Fox Corp. has reported an 18% increase in revenue for the fiscal third quarter, totaling $4.08 billion, despite settling allegations that its network broadcasts defamed Dominion Voting Systems after the 2020 presidential election. Sales were lifted by a substantial 43% jump in advertising revenue.
However, the company posted a quarterly net loss of $54 million due to the historic defamation settlement with Dominion Voting Systems, which resulted in "legal settlement costs" at Fox News as part of their coverage following the election.
Lachlan Murdoch, executive chairman of Fox Corporation, conceded that pretrial rulings against his company limited his defense options and contributed to his decision to settle with Dominion for $787.5 million – making it one of the largest settlements ever seen in defamation law history.
Murdoch defended Fox News personnel's conduct during this time and stated that avoiding a divisive trial was ultimately in their best interest: "The decision made is purely business."
Adjusting for these exceptional circumstances surrounding legal proceedings and ensuring fair comparison with previous quarters' results, Fox Corp reported an adjusted profit per share of 94 cents – beating analysts' expectations set at 87 cents per share.
This robust performance coincides with advertisers choosing dominant networks such as FOXA.O over other marketing channels amid ongoing economic uncertainty caused by recession fears.
Despite recent controversy stemming from leaked private communications involving top-host Tucker Carlson – who was ousted from the network following revelations discovered during court proceedings related to Dominion lawsuit – Murdoch remains optimistic about future growth prospects while continuing to navigate through any potential fallout from scandalous events experienced within recent years.