Fox Corporation boosts shareholder returns as revenue climbs on Tubi and NFL growth

Fox Corporation has surpassed market expectations for quarterly revenue, with robust digital expansion at its Tubi streaming platform and record-breaking viewership for National Football League (NFL) broadcasts driving the uplift. The company has announced a substantial $1.5 billion accelerated share repurchase programme, set to commence on Friday. This initiative adds to the $6.85 billion already returned to shareholders under existing authorisations.

Digital services continue to underpin Fox’s performance. Tubi, the ad-supported streaming service, registered a remarkable 27 per cent increase in revenue and achieved profitability during the period. Viewing time surged by 18 per cent, cementing Tubi’s position as a leading destination for younger audiences increasingly moving away from traditional television. The recently introduced Fox One subscription is reportedly gaining momentum, leveraging partnership bundles with ESPN and Verizon, alongside its growing collaboration with Amazon.

Advertising revenue at Fox saw a 6 per cent uplift in the first quarter, attributed partly to Tubi’s surge and buoyant demand across the group’s sports and news assets. The broadcaster’s NFL coverage averaged nearly 22 million viewers in September, a 12 per cent rise on the previous year, marking the strongest start ever to an NFL season for the network.

Fox’s cable network segment reported a 4 per cent increase in programming revenue to $1.66 billion, highlighted by a 7 per cent gain in advertising and a 3 per cent rise in distribution, bolstered by elevated affiliate fees across both cable and television units. Group revenue for the first quarter reached $3.74 billion, outpacing analyst estimates of $3.57 billion.

Lachlan Murdoch, executive chairman and chief executive of Fox Corp, commented that continued audience engagement across the portfolio is driving solid advertising demand through sports, news, entertainment, and Tubi. He emphasised the reliability of Fox’s assets, expressing confidence in the group’s positive outlook and financial resilience.

Fox shares rallied in response to the results, climbing 7.7 per cent, or $4.70, to close at $65.51 in New York trading on Thursday, signalling investor confidence in the company’s ongoing strategy and strong operational performance.