(Reuters) -Broadcaster Fox Corp on Tuesday topped Wall Street expectations for quarterly adjusted profit while its revenue met estimates, as the Rupert Murdoch-controlled company benefited from an industry-wide uptick in the advertising market.
Companies that had cut back on their marketing budgets are looking to advertise again, bolstered by hopes of improving consumer sentiment as inflation has begun to cool.
Upbeat results from the company underscore a cautious approach by advertisers, who are mostly buying slots on dominant networks such as Fox.
The company reported advertising revenue of $1.01 billion, beating expectations of $985.7 million, according to Visible Alpha.
Analysts have said that spending for political ads appears to have started early and is greater than previous election cycles.
Fox’s concentrated portfolio of news and sports positions it well compared with peers that have greater general entertainment exposure, according to analysts.
The company reported quarterly revenue of $3.03 billion, in-line with market estimates, while net income attributable to stockholders stood at $375 million, compared with $306 million a year earlier.
On an adjusted basis, Fox earned 88 cents per share, beating estimates of 72 cents.
Fox, however, faces risks from its news, cord cutting (viewers canceling their subscriptions) and sports rights costs, analysts have said.
The departure of Tucker Carlson has resulted in Fox News’ share of cable news slipping considerably, though it is not clear if the network’s audience has defected cyclically or structurally, according to experts.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Vinay Dwivedi)
