Fox(US:FOX)2025-10-30 13:02Financial 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]