Financial Data and Key Metrics Changes - Revenue growth of 5% and EBITDA growth of 2% in Q1 fiscal 2026 [4][12] - Advertising revenue increased by 6%, despite the absence of last year's political revenue [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] - Adjusted net income was $686 million and adjusted EPS was $1.51, a year-over-year increase of 4% [13] Business Line Data and Key Metrics Changes - Cable Networks revenue grew by 4%, with advertising revenues up 7% driven by Fox News [13][14] - Television segment revenue increased by 5%, with advertising revenues up 6% due to Tubi's growth and strong sports pricing [14][15] - Tubi achieved 27% revenue growth, driven by an 18% increase in total view time, and reached profitability [9][12] Market Data and Key Metrics Changes - Subscriber declines remained below 7% for the third consecutive quarter [4] - Fox Sports averaged almost 22 million viewers for NFL games, a 12% increase over last season [7] - Fox News maintained its status as the most watched cable network, achieving the highest first quarter ad revenue in its history [10] Company Strategy and Development Direction - The company launched Fox One, with strong early subscriber uptake and engagement [5][22] - Focus on distribution agnosticism, ensuring content reaches as many households as possible [5] - Plans for M&A activity in the future, with a disciplined approach to investment [51] 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][11] - The company anticipates continued total company distribution revenue growth for the full year [15] - Management highlighted the importance of partnerships in driving growth for Fox One [62] Other Important Information - The company announced a $1.5 billion accelerated share repurchase (ASR) transaction [11][16] - Free cash flow was negative $234 million in the quarter, consistent with seasonal working capital cycles [16][17] Q&A Session Summary Question: Insights on Fox One's subscriber uptake and engagement - Management noted that early subscriber uptake has exceeded expectations, with a healthy mix of sports and news viewing driving engagement [22][23] Question: Strength in Fox News pricing and advertising potential - Management highlighted a 63% share in total day and 65% in prime time for Fox News, with strong pricing driven by new national clients [30][31] Question: Key drivers of stable subscriber erosion trends - Management indicated that reduced subscriber erosion is due to the flexibility of skinny bundles and the success of digital distributors [42][43] Question: Details on the accelerated share repurchase program - The ASR will involve buying back shares with a split between Class A and B stocks, taking advantage of pricing efficiencies [44][45]

Financial Data and Key Metrics Changes - Revenue growth of 5% and EBITDA growth of 2% for Q1 Fiscal 2026 [4][12] - Advertising revenue increased by 6%, despite the absence of last year's political revenue [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 prior year [13] - Adjusted net income was $686 million and adjusted EPS was $1.51, reflecting a year-over-year increase of 4% [13] Business Line Data and Key Metrics Changes - Cable Networks revenue grew by 4%, with advertising revenues up 7% driven by Fox News [13][14] - Television segment revenue increased by 5%, with advertising revenues up 6% due to Tubi's growth and strong sports pricing [14][15] - Tubi achieved 27% revenue growth, driven by an 18% increase in total view time, and reached profitability [9][10] Market Data and Key Metrics Changes - Distribution revenue grew by 3%, with subscriber declines remaining below 7% for the third consecutive quarter [4][12] - Fox News maintained its status as the most watched cable network, achieving the highest first quarter ad revenue in its history [10][11] - Engagement in live sports increased, with NFL viewership averaging almost 22 million, a 12% increase over last season [7][8] Company Strategy and Development Direction - The company launched Fox One, with positive early subscriber trends and engagement [5][24] - Focus on distribution agnosticism, ensuring content reaches as many households as possible [5] - Commitment to shareholder value through a $1.5 billion accelerated share repurchase transaction [11][16] 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][11] - The company anticipates continued revenue growth driven by stable to improving subscriber erosion trends [12][44] - Management highlighted the importance of M&A activity for future growth, while maintaining a disciplined approach [52] Other Important Information - Total company expenses increased by 6% year-over-year, primarily due to investments in digital initiatives [12] - Free cash flow was negative $234 million, consistent with the seasonality of the working capital cycle [16][17] Q&A Session Summary Question: Insights on Fox One's subscriber uptake and engagement - Management noted that early subscriber uptake has exceeded expectations, with a healthy mix of sports and news viewing driving engagement [24] Question: Strength in Fox News pricing and advertising potential - Management indicated that Fox News pricing strength comes from high market share and increased spending from new national clients [31][36] Question: Key drivers of distribution growth and impact of Fox One - Management highlighted that early benefits from skinny bundles and digital distributors are contributing to reduced subscriber erosion [43][44] Question: Use of balance sheet flexibility and potential M&A activity - Management confirmed plans for future M&A activity while maintaining a strong balance sheet and disciplined investment strategy [51][52] Question: Update on investment levels for the year - Management reiterated that the previously mentioned investment estimate of $350 million for FY 2026 remains conservative, but it is too early to adjust the figure [66]

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 Viewpoint - FEMSA has entered into an accelerated share repurchase (ASR) agreement to repurchase $250 million of its American Depositary Shares (ADS) to enhance capital returns to shareholders [1][2]. Group 1: ASR Agreement Details - The ASR agreement involves an initial delivery of 483,559 ADSs on May 20, 2025 [1]. - The total number of shares repurchased will depend on the daily volume-weighted average price of the ADS during the agreement term, minus a discount [2]. - The final settlement of the ASR is expected to be completed by the third quarter of 2025 [2]. Group 2: Company Overview - FEMSA operates in the retail industry through its Proximity Americas Division, which includes the OXXO small-format store chain, and Proximity Europe, which operates Valora [3]. - The company also has a Health Division that includes drugstores and digital financial services initiatives [3]. - In the beverage sector, FEMSA is the largest franchise bottler of Coca-Cola products globally by volume [3]. - FEMSA employs over 392,000 people across 18 countries and is recognized in various sustainability and ESG indexes [3].