#Fox posts surprisingly strong revenue boosted by political ads

Fox Corp. posted better-than-expected quarterly revenue, boosted by stronger ad spending during the US presidential election and on the return of live sports to television.

Separately, the New York-based company said Tuesday that it was extending the contract of Fox News chief executive Suzanne Scott. Although terms of the deal were not disclosed, Fox CEO Lachlan Murdoch said Scott’s extension is part of a new “multi-year” deal.

“Suzanne’s stellar leadership and business acumen is evident across Fox News Media,” Murdoch said of Scott. “Her investments in the people and purpose of Fox News have enabled us to shatter ratings records, build a leading multi-platform news brand and create a more collaborative and inclusive internal culture.”

The media giant behind Fox News, Fox Sports, the Fox broadcast network, local TV stations and other media assets on Tuesday said second-quarter revenue rose 8 percent to $4.09 billion.

That was stronger than analysts’ projections of $3.99 billion. Quarterly net income fell to $224 million, or 37 cents a share from year-ago profit of $300 million, or 48 cents.

Advertising revenue rose 14 percent overall in the quarter, driven in part by demand for political ads on its local stations, the company said. Fox also saw an uptick in revenue tied to its cable properties, which include Fox News.

For the 19th consecutive year, Fox News was crowned the No. 1 cable news channel in 2020. The network had its highest-rated November in history, drawing 3.9 million primetime viewers, beating all cable networks, not just cable news, according to Nielsen data. But the network has ceded some ground in the ratings battle to CNN and MSNBC in certain demographics since the presidential election ended.

Overall, the company’s cable business amassed $1.49 billion in quarterly revenue, up 1.4 percent. Television revenue climbed nearly 13 percent to $2.56 billion.