Fox stock is lower on the day - (NASDAQ:FOX) -1.7%, (NASDAQ:FOXA) -1.5% - after its fiscal third-quarter earnings, where revenues surprised to the upside but profits declined and missed on some of its outside investments.
Revenues grew 7.5% to $3.46 billion, with strength attributed to broad distribution and advertising gains.
Affiliate revenues rose 5% (with 8% growth in the Television segment, and 3% growth in Cable Network Programming). Ad revenues rose 9% on some stronger pricing and higher ratings at Fox News Media, complemented by strength at its Tubi ad-supported offering.
Other revenues rose 18%, though those involve sports sublicensing and are off a COVID-19 comparison in 2021.
Net income fell, though, to $290 million from $582 million, as the company revalued other investments (notably its stake in FanDuel). Adjusted net income fell to $459 million from $523 million. And EBITDA fell to $811 million from $899 million.
Along with earnings, Fox made an expensive new investment: It will make Tampa Bay Buccaneers quarterback Tom Brady its lead NFL game analyst once he retires (for good - Brady briefly retired last year before reversing course), with a deal reported to be 10 years and $375 million in value.
At that price, Brady would receive the largest contract in sports broadcasting history, more than double the high-profile deals of Tony Romo at CBS and Troy Aikman, now at ESPN.
For more detail, dig into Seeking Alpha's transcript of Fox's earnings conference call.