Fox Corp. outpaced Wall Streets expectations on Tuesday after reporting higher-than-expected profits that were boosted by an industry-wide uptick in the advertising market.
The New York-based media giant earnings of $375 million, or 74 cents per share, according to its fourth-quarter earnings release. That number was up from $306 million in the same period one year ago.
On an adjusted basis excluding one-time expenses, the company reported earnings of 88 cents per share, higher than the 72 cents projected by Wall Street analysts.
Foxs quarterly revenue was $3.03 billion, a figure that matched last years results for the quarter and was in line with estimates.
“We enter fiscal ’24 from a position of strength despite headwinds facing our industry and the lingering effect of some macroeconomic uncertainty,” Fox Corp. CEO Lachlan Murdoch said during an earnings call.
Fox shares were up nearly 4% in mid-day trading.
The company’s quarterly ad revenue came in at $1.01 billion, down slightly compared to last year but still better than expected, according to estimates from research firm Visible Alpha.
The company said the 4% decrease in ad revenues occurred as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media.
Underlying ad trends have shown signs of improvement over the last quarter, Murdoch added. We are seeing an uptick in scatter driven largely by sports and national news is solid.
Murdoch also expressed confidence in Fox News revamped primetime lineup. The shakeup occurred after the dismissal of former host Tucker Carlson earlier this year.
We are pleased with the initial results, and are confident that our deep bench of talent will continue to set the standard for all new services as we move towards the 2024 presidential election, Murdoch said.
In April, Fox reached a $787.5 million settlement with Dominion Voting Systems. The settlement did not impact its fourth-quarter results.
Through the end of the quarter, Fox had roughly $4.3 billion in cash and roughly $7.2 billion in debt.
Fox Corp. shares a common owner with News Corp, which owns The Post.
The creator of an AI actress has told Sky News that synthetic performers will get more actors working, rather than steal jobs.
AI production studio Particle6 has ruffled feathers in Hollywood by unveiling Tilly Norwood – a 20-something actress created by artificial intelligence.
Speaking to Sky News’ Dominic Waghorn, actor and comedian Eline Van der Velden – who founded Particle6 – insisted Norwood is “not meant to take jobs in the traditional film”.
AI entertainment is “developing as a completely separate genre”, she said, adding: “And that’s where Tilly is meant to stay. She’s meant to stay in the AI genre and be a star in that.”
“I don’t want her to take real actors’ jobs,” she continued. “I wanted to have her own creative path.”
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Norwood has been labelled “really, really scary” by Mary Poppins Returns star Emily Blunt, while the US actors’ union SAG-AFTRA said in a statement: “Tilly Norwood is not an actor, it’s a character generated by a computer program that was trained on the work of countless professional performers – without permission or compensation.”
Responding to the criticism, Ms Van der Velden argued that Hollywood is “going to have to learn how to work with [AI] going forward”.
“We can’t stop it,” she said. “If we put our head in the sand, then our jobs will be gone. However, instead, if we learn how to use these tools, if we use it going forward, especially in Britain, we can be that creative powerhouse.”
Image: Eline Van der Velden said she wanted the character to ‘have her own creative path’
Ms Van der Velden said her studio has already helped a number of projects that were struggling due to budget constraints.
“Some productions get stuck, not able to find the last 30% of their budget, and so they don’t go into production,” she said. “Now with AI, by replacing some of the shots […] we can actually get that production going and working. So as a result, we get more jobs, we get more actors working, so that’s all really, really positive news.”
Rachel Reeves needs to “make the case” to voters that extending the freeze on personal income thresholds was the “fairest” way to increase taxes, Baroness Harriet Harman has said.
Speaking to Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, the Labour peer said the chancellor needed to explain that her decision would “protect people’s cost of living if they’re on low incomes”.
In her budget on Wednesday, Ms Reeves extended the freeze on income tax thresholds – introduced by the Conservatives in 2021 and due to expire in 2028 – by three years.
The move – described by critics as a “stealth tax” – is estimated to raise £8bn for the exchequer in 2029-2030 by dragging some 1.7 million people into a higher tax band as their pay goes up.
Image: Rachel Reeves, pictured the day after delivering the budget. Pic: PA
The chancellor previously said she would not freeze thresholds as it would “hurt working people” – prompting accusations she has broken the trust of voters.
During the general election campaign, Labour promised not to increase VAT, national insurance or income tax rates.
He has also launched a staunch defence of the government’s decision to scrap the two-child benefit cap, with its estimated cost of around £3bn by the end of this parliament.
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4:30
Prime minister defends budget
‘A moral failure’
The prime minister condemned the Conservative policy as a “failed social experiment” and said those who defend it stand for “a moral failure and an economic disaster”.
“The record highs of child poverty in this country aren’t just numbers on a spreadsheet – they mean millions of children are going to bed hungry, falling behind at school, and growing up believing that a better future is out of reach despite their parents doing everything right,” he said.
The two-child limit restricts child tax credit and universal credit to the first two children in most households.
The government believes lifting the limit will pull 450,000 children out of poverty, which it argues will ultimately help reduce costs by preventing knock-on issues like dependency on welfare – and help people find jobs.
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8:46
Budget winners and losers
Speaking to Rigby, Baroness Harman said Ms Reeves now needed to convince “the woman on the doorstep” of why she’s raised taxes in the way that she has.
“I think Rachel really answered it very, very clearly when she said, ‘well, actually, we haven’t broken the manifesto because the manifesto was about rates’.
“And you remember there was a big kerfuffle before the budget about whether they would increase the rate of income tax or the rate of national insurance, and they backed off that because that would have been a breach of the manifesto.
“But she has had to increase the tax take, and she’s done it by increasing by freezing the thresholds, which she says she didn’t want to do. But she’s tried to do it with the fairest possible way, with counterbalancing support for people on low incomes.”
She added: “And that is the argument that’s now got to be had with the public. The Labour members of parliament are happy about it. The markets essentially are happy about it. But she needs to make the case, and everybody in the government is going to need to make the case about it.
“This was a difficult thing to do, but it’s been done in the fairest possible way, and it’s for the good, because it will protect people’s cost of living if they’re on low incomes.”
With all the speculation, it was always going to be a big one, but Rachel Reeves’s second budget turned into a political earthquake before she even stood up at the despatch box.
In this bumper budget special, Beth, Ruth, and Harriet unpick what happened on one of the most dramatic days in the fiscal calendar.
With the unprecedented leak of the Office for Budget Responsibility’s assessment giving the opposition a sneak preview, Kemi Badenoch delivered a fiery attack. Listeners weigh in on their thoughts of her comebacks.
Send us your messages and Christmas-themed questions on WhatsApp at 07934 200 444 or email electoraldysfunction@sky.uk.
And if you didn’t know, you can also watch Beth, Harriet, and Ruth on YouTube.
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