Core Insights - Fox Corporation (FOXA) is scheduled to report its first-quarter fiscal 2025 results on October 30, with earnings estimated at $1.06 per share, reflecting a 26.9% year-over-year decline, while revenues are projected at $3.58 billion, indicating a marginal growth of 0.4% from the previous year [1][9] Financial Performance - The company has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 30.29% [2] - FOXA entered the first quarter of fiscal 2026 with strong operational and financial momentum, benefiting from a diversified portfolio across news, sports, and digital entertainment [3] Revenue Drivers - The performance of FOX News and steady affiliate fee trends are expected to have positively impacted results, alongside investments to expand its direct-to-consumer offerings [3] - The launch of FOX One, a unified streaming platform priced at $19.99 per month, is a significant step in the company's digital evolution, although initial marketing and content integration costs may have affected profitability [4] Advertising Revenue - Advertising revenues are anticipated to have moderated due to the absence of $270 million in political advertising from the prior year, but strong engagement at FOX News likely provided some offset [5][9] - Key shows and events, including the return of NFL on FOX and college football, are expected to have boosted viewership and pricing power [5] Challenges - FOXA is likely facing near-term headwinds from increased programming and production costs, softer entertainment ad demand, and additional digital spending related to FOX One, which may limit margin expansion [6] Earnings Expectations - According to the Zacks model, FOXA has an Earnings ESP of -7.55% and a Zacks Rank of 2 (Buy), indicating a lower likelihood of an earnings beat [7]

Core Insights - The article highlights Fox Corp (FOXA) as a strong investment opportunity due to its market leadership in cable broadcasting, particularly in live sports and news, which attract significant advertising revenue [3][8][12]. Business Segments - Fox operates two main segments: cable network programming and television, with cable network programming revenue projected to grow from $5.0 billion in fiscal 2018 to $6.9 billion in fiscal 2025, reflecting a 5% annual growth rate [4][5]. - The television segment, which includes the FOX broadcast network and Tubi, is expected to see revenue increase from $5.1 billion in fiscal 2018 to $9.3 billion in fiscal 2025, representing a 9% annual growth rate [6]. Market Position - Fox is the largest cable TV broadcaster in the U.S., with FOX News being the top-rated national cable news channel for over 20 years [9][11]. - In July 2025, FOX News averaged 2.4 million viewers in primetime, capturing 63% of the cable news share [17]. Live Sports and Events - Live sports events remain crucial for advertisers, with FOX holding rights to major events like the Super Bowl and FIFA World Cup, which attract massive viewership [12][13][14]. - The Super Bowl LVII in February 2023 had an estimated 113 million viewers, while Super Bowl LIX in February 2025 set a record with 128 million viewers [13]. Digital Distribution - Fox is expanding its digital offerings, including Tubi, which has 100 million monthly active users and a 2.2% market share of all television viewing [21]. - The recently launched FOX One service aims to attract "cordless" consumers by providing access to live events and entertainment without undercutting existing cable subscribers [22]. Financial Performance - Since fiscal 2020, Fox has achieved a 6% annual growth in revenue and a 5% growth in net operating profit after tax (NOPAT) [24]. - The company's NOPAT margin slightly decreased from 16% in 2020 to 15% in 2025, while its return on invested capital (ROIC) improved from 17% to 19% [25]. Shareholder Returns - Fox has returned $1.8 billion in dividends and repurchased $6.6 billion in shares since fiscal 2020, with a new authorization for an additional $5 billion in share repurchases [28][30]. - The combined yield from dividends and share repurchases could reach 4.7% [30]. Balance Sheet Strength - Fox reduced its total debt from $8.5 billion in fiscal 2020 to $7.6 billion in fiscal 2025, while increasing cash and equivalents from $4.6 billion to $5.4 billion [36]. - The adjusted debt net of cash fell from $3.5 billion to $1.4 billion over the same period, indicating a strong financial position [36]. Market Valuation - At a current price of $59/share, the market implies a permanent decline of 20% in NOPAT, which may be overly pessimistic given Fox's historical growth rates [41]. - If NOPAT grows at a modest rate of 1% annually, the stock could see a 39% upside to $82/share [43].

Group 1 - The company is experiencing strong momentum across all brands, with significant growth in advertising and distribution revenues [1] - The strategic decision made in 2019 to sell the majority of entertainment assets to Disney has proven successful, positioning the company favorably in the media ecosystem [1] - The interplay between FOX One and Tubi enhances distribution opportunities, allowing the company to reach consumers and viewers more effectively [1] Group 2 - Tubi has a substantial audience, reaching 60 million cordless customers in the United States, indicating its potential for growth and engagement [2]

Group 1 - The company is experiencing strong momentum across all brands, with significant growth in advertising and distribution revenues [1] - The strategic decision made in 2019 to sell the majority of entertainment assets to Disney has proven to be successful and well-timed [1] - The interplay between FOX One and Tubi enhances distribution opportunities, allowing the company to reach consumers and viewers more effectively [1] Group 2 - Tubi has a substantial audience, reaching 60 million cordless customers in the United States, indicating its significant market presence [2]

Core Insights - FOX One is a new streaming service priced at $19.99/month or $199.99/year, targeting over 65 million U.S. households outside traditional cable bundles [1][2] - The platform aims to provide a personalized viewing experience with live programming, news, sports, and entertainment, leveraging advanced technology and AI integrations [3][6][7] Pricing and Bundling Options - FOX One offers a 7-day free trial and the option to bundle with B1G+ or FOX Nation for added value [1][11] - Starting October 2, customers can bundle FOX One with ESPN DTC Unlimited for $39.99/month, providing access to a wide range of ESPN content [12] Technological Advancements - The platform builds on FOX's successful live-streaming technology, exemplified by the Super Bowl LIX broadcast, which reached 15.5 million peak concurrent viewers [5] - FOX One incorporates AI for personalized content delivery, enhanced search capabilities, and user-friendly features [6][16] Content Offerings - FOX One features a robust lineup of live sports, news, and entertainment, including 24/7 access to FOX News and major sporting events [8][9] - The service includes a variety of programming from FOX's extensive portfolio, catering to diverse audience interests [15] Accessibility and User Experience - FOX One is available on multiple platforms, including mobile, web, and connected TVs, ensuring ease of access for users [10] - The platform allows users to record live content without storage limits and offers features to catch up on missed highlights [8][10] Marketing Strategy - The launch campaign emphasizes FOX's strength in live programming and targets cord-cutters through digital-first strategies [14]

Core Viewpoint - ESPN and Fox are launching a joint streaming service bundle for $39.99 per month, starting October 2, which combines their direct-to-consumer offerings to provide a wide range of sports, news, and entertainment content [1][3][20] Group 1: Streaming Service Details - The bundle will include access to ESPN's upcoming subscription platform and Fox's new streaming service, FOX One, both available individually from August 21 [3][20] - Subscribers will have access to a comprehensive portfolio of content, including major sports leagues such as NFL, NBA, MLB, NHL, and college sports, as well as events like the FIFA World Cup [6][10] - ESPN's platform will feature approximately 47,000 live events annually, along with replays and original programming [8][9] Group 2: Strategic Collaboration - The collaboration aims to enhance the availability of ESPN's sports programming and provide a seamless viewing experience for fans [4][21] - The partnership is seen as a response to the previous failed venture, Venu Sports, which was intended to offer a single sports-focused streaming subscription but faced regulatory challenges [15][20] - The new bundle is positioned as a more flexible option for viewers who have cut the cord or never subscribed to traditional cable [13][21]

Core Points - ESPN and FOX One have announced a bundled streaming service for $39.99 per month starting October 2, 2025 [1][4] - The collaboration aims to enhance consumer access to premium sports content, including major leagues and events [2][3] - The ESPN DTC offering will provide access to all ESPN networks and 47,000 live events annually, along with on-demand content [2][5] ESPN DTC Offering - ESPN's direct-to-consumer service will launch on August 21, 2025, offering a full suite of networks and services [4][5] - The service includes an enhanced ESPN App with features like game stats, betting information, and personalized content [5] FOX One Service - FOX One will aggregate all FOX's news, sports, and entertainment content into a single streaming platform [3][6] - The service targets cord-cutters and will provide live and on-demand access to various FOX brands [6][8] Consumer Experience - The bundle aims to streamline the user experience for sports fans, providing access to a wide range of sports content [2][3] - FOX One will utilize technology from Tubi Media Group to enhance personalization and user engagement [6]

Financial Data and Key Metrics Changes - Fox Corporation reported a revenue growth of 17% to $16 billion, with adjusted EBITDA growth of 26% to $3.6 billion and adjusted EPS growth of 39% to $4.78 per share, all records for the company [7][16][17] - Free cash flow increased by 100% to $3 billion, marking another record for Fox [7][16] - Net income attributable to stockholders was $2.3 billion or $4.91 per share, up from $1.5 billion or $3.13 per share in the previous fiscal year [17] Business Line Data and Key Metrics Changes - Total advertising revenue increased by 26% to $7 billion, driven by strong performance in both television and cable network programming segments [16][18] - Cable Network programming segment saw a revenue growth of 7% and EBITDA growth of 6%, with cable advertising revenues up 15% [19][20] - Television segment delivered 6% revenue growth, with advertising revenues growing 3% [20][21] Market Data and Key Metrics Changes - Fox News maintained over 60% share of the cable news audience, with total day audience up 25% and demo audience up 31% [9][43] - Tubi achieved 17% growth in total view time and 32% revenue growth in the fourth quarter, reaching over 100 million monthly active users [12][13][55] - The overall advertising market for Fox remains healthy, with record-setting double-digit volume growth and strong pricing growth across the portfolio [8][74] Company Strategy and Development Direction - Fox One, a direct-to-consumer streaming platform, is set to launch at $19.99 per month, targeting both cordless consumers and current pay TV subscribers [11][12] - The company aims to engage viewers across various platforms, including traditional cable and digital offerings like Tubi and Fox One [14] - Fox is focused on organic growth while exploring opportunities for potential M&A, maintaining a high internal benchmark for capital use [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, citing strong operational and financial momentum entering fiscal 2026 [15] - The advertising environment is expected to remain robust, with significant demand for live sports and news programming [74] - Management acknowledged potential headwinds from political advertising and the Super Bowl in fiscal 2026 but remains optimistic about the FIFA Men's World Cup [36][75] Other Important Information - The company announced a $5 billion increase to its share repurchase authorization, reflecting confidence in its balance sheet [15][25] - Tubi's growth is seen as a key driver for future profitability, with expectations for substantial improvement in fiscal 2026 [23][65] Q&A Session Summary Question: Insights on fiscal 2026 expectations and EBITDA trends - Management highlighted strong underlying momentum in audience and advertising demand, with political headwinds expected to impact results [33][34] Question: Update on cable advertising trends and LatAm strategy - Cable advertising remains strong, particularly at Fox News, with a focus on expanding in Latin America through strategic acquisitions [40][42] Question: Performance of Tubi and potential impact of ESPN and NFL relationship - Tubi is outperforming the broader CTV market, with a strong library and engagement metrics, while the relationship with the NFL remains positive [50][57] Question: Investment levels for fiscal 2026 and expected returns - Management indicated a collective investment portfolio moving back towards $350 million, with expectations for similar return profiles as seen with Tubi [60][66] Question: M&A participation and advertising market outlook - Fox is actively looking at opportunities but has not found any that meet its high internal benchmarks; the advertising market remains robust across various segments [71][74] Question: Bundling strategies and FCC impact on affiliate relationships - Fox One will be bundled with other services, focusing on convenience for consumers while maintaining a targeted approach; FCC changes are not expected to negatively impact affiliate relationships [82][85]

Financial Performance - Fox Corporation reported a revenue growth of 17% to $16 billion, with adjusted EBITDA growth of 26% to $3.6 billion and adjusted EPS growth of 39% to $4.78 per share, all records for the company [6][16][18] - Free cash flow increased by 100% to $3 billion, marking another record [6][16] - Net income attributable to stockholders was $2.3 billion or $4.91 per share, up from $1.5 billion or $3.13 per share in the previous fiscal year [18] Business Segment Performance - The Cable Network programming segment achieved 7% revenue growth and 6% EBITDA growth, with cable advertising revenues up 15% [20] - The Television segment delivered 6% revenue growth, with advertising revenues growing 3% [21] - Tubi saw a 32% revenue growth in the fourth quarter, driven by a 17% increase in total view time [12][19] Market Trends - Fox News maintained over 60% share of the cable news audience, with total day audience up 25% and demo audience up 31% [8][42] - The overall advertising market for Fox remains healthy, with record-setting double-digit volume growth and strong pricing growth across the portfolio [7][74] - Tubi reached over 100 million monthly active users and generated over $1.1 billion in revenue, achieving a 2.2% share of total U.S. television viewings [12][13] Company Strategy and Industry Competition - Fox One, a direct-to-consumer streaming platform, is set to launch at $19.99 per month, targeting both cordless consumers and current pay TV subscribers [11][12] - The company plans to invest in digital-led growth initiatives, including Tubi and Latin America, while maintaining a focus on organic growth [23][66] - Fox's strategy emphasizes engaging viewers across various platforms, including traditional cable and digital offerings [14] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, citing strong operational and financial momentum entering fiscal 2026 [15] - The company anticipates challenges in fiscal 2026 due to the absence of political advertising and the Super Bowl, but expects strong performance from the FIFA Men's World Cup [36][75] - Management highlighted the importance of maintaining strong relationships with affiliates and local stations, especially with the launch of Fox One [85] Other Important Information - The company announced a $5 billion increase to its share repurchase authorization, reflecting a strong balance sheet [15][26] - Fox's advertising revenue growth was driven by a robust demand for sports programming and political advertising [17][74] Q&A Session Summary Question: Insights on fiscal 2026 expectations - Management acknowledged the challenges ahead, particularly with political advertising and the Super Bowl, but emphasized strong underlying business momentum [31][34] Question: Update on cable advertising trends - Management reported strong advertising demand, particularly for Fox News, with significant increases in ratings translating to revenue growth [41][42] Question: Tubi's competitive position - Tubi is outperforming the broader CTV market due to its extensive content library and strong engagement with a younger, cordless audience [50][52] Question: M&A participation - Management stated that while they are always looking for opportunities, they have not found any that meet their high internal benchmarks for capital use [71][72]

Core Points - Fox Corporation is launching a new streaming service called FOX One on August 21, 2025, priced at $19.99 per month or $199.99 annually [1] - FOX One will consolidate all of FOX's leading News, Sports, and Entertainment content into one platform, providing live streaming and on-demand access to various FOX brands [2][5] - The service aims to cater to cord-cutters and cord-nevers, offering a value proposition that combines multiple FOX channels and advanced AI-powered personalization technologies [3][5] Company Overview - Fox Corporation produces and distributes news, sports, and entertainment content through iconic brands such as FOX News Media, FOX Sports, and FOX Entertainment, which hold cultural significance and commercial importance [6] - The company leverages technological innovations from Tubi Media Group to enhance user experience and deliver content directly to audiences [5][6]