Core Insights - Fox reported a revenue of $4.37 billion for the quarter ended March 2025, marking a 26.8% increase year-over-year and exceeding the Zacks Consensus Estimate by 5.30% [1] - The earnings per share (EPS) for the quarter was $1.10, slightly up from $1.09 in the same quarter last year, and surpassed the consensus EPS estimate by 18.28% [1] Financial Performance - Revenue breakdown shows Cable Network Programming at $1.64 billion, exceeding the estimated $1.53 billion, with an 11.1% year-over-year increase [4] - Television segment revenue reached $2.70 billion, surpassing the $2.57 billion estimate, reflecting a significant 39.5% increase year-over-year [4] - Other, Corporate and Eliminations segment reported $31 million, exceeding the estimate of $17.25 million, but showing a decline of 16.2% year-over-year [4] Revenue Components - Cable Network Programming's affiliate fee revenue was $1.14 billion, slightly above the $1.10 billion estimate, with a 2.8% year-over-year increase [4] - Advertising revenue in Cable Network Programming was $372 million, exceeding the $310.49 million estimate, representing a 25.7% increase year-over-year [4] - Television advertising revenue surged to $1.66 billion, surpassing the $1.55 billion estimate, with a remarkable 77.2% year-over-year growth [4] Stock Performance - Fox shares have returned +2.8% over the past month, compared to a +3.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Fox Corporation reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.96 per share, and showing a slight increase from $1.09 per share a year ago, indicating a 14.58% earnings surprise [1] - The company also posted revenues of $4.37 billion for the quarter, surpassing the Zacks Consensus Estimate by 5.22%, and up from $3.45 billion year-over-year [2] Financial Performance - Over the last four quarters, Fox has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company has topped consensus revenue estimates two times in the same period [2] - The current consensus EPS estimate for the upcoming quarter is $1.30, with expected revenues of $3.12 billion, and for the current fiscal year, the estimate is $4.53 on revenues of $15.92 billion [7] Market Position - Fox shares have increased by approximately 2.1% since the beginning of the year, contrasting with a decline of 3.8% in the S&P 500 [3] - The Zacks Industry Rank places Broadcast Radio and Television in the top 30% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] Future Outlook - The sustainability of Fox's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current estimate revisions trend for Fox is favorable, resulting in a Zacks Rank 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6]

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].