(Reuters) -Fox Corp beat estimates for quarterly revenue on Thursday, driven by continued digital growth at free streaming service Tubi and stronger ratings and ad pricing across its news and NFL broadcasts, sending its shares up 5% before the bell.
The company also announced plans for a $1.5 billion accelerated share repurchase, set to begin on Oct. 31, adding to the $6.85 billion already repurchased under its existing authorization.
The results highlight the company's reliance on digital growth and
live programming to offset pressure from a soft cable TV market and rising content costs.
Fox's recently launched subscription service, Fox One, is gaining traction through strategic bundle partnerships with ESPN and Verizon, as it builds on momentum from its collaboration with Amazon Prime Channels, the company said.
Advertising revenue rose 6% in the first quarter, bolstered in part by Tubi, which posted 27% revenue growth that was fueled by an 18% increase in total viewing time.
The platform also reached profitability during the quarter, cementing its status as the premium ad-supported video-on-demand service in the U.S. and attracting younger, cord-cutting audiences shifting away from traditional television.
On the sports side, the NFL on Fox averaged nearly 22 million viewers in September - up 12% from last year and marking the network's strongest start to an NFL season ever.
Segment-wise, cable network programming revenue rose 4% to $1.66 billion, with advertising up 7% and distribution up 3%, supported by higher affiliate fees at both its cable network and television divisions.
The company's first-quarter revenue rose 5% to $3.74 billion, compared with the estimates of $3.57 billion, according to data compiled by LSEG.
Adjusted profit attributable to Fox's stockholders was $1.51 per share, compared with the estimates of 1.08 per share.
(Reporting by Kritika Lamba in Bengaluru; Editing by Anil D'Silva)
