Financial Data and Key Metrics Changes - For fiscal 2023, the company reported record annual revenue growth of 7% and EBITDA growth of 8%, reaching $3.19 billion [5][15][17] - Net income attributable to stockholders was $1.24 billion or $2.33 per share, an increase from $1.21 billion or $2.11 per share in fiscal 2022 [17][20] - In Q4 fiscal 2023, total company revenues were $3.03 billion, consistent with Q4 fiscal 2022, while quarterly EBITDA decreased to $735 million from $770 million [15][17] Business Line Data and Key Metrics Changes - Cable networks saw a 3% decrease in revenue year-over-year, with advertising revenues falling 11% due to a softer direct response marketplace [21] - The Television segment reported a 4% growth in quarterly revenues, driven by a 9% increase in affiliate fee revenues, while advertising revenues fell 1% [22] - Tubi experienced significant growth, with revenue up 47% in Q4, driven by a 65% increase in total viewer time [8][19] Market Data and Key Metrics Changes - FOX News maintained its position as the top-rated national cable news channel, with a 35% increase in total viewers since the debut of its new prime time lineup [9][12] - The overall advertising environment showed signs of improvement, with strong demand in categories like automotive and pharmaceuticals, while local pacing remained flat to slightly up [30][32] Company Strategy and Development Direction - The company aims to strengthen Tubi's position in fiscal 2024, focusing on expanding its content library and increasing viewer engagement [8][13] - FOX's strategy emphasizes protecting premium sports content within the pay-TV ecosystem while adapting to changing consumer demands [29][30] - The company plans to continue investing in growth initiatives, particularly in Tubi, while balancing capital returns to shareholders [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet, which supports ongoing capital returns and investment flexibility [13][27] - The company anticipates a strong second half of the calendar year, driven by upcoming sporting events and a favorable advertising environment [12][30] - Management acknowledged macroeconomic uncertainties but remains optimistic about the company's strategic positioning and growth potential [10][11] Other Important Information - The company returned $2 billion of capital through share repurchases and increased its semiannual dividend to $0.26 per share [26][27] - FOX Bet's joint venture was wound down, but the company retains a valuable option in FanDuel and is free to explore partnerships with other betting operators [41][43] Q&A Session Summary Question: Could a sports-centric joint venture make sense for FOX? - Management indicated that their business is similar to ESPN's, focusing on protecting premium sports content within the pay-TV ecosystem while adapting to consumer demands [29][30] Question: Can you provide an update on the overall ad environment? - Management reported strong upfront results with positive trends in national advertising, particularly in automotive and pharmaceuticals, while local pacing remained stable [30][32] Question: What is the company's strategy regarding affiliate fees amidst cord-cutting? - Management expressed confidence in maintaining strong relationships with affiliates and driving industry-leading pricing despite subscriber declines [56]
Fox(FOXA) - 2023 Q4 - Earnings Call Transcript