Fox(FOX)2025-05-14 19:20Summary of Fox Corporation 2025 Conference Call Company Overview - Company: Fox Corporation (FOX) - Date of Conference: May 14, 2025 Key Industry Insights - Advertising Performance: Strong performance in advertising driven by major events like the Super Bowl and elections, with national advertising particularly robust. [4][36] - Affiliate Revenue: 25% of the affiliate revenue was booked during fiscal year 2025, indicating strong demand. [4][5] - Direct-to-Consumer (D2C) Strategy: Launch of Fox One, a D2C platform, aimed at addressing the cordless market while respecting existing pay TV relationships. [10][13][19] Core Company Strategies - Focus on Live Events: The company continues to prioritize live news and sports, which are key revenue drivers. [9][28] - Capital Allocation: Emphasis on disciplined capital allocation, including organic investments, M&A, and returning capital to shareholders. [6][75] - Tubi's Growth: Tubi has shown significant growth, with revenues up 35% and 97 million monthly active users, primarily targeting the cordless market. [45][46] Financial Performance - Advertising Trends: National advertising pricing is up high single digits compared to the previous year, with local advertising showing mixed results. [36][38] - Fox News Viewership: Record viewership for Fox News, with significant advertising gains attributed to high engagement. [54][56] - Free Cash Flow: Strong free cash flow generation, with $600 million of debt repaid recently, positioning the company for future growth. [73][75] Future Outlook - Skinny Bundles: The company is optimistic about the potential of skinny bundles to attract new subscribers and mitigate declines in traditional pay TV. [30][32] - Sports Rights: Fox holds significant sports broadcasting rights for several years, providing a competitive edge against new digital entrants like Netflix and Amazon. [61][63] - Tubi's Role: Tubi is expected to serve as a marketing platform for Fox One, leveraging its user base to drive subscriptions. [46][50] Additional Considerations - Valuation Concerns: There is frustration regarding the market's valuation of Tubi and other hidden assets within the company. [84] - Wagering Assets: The company holds valuable wagering assets, including an 18.6% stake in DraftKings, which are not fully reflected in the stock's value. [70][71] - Content Strategy: A balanced approach to content spending, focusing on both scripted and non-scripted programming, is maintained. [81][82] Conclusion Fox Corporation is positioned for continued growth through its focus on live events, strategic capital allocation, and leveraging its digital platforms like Tubi and Fox One. The company remains optimistic about its advertising revenue and the potential of new market strategies to enhance its competitive position.