and December. Ad revenue also increased from political ads due to the midterm elections, as well as free ad streamer Fox Tubi.
The positive advertising picture emerged as the industry struggled with a challenging advertising market. In recent months, major media companies such as Paramount Global And Warner Bros. Discoverywhose portfolios include cable entertainment channels in addition to sports and news outlets, warned of a deteriorating advertising market that is affecting their business.
NFL and college football games have helped boost ratings and ad revenue, Fox executives said Wednesday.
Fox CEO Lachlan Murdoch said on Wednesday that the company does not see the soft-advertising market that its colleagues have been describing in recent months. Instead, he says, they see the market “fluctuating and money coming in late,” but Fox is still hitting revenue targets and targets, attributing this to its live sports and news portfolio.
The company’s broadcast network will broadcast the Super Bowl on Sunday, which is known to be a landmark event for advertisers. Murdoch said Wednesday it will be a record-breaking Super Bowl for a company with about $600 million in gross ad revenue.
“The Super Bowl ad money was coming in late, so we had some nervous moments,” Murdoch said. “But it will be a record-breaking Super Bowl for us in terms of total revenue and what we’ve achieved for each place.”
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Fox stated that all commercials for the Super Bowl were sold out, with peak prices in excess of $7 million for 30-second spots.
Fox said its fiscal second-quarter revenue increased 4% to $4.61 billion year-over-year.
Murdoch said in a phone call with investors Wednesday that the company has “thrived” since it turned over its entertainment assets to Disney as it focused on live sports and news.
Tubi’s free streaming service continued to be a bright spot as Fox’s answer to the streaming wars. At Tubi, ad revenue increased 25% during the quarter and viewership increased, with December the highest viewing and engagement month ever. Murdoch said the company will continue to invest in and develop Tubi, noting that it requires minimal investment compared to its peers in the streaming space.
On Wednesday, Murdoch also briefly revealed that he and his father canceled the Fox merger proposal and News Corporation in recent weeks after it was determined that this was not the optimal time to merge. He added that the point of the deal was scale, flexibility and synergy.
Murdoch added that the company is open to potential M&A opportunities. “Today we have nothing on the table, but I think we are in a strong position,” Murdoch said.
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