Versant Media Group FY Conference Summary Company Overview - **Company**: Versant Media Group (NasdaqGS:VSNT) - **Date of Conference**: March 10, 2026 - **Key Speaker**: Anand Kini, Chief Operating Officer and Chief Financial Officer Core Business and Market Position - Versant is positioned as a leading media company with strong brands in four dynamic markets: personal finance and business news, political news and opinion, golf, and genre entertainment and sports [3][4] - Approximately 60% of the audience is engaged with live news and sports, which is attractive to marketers and advertisers [3] - The company aims to evolve its revenue mix from 81% pay TV and 19% non-pay TV to 33% non-pay TV in the next 3-5 years, eventually reaching a 50/50 split [5][27] Growth Strategy - Versant is expanding its platforms business, which includes GolfNow (tee time reservations) and Fandango (movie ticketing), generating about $850 million in revenue [4] - New services are being introduced, such as direct-to-consumer (D2C) offerings for CNBC and MSNBC, and an ad-supported video on demand (AVOD) service for Fandango [5][12] - The company is leveraging existing audience strength and technology to grow these new services cost-effectively [13][38] Financial Performance and Projections - Revenue and EBITDA are projected to decline moderately in 2026, with a focus on maintaining strong profitability and cash flow generation of over $1 billion [21][25] - The majority of pay TV subscriber contracts are stable, with only 16% up for renewal in 2026, providing good visibility for revenue [21][51] - The advertising market is healthy, and platforms revenue is expected to grow in the high single digits [24][27] Key Opportunities and Risks - All four verticals (business news, politics, golf, and entertainment) are viewed as attractive for near-term value creation [8][9] - The company is focusing on enhancing its digital presence, particularly for CNBC and MSNBC, to capture more retail investor engagement [9][10] - Cost management is crucial, with 70% of the cost base being addressable in the short term, allowing flexibility to mitigate revenue pressures [69] Capital Allocation and M&A Strategy - Versant has a healthy balance sheet with a net leverage target of 1.5, allowing for concurrent investments in growth, shareholder returns, and maintaining financial health [81][83] - The company is focused on smaller, strategic M&A opportunities that align with its growth objectives, rather than large-scale transformative deals [84][86] Competitive Landscape - Versant acknowledges competition in the AVOD space but believes its established brand, distribution footprint, and consumer data provide a competitive edge [46][48] - The company is not pursuing NFL or NBA rights but is open to opportunistic acquisitions in other sports that align with its distribution strategy [76][79] Conclusion - Versant Media Group is strategically positioned to evolve its business model and revenue mix while maintaining profitability and shareholder value. The focus on digital initiatives and cost management, along with a disciplined approach to capital allocation, will be key to navigating the competitive media landscape.

Core Insights - Playtika reported strong Q4 performance with revenue of $678.8 million and Adjusted EBITDA of $201.4 million, marking the third consecutive year of meeting or exceeding Adjusted EBITDA guidance [2][5][4] - Direct-to-consumer (D2C) revenue reached $250.1 million in Q4, representing 36.8% of total revenue and showing a 19.5% sequential increase and 43.2% year-over-year growth [1][5][4] - The company is shifting its focus towards casual games and D2C channels, aiming for D2C to account for approximately 40% of revenue in the future [6][4] Financial Performance - For the full year 2025, Playtika achieved revenue of $2.755 billion, an 8.1% increase year-over-year, with a net loss of $206.4 million primarily due to a non-cash remeasurement related to SuperPlay [10][11] - Playtika generated record free cash flow of $481.6 million, up 21.4% year-over-year, reflecting effective management of capital expenditures and working capital [10][5] - The company guided for 2026 revenue between $2.7 billion and $2.8 billion, with Adjusted EBITDA projected at $730 million to $770 million [13][5] Strategic Focus - Management emphasized a portfolio-driven approach, focusing on protecting leading casual franchises and scaling D2C to enhance unit economics [2][4] - The company is managing legacy titles as part of a broader portfolio strategy rather than relying solely on them for revenue [3][4] - Playtika is prioritizing investments in SuperPlay and related earn-out obligations while suspending its quarterly dividend to maintain financial flexibility [15][5] Game Performance - SuperPlay achieved record revenue in Q4, with Disney Solitaire revenue increasing 21.4% sequentially to $71.6 million, contributing significantly to overall growth [7][8] - Bingo Blitz revenue was $158.5 million, down 2.5% sequentially, while June's Journey revenue was $70.0 million, showing a slight increase [17][17] - The company is expanding its collaboration with Disney and Pixar Games, with new titles in development [8][15]

Core Insights - The company is shifting its business focus towards long-life casual games, which now account for 74% of total revenue, to reduce reliance on the volatile social casino segment [1] - The acquisition of SuperPlay has become a key growth driver, with Disney Solitaire achieving a $300 million annualized run rate shortly after its global launch [1] - Direct-to-Consumer (D2C) channels have reached a $1 billion annual revenue run rate, enhancing unit economics and player retention [1] Financial Performance - The company is managing social casino titles for cash flow maximization and stability, with Slotomania showing early signs of stabilization in Q4 [1] - Record free cash flow of $481.6 million is attributed to disciplined capital expenditure management and successful integration of higher-margin D2C workflows [1] - The company is streamlining legacy operations to reallocate capital into high-return areas, particularly supporting the scaling efforts of the SuperPlay team [1]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $678.8 million, representing a 0.6% sequential increase and a 4.4% year-over-year increase [13] - For the full year 2025, total revenue was $2.755 billion, up 8.1% year-over-year [12] - Adjusted EBITDA for Q4 was $201.4 million, down 7.4% sequentially but up 9.5% year-over-year [13] - The company experienced a net loss of $309.3 million in Q4, compared to a net income of $39.1 million in Q3 [13] - Free cash flow reached a record $481.6 million, an increase of 21.4% year-over-year [12] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue accounted for 36.8% of total revenue in Q4, with annual D2C revenue reaching approximately $1 billion [6] - Casual games generated about 74% of total revenue in Q4, indicating a shift towards a more balanced portfolio [7] - SuperPlay achieved record revenue in Q4, with Disney Solitaire revenue up 21.4% quarter-over-quarter [8] Market Data and Key Metrics Changes - Average daily active users (DAU) decreased by 3.7% sequentially to 7.9 million, while average daily paying users (DPU) increased by 0.8% sequentially to 357,000 [19] - The company noted early signs of stabilization in its social casino game Slotomania [11] Company Strategy and Development Direction - The company is focusing on building a balanced portfolio, with an emphasis on long-life casual games and D2C strategies [5][6] - There is a clear strategic shift towards casual gaming, with the company aiming to protect and maximize cash flow from its social casino assets while investing in growth opportunities [20] - The company plans to suspend its quarterly dividend to preserve capital for high-return opportunities, particularly related to the SuperPlay earn-out [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and adapt to a changing market environment, particularly in the casual gaming sector [10][20] - The company anticipates continued revenue growth driven by SuperPlay and its casual franchises, while also managing the decline in social casino revenue [20] Other Important Information - Operating expenses increased significantly due to the GAAP impact of contingent consideration related to the SuperPlay earn-out [18] - The company ended the year with $820.2 million in cash equivalents, indicating strong liquidity to fund future obligations [19] Q&A Session Summary Question: Role of AI in the business - Management highlighted that AI has been a focus for several years and is seen as a significant growth opportunity for the company [26] Question: Appetite for M&A - M&A remains a core part of the growth strategy, with a focus on high-return opportunities, particularly related to SuperPlay [28] Question: Incentives for D2C platform transition - The company is providing a better user experience through D2C, which is expected to enhance retention and long-term engagement [33] Question: Guidance for Slotomania and social casino performance - The company expects continued declines in social casino revenue but is optimistic about the growth from casual games [37] Question: Trajectory of Disney Solitaire - Significant marketing investment is planned for Disney Solitaire in Q1, which is expected to drive growth [47] Question: Gross margins and D2C impact - There are crosscurrents affecting gross margins, including lower platform fees but increased amortization from past acquisitions [48] Question: Status of Jackpot Tour - The company is still evaluating the performance of Jackpot Tour and is cautious about significant marketing spend until KPIs are met [76]

Financial Data and Key Metrics Changes - The company expects overall revenue of $30 billion for the year, representing a 4% year-on-year increase [19] - Adjusted EBITDA outlook is set at $3.8 billion, excluding $300 million of stock-based compensation, with year-on-year improvement anticipated [23] Business Line Data and Key Metrics Changes - Direct-to-Consumer (DTC) is projected to be the growth driver, with expectations for continued acceleration in subscriber growth and improved Average Revenue Per User (ARPU) [20][21] - Theatrical revenue is expected to decline, primarily due to a comparison with last year's strong performance, but overall studio revenue is anticipated to grow driven by licensing [66] Market Data and Key Metrics Changes - Paramount+ has seen a 17% year-to-date growth in subscribers, while non-Paramount+ services experienced a 16% decline [68] - Engagement on Pluto is up, with monthly active users increasing, although monetization remains a challenge [68][71] Company Strategy and Development Direction - The company is focused on long-term value creation through reinvigoration of core franchises and increased content spending, with an additional $1.5 billion allocated for scaling film and series production [47][48] - The strategy includes leveraging intellectual property across various platforms, enhancing the user experience on Paramount+ and Pluto, and integrating operations to maximize efficiency [51][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the partnership with UFC, noting strong initial engagement and advertising demand, which is expected to drive further growth [10][11] - The company is committed to achieving investment-grade credit metrics by 2027, with a focus on improving free cash flow conversion [36] Other Important Information - The company submitted a revised bid of $31 per share in cash for Warner Bros. Discovery, indicating ongoing strategic acquisition efforts [6] - Management emphasized the importance of AI as a tool for creativity, positioning the company to leverage technological advancements in content creation [58][59] Q&A Session Summary Question: Initial experience with UFC on streaming service - Management reported reaching approximately 7 million households during UFC 324, exceeding expectations and driving engagement with other content [10][11] Question: D2C profitability and ARPU trends - Management indicated that DTC is expected to drive revenue growth, with a focus on improving ARPU through subscriber growth and price increases [20][21] Question: NFL discussions and future opportunities - Management confirmed ongoing discussions with the NFL, expressing confidence in the partnership and its impact on viewership and revenue [29][30] Question: Growth and content spending strategy - Management highlighted the importance of reinvigorating core franchises and increasing content spending to drive long-term shareholder value [41][47] Question: Theatrical revenue decline despite increased titles - Management clarified that while theatrical revenue is expected to decline, overall studio revenue will grow due to licensing and increased film releases [66][70] Question: Pluto's monetization challenges - Management acknowledged monetization headwinds for Pluto but noted improvements in user engagement and plans to enhance monetization strategies [68][71] Question: UFC engagement metrics and churn trends - Management reported positive trends in churn and emphasized ongoing investments in content and product improvements to enhance subscriber retention [75][76]

Financial Data and Key Metrics Changes - Paramount's total revenue guidance for 2026 is set at $30 billion, driven by strong growth in direct-to-consumer (D2C) revenue and global profitability, with adjusted EBITDA expected to reach $3.5 billion [8][10] - The company has increased its run rate efficiency target from $2 billion to at least $3 billion [8] Business Line Data and Key Metrics Changes - The D2C segment saw a 24% revenue growth, with a total of 75 million subscribers, and Paramount+ added 1.4 million new subscribers in Q3, bringing the total to 79 million [10][16] - The plan is to grow theatrical output to at least 15 movies per year starting in 2026, with an incremental programming investment of over $1.5 billion across theatrical and D2C platforms [9][10] Market Data and Key Metrics Changes - Paramount+ has achieved the largest U.S. subscription growth among major streamers since 2023, ranking as one of the top three preferred content sources [10] - The company is focusing on scaling its direct-to-consumer business globally, with significant investments in content and technology to enhance user experience [11][17] Company Strategy and Development Direction - The company aims to transform Paramount into a global home for world-class storytelling, focusing on three North Star priorities: investing in growth businesses, scaling the D2C business, and driving enterprise-wide efficiency [6][7] - Paramount is committed to enhancing its technological capabilities to remain competitive in the media landscape, viewing technology as a tool to amplify creativity rather than replace it [11][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its strategic goals, emphasizing the importance of storytelling and creative partnerships [4][5] - The management highlighted the need for increased investment in content and technology to drive subscriber growth and engagement, particularly in international markets [18][19] Other Important Information - The company is pursuing high-impact partnerships and expanding its creative talent roster, with notable collaborations including the UFC and the Duffer Brothers [9][10] - Paramount is focused on improving operational efficiencies and cash flow generation, with a goal to achieve investment-grade metrics by 2027 [53][55] Q&A Session Summary Question: Can you talk more about your confidence for Paramount+ to gain global scale? - Management highlighted a strong quarter for the D2C business, with significant investments in content and technology to improve user experience and drive subscriber growth [16] Question: How much investment do you plan to put into Paramount Skydance over the next several years? - Management indicated plans for continued investment in growth businesses, with an additional $1.5 billion in content investments planned [23] Question: What is your updated view on your portfolio of networks regarding advertising and cord-cutting trends? - Management noted the distinct differences between broadcast and cable, with CBS being a cornerstone asset that continues to perform well despite overall declines in linear TV [30][32] Question: Can you give us your vision of how tech and entertainment interrelate and how you drive growth? - Management emphasized the goal of becoming the most technologically capable media company, with ongoing initiatives to unify streaming services and improve operational efficiency [39][41] Question: How should we think of the long-term profitability of the DTC business? - Management expects the DTC segment to be profitable next year, with a focus on improving working capital and cash tax rates to enhance free cash flow [71][76] Question: What does the $1.5 billion content investment look like across various categories? - Management confirmed that the investment will be spread across sports, originals, licensing, DTC, and theatrical, with a unified review process for content spending [80]

Financial Data and Key Metrics Changes - Paramount's total revenue guidance for 2026 is set at $30 billion, driven by strong growth in direct-to-consumer (D2C) revenue and global profitability, with adjusted EBITDA expected to be $3.5 billion [8][10] - Paramount+ achieved a 24% revenue growth in Q3, with a total of 75 million subscribers, reflecting a significant increase in engagement and subscriber growth [16][10] Business Line Data and Key Metrics Changes - The company plans to grow theatrical output to at least 15 movies per year starting in 2026, indicating a strategic shift towards enhancing its film production capabilities [9][25] - Incremental programming investments exceeding $1.5 billion are planned across theatrical and direct-to-consumer platforms, aimed at expanding the content pipeline [9][80] Market Data and Key Metrics Changes - Paramount+ has achieved the largest U.S. subscription growth among major streamers, excluding bundles, with 1.4 million new subscribers added in Q3 [10][16] - The company is focusing on scaling its direct-to-consumer business globally, with significant investments in content and technology to enhance user experience and engagement [10][11] Company Strategy and Development Direction - The company aims to transform Paramount into a global home for world-class storytelling, leveraging its diverse entertainment assets and focusing on efficiency and long-term growth [5][6] - Key strategic priorities include investing in growth businesses, scaling the D2C business, and driving enterprise-wide efficiency to enhance free cash flow generation [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its strategic goals, emphasizing the importance of high-quality storytelling and technology as a core competency [11][12] - The management highlighted the need for increased investment in content and technology to drive subscriber growth and engagement, particularly in the competitive streaming landscape [16][18] Other Important Information - The company has increased its run rate efficiency target from $2 billion to at least $3 billion, reflecting a commitment to operational efficiency [8][9] - Paramount is focusing on integrating its three streaming services into one unified platform to improve user experience and operational efficiency [41][40] Q&A Session Summary Question: Can you talk more about your confidence for Paramount+ to gain global scale? - Management highlighted a strong quarter for the D2C business, with a 24% revenue growth and a focus on increasing content investment to drive engagement and subscriber growth [16][18] Question: How much investment do you plan to put into Paramount Skydance over the next several years? - Management indicated plans for significant investment in content, with an additional $1.5 billion earmarked for programming across various categories [23][80] Question: What is your updated view on your portfolio of networks regarding advertising and cord-cutting trends? - Management noted the stark differences between broadcast and cable, with a focus on leveraging CBS's strength in broadcast while addressing the decline in cable [30][34] Question: How do you see the relationship between technology and entertainment driving growth? - Management emphasized the goal of becoming the most technologically capable media company, with initiatives underway to unify streaming services and improve operational efficiency [39][41] Question: How should we think of the long-term profitability of the DTC business? - Management projected that the DTC segment will be profitable next year and increasingly so in 2026, with a focus on improving working capital and cash tax rates [71][76]

Financial Data and Key Metrics Changes - Total company advertising revenue grew 65% in the quarter, driven by a record-breaking Super Bowl generating over $800 million in gross advertising revenue [7][16] - Total revenues increased by 27%, with record free cash flow achieved [16] - Adjusted EBITDA was $856 million, down from $891 million in the prior year quarter due to higher expenses [17] - Net income attributable to Fox stockholders was $346 million, or $0.75 per share, compared to $666 million, or $1.40 per share in the prior year [17] Business Line Data and Key Metrics Changes - Cable Network Programming segment saw 11% revenue growth and 7% EBITDA growth, with cable advertising revenues up 26% [18] - Television segment delivered 40% revenue growth, with advertising revenues increasing 77% due to the Super Bowl [19] - Tubi experienced a 35% year-on-year revenue growth, with total viewing time up 24% year-over-year in April [12][41] Market Data and Key Metrics Changes - Fox News finished the quarter as the most-watched cable network, with total day audience growing 48% and prime time ratings up over 30% [9][10] - Fox Sports ranked as the industry leader in live sports event viewership, accumulating 3.3 billion hours of sports event viewing, 17% better than the closest competitor [11] - Digital consumption trends for Fox News showed an 18% year-on-year growth in page views, reaching a record 11 billion views [10] Company Strategy and Development Direction - The company is focused on launching a direct-to-consumer service named Fox One, targeting the cordless market and aiming to avoid cannibalizing traditional cable subscribers [15][66] - Fox aims to leverage its strong assets in live sports and news programming to attract advertisers, with a disciplined approach to capital allocation [8][15] - The company is committed to maintaining strong relationships with traditional cable distributors while expanding its digital offerings [50][52] Management's Comments on Operating Environment and Future Outlook - Management noted no impact from the macro environment on business performance, with strong ratings and engagement [8] - The company is optimistic about the upcoming fiscal year, despite the absence of political advertising in fiscal 2026 [29] - Management expressed confidence in Tubi's growth trajectory and its potential to become a mainstream service [41][75] Other Important Information - The company repurchased an additional $800 million in shares, bringing the total repurchased to $6.4 billion since the buyback program began [21] - The company ended the quarter with approximately $4.8 billion in cash and $7.2 billion in debt, maintaining a strong balance sheet [21][43] Q&A Session Summary Question: Inquiry about FOX One and its pricing strategy - Management indicated that FOX One will target the cordless market and will not be priced at a discount, aiming for healthy pricing aligned with wholesale rates [26] Question: Update on brand advertising demand on Fox News - Over 200 new advertisers have been attracted since the election, with direct response advertising up over 30% and scatter pricing up over 50% [34][36] Question: Path to profitability for Tubi and capital allocation strategy - Tubi's revenue improved by 35% with a focus on engagement, and the company plans to continue investing in Tubi while maintaining a strong balance sheet [41][43] Question: Strategy around direct-to-consumer offerings and affiliate revenue growth - The company remains supportive of traditional cable distribution while launching a D2C service targeting cord-nevers, with a focus on maintaining affiliate relationships [50][52] Question: Digital investments and future plans for the Fox Lot - Digital investments are expected to decrease slightly, and the company plans to fill the office space vacated by Disney with high-demand sound stages [71][75]

Financial Data and Key Metrics Changes - Total company advertising revenue grew 65% in the quarter, driven by a record-breaking Super Bowl generating over $800 million in gross advertising revenue [7] - Total revenues increased by 27%, with record free cash flow achieved [16] - Adjusted EBITDA was $856 million, down from $891 million in the prior year quarter, primarily due to higher expenses [17] - Net income attributable to Fox stockholders was $346 million, or $0.75 per share, compared to $666 million, or $1.40 per share, in the prior year [17] Business Line Data and Key Metrics Changes - Cable Network Programming segment saw 11% revenue growth and 7% EBITDA growth, with cable advertising revenues up 26% [18] - Television segment delivered 40% revenue growth, with advertising revenues increasing 77% due to the Super Bowl [19] - Tubi experienced a 35% year-on-year revenue growth, with total viewing time up 24% year-over-year in April [12][41] Market Data and Key Metrics Changes - Fox News finished the quarter as the most-watched cable network, with total day audience growing 48% and prime time ratings up over 30% [9][10] - Fox Sports ranked as the industry leader in live sports event viewership, accumulating 3.3 billion hours of sports event viewing, 17% better than the closest competitor [11] - Digital consumption trends showed Fox News digital grew page views 18% year-on-year to a record 11 billion views [10] Company Strategy and Development Direction - The company is focused on launching a direct-to-consumer service named Fox One, targeting the cordless market and planning partnerships with other distributors [15][66] - The strategy emphasizes maintaining strong relationships with traditional cable distributors while expanding digital offerings [50] - The company aims to leverage its strong operating momentum and financial results to deliver long-term value for shareholders [15] Management's Comments on Operating Environment and Future Outlook - Management noted no impact from the macro environment on business performance, with strong ratings and engagement [8] - Confidence in the advertising business remains high, particularly with Fox News and Tubi showing solid demand [29] - The company anticipates continued growth in affiliate revenue and advertising, despite the absence of political advertising in the upcoming fiscal year [29] Other Important Information - The company repurchased an additional $800 million in shares, bringing the total repurchased to $6.4 billion since the buyback program began [21] - The balance sheet remains strong, with approximately $4.8 billion in cash and $7.2 billion in debt [21] Q&A Session Summary Question: Inquiry about FOX One and its pricing strategy - Management indicated that FOX One will target the cordless market and pricing will be healthy, not discounted, with plans for partnerships to broaden distribution [26] Question: Thoughts on fiscal 2026 outlook - Management highlighted the absence of political advertising as a factor for fiscal 2026, but noted strong tailwinds from advertising and affiliate revenue growth [29] Question: Update on brand advertising demand on Fox News - Over 200 new advertisers have been added since the election, with direct response advertising up over 30% and scatter pricing up over 50% [34][36] Question: Path to profitability for Tubi and capital allocation - Tubi's revenue improved by 35% with significant engagement, and the company plans to continue investing in Tubi while maintaining a strong balance sheet [41][44] Question: Strategy around direct-to-consumer and affiliate revenue growth - Management remains supportive of traditional cable distribution while launching a D2C service targeting cord-nevers, with a focus on maintaining affiliate relationships [50][52] Question: Digital investments and future plans for the Fox Lot - Digital investments are expected to decrease slightly, and the company plans to fill the office space vacated by Disney with high-demand sound stages [71][77]

Financial Data and Key Metrics Changes - Total company advertising revenue grew 65% in the quarter, driven by a record-breaking Super Bowl generating over $800 million in gross advertising revenue [6][17] - Total revenue increased by 27%, with record free cash flow achieved [17] - Adjusted EBITDA was $856 million, down from $891 million in the prior year quarter, primarily due to higher expenses [18] - Net income attributable to Fox stockholders was $346 million, or $0.75 per share, compared to $666 million, or $1.40 per share in the prior year [18] Business Line Data and Key Metrics Changes - Cable Network Programming segment revenue grew 11%, with advertising revenues up 26% due to strong Fox News ratings [19] - Television segment revenue increased by 40%, with advertising revenues up 77%, largely due to the Super Bowl [20] - Tubi's revenue grew 35% year on year, with total viewing time up 24% year over year in April [12][41] Market Data and Key Metrics Changes - Fox News finished the quarter as the most-watched cable network, with total day audience growth of 48% and demo growth of 58% [9] - Fox Sports ranked as the industry leader in live sports event viewership, accumulating 3.3 billion hours of viewing, 17% better than the closest competitor [11] - Digital consumption trends showed Fox News digital grew page views by 18% year on year, reaching a record 11 billion views [10] Company Strategy and Development Direction - The company is focused on launching a direct-to-consumer service named Fox One, targeting the cordless market [15][66] - Fox aims to leverage its strong assets in live sports and news programming to attract advertisers [7][8] - The company plans to continue investing in Tubi and its digital properties while maintaining a strong balance sheet [41][76] Management Comments on Operating Environment and Future Outlook - Management noted no impact from the macro environment on business performance, with strong ratings and engagement [7] - The company is optimistic about the upcoming fiscal year, despite the absence of political advertising in fiscal 2026 [30] - Management highlighted the importance of maintaining traditional cable distribution while launching new digital services [52] Other Important Information - The company repurchased $800 million in shares, bringing the total repurchased to $6.4 billion since the buyback program began [22] - The company ended the quarter with approximately $4.8 billion in cash and $7.2 billion in debt [22] Q&A Session All Questions and Answers Question: Inquiry about FOX One pricing and addressable market - Management indicated that pricing for FOX One will be in line with wholesale pricing, targeting the cordless market and avoiding traditional cable subscribers [27][28] Question: Update on demand from brand advertisers on Fox News - Over 200 new advertisers have been added since the election, with direct response advertising up over 30% and scatter pricing up over 50% [34][36] Question: Path to profitability for Tubi and balance sheet considerations - Tubi's revenue improved by 35% with total viewing time up 18%, and the company plans to continue investing in Tubi while maintaining a strong balance sheet [41][44] Question: Strategy around direct-to-consumer and affiliate revenue growth - The company remains supportive of traditional cable distribution while launching a D2C service targeting cord-nevers, with a focus on maintaining healthy affiliate relationships [52][55] Question: Update on digital investments and Disney's plans for the Fox Lot - Digital investments are expected to decrease slightly, and Disney will vacate office space on the Fox Lot, which is expected to be filled easily due to high demand [76][78]