FOX - Fox stock gains as quarterly ad growth bucks industry slowdown

Fox stock is higher Wednesday - ( NASDAQ: FOX ) +4.3% , ( NASDAQ: FOXA ) +3.7% - after it grew revenues by 5% and offered confidence in the face of an ad-industry slowdown in fiscal Q4 earnings , and raised its semiannual dividend.

Revenues overall rose 5% to $3.03B, an increase largely in line with expectations, though it was led by advertising revenues that grew 7% - a positive sign the company attributed to stronger pricing and higher ratings at Fox News, higher political advertising at Fox TV stations, and ongoing growth of ad-supported TV platform Tubi.

Adjusted attributable net income rose to $413M from a year-ago $381M, while adjusted earnings before interest, taxes, depreciation and amortization rose 7% to $770M, thanks to higher contributions from the Television segment.

"These results validate the strategy we embarked on three years ago – to focus on live news and sports while investing in high growth digital initiatives to create a platform for ongoing growth," said CEO Lachlan Murdoch. "We begin Fiscal 2023 with strong momentum, supported by an enviable schedule of live sporting events and the mid-term election cycle, and bolstered by a best-in-class balance sheet."

Revenue by segment: Cable Network Programming, $1.46B (up 4.4%); Television, $1.53B (up 5.4%).

Revenue by component: Affiliate fee, $1.73B (up 3.7%); Advertising, $1.06B (up 7.4%); Other, $252M (up 3.7%).

The company's raising its semiannual dividend to 25 cents per share, better than an expected 24 cents per share.

On the company's earnings call, Murdoch said he was looking forward to renewing media rights for Big Ten college sports (Fox expects to renew its Big Ten deal, likely joined by NBC and CBS and Apple or Amazon .)

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