NEW YORK: Media company Fox Corp reported quarterly results that beat Wall Street estimates on Wednesday, boosted by higher fees collected from cable and satellite operators and online distributors.
The company said its adjusted profit for the quarter was 62 cents per share, beating analysts' estimates by 3 cents, according to IBES data from Refinitiv.
Revenue, which rose nearly 5per cent to US$2.51 billion in the quarter, also beat Wall Street expectations of US$2.47 billion.
Rupert Murdoch's newly spun-off Fox Corp debuted on the Nasdaq in March following the US$71 billion sale of Twenty-First Century Fox's film and television assets to Walt Disney Co .
It emerged a leaner, more nimble company seeking to build on its concentration of live news and sports, including World Wrestling Entertainment Inc and Super Bowl LIV next February.
Overall revenue growth in Fox's fiscal fourth quarter was largely driven by a 7.4per cent increase in affiliate revenues, or the fees collected from cable and satellite operators and online distributors, to US$1.41 billion.
Those increases were offset by a 6per cent decline in advertising revenues with fewer FIFA World Cup soccer matches, the company said. Sales in the broadcaster's cable network programming business rose 2.2per cent to US$1.3 billion.
On Tuesday, Fox Entertainment said it would buy animation studio Bento Box Entertainment, which produces hits including Bob's Burgers. Financial terms were not disclosed.
Fox also said on Sunday it was spending US$265 million for a 67per cent stake in Credible Labs Inc, an online consumer financial marketplace, and that it would invest up to another US$75 million of growth capital over about two years.
In May, Fox spent more than US$236 million for a nearly 5per cent percent equity stake in The Stars Group Inc to build FOX Bet, a Fox-branded sports betting platform expected to launch this fall in U.S. states where sports wagering is legal.
The betting product is on track to launch before football season, said Chief Executive Officer Lachlan Murdoch during a call with analysts and investors on Wednesday.
Even last year before its spin-off had closed, Fox began pivoting into new companies. In September, it invested US$100 million in new social broadcasting platform Caffeine TV and plans to launch a content studio jointly owned by Caffeine and FOX Sports.
Net income for the quarter fell to US$454 million, or 73 cents per share, in the three months ended June 30, from US$471 million, or 76 cents per share, a year earlier.
(Reporting by Akanksha Rana in Bengaluru and Hilary Russ in New York; editing by Sriraj Kalluvila and Bill Berkrot)