Fox Corp reports 20 percent decline in ad revenue
Ad revenue for the company fell to $2 billion in the second quarter ended December 31. Company blames low political ad spending.
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Fox Corp disclosed a 20 percent decline in advertising revenue on Wednesday, attributing it to reduced political ad spending. The uncertainty surrounding future ad spending and the outlook for sports programming contributed to a roughly 6 percent drop in the company's shares reported Reuters.
In a bid to make the most of the sports IPs that belong to the house which included broadcasting the Super Bowl last year, Fox Corp, Walt Disney's ESPN and Warner Bros Discovery are all set to launch a new combined sports streamer in 2024. The platform will be targeted to capture the younger audiences on connected TV.
The new streaming service will combine 14 linear networks and is expected to be priced at above $40 per month.
Coming back to financials, Fox Corp ad revenue fell to $2 billion in the second quarter ended December 31, although surpassing analysts’ estimates by a marginal $1.96 billion.
Quarterly revenue clocked by Fox stood at $4.23 billion, compared with estimates of $4.20 billion, according to LSEG data.
