• by Wayne Friedman , August 8, 2023

Fox Corp says current weakness in the national TV advertising market seems to be abating. 

Lachlan Murdoch, chairman/CEO of Fox Corp., says advertising trends are showing improvement in the third quarter versus the second quarter -- driven by live sports and news advertising in terms of scatter advertising sales.

In its most recent quarterly period ending in June, company-wide advertising revenues declined 4% to $1.0 billion. 

At its cable TV networks -- largely coming from Fox News Media -- Fox says there was a 11% decline to $320 million in advertising revenue due to a softer direct-advertising market at Fox News channel, resulting in an elevated supply of DR inventory.

Overall "Television" unit advertising sales -- including the Fox Television Network -- witnessed a 1.4% decline to $688 million. 

As has been previously reported, Fox closed its upfront TV ad deals for the upcoming TV season late last month. “At this year's upfront, we believe Fox led the market in both price and volume in both our live sports and news offerings,” said Murdoch, during its earnings result phone call with analysts.

Media agency executives estimate that TV network groups with major live sports TV  programming were able to grow pricing -- the cost-per-thousand viewers -- from 3% to 5% for this upfront ad-selling period

Murdoch says key improvements in major upfront business came from automotive, travel and pharmaceutical marketers.

The company’s most recent quarterly distribution revenue grew 9% to $744 million for its ‘Television’ business, with cable TV network distribution revenue virtually unchanged at $1.03 billion.

Company-wide revenues were flat at $3.03 billion, while net income rose 20% to $369 million. Cash flow -- adjusted earnings before interest taxes depreciation and amortization -- dipped 5% to $735 million.

Mid-day trading of Fox Corp. stock was up 6% to $34.99.