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Mar 31, 2020
Fox Q3 2020 Earnings Report
Fox's financial performance for the third quarter of fiscal year 2020 was reported.
Key Takeaways
Fox Corporation reported a strong third quarter for fiscal year 2020, with revenues increasing by 25% to $3.44 billion. The growth was driven across all operating segments, with significant contributions from advertising and affiliate revenues. Net income, however, decreased due to a loss related to the change in fair value of the company's former investment in Roku, Inc. and higher operating expenses.
Total quarterly revenues reached $3.44 billion, a 25% increase year-over-year.
Advertising revenues increased by 44%, boosted by Super Bowl LIV broadcast.
Net income decreased to $90 million, impacted by Roku investment valuation change.
Adjusted EBITDA increased by 20% to $920 million, driven by Television and Cable Network Programming segments.
Fox
Fox
Fox Revenue by Segment
Revenue by Segment
Cable Network Programming Revenue
CapyFin.comTelevision Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The impact of COVID-19 could have a material adverse effect on the Company’s business, financial condition or results of operations over the near to medium term. A significant decline in estimated advertising revenue or the expected popularity of the Company’s programming could lead to a downward revision in the fair value of, among other things, the Company’s reporting units, indefinite-lived intangible assets and long-lived assets and result in an impairment and a non-cash charge that is material to the Company’s reported net earnings.
Challenges Ahead
- Macroeconomic environment is affected.
- Sporting events have been cancelled or postponed.
- Production of certain entertainment content has been suspended.
- Demand in local advertising markets has declined.
- Challenging to estimate the future performance of its businesses, particularly over the near to medium term, including the supply and demand for its services, its cash flows and its current and future advertising revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income