Core Viewpoint - Fox (FOXA) reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing a slight increase from $1.09 per share a year ago, indicating a positive earnings surprise of 18.28% [1][2] Financial Performance - The company achieved revenues of $4.37 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.30%, and reflecting a significant increase from $3.45 billion in the same quarter last year [2] - Over the last four quarters, Fox has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Fox shares have increased approximately 3.4% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $3.08 billion, and for the current fiscal year, it is $4.45 on revenues of $15.88 billion [7] - The trend of estimate revisions for Fox has been favorable leading up to the earnings release, which may influence future stock movements [5][6] Industry Context - The Broadcast Radio and Television industry, to which Fox belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - Total company advertising revenue grew 65% in the quarter, driven by a record-breaking Super Bowl generating over $800 million in gross advertising revenue [7][16] - Total revenues increased by 27%, with record free cash flow achieved [16] - Adjusted EBITDA was $856 million, down from $891 million in the prior year quarter due to higher expenses [17] - Net income attributable to Fox stockholders was $346 million, or $0.75 per share, compared to $666 million, or $1.40 per share in the prior year [17] Business Line Data and Key Metrics Changes - Cable Network Programming segment saw 11% revenue growth and 7% EBITDA growth, with cable advertising revenues up 26% [18] - Television segment delivered 40% revenue growth, with advertising revenues increasing 77% due to the Super Bowl [19] - Tubi experienced a 35% year-on-year revenue growth, with total viewing time up 24% year-over-year in April [12][41] Market Data and Key Metrics Changes - Fox News finished the quarter as the most-watched cable network, with total day audience growing 48% and prime time ratings up over 30% [9][10] - Fox Sports ranked as the industry leader in live sports event viewership, accumulating 3.3 billion hours of sports event viewing, 17% better than the closest competitor [11] - Digital consumption trends for Fox News showed an 18% year-on-year growth in page views, reaching a record 11 billion views [10] Company Strategy and Development Direction - The company is focused on launching a direct-to-consumer service named Fox One, targeting the cordless market and aiming to avoid cannibalizing traditional cable subscribers [15][66] - Fox aims to leverage its strong assets in live sports and news programming to attract advertisers, with a disciplined approach to capital allocation [8][15] - The company is committed to maintaining strong relationships with traditional cable distributors while expanding its digital offerings [50][52] Management's Comments on Operating Environment and Future Outlook - Management noted no impact from the macro environment on business performance, with strong ratings and engagement [8] - The company is optimistic about the upcoming fiscal year, despite the absence of political advertising in fiscal 2026 [29] - Management expressed confidence in Tubi's growth trajectory and its potential to become a mainstream service [41][75] Other Important Information - The company repurchased an additional $800 million in shares, bringing the total repurchased to $6.4 billion since the buyback program began [21] - The company ended the quarter with approximately $4.8 billion in cash and $7.2 billion in debt, maintaining a strong balance sheet [21][43] Q&A Session Summary Question: Inquiry about FOX One and its pricing strategy - Management indicated that FOX One will target the cordless market and will not be priced at a discount, aiming for healthy pricing aligned with wholesale rates [26] Question: Update on brand advertising demand on Fox News - Over 200 new advertisers have been attracted since the election, with direct response advertising up over 30% and scatter pricing up over 50% [34][36] Question: Path to profitability for Tubi and capital allocation strategy - Tubi's revenue improved by 35% with a focus on engagement, and the company plans to continue investing in Tubi while maintaining a strong balance sheet [41][43] Question: Strategy around direct-to-consumer offerings and affiliate revenue growth - The company remains supportive of traditional cable distribution while launching a D2C service targeting cord-nevers, with a focus on maintaining affiliate relationships [50][52] Question: Digital investments and future plans for the Fox Lot - Digital investments are expected to decrease slightly, and the company plans to fill the office space vacated by Disney with high-demand sound stages [71][75]

Financial Data and Key Metrics Changes - Total company advertising revenue grew 65% in the quarter, driven by a record-breaking Super Bowl generating over $800 million in gross advertising revenue [7] - Total revenues increased by 27%, with record free cash flow achieved [16] - Adjusted EBITDA was $856 million, down from $891 million in the prior year quarter, primarily due to higher expenses [17] - Net income attributable to Fox stockholders was $346 million, or $0.75 per share, compared to $666 million, or $1.40 per share, in the prior year [17] Business Line Data and Key Metrics Changes - Cable Network Programming segment saw 11% revenue growth and 7% EBITDA growth, with cable advertising revenues up 26% [18] - Television segment delivered 40% revenue growth, with advertising revenues increasing 77% due to the Super Bowl [19] - Tubi experienced a 35% year-on-year revenue growth, with total viewing time up 24% year-over-year in April [12][41] Market Data and Key Metrics Changes - Fox News finished the quarter as the most-watched cable network, with total day audience growing 48% and prime time ratings up over 30% [9][10] - Fox Sports ranked as the industry leader in live sports event viewership, accumulating 3.3 billion hours of sports event viewing, 17% better than the closest competitor [11] - Digital consumption trends showed Fox News digital grew page views 18% year-on-year to a record 11 billion views [10] Company Strategy and Development Direction - The company is focused on launching a direct-to-consumer service named Fox One, targeting the cordless market and planning partnerships with other distributors [15][66] - The strategy emphasizes maintaining strong relationships with traditional cable distributors while expanding digital offerings [50] - The company aims to leverage its strong operating momentum and financial results to deliver long-term value for shareholders [15] Management's Comments on Operating Environment and Future Outlook - Management noted no impact from the macro environment on business performance, with strong ratings and engagement [8] - Confidence in the advertising business remains high, particularly with Fox News and Tubi showing solid demand [29] - The company anticipates continued growth in affiliate revenue and advertising, despite the absence of political advertising in the upcoming fiscal year [29] Other Important Information - The company repurchased an additional $800 million in shares, bringing the total repurchased to $6.4 billion since the buyback program began [21] - The balance sheet remains strong, with approximately $4.8 billion in cash and $7.2 billion in debt [21] Q&A Session Summary Question: Inquiry about FOX One and its pricing strategy - Management indicated that FOX One will target the cordless market and pricing will be healthy, not discounted, with plans for partnerships to broaden distribution [26] Question: Thoughts on fiscal 2026 outlook - Management highlighted the absence of political advertising as a factor for fiscal 2026, but noted strong tailwinds from advertising and affiliate revenue growth [29] Question: Update on brand advertising demand on Fox News - Over 200 new advertisers have been added since the election, with direct response advertising up over 30% and scatter pricing up over 50% [34][36] Question: Path to profitability for Tubi and capital allocation - Tubi's revenue improved by 35% with significant engagement, and the company plans to continue investing in Tubi while maintaining a strong balance sheet [41][44] Question: Strategy around direct-to-consumer and affiliate revenue growth - Management remains supportive of traditional cable distribution while launching a D2C service targeting cord-nevers, with a focus on maintaining affiliate relationships [50][52] Question: Digital investments and future plans for the Fox Lot - Digital investments are expected to decrease slightly, and the company plans to fill the office space vacated by Disney with high-demand sound stages [71][77]

Financial Data and Key Metrics Changes - Total company advertising revenue grew 65% in the quarter, driven by a record-breaking Super Bowl generating over $800 million in gross advertising revenue [6][17] - Total revenue increased by 27%, with record free cash flow achieved [17] - Adjusted EBITDA was $856 million, down from $891 million in the prior year quarter, primarily due to higher expenses [18] - Net income attributable to Fox stockholders was $346 million, or $0.75 per share, compared to $666 million, or $1.40 per share in the prior year [18] Business Line Data and Key Metrics Changes - Cable Network Programming segment revenue grew 11%, with advertising revenues up 26% due to strong Fox News ratings [19] - Television segment revenue increased by 40%, with advertising revenues up 77%, largely due to the Super Bowl [20] - Tubi's revenue grew 35% year on year, with total viewing time up 24% year over year in April [12][41] Market Data and Key Metrics Changes - Fox News finished the quarter as the most-watched cable network, with total day audience growth of 48% and demo growth of 58% [9] - Fox Sports ranked as the industry leader in live sports event viewership, accumulating 3.3 billion hours of viewing, 17% better than the closest competitor [11] - Digital consumption trends showed Fox News digital grew page views by 18% year on year, reaching a record 11 billion views [10] Company Strategy and Development Direction - The company is focused on launching a direct-to-consumer service named Fox One, targeting the cordless market [15][66] - Fox aims to leverage its strong assets in live sports and news programming to attract advertisers [7][8] - The company plans to continue investing in Tubi and its digital properties while maintaining a strong balance sheet [41][76] Management Comments on Operating Environment and Future Outlook - Management noted no impact from the macro environment on business performance, with strong ratings and engagement [7] - The company is optimistic about the upcoming fiscal year, despite the absence of political advertising in fiscal 2026 [30] - Management highlighted the importance of maintaining traditional cable distribution while launching new digital services [52] Other Important Information - The company repurchased $800 million in shares, bringing the total repurchased to $6.4 billion since the buyback program began [22] - The company ended the quarter with approximately $4.8 billion in cash and $7.2 billion in debt [22] Q&A Session All Questions and Answers Question: Inquiry about FOX One pricing and addressable market - Management indicated that pricing for FOX One will be in line with wholesale pricing, targeting the cordless market and avoiding traditional cable subscribers [27][28] Question: Update on demand from brand advertisers on Fox News - Over 200 new advertisers have been added since the election, with direct response advertising up over 30% and scatter pricing up over 50% [34][36] Question: Path to profitability for Tubi and balance sheet considerations - Tubi's revenue improved by 35% with total viewing time up 18%, and the company plans to continue investing in Tubi while maintaining a strong balance sheet [41][44] Question: Strategy around direct-to-consumer and affiliate revenue growth - The company remains supportive of traditional cable distribution while launching a D2C service targeting cord-nevers, with a focus on maintaining healthy affiliate relationships [52][55] Question: Update on digital investments and Disney's plans for the Fox Lot - Digital investments are expected to decrease slightly, and Disney will vacate office space on the Fox Lot, which is expected to be filled easily due to high demand [76][78]

Revenue Growth - Revenues increased by $924 million or 27% for the three months ended March 31, 2025, compared to the same period in 2024, driven by higher affiliate fee, advertising, and other revenues [92]. - For the nine months ended March 31, 2025, revenues increased by $2.1 billion or 20%, with advertising revenue up by $1.4 billion or 30% due to sports content and political advertising [96]. - Total revenues for the three months ended March 31, 2025, increased by $924 million or 27% to $4,371 million compared to the same period in 2024 [105]. - For the nine months ended March 31, 2025, total revenues increased by $2,125 million or 20% to $13,013 million compared to the same period in 2024 [105]. Advertising Revenue - Advertising revenue surged by $801 million or 65% for the three months ended March 31, 2025, primarily due to approximately $700 million from the broadcast of Super Bowl LIX [93]. - Television segment revenues increased by $1.4 billion or 22% for the nine months ended March 31, 2025, driven by a $1.1 billion or 32% rise in advertising revenue [114]. Operating Expenses - Operating expenses rose by $915 million or 45% for the three months ended March 31, 2025, mainly due to higher sports programming rights amortization and production costs related to Super Bowl LIX [94]. - Operating expenses for the Cable Network Programming segment increased by $567 million or 27% for the nine months ended March 31, 2025, primarily due to higher sports programming costs [109]. - Television segment EBITDA decreased by $85 million or 59% for the three months ended March 31, 2025, due to a significant increase in operating expenses by $819 million or 53% [113]. Net Income - Net income decreased by $350 million or 50% for the three months ended March 31, 2025, primarily due to changes in the fair value of investments in equity securities [101]. - The company reported a net income of $354 million for the three months ended March 31, 2025, compared to $704 million in the same period of 2024, indicating a decrease of 49.7% [123]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended March 31, 2025, was $1,811 million, an increase of 92.5% compared to $941 million in 2024 [128]. - Net cash used in investing activities increased to $407 million for the nine months ended March 31, 2025, from $324 million in 2024, primarily due to acquisitions [129]. Dividends and Financial Position - The company declared a semi-annual dividend of $0.27 per share during the three months ended March 31, 2025 [131]. - As of March 31, 2025, the company had approximately $4.8 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility [125]. Strategic Initiatives - The company has evaluated potential acquisitions and dispositions, indicating ongoing strategic growth initiatives [127]. - The company anticipates continued challenges from evolving technologies and changes in consumer behavior affecting advertising revenues [139]. Tax and Interest - The effective tax rate for the three and nine months ended March 31, 2025, was 25%, higher than the statutory rate of 21% due to state taxes [99]. - Interest expense, net increased by $16 million or 9% for the nine months ended March 31, 2025, primarily due to lower interest income [98]. Segment Performance - Cable Network Programming segment revenues rose by $164 million or 11% for the three months ended March 31, 2025, driven by higher affiliate fees, advertising, and other revenues [106]. - Segment EBITDA is the primary financial measure used by management to evaluate performance, defined as revenues less operating expenses and selling, general and administrative expenses [103]. - Segment EBITDA for Cable Network Programming increased by $59 million or 7% for the three months ended March 31, 2025, despite a $102 million or 20% rise in operating expenses [107]. - Corporate and Other segment reported a Segment EBITDA of $(82) million for the three months ended March 31, 2025, reflecting a decrease of $9 million or 12% compared to the same period in 2024 [116].

Core Insights - Fox Corporation has launched FOX One, a direct-to-consumer streaming service that consolidates all of its premium news, sports, and entertainment content into a single platform [1][2]. Group 1: Service Features - FOX One will provide live streaming and on-demand access to a comprehensive portfolio of FOX brands, including FOX News, FOX Sports, and FOX Business, among others [2]. - The platform is designed to enhance user experience through advanced personalization technology that adapts to viewing preferences and integrates live and on-demand content seamlessly [3]. Group 2: Launch Timeline - FOX One is scheduled to launch in the fall, strategically timed ahead of the NFL and College Football seasons [4]. Group 3: Company Overview - Fox Corporation is known for producing and distributing significant news, sports, and entertainment content through its iconic brands, which hold cultural and commercial importance [5]. - The company aims to leverage its strengths and invest in new initiatives to engage audiences and develop deeper consumer relationships [5].

Core Viewpoint - Fox Corp. is set to launch its direct-to-consumer streaming service, Fox One, ahead of the NFL season later this year, marking a significant move into the streaming market [1][4]. Group 1: Service Launch Details - The streaming service will be named Fox One and is expected to launch before the NFL season [1]. - Pricing for Fox One will align with wholesale pricing, similar to what pay-TV distributors pay for Fox channels, and cable TV subscribers will have access at no additional cost [2]. - The CEO emphasized that the pricing will be healthy and not discounted [2]. Group 2: Strategic Intentions - The company aims to retain traditional cable subscribers and avoid losing them to the new streaming service [3]. - Fox Corp. is exploring partnerships with other distributors and services to enhance the offering of Fox One [3]. Group 3: Market Context - Fox has been relatively late to the streaming market compared to competitors, having previously only offered Fox Nation and Tubi [4]. - The decision to launch Fox One follows the abandonment of a joint venture sports streaming app, Venu, with Warner Bros. Discovery and Disney, leaving Fox as the only partner without a subscription streaming app [5].

Financial Performance - Fox Corporation reported total quarterly revenues of $4.37 billion, an increase of $924 million or 27% from the prior year quarter[3]. - Quarterly net income was $354 million, down from $704 million in the prior year quarter, with adjusted net income attributable to stockholders at $507 million[4]. - Adjusted EBITDA for the quarter was $856 million, a decrease of $35 million or 4% from the prior year quarter, primarily due to higher expenses[4]. - Affiliate fee revenues increased by 3% to $2.00 billion, while advertising revenues surged by 65% to $2.04 billion, driven by Super Bowl LIX and digital growth[3][6]. - Television segment revenues rose by 40% to $2.70 billion, with advertising revenues increasing by 77% due to the Super Bowl and Tubi AVOD service growth[12]. - Cable Network Programming reported quarterly segment revenues of $1.64 billion, an increase of 11% from the prior year quarter[8]. - The company reported a record free cash flow, underscoring its strong financial performance and robust balance sheet[4]. - Net income for the nine months ended March 31, 2025, was $1,574 million, a 27.6% increase compared to $1,234 million for the same period in 2024[24]. - Adjusted EBITDA for the three months ended March 31, 2025, was $856 million, compared to $891 million for the same period in 2024, reflecting a decrease of 3.93%[33]. - The company reported an adjusted net income of $507 million for the three months ended March 31, 2025, slightly down from $520 million in the same period of 2024[28]. Shareholder Actions - The company has repurchased approximately $5.35 billion of its Class A common stock and $1 billion of its Class B common stock, with a remaining authorization of $650 million[15]. - The company repurchased shares worth $750 million during the nine months ended March 31, 2025, consistent with the previous year[24]. Balance Sheet and Assets - Total assets increased to $23,367 million as of March 31, 2025, up from $21,972 million on June 30, 2024, representing an increase of 6.34%[22]. - Cash and cash equivalents increased to $4,815 million at the end of the period, up from $4,319 million at the beginning of the year, marking a net increase of $496 million[24]. - Total current liabilities rose to $3,567 million as of March 31, 2025, compared to $2,952 million on June 30, 2024, an increase of 20.8%[22]. - Total equity increased to $11,638 million as of March 31, 2025, compared to $10,814 million on June 30, 2024, an increase of 7.63%[22]. - The company’s total liabilities increased to $11,829 million as of March 31, 2025, compared to $10,318 million on June 30, 2024, reflecting an increase of 14.6%[22]. Future Outlook - Future outlook remains positive, with confidence in best-in-class assets and deliberate strategy to drive long-term shareholder value[4]. - The company’s net cash provided by operating activities for the nine months ended March 31, 2025, was $1,811 million, significantly higher than $941 million for the same period in 2024[24].

The Company reported total quarterly revenues of $4.37 billion, an increase of $924 million or 27% from the amount reported in the prior year quarter. Affiliate fee revenues increased 3%, driven by 4% growth at the Television segment and 3% growth at the Cable Network Programming segment. Advertising revenues increased 65%, primarily due to the impact of Super Bowl LIX, continued digital growth led by the Tubi AVOD service, and stronger news ratings and pricing. Other revenues increased 20%, primarily due t ...

Core Viewpoint - Fox Corporation (FOXA) is expected to report its third-quarter fiscal 2025 results on May 12, with earnings estimated at 93 cents per share, reflecting a 14.68% decline year-over-year, while revenues are projected to grow by 20.42% to $4.15 billion [1]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for FOXA's earnings is 93 cents per share, which is an increase of 3 cents over the past 30 days [1]. - The revenue consensus is set at $4.15 billion, indicating a 20.42% growth compared to the same quarter last year [1]. Group 2: Recent Performance and Trends - FOXA has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 24.20% [2]. - The company's advertising revenues rose by 21% year-over-year to $2.42 billion in the second quarter of fiscal 2025, which is expected to positively impact the third quarter results [3]. - The Super Bowl broadcast in February was sold out at record-high pricing, contributing to the positive momentum in sports broadcasting for FOXA [4]. - The NEWS division has shown strong performance, with increased viewership translating into significant advertising revenue growth [5]. Group 3: Cost Considerations - FOXA faced higher expenses in the second quarter of fiscal 2025 due to increased sports programming rights amortization, production costs, and digital costs associated with Tubi, which may pressure profit margins in the upcoming quarter [6]. Group 4: Earnings Prediction Model - According to the Zacks model, FOXA has an Earnings ESP of -1.08% and a Zacks Rank of 2 (Buy), indicating a lower likelihood of an earnings beat compared to other stocks [7].