Fox(US:FOX)2024-11-04 14:26Revenue Growth - Total revenues increased by $357 million or 11% for the three months ended September 30, 2024, compared to the same period in 2023, reaching $3,564 million[87]. - Affiliate fee revenue rose by $103 million or 6% to $1,843 million, driven by higher average rates per subscriber and increased fees from affiliated television stations[88]. - Advertising revenue grew by $129 million or 11% to $1,329 million, largely due to higher political advertising revenue related to the 2024 elections[88]. - Other revenues surged by $125 million or 47% to $392 million, primarily from increased sports sublicensing revenue[88]. - Cable Network Programming segment revenues increased by $210 million or 15% for the three months ended September 30, 2024, compared to the same period in 2023, reaching $1,597 million[99]. - Television segment revenues increased by $173 million or 10% to $1,953 million, with advertising revenue up by $98 million or 11% due to higher political advertising and NFL ratings[102]. - Adjusted EBITDA for the three months ended September 30, 2024, was $1,048 million, an increase of $179 million or 21% compared to $869 million in the same period of 2023[111]. Operating Expenses - Operating expenses increased by $156 million or 8% to $2,018 million, mainly due to higher sports programming rights amortization and newsgathering costs[89]. - Operating expenses increased by $53 million or 8% in the Cable Network Programming segment, primarily due to higher sports programming rights costs[101]. Net Income and Financial Performance - Net income for the three months ended September 30, 2024, increased by $417 million, reaching $832 million, attributed to an unrealized gain on investments and higher Segment EBITDA[93]. - The Company reported net income of $832 million for the three months ended September 30, 2024, compared to $415 million in the prior year[110]. Cash and Dividends - The Company has approximately $4.1 billion in cash and cash equivalents as of September 30, 2024, along with an unused $1.0 billion revolving credit facility[112]. - Net cash provided by operating activities increased to $158 million for the three months ended September 30, 2024, compared to $1 million in the same period of 2023[115]. - The Company declared a semi-annual dividend of $0.27 per share during the three months ended September 30, 2024[118]. Risks and Uncertainties - The company anticipates potential declines in advertising expenditures due to various economic factors and changes in consumer behavior[124]. - The company faces risks related to the competitive nature of the industry and the popularity of its content, particularly sports programming[125]. - The company is subject to risks from the inability to renew programming rights on favorable terms, especially for sports[125]. - The company acknowledges the potential impact of labor disputes involving professional sports leagues on its operations[125]. - The company has identified risks associated with the degradation or failure of its network and information systems[125]. - The company is exposed to risks from content piracy and the protection of its intellectual property rights[125]. - Forward-looking statements are subject to inherent risks and uncertainties, including economic conditions and regulatory changes[124]. - The company does not undertake any obligation to update forward-looking statements unless required by law[126]. Tax and Interest - The effective tax rate for the three months ended September 30, 2024, was 25%, higher than the statutory rate of 21% due to state taxes[92]. - Interest expense increased by $8 million or 19% to $50 million, reflecting higher weighted-average interest rates on senior notes[91]. Strategic Considerations - The Company is evaluating potential acquisitions and dispositions of certain businesses and assets, which may involve cash or securities[114]. - No material changes to critical accounting policies and estimates were reported in the 2024 Form 10-K[122]. - The company has not reported any material changes in market risks since the 2024 Form 10-K[127].