Financial Data and Key Metrics Changes - The company achieved 8% total revenue growth for fiscal 2022, with 7% growth in affiliate revenue and 9% growth in advertising revenue [6][19] - Adjusted EBITDA for the full year was $2.96 billion, reflecting a modest decrease due to investments in digital initiatives [21][22] - Net income attributable to stockholders was $1.21 billion, or $2.11 per share, with adjusted EPS at $2.79, down from $2.88 the previous year [22][24] Business Line Data and Key Metrics Changes - Cable segment advertising revenues increased by 9%, benefiting from higher pricing across news and sports networks [19][25] - Television segment revenues grew by 5%, driven by a 7% increase in affiliate revenues and a 4% increase in advertising revenues [26][27] - Other revenues increased by 15%, supported by higher sports sublicensing revenues and growth in FOX Nation subscription revenues [20] Market Data and Key Metrics Changes - Over two-thirds of advertising revenue was generated by live content, with sports and news contributing 40% and 30% respectively [9] - Political advertising revenues in June were approximately three times larger than the same quarter in the last presidential election cycle [10] - The company expects a strong political spending cycle in the upcoming midterm elections, with significant races in 13 of its 18 markets [11] Company Strategy and Development Direction - The company is focused on strengthening core brands while investing in high-growth digital initiatives, such as Tubi and FOX News Media [6][18] - The strategy includes maintaining current investment levels in digital growth initiatives and achieving $1 billion in revenue run rate for Tubi in the next couple of years [16][29] - The company aims to leverage its strong balance sheet to navigate macroeconomic challenges while creating shareholder value [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming fiscal year, citing favorable conditions from major events like the Super Bowl and midterm elections [29] - The company is not currently seeing adverse impacts from advertising headwinds, indicating strong positioning in the market [8][9] - Management noted a return to growth in the auto advertising category, which is a positive indicator for future performance [40] Other Important Information - The company returned $1 billion to shareholders through share repurchases and increased its semi-annual dividend to $0.25 per share [28] - The company ended the fiscal year with $5.2 billion in cash and approximately $7.2 billion in debt [28] Q&A Session Summary Question: What can be shared about the Verizon renewal pricing and its impact on upcoming renewals? - Management indicated that the Verizon renewal pricing was in line with forecasts and achieved industry-leading pricing increases, including distribution for FOX Weather and Tubi [34][35] Question: What is the outlook for capital return and buyback given the cash balance? - Management confirmed a strong balance sheet with over $5 billion in cash and reiterated a commitment to returning capital to shareholders while remaining open to investments [36] Question: What is the current state of the advertising market and subscriber erosion? - Management noted stability in local advertising markets, with some softness in local wagering and government spending, but overall strength in other categories [39][40] Question: How is FOX positioned for renewing key sports rights? - Management emphasized a disciplined approach to acquiring sports rights, focusing on audience and advertising revenue potential, and expressed optimism about renewing rights with the Big Ten [46][47] Question: What is the outlook for FOX Bet and sports betting opportunities? - Management remains confident in the sports betting market, highlighting the successful integration of FOX Bet with sports audiences and the expected increase in activity as the NFL season approaches [50][51]
Fox(FOXA) - 2022 Q4 - Earnings Call Transcript