Fox Corp., Rupert Murdoch’s slimmed-down TV empire, posted quarterly results that beat analysts’ estimates on the strength of the flagship Fox News Channel and higher rental income at its studios in Los Angeles.

• The company, which sold its film and TV studios to Walt Disney Co. last year, said profit excluding some items totaled 10 cents a share, compared with analysts’ estimates for a loss of 2 cents. Revenue exceeded estimates, too,

Key Insights

• Following the Disney deal, Fox is relying even more heavily on cable TV for its profit. That business remains challenged as pay-television subscribers cut the cord, but the company eked out a 2.4 per cent gain in revenue with help from pay-per-view boxing, boosting profit.
• Ad revenue in cable fell as the Fox News Channel was forced to preempt its regular programming more frequently for breaking news, such as the impeachment of U.S. President Donald Trump.
• The Fox broadcast business suffered a loss of US$214 million, because of rising expenses for programming rights to the NFL and WWE.
• To combat viewer losses, the company has invested heavily in live sports, including football and wrestling.

Market Reaction

• Fox shares were unchanged in extended trading after earnings came out. The stock is up 4.3 per cent this year.