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Fox Corp. Chief Financial Officer Steve Tomsic said the company isn’t feeling the same pain advertise A business seen by many competitors.
Speaking at the UBS Global TMT Conference in New York, Tomsic said that while Fox, led by Chief Executive Lachlan Murdoch, has not been immune to advertising pressures facing other industries, its focus on sporty And news, coupled with the development of Tubi, has helped alleviate these problems.
“It feels like the market is really diverse at the moment. I think the theme of all the agencies is maybe lesser visibility and money coming in later. But then I looked in our book and sports bidding is still there,” Tomsic said, noting Strong results for the World Cup and the upcoming Super Bowl. “So we’re very happy with where we are in sports, and linear journalism is still very strong for us. I think the weak spots we’re seeing are digital news and programmatic to some extent, DR to some extent. [direct response advertising]”
On the entertainment side of the business, Tomsic downplayed Fox Network’s entertainment assets (he said network entertainment “is increasingly becoming the smallest component of our ad book”), noting it was one of the areas under pressure, but said growth was on the back of Tubi’s Contribution isn’t just about making up for these declines.
“We’ve seen an incredible increase in viewership [at Tubi], which translated into very, very strong growth in terms of ad revenue. In the first quarter, we reported a 29% increase in Tubi’s ad revenue. And now, it’s moving from there,” Tomsic said.
“It’s weaker there [at the Fox network] But I think the weakness in the market has more to do with ratings,” Tomsic added. “However, I said last quarter that this is the first time Tubi has meaningfully led our entertainment network in terms of ad sales. So from our perspective, we’ve recognized that’s a small, diminishing component of the portfolio and we’ll continue to build out the parts where we have a real advantage. “
But Fox’s focus on sports has helped lift everything from the NFL to the World Cup.
“The market feels volatile, but the pricing is still pretty strong. So we’re seeing a big premium on up-front pricing,” Tomsic said, “so the industry is really mixed. And I think we feel like we have the most stable asset that can trade This market is getting the most value…in terms of money coming in late, it’s as if advertisers are getting more careful about where they spend their money, they’re getting more picky about where those dollars go.”
Tomsic also addressed the proposed merger between Fox Corp. and News Corp., which is said to face some opposition from major shareholders other than the Murdoch family.
While he said he could not speak for Rupert Murdoch, Tomsic said the Murdoch family has always been focused on “creating value for shareholders” and “an approach that consistently creates value for the company and for all of our shareholders.”
Ultimately, a special committee of the board will make a decision, and the market can decide whether it’s the right move, he said.
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