Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated statements of operations, comprehensive income, balance sheets, cash flows, and equity for the three and six months ended December 31, 2023. It also includes detailed notes to the financial statements, which provide further context on accounting policies, segment performance, legal contingencies, and other key financial matters Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2023 | Six Months Ended Dec 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $4,234 | $4,605 | $7,441 | $7,797 | | **Net income** | $115 | $321 | $530 | $934 | | **Net income attributable to Fox Corporation stockholders** | $109 | $313 | $516 | $918 | | **Diluted EPS** | $0.23 | $0.58 | $1.06 | $1.68 | Consolidated Balance Sheets Highlights (in millions) | Metric | As of Dec 31, 2023 | As of June 30, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $4,122 | $4,272 | | **Total current assets** | $8,501 | $7,257 | | **Total assets** | $22,846 | $21,866 | | **Total current liabilities** | $3,707 | $3,763 | | **Total liabilities** | $12,521 | $11,421 | | **Total Fox Corporation stockholders' equity** | $10,252 | $10,378 | Consolidated Statements of Cash Flows Highlights (in millions) | Metric | Six Months Ended Dec 31, 2023 | Six Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($535) | ($261) | | **Net cash used in investing activities** | ($143) | ($221) | | **Net cash provided by (used in) financing activities** | $528 | ($660) | | **Net decrease in cash and cash equivalents** | ($150) | ($1,142) | [Notes to the Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed disclosures on accounting policies, business segments (Cable Network Programming, Television, Other), fair value measurements, borrowings, equity transactions, legal contingencies, and segment performance. Key events include the formation of the **UFL** joint venture, issuance of new debt, significant stock repurchases, and developments in major legal cases - In January 2024, the Company launched the **United Football League (UFL)** as a joint venture with XFL, contributing its USFL assets into the new entity[31](index=31&type=chunk) - In October 2023, the Company issued **$1.25 billion** of **6.500%** **senior notes** due 2033. As of December 31, 2023, there were no borrowings outstanding under its **$1.0 billion** **revolving credit facility**[44](index=44&type=chunk) - The Company has a **$7 billion** stock repurchase program with approximately **$1.9 billion** remaining authorized as of December 31, 2023. During the six months ended December 31, 2023, the Company repurchased approximately **$500 million** of its **Class A Common Stock**[45](index=45&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The Company paid approximately **$800 million** in April 2023 to settle the **Dominion defamation lawsuit**. A lawsuit by **Smartmatic** seeking **$2.7 billion** in damages is ongoing, with a trial not expected to commence until 2025[65](index=65&type=chunk)[66](index=66&type=chunk) - Subsequent to the quarter's end, the Company declared a semi-annual dividend of **$0.26 per share**, payable on March 26, 2024[51](index=51&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis indicates a decline in **revenues** and **net income** for the second quarter and first half of fiscal 2024 compared to the prior year. The decrease was primarily driven by lower advertising revenues, attributed to the absence of the **FIFA Men's World Cup** and the 2022 U.S. midterm elections, which were present in the prior-year periods. This was partially mitigated by growth in **affiliate fees**. The discussion details performance by segment and outlines the company's liquidity and capital allocation strategies [Results of Operations](index=21&type=section&id=Results%20of%20Operations) For the second quarter of fiscal 2024, **total revenues** decreased **8%** to **$4.23 billion**, while **net income** fell **64%** to **$115 million**. The revenue decline was driven by a **20%** drop in **advertising** revenue, partially offset by a **4%** increase in **affiliate fees**. The absence of the prior year's **FIFA Men's World Cup** and U.S. midterm elections were the primary factors for the advertising shortfall. Operating expenses decreased **4%**, mainly due to lower programming costs related to the absence of the **World Cup** and the impact of industry guild labor disputes Consolidated Results Summary (in millions) | Metric | Q2 FY2024 | Q2 FY2023 | % Change | H1 FY2024 | H1 FY2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $4,234 | $4,605 | (8)% | $7,441 | $7,797 | (5)% | | **Affiliate fee** | $1,787 | $1,712 | 4% | $3,527 | $3,423 | 3% | | **Advertising** | $2,002 | $2,503 | (20)% | $3,202 | $3,723 | (14)% | | **Net income** | $115 | $321 | (64)% | $530 | $934 | (43)% | - The decrease in **advertising** revenue was primarily due to the absence of the **FIFA Men's World Cup** and lower political advertising revenue at the **FOX Television Stations** following the November 2022 U.S. midterm elections[93](index=93&type=chunk) - Operating expenses decreased **4%** in Q2, mainly from lower entertainment and sports programming costs due to fewer original scripted programs (from industry guild strikes) and the absence of the **FIFA Men's World Cup**[95](index=95&type=chunk) [Segment Analysis](index=23&type=section&id=Segment%20Analysis) This section details the performance of the company's three operating segments. **Cable Network Programming** delivered strong **Segment EBITDA** growth of **60%** in Q2, driven by lower expenses. In contrast, the **Television** segment's **Segment EBITDA** swung to a loss, heavily impacted by lower advertising revenues and higher **NFL** costs. The **Other, Corporate and Eliminations** segment reported a slightly narrowed **Segment EBITDA** loss for the quarter Segment EBITDA (in millions) | Segment | Q2 FY2024 | Q2 FY2023 | % Change | H1 FY2024 | H1 FY2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Cable Network Programming** | $564 | $353 | 60% | $1,171 | $1,095 | 7% | | **Television** | ($138) | $256 | ** | $213 | $665 | (68)% | | **Other, Corporate and Eliminations** | ($76) | ($78) | 3% | ($165) | ($137) | (20)% | | **Adjusted EBITDA** | $350 | $531 | (34)% | $1,219 | $1,623 | (25)% | [Cable Network Programming](index=24&type=section&id=Cable%20Network%20Programming) In Q2, **revenues** rose **2%** to **$1.66 billion**, as higher sports sublicensing and **affiliate fees** offset a **23%** drop in **advertising**. **Advertising** revenue was impacted by lower ratings and pricing at **FOX News Media** and the absence of the **FIFA Men's World Cup**. **Segment EBITDA** surged **60%** to **$564 million**, benefiting from significantly lower operating expenses, primarily due to the absence of **World Cup** costs and reduced programming expenses at **FOX News Media** Cable Network Programming Results (in millions) | Metric | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $1,658 | $1,632 | 2% | | **Affiliate fee** | $1,031 | $1,026 | —% | | **Advertising** | $348 | $451 | (23)% | | **Other** | $279 | $155 | 80% | | **Segment EBITDA** | $564 | $353 | 60% | [Television](index=25&type=section&id=Television) Q2 **revenues** fell **13%** to **$2.54 billion**, primarily due to a **19%** decline in **advertising** revenue from the absence of the **World Cup** and midterm election political ads. This was partly offset by continued growth at **Tubi** and a **10%** rise in **affiliate fees**. **Segment EBITDA** swung to a loss of **$138 million** from a **$256 million** profit in the prior year, reflecting the revenue drop and higher sports rights costs for the renewed **NFL** contract Television Segment Results (in millions) | Metric | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $2,542 | $2,934 | (13)% | | **Advertising** | $1,654 | $2,052 | (19)% | | **Affiliate fee** | $756 | $686 | 10% | | **Segment EBITDA** | ($138) | $256 | ** | [Other, Corporate and Eliminations](index=26&type=section&id=Other%2C%20Corporate%20and%20Eliminations) This segment, which includes the FOX Studio Lot and Credible, reported a **Segment EBITDA** loss of **$76 million** in Q2 FY2024, a slight improvement from a **$78 million** loss in the prior-year quarter. For the six-month period, the **EBITDA** loss widened to **$165 million** from **$137 million**, primarily due to higher employee-related costs associated with the transition and separation of a named executive officer - For the six months ended Dec 31, 2023, selling, general and administrative expenses increased primarily due to higher employee related costs as a result of the transition and separation of a named executive officer of the Company[119](index=119&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with **$4.1 billion** in cash and an undrawn **$1.0 billion** credit facility. **Net cash used in operating activities** for the first six months increased to **$535 million**, mainly due to lower **EBITDA** and higher sports rights payments. Key financing activities included issuing **$1.25 billion** in **senior notes**, repurchasing **$500 million** of stock, and repaying **$1.25 billion** of maturing notes subsequent to the quarter's end - As of December 31, 2023, the Company had approximately **$4.1 billion** of **cash and cash equivalents** and an unused **$1.0 billion** unsecured **revolving credit facility**[125](index=125&type=chunk) - **Net cash used in operating activities** increased to **$535 million** for the six months ended Dec 31, 2023, from **$261 million** in the prior year, primarily due to lower **Segment EBITDA** and higher sports rights payments for the **NFL**[128](index=128&type=chunk) - Financing activities were a net source of cash of **$528 million**, primarily due to the October 2023 issuance of **$1.25 billion** of **senior notes**[130](index=130&type=chunk) - Subsequent to December 31, 2023, **$1.25 billion** of **4.030%** **senior notes** due in January 2024 matured and were repaid in full[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes in the market risks from those disclosed in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023 - There have been no material changes in the market risks reported in the 2023 Form 10-K[140](index=140&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective. Additionally, no changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls - The Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures were effective[141](index=141&type=chunk) - There were no changes in the Company's internal control over financial reporting during the Company's second quarter of fiscal 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[142](index=142&type=chunk) Part II. Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for a detailed discussion of the company's legal proceedings, which includes information on contingencies related to defamation claims and other matters - See Note 8—Commitments and Contingencies to the accompanying Unaudited Consolidated Financial Statements of FOX under the heading "Contingencies" for a discussion of the Company's legal proceedings[145](index=145&type=chunk) [Risk Factors](index=32&type=page&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors from previous filings, with the exception of a newly disclosed risk. This new risk factor pertains to the potential for the company to suffer losses due to asset impairment charges for goodwill, intangible assets, programming, and other assets and investments - A new risk factor was added regarding potential losses from asset impairment charges for goodwill, intangible assets, programming, other assets, and investments, which could result in a material non-cash charge to net earnings[147](index=147&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity. During the three months ended December 31, 2023, the company repurchased approximately **8.3 million shares** of its **Class A Common Stock** for a total of approximately **$250 million**. As of the quarter's end, **$1.9 billion** remained available for future repurchases under the authorized program Share Repurchases (Q2 FY2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2023 | 1,626,722 | $30.74 | | Nov 2023 | 3,791,483 | $30.37 | | Dec 2023 | 2,857,424 | $29.70 | | **Total** | **8,275,629** | **$30.21** | - As of December 31, 2023, the approximate dollar value of shares that may yet be purchased under the program is **$1.9 billion**[148](index=148&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=33&type=section&id=Other%20Items%20%28Items%203%2C%204%2C%205%2C%206%29) Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information) are noted as not applicable. Item 6 lists the exhibits filed with the Form 10-Q, including certifications and XBRL data - Items 3, 4, and 5 are not applicable[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) - Item 6 lists the exhibits filed with the report, including management certifications and financial data in Inline XBRL format[153](index=153&type=chunk)[154](index=154&type=chunk)

Fox (FOXA) is set to report second-quarter fiscal 2024 results on Feb 7.For the quarter, the Zacks Consensus Estimate for earnings is pegged at 9 cents per share, up 80% in the past 30 days. The figure indicates an 81.25% decline from the year-ago reported figure.The consensus mark for revenues is pegged at $4.18 billion, implying a 9.29% decline from the year-ago quarter’s reported figure.The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise be ...

Core Viewpoint - Analysts forecast a significant decline in Fox's quarterly earnings and revenues, indicating a challenging financial period ahead for the company [1]. Revenue Estimates - Total revenues are expected to be $4.18 billion, reflecting a year-over-year decline of 9.3% [1]. - Advertising revenues are projected to be $2.01 billion, down 19.9% year-over-year [2]. - Affiliate fee revenues are estimated at $1.80 billion, showing an increase of 5.3% from the previous year [2]. - Television segment revenues are anticipated to reach $2.53 billion, down 13.6% year-over-year [2]. - Cable Network Programming revenues are expected to be $1.61 billion, indicating a decrease of 1.6% from the prior year [3]. - Other revenues are projected at $40.48 million, up 3.8% year-over-year [3]. - Revenues from Television - Other are expected to be $150.43 million, down 23.3% year-over-year [3]. - Revenues from Television - Affiliate fee are estimated at $769.41 million, reflecting a 12.2% increase from the previous year [3]. - Revenues from Television - Advertising are forecasted to be $1.60 billion, down 22.2% year-over-year [4]. - Cable Network Programming - Advertising revenues are expected to be $386.82 million, down 14.2% from the prior year [4]. - Cable Network Programming - Affiliate fee revenues are projected at $1.05 billion, up 2.1% year-over-year [4]. - Cable Network Programming - Other revenues are estimated at $176.50 million, reflecting a 13.9% increase from the previous year [4]. Stock Performance - Fox shares have increased by 7.8% over the past month, outperforming the S&P 500 composite, which rose by 2.9% [5]. - The company holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5].

Fox (FOXA) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Fox (FOXA) , which belongs to the Zacks Broadcast Radio and Television industry, could be a great candidate to consider.This TV broadcasting company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 18.74%.For the last reporte ...

NEW YORK and LOS ANGELES, Jan. 24, 2024 /PRNewswire/ -- Fox Corporation (Nasdaq: FOXA, FOX) will discuss second quarter fiscal 2024 financial results via a live audio webcast beginning at 8:30 a.m. ET / 5:30 a.m. PT on February 7, 2024. Results will be released at approximately 8:00 a.m. ET / 5:00 a.m. PT on February 7, 2024. A live audio webcast of the presentation, and the archived webcast, will be available at investor.foxcorporation.com. About Fox CorporationFox Corporation produces and distributes comp ...

NEW YORK and LOS ANGELES, Jan. 22, 2024 /PRNewswire/ -- Lachlan Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation (Nasdaq: FOXA, FOX), today announced that Jeff Collins has been appointed President of Advertising Sales, Marketing and Brand Partnerships for Fox Corporation. He will succeed Marianne Gambelli, who retires after more than forty years as a leading ad sales executive in the media and entertainment space. Collins, who most recently served as Executive Vice President, Advertis ...

Fox Corporation (FOXA) -owned Fox News Digital and FOXBusiness.com had a successful year in 2023, outperforming some of their key competitors in terms of multiplatform views, minutes and engagement on social media.FOX News Digital ended the year as the top-performing news brand in terms of multiplatform views and minutes, experiencing growth of 9% in views and 6% in minutes year over year. The company secured 20.2 billion multiplatform views, more than 36.9 billion minutes and averaged 93.7 million monthly ...

Financial Data and Key Metrics Changes - Fox Corporation reported total revenues of $3.21 billion for Q1 2024, slightly above the prior year quarter, driven by a 2% increase in affiliate fee revenues [15][16] - Adjusted EBITDA for the quarter was $869 million, down from $1.09 billion in the prior year quarter [16] - Net income attributable to stockholders was $407 million, or $0.82 per share, compared to $605 million, or $1.10 per share, in the prior year period [16] Business Line Data and Key Metrics Changes - Television segment revenues increased by 4% year-over-year to $1.78 billion, with an 8% increase in TV affiliate revenues [17] - Cable segment revenues decreased by 3% year-over-year to $1.39 billion, with cable affiliate revenues down 2% due to industry subscriber declines [19][20] - Tubi achieved 30% revenue growth, driven by a 65% increase in total view time, surpassing 70 million monthly active users [9][16] Market Data and Key Metrics Changes - Advertising revenues decreased by around 2%, primarily due to a comparative quarter last year that had higher political ad revenues [7][15] - Fox News maintained its position as the most-watched cable news network, with viewership increasing over 20% from the first quarter [11][12] - The local station group is expected to benefit from increased political spending in the coming quarters [12] Company Strategy and Development Direction - The company is focused on maintaining strong partnerships with distributors and has successfully renewed several distribution contracts, achieving rate increases [46][48] - Fox Corporation aims to leverage its core brands, particularly in sports and news, to drive advertising revenue and viewership [31][36] - Tubi is positioned as a key part of the company's strategy, focusing on organic growth and enhancing user engagement [32][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the mixed advertising market but noted strong demand for sports and news advertising, with pricing above upfront levels [36][52] - The company is optimistic about the future of linear advertising, particularly in sports and news, despite challenges in the direct response advertising market [52] - The upcoming election cycle is expected to provide a boost to local station revenues due to increased political ad spending [12][40] Other Important Information - The company has repurchased $300 million in shares year-to-date, with a total of $4.9 billion repurchased since the buyback program began in 2019 [21][22] - Fox Corporation ended the quarter with approximately $3.8 billion in cash and $7.2 billion in debt [22] Q&A Session Summary Question: Evaluation of WWE renewal and impact on future sports rights negotiations - Management explained that the decision to pass on WWE renewal was based on insufficient advertising and retransmission revenue, indicating a disciplined approach to ROI [24][26] Question: Maximizing returns on college football rights and Tubi's value - Management acknowledged the high demand for college football advertising and emphasized the importance of building value through core brands, while Tubi's growth is seen as a key part of the strategy [29][31] Question: Outlook for political advertising and Tubi's long-term vision - Management provided a mixed outlook for the advertising market but noted strong demand in sports and news, with Tubi positioned for continued growth as a free AVOD service [35][41] Question: Update on affiliate renewal process and implications of Charter Disney renewal - Management reported successful affiliate renewals with rate increases, emphasizing the importance of maintaining premium content within the cable bundle [44][46] Question: Future of linear video advertising and direct response challenges - Management expressed confidence in the future of linear advertising, particularly in sports and news, while expecting improvements in direct response pricing in the coming quarters [52]

Revenue Performance - Total revenues for the three months ended September 30, 2023, were $3,207 million, a slight increase of $15 million or 0% compared to $3,192 million in the same period of 2022[95]. - Affiliate fee revenue increased by $29 million or 2% to $1,740 million, driven by higher fees from FOX Network-affiliated television stations, despite a lower average number of subscribers[95][96]. - Advertising revenue decreased by $20 million or 2% to $1,200 million, primarily due to lower political advertising revenue and decreased ratings at the FOX Network[95][96]. - The Company reported a decrease in revenues from the Cable Network Programming segment by $44 million or 3% to $1,387 million, driven by lower affiliate fee and advertising revenues[106]. - Television segment revenues increased by 4% to $1,780 million for the three months ended September 30, 2023, compared to $1,714 million in the same period of 2022, driven by higher advertising and affiliate fee revenues[108]. - Advertising revenue rose to $910 million, a 1% increase from $905 million, primarily due to the FIFA Women's World Cup broadcast and growth at Tubi[108]. - Affiliate fee revenue increased by 8% to $735 million from $682 million, attributed to higher fees from FOX Network affiliates despite a lower average number of subscribers[108]. Operating Expenses - Operating expenses rose by $206 million or 12% to $1,862 million, mainly due to higher sports programming rights amortization and production costs related to the FIFA Women's World Cup[95][97]. - Selling, general and administrative expenses increased by $32 million or 7% to $480 million, largely due to higher employee-related costs[95][98]. - Total operating expenses increased by 12% to $1,198 million, primarily due to higher sports programming rights amortization and production costs[109]. Profitability - Net income attributable to Fox Corporation stockholders decreased by $198 million or 33% to $407 million, influenced by lower Segment EBITDA and changes in investment fair value[95][101]. - Segment EBITDA for the Cable Network Programming segment decreased by $135 million or 18% to $607 million, attributed to revenue declines and increased expenses[106][107]. - Segment EBITDA for the Television segment decreased by 14% to $351 million from $409 million, as revenue increases were offset by higher expenses[109]. - Adjusted EBITDA for the three months ended September 30, 2023, was $869 million, down from $1,092 million in the same period of 2022[114]. - The company reported a net income of $415 million for the three months ended September 30, 2023, compared to $613 million in the prior year[114]. Cash Flow and Financial Position - The company has approximately $3.8 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility as of September 30, 2023[116]. - Net cash provided by operating activities decreased significantly to $1 million from $270 million, primarily due to higher sports rights payments and lower political advertising receipts[119]. - The company declared a semi-annual dividend of $0.26 per share during the three months ended September 30, 2023[122]. Tax and Market Risks - The effective tax rate for the three months ended September 30, 2023, was 26%, higher than the statutory rate of 21%, primarily due to state taxes[99]. - There have been no material changes in the market risks reported in the 2023 Form 10-K[131].