Fox World Cup advertising revenue helps lift quarterly sales 28%
Fox said World Cup coverage and Tubi-led digital growth pushed quarterly ad revenue up 78%, while sports and launch costs also climbed.
By Theo Nakamura · Staff Writer
· 3 min read
Fox World Cup advertising revenue was a major driver of the company’s fiscal fourth-quarter growth, though Fox did not put a separate dollar figure on the tournament’s contribution. The company reported $4.21 billion in revenue for the three months ended June 30, up 28% from a year earlier, as advertising revenue rose 78% to $1.92 billion. For investors, the result shows how a marquee live event can lift both traditional TV advertising and a free streaming platform at the same time.
Fox attributed the advertising gain primarily to its FIFA Men’s World Cup broadcast and continued digital growth led by Tubi, according to its earnings release. Advertising increased by $838 million year over year, from $1.08 billion. That accounted for most of Fox’s $925 million increase in total revenue, although the company did not disclose how much came from the World Cup versus Tubi.
How did the World Cup help Fox and Tubi?
Live sports draw large, time-sensitive audiences, giving broadcasters more valuable advertising slots. Fox carried the tournament across its television and streaming outlets, while Tubi used the event to introduce viewers to its free, advertising-supported service.
Tubi’s World Cup hub was free and did not require a subscription. It simulcast the opening ceremonies and two matches in 4K, Mexico versus South Africa and the U.S. men’s national team versus Paraguay. The hub also included highlights, selected replays, a continuous feed of Fox Sports digital programming and highlights, original shows, and creator-led programming.
On Fox’s earnings call, Chief Executive Lachlan Murdoch said more than 20 million viewers visited Tubi’s World Cup hub during the tournament, CNBC reported. He also said the two early-round match simulcasts produced two of the platform’s highest-traffic days. Those figures describe audience reach, not a direct measure of ad sales or of viewers who stayed with Tubi after the event.
Fox One had a different role. The paid direct-to-consumer service carried the full tournament, while Tubi offered limited live-match coverage. Murdoch said the World Cup brought customers to Fox One and retention had been strong, CNBC reported. Separately, Fox reported that quarterly distribution revenue rose 5%; Murdoch said Fox One contributed in part to that increase.
What did the World Cup cost Fox?
The event lifted revenue but also raised expenses. Adjusted EBITDA, a company measure of earnings before interest, taxes, depreciation and amortization, increased 27% to $1.20 billion. Fox said higher sports-rights amortization and production costs associated with the World Cup, along with costs to launch Fox One, partly offset the revenue increase.
For the full fiscal year, Fox’s revenue rose 5% to $17.13 billion and advertising revenue increased 7% to $7.34 billion. Fox said World Cup coverage and Tubi-led digital growth were partly offset by the absence of the prior year’s Super Bowl broadcast and lower political advertising.
This story draws on original reporting from CNBC.
