Fox Corporation (NASDAQ:FOXA) Q3 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Joe Dorrego - Chief Investor Relations Officer Lachlan Murdoch - Executive Chairman and Chief Executive Officer John Nallen - Chief Operating Officer Steve Tomsic - Chief Financial Officer Conference Call Participants Ben Swinburne - Morgan Stanley Jessica Reif Ehrlich - Bank of America Merrill Lynch Robert Fishman - MoffettNathanson Doug Mitchelson - Credit Suisse Steven Cahall - Wells Fargo Operator ...

Financial Data and Key Metrics Changes - Fox Corporation reported a 9% revenue growth and a 2% EBITDA growth in the fiscal second quarter [7][19] - Total company advertising revenues grew by 6%, despite tough comparisons to the previous year's record political advertising revenues [19][20] - Adjusted EBITDA increased to $310 million, reflecting a 2% increase year-over-year [20] - The net loss attributable to stockholders was $85 million, compared to a net income of $224 million in the prior year quarter [20][21] Business Segment Data and Key Metrics Changes - Cable Networks revenues increased by 10% year-over-year, with cable affiliate revenues growing by 12% [22] - Television segment delivered 8% revenue growth, led by a 10% increase in television affiliate revenues [24] - Tubi's revenues increased by over 40% in the quarter, marking significant growth in the digital segment [25][16] Market Data and Key Metrics Changes - Local advertising revenues achieved double-digit growth, fully recovering from COVID impacts and surpassing pre-pandemic levels [9][19] - FOX News maintained a 55% share of total day cable news viewership, leading the market significantly [11] - FOX Sports had a strong performance, with a third of NFL and College Football viewership occurring on FOX [13] Company Strategy and Development Direction - The company continues to focus on expanding its digital initiatives while maintaining leadership in traditional broadcasting [7][17] - Investments in Tubi and FOX Bet are seen as key growth areas, with a strategic focus on advertising video on demand [15][17] - The upcoming USFL is expected to provide additional opportunities for engagement and revenue generation [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, citing strong advertising demand and digital growth [20][27] - The company anticipates a strong fiscal 2023, driven by events like the Super Bowl and mid-term elections [28][47] - Management highlighted the importance of affiliate revenue renewals in the upcoming fiscal years [27][47] Other Important Information - The company recorded a free cash flow deficit of $753 million, attributed to the normal working capital cycle [26] - Fox Corporation has repurchased $2.15 billion of its shares since the buyback program began in November 2019 [26] Q&A Session Summary Question: Growth strategy for FOX Bet and local advertising benefits - Management discussed ongoing arbitration regarding the structure of the option into FanDuel and expressed satisfaction with FOX Bet's engagement strategy [31] Question: Digital investment and Hulu licensing extension - Management indicated that digital investments are expected to be at the lower end of the $200 million to $300 million range for the year [36] Question: Investment in sports betting and upfront advertising market - Management emphasized the value of existing sports broadcasting investments and the potential for increased engagement through sports betting [40] Question: USFL rollout and future advertising revenue expectations - Management expressed optimism about the USFL and anticipated record political advertising revenues in the upcoming mid-term elections [47][48] Question: Superfan streaming sports business and Thursday Night Football savings - Management clarified that the focus remains on broadcast television and monetizing sports partnerships, with significant savings expected from the loss of Thursday Night Football [51][52]

Fox Corporation FOX Q1 2022 Earnings Conference Call November 3, 2021 4:30 PM ET Company Participants Joe Dorrego – Chief Investor Relations Officer Lachlan Murdoch – Executive Chairman and Chief Executive Officer John Nallen – Chief Operating Officer Steve Tomsic – Chief Financial Officer Conference Call Participants Alexia Quadrani – JPMorgan Jessica Reif Ehrlich – Bank of America Securities Benjamin Swinburne – Morgan Stanley Robert Fishman – MoffettNathanson Doug Mitchelson – Credit Suisse Steven Cahall ...

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported increased revenues driven by affiliate fees and advertising, but net income and operating cash flow significantly decreased due to higher expenses and prior-year comparisons [Unaudited Consolidated Statements of Operations](index=3&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (Q1 FY2022 vs Q1 FY2021) | Financial Metric | Three Months Ended Sep 30, 2021 (in millions) | Three Months Ended Sep 30, 2020 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | **$3,045** | **$2,717** | **+12.1%** | | Operating Expenses | ($1,571) | ($1,168) | +34.5% | | Income before income tax expense | $952 | $1,479 | -35.6% | | **Net income attributable to Fox Corporation stockholders** | **$701** | **$1,106** | **-36.6%** | | Diluted EPS | $1.21 | $1.83 | -33.9% | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights | Account | As of Sep 30, 2021 (in millions) | As of June 30, 2021 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $5,411 | $5,886 | | Total current assets | $8,875 | $8,749 | | **Total assets** | **$23,161** | **$22,926** | | Total current liabilities | $2,869 | $3,002 | | Borrowings (Current + Non-current) | $7,953 | $7,951 | | **Total liabilities** | **$11,431** | **$11,599** | | **Total Fox Corporation stockholders' equity** | **$11,430** | **$11,123** | [Unaudited Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Q1 FY2022 vs Q1 FY2021) | Cash Flow Activity | Three Months Ended Sep 30, 2021 (in millions) | Three Months Ended Sep 30, 2020 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $29 | $267 | | Net cash used in investing activities | ($75) | ($149) | | Net cash (used in) provided by financing activities | ($429) | $298 | | **Net (decrease) increase in cash and cash equivalents** | **($475)** | **$416** | | Cash and cash equivalents, end of period | $5,411 | $5,061 | [Notes to the Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide details on business segments, accounting policies, significant commitments, share repurchases, dividends, and ongoing legal contingencies - The company operates in three segments: Cable Network Programming, Television, and Other, Corporate and Eliminations[22](index=22&type=chunk)[58](index=58&type=chunk) Inventories, Net (in millions) | Category | Sep 30, 2021 | June 30, 2021 | | :--- | :--- | :--- | | Sports programming rights | $988 | $573 | | Entertainment programming rights | $484 | $355 | | **Total inventories, net** | **$1,472** | **$928** | - The company repurchased approximately **7 million** shares for **$250 million** during the quarter and has a remaining authorization of approximately **$2.15 billion** under its **$4 billion** stock repurchase program[43](index=43&type=chunk) - A semi-annual dividend of **$0.24** per share was declared and paid during the quarter, an increase from **$0.23** in the prior year period[44](index=44&type=chunk) - Total firm commitments and future debt payments were approximately **$46 billion** as of September 30, 2021, a decrease from **$47 billion** at June 30, 2021, primarily due to sports programming rights payments[51](index=51&type=chunk) - The company is defending against defamation lawsuits filed by Smartmatic and Dominion Voting Systems, which it believes are without merit and does not anticipate will have a material adverse effect[54](index=54&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 discusses revenue growth driven by affiliate fees and advertising, offset by increased operating expenses leading to a decline in Segment EBITDA and net income [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Consolidated revenues grew 12% driven by affiliate fees and advertising, but Segment EBITDA declined due to significantly higher operating expenses from normalized programming schedules Consolidated Revenue by Type (Q1 FY2022 vs Q1 FY2021) | Revenue Type | Q1 2022 (in millions) | Q1 2021 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Affiliate fee | $1,667 | $1,533 | +9% | | Advertising | $1,130 | $969 | +17% | | Other | $248 | $215 | +15% | | **Total revenues** | **$3,045** | **$2,717** | **+12%** | Segment Revenues and EBITDA (Q1 FY2022 vs Q1 FY2021) | Segment | Revenue (in millions) | Revenue Change (%) | Segment EBITDA (in millions) | Segment EBITDA Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cable Network Programming | $1,416 | +7% | $774 | -1% | | Television | $1,581 | +17% | $359 | -21% | | Other, Corporate and Eliminations | $48 | +14% | ($69) | +4% | | **Total** | **$3,045** | **+12%** | **$1,064 (Adjusted)** | **-9%** | - The increase in advertising revenue was primarily due to growth at Tubi, the return of a full college football schedule, and more original scripted programming at FOX Entertainment, as the prior year was impacted by COVID-19[81](index=81&type=chunk)[90](index=90&type=chunk) - Operating expenses increased **35%** primarily due to higher sports and entertainment programming rights amortization and production costs as live events and original programming returned to a more normal schedule[81](index=81&type=chunk)[206](index=206&type=chunk) - Net income decreased **37%**, primarily due to the absence of a **$462 million** settlement from Disney related to a tax reimbursement that was recognized in the prior-year quarter[82](index=82&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$5.4 billion** in cash, despite a significant decrease in operating cash flow due to lower Segment EBITDA and higher programming payments - As of September 30, 2021, the Company had approximately **$5.4 billion** of cash and cash equivalents and an unused **$1.0 billion** unsecured revolving credit facility[96](index=96&type=chunk) Cash Flow Summary (in millions) | Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29 | $267 | | Net cash used in investing activities | ($75) | ($149) | | Net cash (used in) provided by financing activities | ($429) | $298 | - The decrease in operating cash flow was primarily due to lower Segment EBITDA and higher sports and entertainment programming payments as schedules normalized post-COVID-19[98](index=98&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks were reported compared to the prior fiscal year's Annual Report on Form 10-K - There have been no material changes in the market risks reported in the 2021 Form 10-K[108](index=108&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with new general ledger and procure-to-pay systems implemented during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the period[109](index=109&type=chunk) - During the first quarter of fiscal 2022, the Company implemented new general ledger and procure-to-pay systems, leading to updates and changes in its processes and related control activities[110](index=110&type=chunk) Part II. Other Information [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for details on ongoing legal proceedings, including defamation claims - For a discussion of legal proceedings, the report refers to Note 8—Commitments and Contingencies in the financial statements[112](index=112&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the 2021 Form 10-K, except for an expanded discussion on content piracy threats - There have been no material changes to the risk factors from the 2021 Form 10-K, except for an expanded discussion on the threat of content piracy[113](index=113&type=chunk) - The updated risk factor emphasizes that technological developments, such as digital copying, file compression, and high-bandwidth internet, increase the threat of content piracy by making it easier to access, duplicate, and distribute high-quality pirated material[115](index=115&type=chunk) [Issuer Purchases of Equity Securities](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **6.9 million** shares for **$250 million** during the quarter, with **$2.15 billion** remaining under its **$4 billion** stock repurchase program Share Repurchases for the Three Months Ended September 30, 2021 | Stock Class | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Class A Common Stock | 4,740,533 | $36.92 | | Class B Common Stock | 2,195,707 | $34.16 | | **Total** | **6,936,240** | **N/A** | - The total cost of share repurchases during the quarter was approximately **$250 million**[119](index=119&type=chunk) - The remaining authorized amount under the **$4 billion** stock repurchase program was approximately **$2.15 billion** as of September 30, 2021[118](index=118&type=chunk)[119](index=119&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL financial statements - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1) and financial information formatted in Inline XBRL (101, 104)[122](index=122&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38776 | --- | --- | --- | |--------------------------- ...

Fox Corporation (NASDAQ:FOX) Q2 2021 Results Earnings Conference Call August 5, 2021 4:30 AM ET Company Participants Joe Dorrego - Chief Investor Relations Officer and Executive Vice President of Corporate Initiatives Lachlan Murdoch - Executive Chairman and Chief Executive Officer Steve Tomsic - Chief Financial Officer Conference Call Participants Jessica Reif Ehrlich - Bank of America/Merrill Lynch Robert Fishman - MoffettNathanson John Janedis - Wolfe Research Benjamin Swinburne - Morgan Stanley Doug Mit ...

Fox Corporation (NASDAQ:FOX) Q3 2021 Earnings Conference Call May 5, 2021 4:30 PM ET Company Participants Joe Dorrego – Chief Investor Relations Officer Lachlan Murdoch – Executive Chairman and Chief Executive Officer Steve Tomsic – Chief Financial Officer Conference Call Participants Alexia Quadrani – J.P. Morgan Ben Swinburne – Morgan Stanley Jessica Reif Ehrlich – BofA Securities Robert Fishman – MoffettNathanson Doug Mitchelson – Credit Suisse Kannan Venkat – Barclays Operator Ladies and gentlemen, than ...