Fox Corp. Q1 Profit Rises, Buoyed by Disney Payment and Fox News
Fox Corporation managed to mitigate some of the effects of the coronavirus pandemic as strength at its Fox News Media operations and a gain recorded on a payment from Walt Disney Co. helped the company navigate its way to a profit in its first fiscal quarter.
Fox Corp. said revenue during the period increased 2% to $2.72 billion from $2.67 billion in the earlier period, largely due to increases in fees paid by distributors of Fox News. Those payments helped offset downturns in advertising as well as challenges rising from delays in sports and scripted programming due to pandemic conditions.
“Our growth was led by Fox News Media where the Fox News Channel has been the highest rated television network in America for the last four months and has consistently achieved record digital engagement across its platforms,” said Lachlan Murdoch, the company’s executive chairman and CEO, in a statement.
The results were buoyed by a large one-time gain due to a $462 million cash payment from Walt Disney related to some of the terms of Fox’s sales of its cable-and-studio assets to that company in 2019. Fox had made a pre-payment to Disney of its share of tax liabilities that resulted from Disney’s sale of the former Fox-owned regional-sports cable networks, and Disney’s payment to Fox during the period is based on the sales price of those assets.
More to come…