Business 2 min read By Lauren Baxter
Roku Revenue Jumps 24% to $1.5 Billion in Third Quarter
The streaming platform Roku reported strong third-quarter results despite the ongoing regulatory review of its $22 billion merger with Fox Corp.
The streaming platform Roku reported strong third-quarter results, even though its $22 billion merger with Fox Corp. is still under regulatory review. Total revenue for the July to September period rose 24% compared with the same period last year, reaching $1.5 billion. Earnings per share increased to $1.20 from 16 cents a year earlier.
The company's financial results exceeded Wall Street expectations. Gross profit came to $649 million, also up 24%, and Roku's net income was $183 million. This indicates that the platform's advertising business remains the main driver of growth, despite the challenging competitive situation in the streaming market.
Separately, industry publications noted that advertising spending in the media and entertainment sector showed the strongest growth in the past four years. This growth gave Roku additional momentum in the third quarter. The deal with Fox Corp., valued at approximately $22 billion, is expected to be completed next year, and the current results show that Roku is entering this stage with strong financial positions.
The merger with Fox Corp. is passing through several regulatory stages, and its final approval remains under review. The company continues to operate on its usual schedule, reporting financial results that investors and analysts are closely tracking in the context of the upcoming deal.
Source: deadline.com
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