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]

Core Insights - Fox Corporation reported a total revenue of $5.18 billion for the fiscal second quarter, reflecting a 2% increase from the prior year, driven by distribution revenue growth of 4% and advertising revenue growth of 1% despite a challenging comparison to last year's political advertising cycle [5][6][16] Television Segment - The Television segment generated revenue of $2.94 billion, with television advertising revenue remaining unchanged due to growth in Tubi and additional MLB postseason games being offset by the absence of prior-year political advertising [1] - Television distribution revenue increased by 1%, while television content and other revenue declined by 19% due to lower entertainment production studio revenue [1] - Segment EBITDA was reported at $143 million, down from $205 million a year earlier [1] Cable Segment - The Cable segment posted revenue of $2.28 billion and adjusted EBITDA of $687 million, both up 5% from the previous year [2] - Cable advertising revenue rose by 7%, attributed to higher pricing in news and sports, while cable distribution revenue also increased by 5% [2] Advertising Performance - Fox experienced robust advertising demand across news, sports, and streaming, with record-breaking ad revenue for the MLB postseason and strong performance in NFL and college football [7][8] - The company added approximately 200 new advertisers in the first half of the fiscal year, building on 350 new advertisers from the previous year [9] Distribution Trends - Distribution revenue rose by 4%, with subscriber declines improving sequentially, reported at a decline rate of 6.3% [11] - Fox One, launched five months ago, exceeded expectations, with no noticeable cannibalization of traditional subscribers [11] Tubi Performance - Tubi achieved its most-streamed quarter ever, with total view time up 27% year over year and quarterly revenue up 19%, achieving EBITDA profitability for the second consecutive quarter [13][14] - The platform's audience composition shows that 70% of Tubi's user base consists of cord cutters or cord nevers [14] Financial Position - Fox reported a free cash flow deficit of $791 million for the quarter, consistent with seasonal working capital tied to sports rights payments [15] - The company repurchased $1.8 billion of shares fiscal year-to-date, with cumulative repurchases since 2019 totaling $8.4 billion, representing about 35% of total shares outstanding [16]

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 a difficult comparison to last year's record political cycle, driven by strong linear pricing and robust revenue growth at Tubi [14] - Fox News Media achieved the highest ad revenue in its history for the first half of the fiscal year, adding 200 new advertisers [62] - Tubi's total view time grew 27% year-over-year, leading to record quarterly revenue growth of 19% [10] 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 maintain its leadership position [11] - Fox One has exceeded expectations with strong consumer engagement, particularly among sports fans [39] - The company is committed to utilizing its full buyback authorization, having repurchased $1.8 billion in shares year-to-date [19] Management's Comments on Operating Environment and Future Outlook - Management noted robust advertising market trends and expects continued strength in political advertising as the midterm elections approach [25] - The company is optimistic about the upcoming World Cup and its potential profitability due to strong advertiser interest [27] - Management expressed confidence in the strategic direction and financial position, highlighting the ability to deliver sustained growth and shareholder value [12] Other Important Information - The company announced a $0.28 per share semiannual dividend, bringing total cumulative cash return to shareholders to approximately $10.4 billion since establishment [19] - The balance sheet remains strong, with approximately $2 billion in cash and $6.6 billion in debt [20] Q&A Session Summary Question: Can you discuss the standout performance in cable advertising? - Management highlighted a robust advertising market for Fox News, with significant new advertiser additions and strong scatter pricing [25] Question: How do you plan to offset increased costs associated with the NFL? - Management indicated that they can offset some costs by balancing their sports portfolio and expect a robust political advertising cycle to benefit local stations [33] Question: What is driving the performance of Fox One? - Management noted that Fox One has exceeded expectations, with a significant portion of its audience being sports fans, and they are actively promoting upcoming sports events [39] Question: Can you elaborate on the improvement in subscriber declines? - Management reported a 6.3% decline in subscribers, attributing the improvement to the emergence of skinny bundles in the cable universe [45] Question: What categories are seeing strength in advertising? - Management observed significant demand across various categories, particularly financial and pharma, with eight of the top ten categories showing growth [61]

Summary of Conference Call Notes Company and Industry Overview - The conference call discusses the performance and strategic outlook of a media company, particularly focusing on its broadcasting and digital segments, including news and sports verticals [1][2][3] Key Financial Performance - The company reported record financial results for fiscal year 25, including record revenue, EBITDA, and free cash flow, establishing a strong foundation for future growth [1] - Engagement metrics are improving, contrasting with peers in the cable and broadcast sectors, which are experiencing declining engagement [1] Strategic Focus Areas - The company plans to continue investing in core verticals, specifically news and sports, for fiscal year 26 [2] - Significant events such as the FIFA World Cup and midterm elections are expected to drive engagement and advertising revenue [2] Advertising Market Dynamics - There is a notable shift in advertising dollars from linear cable to broadcast, particularly in sports and news, with the company experiencing robust growth in these areas [3][4] - The company added approximately 350 advertisers to its Fox News roster in fiscal 25, indicating strong demand for its advertising space [4] Sports Broadcasting Insights - The company reported record advertising revenue for major sports events, including the Big Ten Championship game, with a significant increase in the number of advertisers [3] - The demand for sports advertising is expected to remain strong, driven by high engagement levels [5][6] Digital Business Growth - Tubi, the company's digital platform, has shown strong performance with an 18% increase in engagement and a 27% increase in ad revenue in Q1 [12] - The company aims to enhance Tubi's monetization through improved fill rates and engagement, with a goal of achieving 20-25% EBITDA margins in the future [15] Capital Allocation and Shareholder Returns - The company announced a $1.5 billion accelerated share repurchase (ASR) program, contributing to a total of over $10 billion returned to shareholders since its inception [18][19] - The management believes the stock is undervalued and plans to continue share buybacks while remaining open to inorganic growth opportunities [19][20] Sports Betting Strategy - The company holds a significant investment in Flutter, with a potential value of $3.4 billion in sports betting assets [16][17] - The licensing process for sports betting is ongoing, with expectations to fully capitalize on this market in the coming years [17] Conclusion - The company is well-positioned with a strong portfolio of assets, robust free cash flow, and a clear strategy focused on growth in news, sports, and digital segments [20]

Core Insights - Fox reported a revenue increase of 4.9% to $3.74 billion in its most recent quarter, surpassing Wall Street estimates of $3.57 billion [1][15] - The company experienced a 6% rise in advertising revenues for the three months ending September 30 [1] - Fox's profit decreased to $599 million, or $1.32 per share, down from $827 million, or $1.78 per share, in the same quarter last year [5] Revenue Breakdown - Fox's cable business, which includes Fox News, Fox Business, and Fox Sports 1, generated $1.66 billion in revenue, reflecting a 4.1% increase from the previous year [3] - The television division reported a revenue increase of 5% to $2.05 billion [4] - The Tubi streaming service, news division, and NFL offerings were significant contributors to advertising revenue [3] Profit and Earnings - Excluding one-time items, Fox reported earnings of $1.51 per share, exceeding analyst expectations of $1.11 [9] - Net income was reported at $609 million, down from $832 million the previous year [5] Strategic Developments - Fox launched its new streaming service, Fox One, which combines programming from Fox News and Fox Sports for $19.99 a month, with adoption exceeding expectations [13] - The company announced a $1.5 billion share buyback program, intending to repurchase $700 million of Class A common stock and $800 million of Class B common stock [13][14]

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 Insights - Fox Corp. announced that its AVoD platform Tubi achieved profitability for the first time in the past quarter, with revenue growth of 27% and an 18% increase in viewing time [1] - CEO Lachlan Murdoch expressed optimism about Tubi's future contributions to EBITDA, projecting margins to be in the 20% to 25% range [1] - Tubi is expanding internationally, recently launching in the UK and increasing its content library, which is approaching 10,000 titles [1] Financial Performance - Fox Corp. reported adjusted earnings per share of $1.51 and total revenue of $3.7 billion for its fiscal first quarter, surpassing Wall Street expectations [4] - The advertising revenue in the Television unit rose by 6% to $1.07 billion, while the Cable Network Programming division saw a 7% increase to $345 million [4] Strategic Developments - Tubi's profitability may lead to a moderation in overall investment in the digital operation for the year [2] - The launch of the D2C streamer Fox One has exceeded expectations, particularly due to weekend sports viewing [2][3] - The recent resolution of family dynamics within the Murdoch family is viewed positively for investors, providing clarity on the company's strategic direction [6][7]

Core Insights - Fox Corp. exceeded Wall Street analysts' expectations in its fiscal first quarter, reporting adjusted earnings per share of $1.51 and total revenue of $3.7 billion, compared to analysts' consensus of $1.06 EPS and $3.58 billion in revenue [1] Financial Performance - The overall quarter performance was solid despite sluggish growth in the advertising business, with ad revenue in the Television unit rising 6% to $1.07 billion and in the Cable Network Programming division increasing 7% to $345 million [2] Strategic Developments - The company launched Fox One, entering the subscription streaming market, which offers access to various linear networks along with sports, news, entertainment, and weather content [3] Audience Engagement - Fox averaged 5.9 million viewers for its Big Noon Saturday telecasts of Big Ten games, with the NFL matchup between the Philadelphia Eagles and Kansas City Chiefs attracting 33.8 million viewers, making it one of the most-watched events of the week [4] Corporate Governance - A significant development during the quarter was the resolution of a family drama, with Rupert Murdoch designating his son, Lachlan, as the principal heir to his media empire, which included substantial payouts to other children [5]