NFL Boosts Super Bowl Revenues After World Cup

The Fox Corp reported an increase in the amount of revenue produced by Super Bowl ads in the second quarter of its fiscal year on Wednesday, as it reported a record amount of revenue for the year.

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A big part of the reason for the strong quarter can be attributed to the schedule of sporting events that included the men's World Cup and NFL Sunday games during the quarter. On Wednesday, the company's shares rose by over 4%, marking the biggest gain of the year so far.

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There was an increase of 4% in the company's advertising revenue during the quarter, partially due to live events such as the Qatar World Cup which aired during November and December, according to the company. As a result of the midterm elections, Fox's ad revenue also grew due to the midterm elections, as well as Tubi, Fox's free online streaming service with ads. 

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As a result of the positive advertising picture, the industry has been contending with a challenging advertising market during the last few months. Recent months have seen the emergence of major media companies like Paramount Global and Warner Bros. There are a number of companies, such as Discovery, with portfolios of entertainment cable-TV channels in addition to sports and news outlets, who have warned of the impact that a deteriorating ad market is having on their businesses.

Fox executives said Wednesday that NFL and college football games helped drive ratings and advertising revenue.

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There has been no evidence that Fox CEO Lachlan Murdoch is experiencing the soft advertising market that some of his peers have described in recent months, according to the CEO. Fox is still hitting goals and revenues targets, as they see the market as "fluid and money coming in late," despite the current economic climate. Attributing this success to their portfolio of live sports and news, he said they see the market as "fluid and money coming in late.".

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Sunday's Super Bowl will be aired by the company's broadcast network, which is a marquee event for advertisers. According to Trade Algo, the company will generate about $600 million in gross advertising revenue from the Super Bowl.

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"We had some nervous moments when the Super Bowl advertising money came in late," Murdoch said. “In terms of total revenue and what we achieved for each spot, it will be a record Super Bowl for us."

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A 30-second spot can cost more than $7 million, according to Fox, which has sold out of commercial spots for the Super Bowl.

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Fox reported a 4% increase in revenue for the fiscal second quarter to $4.61 billion, up from $4.55 billion a year earlier.

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During a conference call with investors on Wednesday, Rupert Murdoch told investors that the company has "flourished" since it spun off its entertainment assets to Disney in order to focus on live sports and news.

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As Fox's answer to the streaming wars, the company's free streaming service, Tubi, continued to be a bright spot as Fox's answer to the streaming wars. This is the best quarter in Tubi's history for ad revenue, with a 25% increase in ad revenue and a rise in viewership, with December being its highest month ever in terms of viewership and engagement. As part of Murdoch's commitment to continue investing in and growing Tubi, the company noted that Tubi requires a minimal amount of funding compared to its peers in the streaming space.

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Murdoch also acknowledged briefly on Wednesday that he and his father had called off the proposed merger between Fox and News Corp in recent weeks after determining the timing wasn't right. Scale, flexibility, and synergies were the rationale behind the deal, he explained.

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It is possible that Murdoch's company will merge or acquire in the future. “I believe that we are in a good position today, but we don't have anything on the table at this time," Murdoch said.