Cost savings offset weak advertising revenues

(Reuters) – Fox beat Wall Street’s third-quarter profit estimates on Wednesday due to cost cuts, despite a more than 15% plunge in revenue due to a weak advertising business.

The media company benefited from a nearly 25% drop in operating expenses in the quarter. This helped the company report adjusted earnings of $1.09 per share, compared to LSEG estimates of 96 cents.

Shares of the company behind Fox Sports Network and Fox News rose 1.3% in early trading.

Fox also reported net income of $666 million compared to a loss of $54 million the year before, due to no costs related to last year’s settlement with Dominion Voting Systems.

The company’s advertising revenue fell by more than a third in the first three months of the year as Fox lacked a Super Bowl broadcast and fewer National Football League games.

Media companies saw advertising spending fall last year as an uncertain economic environment put pressure on marketers’ spending.

Fox reported total revenue of $3.45 billion in the period, compared to $4.08 billion in the year-ago period. This figure was consistent with estimates.

In an effort to grow its business, Fox agreed in February to form a sports streaming joint venture with Walt. Disney (NYSE:) and Warner Bros. Discovery (NASDAQ:).

Fox Corp CEO Lachlan Murdoch said the venture was expected to gain 5 million subscribers in its first five years.