Fox(US:FOX)2025-10-30 12:53Revenue Growth - For the three months ended September 30, 2025, the Company's revenues increased by $174 million or 5% compared to the same period in 2024, driven by higher distribution, advertising, and content revenues[93]. - Distribution revenue rose by $47 million or 3%, primarily due to higher average rates per subscriber and increased fees from affiliated television stations, despite a decrease in the average number of subscribers[93]. - Advertising revenue increased by $83 million or 6%, largely attributed to digital growth from the Tubi AVOD service[93]. - Content and other revenues grew by $44 million or 12%, mainly due to higher entertainment content revenue and sports sublicensing revenue[93]. - The Company reported total revenues of $3,738 million for the three months ended September 30, 2025, compared to $3,564 million in the same period of 2024[94]. - Television segment revenues increased by $97 million or 5% to $2,050 million for the three months ended September 30, 2025, compared to $1,953 million in the same period of 2024[106]. - Advertising revenue rose by $59 million or 6% to $1,067 million, driven by digital growth from the Tubi AVOD service and higher sports pricing[106]. Operating Expenses - Operating expenses increased by $66 million or 3%, primarily due to higher entertainment programming rights amortization and digital content costs[96]. - Selling, general and administrative expenses rose by $87 million or 17%, primarily due to marketing costs associated with the launch of FOX One and higher employee costs[97]. - Segment EBITDA for Cable Network Programming increased by $52 million or 7% to $800 million, while Television segment EBITDA rose by $27 million or 7% to $399 million[101]. - Segment EBITDA for the Television segment increased by $27 million or 7% to $399 million, despite a $52 million or 4% rise in operating expenses[107]. - Corporate and Other revenues increased by $24 million or 37% to $89 million, while Segment EBITDA decreased by $62 million or 86% to $(134) million due to costs associated with the launch of FOX One[109]. Net Income and Cash Flow - Net income decreased by $223 million or 27% for the three months ended September 30, 2025, primarily due to changes in the fair value of investments in equity securities[98]. - The Company reported a net cash used in operating activities of $(130) million for the three months ended September 30, 2025, compared to $158 million in 2024[119]. - Net cash used in investing activities increased to $(255) million in 2025 from $(78) million in 2024, primarily due to higher investments and capital expenditures[120]. Financial Position - The effective tax rate for the Company was 24% for the three months ended September 30, 2025, higher than the statutory rate of 21% due to state taxes[97]. - The Company has approximately $4.4 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility as of September 30, 2025[116]. - Adjusted EBITDA for the three months ended September 30, 2025, was $1,065 million, up from $1,048 million in 2024[114]. Dividends and Acquisitions - A semi-annual dividend of $0.28 per share was declared and paid on September 24, 2025[122]. - The Company is evaluating potential acquisitions and dispositions of certain businesses and assets, which may involve cash or securities[118].