With all eyes focused on premium streaming platforms from legacy media companies, Fox Corp. disclosed some financial projections for Tubi, its free, ad-supported streaming service.
“We envision Tubi becoming a $1 billion business and a core pillar of Fox,” said Lachlan Murdoch, executive chairman-CEO of Fox Corp., speaking during an earnings
phone call with analysts.
With regard to the near term, he added: “We expect Tubi revenues to more than double in the current fiscal year, to exceed $300
Although Fox didn’t release fourth-quarter revenue data for Tubi, Murdoch added: “Revenue for this past quarter alone broadly approximated
Tubi’s revenue for the entire fiscal year before we acquired the company.”
MoffettNathanson Research estimates Tubi's recent fiscal quarter revenue was $105
For its fourt-quarter 2020, Fox Corp’s revenues dropped 8% to $4.09 billion, with net income slipping to $230 million from $314 million.
Mid-day trading of Fox stock price was down 5.5% to $29.83.For the calendar year, MoffettNathanson estimates Fox News Media took in well over 80% of the total company’s cash
flow this year (EBITDA) -- earnings before interest, taxes, depreciation and amortization -- as well as two-thirds of cable networks' affiliate fees.
Fox’s total networks
and platform advertising grew a substantial 14% to $2.3 billion in Q4 2020, from its Fox News Channel and the Fox Television stations
Advertising revenues at Fox News Media --
home of the Fox News Channel and Fox Business -- rocketed up 31% ($104 million) to $441 million. This includes revenue from its traditional live, linear TV network and digital platforms.
Due to cancelled college football and other games at its sport cable TV network, total cable network affiliate fees sank 3% to $928 million. But Fox says affiliate fees continue
to climb by double-digit percentage growth at its Fox News Media networks.
At its television unit -- the Fox network and the Fox TV stations -- revenues were 13% higher to $2.6
Advertising revenues in this business grew 10% to $1.8 billion, including a “record’ political advertising total at the Fox-owned TV stations. Affiliate
fee revenue (retransmission fees) at those stations soared 23% to $590 million.