Fox Corp beats revenue estimates on political ads demand

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The Fox News electronic ticker is seen at the News Corporation building in New York City

(Reuters) -Fox Corp reported better-than-expected quarterly revenue on Tuesday, as the Fox News parent benefited from an uptick in advertising spend ahead of the U.S. midterm elections.

The company has been investing in growing its digital footprint, while also focusing on live news and sports. Fox Corp’s revenue was also buoyed by higher affiliate fees and an influx of advertisers to its Tubi streaming service.

Fox Corp is also deciding on whether to combine with News Corp after the companies said earlier this month that Rupert Murdoch had started a process that could reunite his media empire.

Fox Corp’s total revenue rose to $3.19 billion in the first quarter ended Sept. 30, from $3.05 billion a year earlier. Analysts were expecting $3.17 billion, according to IBES data from Refinitiv.

Advertising revenue increased 8% in the quarter, primarily due to higher political advertising revenue at its TV stations, the company said.

Net income attributable to shareholders fell to $605 million, or $1.10 per share, in the quarter, from $701 million, or $1.21 per share, a year earlier.

On an adjusted basis Fox earned $1.21 per share.

(Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta)

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