Fox Corp results beat estimates as US election fuels ad spending

(Reuters) -Fox Corp surpassed quarterly revenue and profit expectations on Tuesday, as the U.S. broadcaster benefited from an election-driven advertising surge on its news network and more commercials on its Tubi streaming service.

Shares of the New York-based company were up 4% before the bell.

The U.S. presidential election in November powered ad spending across traditional media, with research firm Magna Global estimating political commercials brought in $6 billion of revenue. That helped the industry mark its best year for ad sales in well over a decade, barring the post-COVID rebound of 2021.

Conservative-leaning Fox has also enjoyed strong viewership since the election, outshining rivals such as MSNBC and CNN that have been hit by declines after Donald Trump's victory over former Vice President Kamala Harris, data from Nielsen showed.

Advertising revenue for the second quarter rose to $2.42 billion from about $2 billion last year.

The company also got a boost from higher Major League Baseball ratings for the 2024 season, it said.

Fox marked a 9% increase in baseball watchers aged 18-34, with an average viewership of about 1.9 million, data released by the professional baseball league showed.

Revenue for the second quarter stood at $5.08 billion, beating estimates of $4.85 billion, according to data compiled by LSEG.

On an adjusted basis, Fox made a profit of 96 cents per share in the quarter ended Dec. 31, compared with estimates of 67 cents.

(Reporting by Rishi Kant in Bengaluru; Editing by Devika Syamnath)