Fox (NasdaqGS:FOX) Q2 2026 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsGabrielle Brown - Head of Investor RelationsJessica Reif Ehrlich - Managing DirectorLachlan Murdoch - Executive Chair and CEORobert Fishman - CFASteve Tomsic - CFOThomas Yeh - Equity ResearchNone - Company RepresentativeConference Call ParticipantsJohn Hodulik - AnalystMichael Morris - Senior Managing Director and Senior Equity Research AnalystMichael Ng - AnalystOperatorAs a reminder, this conference is being recorde ...

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]

Ad Market Concerns & Uncertainty - WPP shares declined 16% due to concerns about the state of the ad market [1] - The business environment is uncertain, leading advertisers to platforms delivering lower-funnel results [2] - Geopolitical uncertainty and potential economic pullback due to tariffs are significant concerns [4][5] Snap's Positioning & Strategy - Snap's Q1 advertiser growth was 60% year-over-year, with 75% of the business now direct response [3] - Snap aims to help small and medium-sized customers grow, positioning itself well regardless of the business outlook [3] - Snapchat differentiates itself as a communication service, unlike other platforms that are primarily video feeds [6] - Brands play an important role in relationships and therefore on Snapchat [6][7] - Snapchat's sponsored Snaps product is now available to 100% of the United States, offering brands efficient reach [8] - Creator and influencer marketing on Snapchat drives significant impact for brands [9]