Core Insights - Fox Corporation exceeded earnings forecasts in Q2 of the fiscal year, driven by increased ad revenue from news networks and sports programs [1] - Total revenue reached $5.18 billion, marking a 2% year-over-year increase, with companywide ad revenue rising 1% and cable advertising increasing by 7% [1] Revenue and Advertising Performance - Tubi, Fox's ad-supported streaming service, achieved record quarterly revenue growth of 19% and maintained EBITDA profitability for the second consecutive quarter [2] - Fox News added approximately 200 new advertisers in the first half of the year, building on 350 new advertisers from the previous year, indicating strong demand for its content [5] - The advertising market for Fox News has been robust, with scatter pricing for the channel increasing by 46% to 47% [9] Viewership and Ratings - Fox News was the most-watched cable network in total day, producing the top 11 cable news programs [7] - Nielsen data shows Fox News outperforming competitors like MSNBC and CNN, and in some markets, it attracted larger audiences than major broadcast networks [8] - Fox Television's ratings were bolstered by live sports, with significant viewership for marquee events, including over 27 million viewers for a Game 7 of the World Series [10] Financial Metrics and Challenges - Despite revenue growth, net income fell to $229 million from $373 million year-over-year, and adjusted EBITDA decreased to $692 million from $781 million [15] - The decline in profit margins was attributed to higher amortization of sports programming rights, increased production costs, and elevated digital and marketing expenditures [15] - Following the earnings release, shares of Fox Corp dropped nearly 4%, although the stock has risen nearly 25% over the past year [16] Capital Management - Fox Corp repurchased $1.8 billion of stock in the fiscal year to date, bringing cumulative repurchases since 2019 to $8.4 billion, which is about 35% of shares outstanding [4]

Core Insights - Fox Corporation reported second-quarter earnings for fiscal year 2026, achieving $5.18 billion in revenue, a 2% increase year-over-year, surpassing analysts' expectations of $5.06 billion [1] Revenue Growth - Distribution revenues increased by 4%, primarily driven by a 5% growth in Fox's cable network programming segment [1] - Advertising revenues rose by 1%, attributed to higher pricing for ads during sports and news programs, additional MLB postseason games, and digital growth from Tubi, Fox's ad-supported streaming platform [2] Cable Programming Performance - Fox's cable programming, including Fox News Channel and FOX Business Network, saw a revenue increase of 5% to $2.28 billion, with advertising revenue growing approximately 7% [4] Audience Engagement - Fox News maintained its position as the most-watched cable network, leading in total day viewership and producing the top 11 cable news programs [7] - Social media views for Fox News Digital surged by 170% year-over-year, with Fox News and FOX Business ranking first in YouTube video views among peers [7] Streaming Platform Growth - Tubi experienced its most streamed quarter ever, with total viewer time increasing by 27% year-over-year, and expanded its content slate to include an NFL game simulcast [8] - Fox's subscription streaming service, Fox One, completed its first full quarter without cannibalizing traditional subscribers, with live sporting events driving significant engagement [9][10]

Financial Data and Key Metrics Changes - Total revenues for the second quarter reached $5.18 billion, a 2% increase from the prior year quarter [14] - Adjusted EBITDA was $692 million, down from $781 million in the prior year quarter, due to higher expenses [15] - Net income attributable to stockholders was $229 million or $0.52 per share, compared to $373 million or $0.81 per share in the prior year [15] Business Line Data and Key Metrics Changes - Cable segment revenues were $2.28 billion with an Adjusted EBITDA of $687 million, both representing a 5% growth year-over-year [16] - Television segment reported revenues of $2.94 billion, with advertising revenues unchanged due to the absence of last year's political advertising [17] - Distribution revenue grew 4% during the quarter, with subscriber declines improving sequentially [6] Market Data and Key Metrics Changes - Advertising revenue grew 1% despite tough comparisons to last year's political cycle, driven by strong linear pricing and robust revenue growth at Tubi [14] - FOX News Digital saw a 170% increase in social media views over the prior year, indicating strong audience engagement [9] - Tubi achieved its most streamed quarter ever, with total view time growing 27% year-over-year [11] Company Strategy and Development Direction - The company emphasizes a strategy focused on live sports and news, alongside the growth of Tubi and FOX One, to reinforce its leadership position [12] - FOX One is positioned as a premier destination for live sports and news streaming, with targeted marketing to cord-cutters [6] - The company is committed to maintaining a strong balance sheet and delivering sustained growth and shareholder value through share buybacks and dividends [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted a robust advertising market and expects continued strength in political advertising as the midterm elections approach [25] - The company anticipates profitability from the upcoming FIFA Men's World Cup, driven by strong advertiser interest [26] - Management expressed confidence in the strategic direction and the ability to connect with audiences across various platforms [12] Other Important Information - The company repurchased an additional $1.8 billion in shares, bringing the total repurchased to $8.4 billion since the buyback program began [19] - A semiannual dividend of $0.28 per share was announced, contributing to a total cumulative cash return to shareholders of approximately $10.4 billion [19] Q&A Session Questions and Answers Question: Can you discuss cable advertising performance and expectations for the political cycle? - The advertising market for Fox News has been robust, with 200 new advertisers added this half, reflecting strong demand [24] - The company expects to benefit from a robust political advertising cycle, particularly at local stations [25] Question: How does the company plan to offset increased costs associated with the NFL? - The company is confident in its ability to offset costs by balancing its sports portfolio and leveraging its strong content [30] Question: What is the performance of FOX One and its impact on the P&L? - FOX One has exceeded expectations, with a significant portion of its audience being sports fans, and the platform's costs are recorded in the corporate segment [38][40] Question: Can you elaborate on the improvement in subscriber declines and the drivers behind it? - The subscriber decline improved to 6.3%, driven by the emergence of skinny bundles in the cable universe [45] - The company is optimistic about the impact of skinny bundles on subscriber retention [46] Question: What are the growth drivers for Tubi's advertising revenue? - Tubi's revenue growth of 19% was driven by a 27% increase in total view time and strong advertiser demand [48]

Core Insights - Fox News Media has attracted 350 new national advertisers in 2025, resulting in the highest ad revenue quarter in the company's history [2] - Fox News maintained strong ratings, averaging 3.281 million viewers in weekday prime, leading all cable and broadcast networks [3] - The network's prime time audience in October was 2.3 million viewers, while competitors CNN and MSNBC reached record lows [4] Advertising Performance - Ad revenue for Fox News increased by 7% to $345 million, while the Fox broadcast network and local television stations saw a 6% rise to $1.07 billion [7] - The company charges advertisers less than ABC, CBS, and NBC, making it an attractive option for new advertisers [5] - Many new national advertisers are increasing their spending, contributing to a positive outlook for the company [6] Financial Results - Fox Corp exceeded Wall Street expectations for the fiscal first quarter, reporting adjusted earnings of $1.51 per share and total revenue of $3.7 billion, surpassing the consensus of $1.06 EPS and $3.58 billion revenue [6]

Financial Data and Key Metrics Changes - Fox Corporation reported a revenue growth of 5% and EBITDA growth of 2% for the first quarter of fiscal 2026 [4][12] - Advertising revenue increased by 6%, while distribution revenue grew by 3% [4][12] - Net income attributable to stockholders was $599 million, or $1.32 per share, compared to $827 million, or $1.78 per share, in the previous year [13] Business Line Data and Key Metrics Changes - Cable Networks revenue grew by 4%, with advertising revenues up 7% driven by strong pricing at Fox News [13][15] - Television segment revenue increased by 5%, with advertising revenues up 6% due to growth at Tubi and strong sports pricing [15][16] - Tubi achieved 27% revenue growth, driven by an 18% increase in total view time, and reached profitability [8][9] Market Data and Key Metrics Changes - Fox News maintained its status as the most-watched cable network, achieving the highest first-quarter ad revenue in its history [9][10] - The NFL on Fox averaged almost 22 million viewers, a 12% increase over last season, marking Fox's best start to an NFL season ever [6][7] - College football viewership also increased, with Fox's Big Noon Saturday averaging over 6 million viewers, up 22% from the previous season [7] Company Strategy and Development Direction - The company launched Fox One, which has seen strong early subscriber uptake and engagement, indicating a positive outlook for its direct-to-consumer strategy [5][24] - Fox Corporation is focused on ensuring its content reaches as many households as possible, emphasizing a distribution-agnostic approach [5] - The company plans to continue investing in digital initiatives while moderating overall net investment due to Tubi's profitability [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive outlook for Fox, supported by a strong advertising market and leadership in news and sports [10] - The company anticipates continued distribution revenue growth, driven by stable to improving subscriber erosion trends [16][70] - Management highlighted the importance of M&A activity for future growth, while maintaining a disciplined approach to investments [81] Other Important Information - The company announced a $1.5 billion accelerated share repurchase (ASR) transaction, reflecting confidence in its business outlook [10][17] - Free cash flow was reported as negative $234 million, consistent with the seasonality of the working capital cycle [17] Q&A Session Summary Question: Insights on Fox One's subscriber uptake and engagement - Management noted that Fox One's early uptake has exceeded expectations, with a healthy mix of sports and news viewing driving engagement [24][26] Question: Strength in Fox News pricing and advertising - The strength in Fox News pricing is attributed to a significant market share and the efficiency of advertising costs compared to broadcast networks [40][44] Question: Key drivers of distribution growth and subscriber erosion trends - Management indicated that reduced subscriber erosion is benefiting from skinny bundles and digital distributors, with Fox One being additive to subscriber numbers [64][66] Question: Details on the accelerated share repurchase (ASR) program - The ASR program will involve a mix of Class A and Class B shares, with the decision based on trading efficiencies [70][72]

Core Insights - Viant Technology Inc. has expanded its partnership with Tubi, enhancing advertisers' ability to reach addressable audiences with improved accuracy and scale through a new ID sync [2][4][5] Group 1: Partnership Details - The partnership allows advertisers to access over 100 million monthly active users and more than 300,000 movies and TV episodes on Tubi, leveraging Viant's capabilities in CTV and programmatic advertising [2][4] - Tubi's extensive AVOD reach combined with Viant's identity and measurement tools provides advertisers with greater transparency and performance [3][5] Group 2: Technological Enhancements - Viant's acquisition of IRIS.TV enables contextual and emotional targeting, enhancing the precision of advertising campaigns on Tubi [4][6] - The integration of IRIS_ID with Tubi's content allows for programmatic buying and measurement of video-level contextual and emotional data, driving stronger outcomes for advertisers [4][6] Group 3: Market Positioning - The collaboration exemplifies Viant's Direct Access program, which streamlines connections between advertisers and major streaming platforms, reducing reliance on intermediaries [5][6] - This partnership positions Viant as a leader in the evolving landscape of addressable advertising in CTV, catering to the growing demand for measurable advertising solutions [6]

Good morning. Good to have you with us on a Monday. I'm Joe Frier. >> And I'm Savannah Sers.We are going to begin a new week this morning with President Trump arriving here in New York later today to take part in the UN General Assembly. The president is set to speak Tuesday morning at the United Nations for the annual gathering of global leaders. But ahead of that trip, Mr.. Trump is expected to make an announcement today regarding autism. >> The Washington Post is citing four people familiar with the matt ...

Core Points - A legal battle involving Rupert Murdoch has concluded with a multibillion-dollar settlement, transferring control of Fox News and The Wall Street Journal to his son Lachlan Murdoch [1][2] - The settlement restructures the Murdoch Family Trust, changing the voting control from equal shares among Rupert's children to Lachlan having majority control [3][4] - Lachlan Murdoch will remain as chairman and CEO of Fox Corporation, while Rupert will take on a ceremonial role as chairman emeritus [4] - Other siblings, Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, will exit the trust and receive substantial cash payouts, totaling approximately $1.1 billion each [5][6] - The total value of the settlement is reported to be $3.3 billion, with proceeds coming from the sale of Fox Corporation and News Corp shares [6] - The remaining assets of the old trust will be allocated to new trusts benefiting Lachlan Murdoch and Rupert's youngest daughters, Grace and Chloe [7]

Core Viewpoint - Newsmax's stock has significantly declined from its initial surge post-IPO, raising questions about its investment potential in a challenging digital media landscape [1][2]. Company Overview - Newsmax is a conservative media network that gained attention during a quiet year for IPOs, initially seeing its stock price rise to $265 per share shortly after its IPO [1]. - The stock has since fallen to just above $12 per share, nearing its all-time low [2]. Financial Performance - In Q1, Newsmax reported revenue growth of 11.6%, reaching $45.3 million, indicating it is still a small player in the industry despite being the fourth-highest-rated cable news channel with over 33 million quarterly viewers [5][6]. - The growth in revenue was balanced across advertising, affiliate revenues, and subscriptions, with advertising accounting for nearly two-thirds of total revenue [5]. - The company achieved a record of 33.6 million viewers in the quarter, a 50% increase from the previous year, although this may be attributed to external factors such as Trump's inauguration [6]. - Newsmax reported an adjusted EBITDA loss of $1.2 million, down from a profit of $3.2 million a year ago, and a GAAP loss of $17.2 million, or $0.49 per share [7]. Market Position and Valuation - Newsmax's stock is currently trading at a price-to-sales ratio of 9, which is considered high compared to its peers like Fox Corporation, which has a P/E ratio of 14 and a P/S ratio of 1.6, and Sinclair, trading at a P/E of 7 and a P/S of 0.3 [9][10]. - The company is exploring growth opportunities in both linear and digital channels, including streaming and a small product business [8]. Investment Outlook - Despite double-digit revenue growth, Newsmax is still unprofitable and its stock is more expensive than its peers, leading to a cautious investment outlook [11]. - Currently, Newsmax is not considered a buy, with the potential for a change in status if its financial performance improves or its valuation decreases [12].

Investment Rating - Industry View for Media & Entertainment, Telecom & Cable Services, and Communications Infrastructure is rated as In-Line [3][5]. Core Insights - The report provides a comprehensive analysis of trading multiples across various segments, including Diversified Media & Streaming, Mid-Cap Entertainment & Sport, Mid-Cap Advertising & Film, Telecom & Cable Services, and Communications Infrastructure [6][20]. - Historical performance metrics are included for sub-industries over different time frames, such as 1 Week, 1 Month, 3 Months, 12 Months, and 3 Years Year-to-Date [2][6]. Summary by Industry Segment Diversified Media & Streaming - Price to Earnings (P/E) for 2025E is 42.2x, decreasing to 27.3x by 2027E - Adjusted Price/FCF for 2025E is 49.1x, decreasing to 30.9x by 2027E - EV/EBITDA for 2025E is 46.1x, decreasing to 29.1x by 2027E - Dividend Yield is projected at 0.2% for 2025E, increasing to 0.3% by 2027E [6]. Mid-Cap Entertainment & Sport - P/E for 2025E is 57.3x, decreasing to 27.5x by 2027E - Adjusted Price/FCF for 2025E is 40.6x, decreasing to 22.3x by 2027E - EV/EBITDA for 2025E is 56.1x, decreasing to 33.4x by 2027E - Dividend Yield is projected at 1.2% for 2025E, increasing to 1.4% by 2027E [6]. Mid-Cap Advertising & Film - P/E for 2025E is 13.7x, decreasing to 11.7x by 2027E - Adjusted Price/FCF for 2025E is 12.3x, decreasing to 10.7x by 2027E - EV/EBITDA for 2025E is 14.1x, decreasing to 12.5x by 2027E - Dividend Yield is projected at 4.3% for 2025E, increasing to 4.8% by 2027E [6]. Telecom & Cable Services - P/E for 2025E is 14.7x, decreasing to 13.5x by 2027E - Adjusted Price/FCF for 2025E is 14.3x, decreasing to 10.9x by 2027E - EV/EBITDA for 2025E is 15.0x, increasing to 14.1x by 2027E - Dividend Yield is projected at 2.2% for 2025E, increasing to 2.4% by 2027E [6]. Communications Infrastructure - P/E for 2025E is 24.4x, decreasing to 29.0x by 2027E - Adjusted Price/FCF for 2025E is 27.8x, decreasing to 24.2x by 2027E - EV/EBITDA for 2025E is 28.4x, decreasing to 26.0x by 2027E - Dividend Yield is projected at 3.4% for 2025E, increasing to 3.6% by 2027E [6].