(Reuters) -Fox Corp beat Wall Street expectations for first-quarter revenue on Monday, as the media company benefited from higher political advertising ahead of the U.S. presidential election, sending its shares up 5% in premarket trading.
A large number of people sought out traditional news and television programs for updates on the Nov. 5 U.S. presidential election, which boosted advertising spend at channels such as Fox News.
Fox chief executive Lachlan Murdoch pointed to record political advertising across the company and strong growth at its ad-supported streaming platform, Tubi.
Advertising revenue for the first quarter jumped around 11% to $1.33 billion, compared with analysts’ average estimate of $1.13 billion, per data compiled by LSEG.
The company’s television segment reported revenue of $1.95 billion, ahead of estimates of $1.92 billion, driven by a jump in advertising owing to the broadcast of the “UEFA European championship” at Fox sports.
Media firms and news publishers have been trying to ramp up sports coverage in order to capitalize on the loyal fanbases and large viewership numbers.
Revenue at Fox’s Cable Network Programming came in at $1.60 billion, compared with analysts’ estimate of $1.41 billion.
The company reported total revenue of $3.56 billion for the quarter, compared with estimates of $3.37 billion.
On an adjusted basis, Fox earned $1.45 per share, above estimates of $1.11.