August 4, 2021
Fox Corp. Aug. 4 said it grew fourth-quarter (ended June 30) television revenue 30% to $1.5 billion, from $1.11 billion in the prior-year period. Fox attributed the success in part to Tubi, the company’s ad-supported VOD platform acquired in 2019 for $440 million.
Total quarterly revenue increased 20% to $2.89 billion, from $2.41 billion in the previous-year period, with strong growth across all revenue categories.
At the end of the fiscal year, Tubi surpassed 3 billion hours streamed, up more than 50% over the prior year. During the recent June quarter, total view time surpassed 900 million hours, up more than 40% over the prior-year quarter.
I cannot emphasize enough the importance of total view time as the critical metric for ad supported streaming,” CEO Lachlan Murdoch said on the fiscal call. “It is the best measure of burgeoning engagement on Tubi and correlates directly to the monetization of the platform.”
Net Income attributable to Fox stockholders was $253 million, as compared to the $122 million reported in the prior-year quarter.
“Our exceptional 2021 financial results highlight the strength of our distinct strategy and serve as a foundation for sustained operating momentum,” Murdoch said. “Despite the challenges presented by COVID, our businesses continued to inform and entertain households across the country. And in the midst of it all, we strengthened our core brands and expanded our digital capabilities, which together provide a robust platform for future growth.”
Indeed, ongoing investment in Tubi is impacting the bottom line. The television segment reported quarterly pre-tax earnings of $148 million, down almost 13% from pre-tax earnings of $169 million in the prior-year quarter. The decline primarily reflected the timing of programming rights amortization at Fox Entertainment as a result of COVID-19 and increased investment at Tubi.