UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 or o 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 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Exhibit 99.1 EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2024 FOX REPORTS FOURTH QUARTER FISCAL 2024 REVENUES OF $3.09 BILLION NET INCOME OF $320 MILLION, AND ADJUSTED EBITDA OF $773 MILLION FOX REPORTS FULL YEAR FISCAL 2024 REVENUES OF $13.98 BILLION NET INCOME OF $1.55 BILLION, AND ADJUSTED EBITDA OF $2.88 BILLION NEW YORK, NY, August 6, 2024 – Fox Corporation (Nasdaq: FOXA, FOX; "FOX" or the "Company") today reported financial results for the three and twelve months ended June 30, 202 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Fourth Quarter Fiscal 2024 Performance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Performance) For the fourth quarter of fiscal 2024, Fox Corporation reported a 2% year-over-year revenue increase to $3.09 billion, driven by 5% growth in affiliate fees. Advertising revenue remained flat as growth at Tubi and soccer broadcasts were offset by lower performance at the FOX Network. Adjusted EBITDA grew 5% to $773 million, benefiting from revenue growth and lower entertainment programming costs, despite higher sports rights and Tubi investment expenses | Financial Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $3.09 Billion | $3.03 Billion | +2% | | **Net Income** | $320 Million | $369 Million | -13.3% | | **Adjusted EBITDA** | $773 Million | $735 Million | +5% | | **Adjusted EPS** | $0.90 | $0.88 | +2.3% | - Quarterly revenue growth was primarily driven by a **5% increase in affiliate fee revenues**, stemming from **9% growth in the Television segment** and **2% in the Cable Network Programming segment**[4](index=4&type=chunk) - Advertising revenues were flat, as contributions from the UEFA European Championship, CONMEBOL Copa América, and continued growth at Tubi were offset by lower ratings and pricing at the FOX Network[4](index=4&type=chunk) [Full Year Fiscal 2024 Performance](index=1&type=section&id=Full%20Year%20Fiscal%202024%20Performance) For the full fiscal year 2024, revenues decreased to $13.98 billion from $14.91 billion in the prior year. This was mainly due to a significant drop in advertising revenue from the absence of Super Bowl LVII, the FIFA Men's World Cup, and midterm election political ads, which were present in fiscal 2023. Net income increased to $1.55 billion, largely due to the absence of prior-year legal settlement costs. Adjusted EBITDA declined to $2.88 billion | Financial Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $13.98 Billion | $14.91 Billion | -6.2% | | **Net Income** | $1.55 Billion | $1.25 Billion | +24.0% | | **Adjusted EBITDA** | $2.88 Billion | $3.19 Billion | -9.7% | | **Adjusted EPS** | $3.43 | $3.51 | -2.3% | - The decline in full-year advertising revenue to **$5.44 billion from $6.61 billion** was primarily due to the absence of Super Bowl LVII, the Men's World Cup, and lower political advertising revenues compared to the prior year's midterm elections[6](index=6&type=chunk) - Full-year net income rose to **$1.55 billion**, reflecting the absence of prior year charges related to legal settlement costs at FOX News Media[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Lachlan Murdoch highlighted fiscal 2024 as a successful year, emphasizing strong affiliate revenue growth, Tubi's establishment as the leading free streaming service in the U.S., and revitalized ratings at FOX News. He expressed confidence for fiscal 2025, which will feature a major event cycle including the Presidential Election and the Super Bowl, underscoring the company's sound strategy and financial strength - Key achievements in fiscal 2024 include strong quarterly affiliate revenue growth, cementing Tubi's position as the most-watched free TV and movie streaming service in the U.S., and reinvigorated ratings and share growth at FOX News[3](index=3&type=chunk) - The company anticipates carrying its momentum into fiscal 2025, which will feature major events like the Presidential Election and Super Bowl, underpinning confidence in future shareholder value delivery[3](index=3&type=chunk) [Review of Operating Results](index=3&type=section&id=REVIEW%20OF%20OPERATING%20RESULTS) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) This section provides a detailed breakdown of the company's revenues and Adjusted EBITDA by segment for both the fourth quarter and the full fiscal year. For the full year, the Television segment saw a significant drop in advertising revenue and Adjusted EBITDA, while the Cable Network Programming segment's Adjusted EBITDA grew despite a slight revenue decline | (in $ Millions) | Q4 FY2024 | Q4 FY2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$3,092** | **$3,032** | **$13,980** | **$14,913** | | - Affiliate fee | $1,859 | $1,771 | $7,324 | $7,051 | | - Advertising | $1,007 | $1,008 | $5,444 | $6,606 | | **Total Adjusted EBITDA** | **$773** | **$735** | **$2,883** | **$3,191** | | - Cable Network Programming | $703 | $585 | $2,693 | $2,472 | | - Television | $148 | $227 | $506 | $1,009 | [Cable Network Programming Segment](index=4&type=section&id=CABLE%20NETWORK%20PROGRAMMING) The Cable Network Programming segment reported a 20% increase in Q4 EBITDA to $703 million, driven by a 2% revenue increase and lower expenses. For the full year, EBITDA grew 9% to $2.69 billion, as lower programming and legal costs, particularly from the absence of the Men's World Cup, more than compensated for a slight revenue decrease - Q4 affiliate fee revenue grew **2%** due to contractual price increases, partially offset by net subscriber declines. Advertising revenue rose **3%** from soccer broadcasts and improved pricing/ratings at FOX News Media[12](index=12&type=chunk) - The **20% increase in Q4 segment EBITDA** was due to revenue growth and lower expenses, driven by the deconsolidation of the USFL and reduced programming costs at FOX News Media[13](index=13&type=chunk) - Full-year segment EBITDA increased **9% to $2.69 billion**. The improvement was primarily due to lower expenses, including the absence of the prior year's Men's World Cup broadcast and reduced legal costs at FOX News Media[15](index=15&type=chunk) [Television Segment](index=5&type=section&id=TELEVISION) The Television segment's Q4 EBITDA declined to $148 million from $227 million year-over-year, as a 2% revenue increase was outweighed by higher expenses for sports programming and Tubi investments. For the full year, EBITDA was nearly halved to $506 million, primarily due to a significant drop in advertising revenue from the absence of major events like Super Bowl LVII and the midterm elections - Q4 affiliate fee revenue grew **9%** from higher fees from third-party affiliates and owned stations. Advertising revenue was slightly down as Tubi's growth and soccer broadcasts were offset by lower ratings and pricing at the FOX Network[17](index=17&type=chunk) - The decline in Q4 segment EBITDA was driven by higher costs for the UEFA European Championship and CONMEBOL Copa América, along with increased digital investment at Tubi[18](index=18&type=chunk) - Full-year advertising revenue fell from **$5.20 billion to $4.18 billion**, driven by the absence of Super Bowl LVII, the Men's World Cup, and lower political advertising. This was the primary cause for the segment's EBITDA dropping from **$1.01 billion to $506 million**[19](index=19&type=chunk)[20](index=20&type=chunk) [Shareholder Returns](index=6&type=section&id=Shareholder%20Returns) [Dividends](index=6&type=section&id=DIVIDEND) The Company's Board of Directors has approved an increase to the semi-annual dividend, signaling confidence in its financial health and commitment to returning capital to shareholders - The Board declared an increased semi-annual dividend of **$0.27 per Class A and Class B share**[21](index=21&type=chunk) - The dividend is payable on September 25, 2024, with a record date of September 4, 2024[21](index=21&type=chunk) [Share Repurchase Program](index=6&type=section&id=SHARE%20REPURCHASE%20PROGRAM) Fox continued its share repurchase program, buying back $250 million of its Class A common stock during the quarter. The company has $1.4 billion remaining under its current repurchase authorization - The Company repurchased approximately **$250 million** of its Class A common stock during the fourth quarter[22](index=22&type=chunk) - As of June 30, 2024, a total of **$5.6 billion** in stock has been repurchased under the program, with a remaining authorization of **$1.4 billion**[22](index=22&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The consolidated income statement shows a full-year revenue of $13.98 billion and net income attributable to stockholders of $1.50 billion, or $3.13 per share. This compares to revenue of $14.91 billion and net income of $1.24 billion, or $2.33 per share, in the prior fiscal year. The increase in net income was primarily due to lower restructuring and legal costs compared to the prior year | (in $ Millions) | Twelve Months Ended June 30, 2024 | Twelve Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Revenues** | $13,980 | $14,913 | | **Operating expenses** | ($9,089) | ($9,689) | | **Restructuring, impairment and other** | ($67) | ($1,182) | | **Income before income tax expense** | $2,104 | $1,736 | | **Net income attributable to Fox Corp. stockholders** | $1,501 | $1,239 | | **Net income per share** | $3.13 | $2.33 | [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2024, Fox Corporation's balance sheet remained stable with total assets of $21.97 billion. Cash and cash equivalents stood at $4.32 billion. Total liabilities decreased to $11.16 billion from $11.42 billion in the prior year, primarily due to a reduction in current borrowings. Total stockholders' equity increased to $10.71 billion | (in $ Millions) | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $4,319 | $4,272 | | **Total current assets** | $7,501 | $7,257 | | **Total assets** | $21,972 | $21,866 | | **Total current liabilities** | $2,952 | $3,763 | | **Total liabilities** | $11,158 | $11,421 | | **Total Fox Corporation stockholders' equity** | $10,714 | $10,378 | [Consolidated Statements of Cash Flows](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the twelve months ended June 30, 2024, the company generated $1.84 billion in net cash from operating activities, a slight increase from the prior year. Net cash used in investing activities was $452 million. Financing activities used $1.34 billion, primarily for $1.0 billion in share repurchases and $281 million in dividend payments. The company ended the year with a net increase in cash of $47 million | (in $ Millions) | Twelve Months Ended June 30, 2024 | | :--- | :--- | | **Net cash provided by operating activities** | $1,840 | | **Net cash used in investing activities** | ($452) | | **Net cash used in financing activities** | ($1,341) | | *Repurchase of shares* | *($1,000)* | | *Dividends paid and distributions* | *($281)* | | **Net increase in cash and cash equivalents** | $47 | | **Cash and cash equivalents, end of year** | $4,319 | [Notes to Financials (Non-GAAP Reconciliations)](index=11&type=section&id=Notes%20to%20Financials%20(Non-GAAP%20Reconciliations)) [Note 1 – Adjusted Net Income and Adjusted EPS](index=11&type=section&id=NOTE%201%20%E2%80%93%20ADJUSTED%20NET%20INCOME%20AND%20ADJUSTED%20EPS) This note provides a reconciliation from GAAP Net Income to the non-GAAP measure of Adjusted Net Income. For the full fiscal year 2024, Adjusted Net Income was $1.65 billion ($3.43 per share), compared to $1.87 billion ($3.51 per share) in the prior year. The adjustments primarily remove the effects of restructuring charges and non-operating items to better reflect core operational performance | (in $ Millions, except per share) | Twelve Months Ended June 30, 2024 | Twelve Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Net income attributable to Fox Corp. stockholders (GAAP)** | $1,501 | $1,239 | | **EPS (GAAP)** | $3.13 | $2.33 | | **Adjusted Net Income (Non-GAAP)** | $1,645 | $1,866 | | **Adjusted EPS (Non-GAAP)** | $3.43 | $3.51 | [Note 2 – Adjusted EBITDA](index=13&type=section&id=NOTE%202%20%E2%80%93%20ADJUSTED%20EBITDA) This note defines Adjusted EBITDA and reconciles it from GAAP Net Income. For the full fiscal year 2024, Adjusted EBITDA was $2.88 billion, down from $3.19 billion in the prior year. For the fourth quarter, Adjusted EBITDA was $773 million, an increase from $735 million year-over-year. Management uses this metric to evaluate the operating performance of its business portfolio - Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. It excludes items like depreciation, amortization, restructuring, and interest to provide insight into operational performance[36](index=36&type=chunk) | (in $ Millions) | Q4 FY2024 | Q4 FY2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (GAAP)** | $320 | $369 | $1,554 | $1,253 | | **Adjusted EBITDA (Non-GAAP)** | $773 | $735 | $2,883 | $3,191 |

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number 001-38776 FOX CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number 001-38776 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ FOX CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Fox Corporation (NASDAQ:FOX) Q3 2024 Results Conference Call May 8, 2024 8:30 AM ET Company Participants Gabrielle Brown - Chief IRO Lachlan Murdoch - Executive Chair & CEO Steve Tomsic - CFO Conference Call Participants John Hodulik - UBS Robert Fishman - MoffettNathanson Ben Swinburne - Morgan Stanley Jessica Reif Ehrlich - Bank of America Securities Michael Morris - Guggenheim Operator Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation Third Quarter Fiscal Year 2024 Earnings ...

Exhibit 99.1 Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said: EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2024 FOX REPORTS THIRD QUARTER FISCAL 2024 REVENUES OF $3.45 BILLION, NET INCOME OF $704 MILLION, AND ADJUSTED EBITDA OF $891 MILLION NEW YORK, NY, May 8, 2024 – Fox Corporation (Nasdaq: FOXA, FOX; "FOX" or the "Company") today reported financial results for the three months ended March 31, 2024. The Company reported total quarterly revenues of $3.45 bill ...

Financial Performance - Total revenues for the quarter ended March 31, 2024, were $3.45 billion, a decrease of 15.6% from $4.08 billion in the prior year quarter[3] - Net income for the quarter was $704 million, compared to a net loss of $50 million in the prior year quarter, reflecting a significant turnaround[4] - Adjusted EBITDA for the quarter was $891 million, an increase of $58 million or 7% from the prior year quarter[4] - Revenues for the quarter ended March 31, 2024, were $3,447 million, a decrease of 15.6% compared to $4,084 million in the same quarter of 2023[20] - Net income attributable to Fox Corporation stockholders for the quarter was $666 million, compared to a net loss of $54 million in the same quarter of 2023[20] - Adjusted EBITDA for the quarter was $891 million, an increase of 6.9% from $833 million in the same quarter of 2023[33] - Adjusted EPS for the quarter was $1.09, compared to $0.94 in the same quarter of 2023[28] Revenue Breakdown - Affiliate fee revenues increased by 4% to $1.94 billion, driven by a 9% growth in the Television segment[3] - Advertising revenues decreased to $1.24 billion, down 34.3% from $1.88 billion in the prior year quarter, primarily due to the absence of Super Bowl LVII[3] - Cable Network Programming reported quarterly revenues of $1.47 billion, a decrease of 6.2% from $1.57 billion in the prior year quarter[6] - Television segment revenues were $1.94 billion, down 21.6% from $2.48 billion in the prior year quarter, with advertising revenues of $939 million[10] Capital Allocation and Shareholder Value - The company has repurchased approximately $4.35 billion of Class A common stock and $1 billion of Class B common stock, with a remaining authorization of up to $1.65 billion[14] - The company’s balanced capital allocation approach supports long-term value creation for shareholders, as stated by Executive Chair and CEO Lachlan Murdoch[4] Operating Expenses and Cash Flow - Operating expenses decreased to $2,050 million from $2,727 million year-over-year, reflecting a reduction of 24.8%[20] - Cash and cash equivalents at the end of the period were $3,791 million, down from $4,272 million at the beginning of the year[24] - The company reported a net cash provided by operating activities of $941 million for the nine months ended March 31, 2024, compared to $1,307 million in the same period of 2023[24] Assets and Borrowings - Total assets decreased to $21,717 million from $21,866 million as of June 30, 2023[22] - The company repaid $1,250 million in borrowings during the nine months ended March 31, 2024[24] Share Count - The weighted average shares outstanding decreased to 475 million from 521 million year-over-year[20]

Fox Corporation (NASDAQ:FOX) Q2 2024 Earnings Conference Call February 7, 2024 8:30 AM ET Company Participants Gabrielle Brown - Chief IRO Lachlan Murdoch - Executive Chair & CEO Steve Tomsic - CFO John Nallen - COO Conference Call Participants Ben Swinburne - Morgan Stanley Robert Fishman - MoffettNathanson John Hodulik - UBS Jessica Reif Ehrlich - Bank of America Securities Michael Morris - Guggenheim Operator Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation's Second Quarter ...

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)