Group 1 - Fox Corporation reported a significant revenue increase of 27% year-over-year, reaching $4.37 billion [1] - The adjusted earnings per share (EPS) for the quarter was $1.10, which exceeded market expectations by a substantial margin [1] - The strong performance in revenue and EPS indicates a positive trend for the company, marking one of its most notable quarters in recent years [1]

Core Insights - Fox is launching a new subscription-based streaming service called "Fox One" before the fall American football season to expand its audience beyond cable television [1] - The company reported quarterly profit and revenue that exceeded Wall Street expectations, driven by a significant increase in advertising revenue from the broadcast of "Super Bowl LIX" [2][6] - Fox's advertising revenue surged by 65% to $2.04 billion, surpassing estimates, while total revenue rose 27% to $4.37 billion [8] Streaming Strategy - Fox has primarily focused on ad revenue from its free Tubi streaming service, which has approximately 97 million monthly active users, rather than competing directly in the streaming race [3] - The company plans to partner with other distributors and services for Fox One, potentially offering bundled deals to reduce subscriber churn [3][9] - CEO Lachlan Murdoch emphasized that the pricing for Fox One will be healthy and will not undercut cable subscribers [4] Advertising Performance - The broadcast of the Super Bowl attracted an estimated 127.7 million viewers, marking the largest audience in TV history for a single-network telecast [5][9] - Advertisers paid up to $8 million for 30 seconds of commercial time during the Super Bowl, reflecting the high demand for advertising on Fox's platforms [5]

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]

Fox (FOX) Q3 2025 Earnings Call May 12, 2025 08:30 AM ET Company Participants Gabrielle Brown - Executive VP & Chief Investor Relations OfficerLachlan Murdoch - Executive Chairman & CEOSteve Tomsic - Chief Financial OfficerMichael Morris - Senior Managing DirectorJessica Reif Ehrlich - Managing DirectorBenjamin Swinburne - Head of U.S Media ResearchMichael Ng - Managing Director - Global Investment Research Conference Call Participants John Hodulik - Telecom and Cable AnalystSteven Cahall - Managing Directo ...

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 [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].

Marquee at the main entrance to the FOX News Headquarters at NewsCorp Building in Manhattan.Fox Corp. will launch its direct-to-consumer streaming service, to be called Fox One, ahead of the National Football League season later this year.Fox CEO Lachlan Murdoch unveiled the name and timing of the company's upcoming streamer during a quarterly earnings call Monday. While Murdoch didn't give specifics on pricing, he said during Monday's call it would be in line with so-called wholesale pricing, meaning it wo ...