Roku reported a higher profit and double-digit growth in its main platform segment in the second quarter, as the company prepares to be bought by Fox.
The connected-TV company on Thursday reported a profit of $164.2 million, or $1.08 a share, compared with a profit of $10.5 million, or 7 cents a share, a year earlier.
Revenue rose to $1.35 billion from $1.11 billion. Platform revenue rose 25% to $1.22 billion, driven by both advertising and subscriptions, while devices revenue fell 1% to $133.7 million.
Analysts polled by FactSet were expecting a profit of 61 cents a share on $1.3 billion of revenue.
The devices segment had a gross margin of about 20%, which included a refund for tariffs the company paid under President Trump's global tariff regime. Excluding the refund, the segment's gross margin would have been negative 7.6%, Roku said.
Streaming hours rose 7% to 37.9 billion.
In June Fox agreed to buy Roku in a $22 billion cash-and-stock deal, including debt. The $160-a-share acquisition would create the third-largest player in the U.S. television market in terms of viewer share, according to Fox.
Roku said it will not host earnings calls or issue financial guidance while the acquisition is pending.
Fox and Wall Street Journal parent News Corp share common ownership.
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