FOXA - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fox Corporation Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] And as a reminder, this conference is being recorded. I will now turn the conference over to Chief Investor Relations Officer and Executive Vice-President of Corporate Initiatives, Mr. Joe Dorrego. sir. ahead go Please

Joe Dorrego

much fiscal everyone, XXXX very our welcome fourth quarter earnings operator. you and Hello to Thank conference call.

the Executive Chief on Chairman Tomsic, me call Lachlan are Joining Murdoch, our and CFO. Chief Officer Officer; Operating Nallen, John and Steve today Executive

and These Steve to registration quarter regarding actual take and certain note the community. call statements is on year subsequent and statement Lachlan factors questions most and materially on are remarks that the we’ll stated operating results, things. based performance, other could Please what may financial company’s today’s statements on the give on from Fox, Form XX-Q. management’s XX will First, company’s and current expectations from reports include of this prepared then identified some on quarterly results among SEC and as recent fiscal happy forward-looking call be filings investment Form result a the differ strategy including

financial non-GAAP to release the and will section filings GAAP included website. relations earnings include our Additionally, most I’ll our to are the that, available in turn which financial With measures reconciliations of comparable financial measures, certain our over this directly the investor measures are call non-GAAP call in of SEC Lachlan.

Lachlan Murdoch

afternoon, Fox Good thank Corporation's Joe. and joining on for Thanks, year-end you us today all earnings call.

pace. our ending While good we're and trajectory growth starting hitting fiscal are we milestones just a a are also key at year,

positions first content commence as financial fiscal our results. we our successful. well and and reported lineup can recently distribution Specifically, very on compelling full We're we our of channels, successful all linear having strong we year progress upfront, a across are XXXX. which digital a good as just We concluded very making advertising renewals,

X% fiscal growth. XXXX, EBITDA and XX% financial growth we achieving For results, revenue exceptional delivered

growth revenues. revenue both and gains by in double-digit led affiliate was Our advertising

in have growth of declines, our Renewing in comes achieved for XX% about know, from partners surpassing XXXX, with accomplished distribution no revenue of revenue subscriber XX% our over the advertising and We growth alone. News.com a continued particularly fiscal numerous XX% reset was than our This Obama rates successfully segment annual almost clamor increase activity led renewing XXXX at Today, of from us, by political affiliate Night we the more renewals revenue. Group million of remainder was distribution In of previous is television led to gross were the we XX% annual in this the advertising. year and And arrangements Football affiliate course election. the past the $XXX As despite revenues able you set comes agreements. these particularly fiscal by principally Romney Thursday during A growth record revenue at fiscal addition revenues by all growth record Stations much exception. XX% noteworthy without digital in facet Fox cycles. a year's half we normal many achieved FOX affiliate XXXX. fiscal

the strongest across Our higher ongoing of in and have was year's yielding of news. we This upfront our partners strategy. advertising pricing advertising supportive one seen sports, clearly years, many programming are entertainment,

portfolio, Specifically capacity highly, scale. unique rewarded our our a advertisers engaged content for strength we deliver our audiences recognition investments. this Fox, to Across reflects at for concentrated of continuing were

increases. CPM were front, entertainment increases, digit mid-to-high we On achieve teen able to volume the single top-of-market, and low

mid-to-high in digit news. In to single pricing sports were command we able and addition, increases

pricing, seeing Bowl. and this date, In we both very we're Super volume addition, the by even for the are at early encouraged

especially programming, We in interest great renewed a to advantage. primetime are market part clearly advertising in to sports is marketers strong and due right in television our is which which an by now,

key by entertainment Fox the the a across is amount is day As local broadcast every significant company's revenue to supported well tied as content, America. and know, network, sports delivered programming, as by of you which

delivers that of to this of not by because out programming such it premium network retransmission Broadcast rates, makes revenue for Simpsons, across complete by a is From week Fox. and the that cable top one and schedule the NFL The the and network of breadth diverse concentration programming is And its the advertising Fox country the asset hallmark engage strategic a a breadth, in, channels. content and Our defined the commands it vertical wide channels genres Network of is audiences. week that four

channel. a of While into power undeniable, to play is sports sports are pure we turn Fox the not looking

few Fox what strategy is reaching of our in a focused and and advertisers broadcast connected are investing why premium of that are on. asset to entertainment own portfolio originality a we by long our demonstrated constantly was the to recent attracts in To generate We content, network the rather value streams, those as is large Fox. a Network a when end, we we time market originality audiences are audiences expand across vibrant at at keeping scarcity the already; have our term value to for revenue of upfront. pursuing the It

strategic building around our deliberately being and judicious, and strengths. are smartly, We

all of strategy, co-production the network. us new shows interest an the new pursuing equity part that in we As program are aired model a gives nearly on

owned ability for new Great well as access drive of to company. to And the platforms content the Duncanville sidecar, gives company animation Box with two third yesterday, series, announced “Bob's party creation that Fox produces our which like We to Burgers” as Box, [ph] originate term and the through generation and the capabilities of Bento the internal value to is the already next acquisition launch content. also of IP Quimby North. providing Fox we Bento long animators, are enhancing the

our stable animation look has Bar properties. digital anyone, to creating youthful more You none launched across linear and leverage, need we that than have Fox. hits at the broadcast programming schedule, only Sunday to on most network audiences been and loyalty, know where animated

XXX presence linear channel, news strong three attract focused our News, on a million to a has also direct-to-consumer month, over are well billion initiatives over page significant continues the we per unique News month. position offerings. in network, the users Fox The engagement lead per beyond Fox digital and with and direct-to-consumer views news Beyond multi-platform properties build

We the our Nation, DXC by form of a news are service past offering capabilities video-on-demand was launched immersive FOX more in which expanding this November. just

Fox encouraged just we On the on the and Pay-Per-View than Spence, the boxing, sports followed We bout few ago, with March. digital properties front, as Pacquiao, nearly more of stop first launched of XXX that generates the digital minutes nearly properties total from aggregate, monthly million progress increased consumption. audience Pay-Per-View weeks not there. billion Thurman a a Fox Sports direct content the the purchases doubled we're in But, the does results, purchases people, over with our by by of Garcia and and event. unique In XX% portfolio XX match

to to Most Fox our and Bet, Investor most few consistent asset, deliver key reach at and we business strategy partnership their plans models, traditional we've brands in United States. our media Day, May, a months, our the valuable national wagering Group and audience. to past products announced and sports the investments massive Stars massively Fox notably new, expand the launch and engaged the in innovative and linear outlined with the During made of our beyond

million the unanimously or track into for and market. Earlier capital States, finance merger leading Fox. believe at has we to wagering opportunity personal the investment, week, from acquisition a three upcoming over on fair agreement say we term provide football of direct-to-consumer which and We tap relevant growth Fox entry Credible to our full, United the and to I the contributor years. resulted sports attractive a before should high recommended commitment an enormous all a the as a growth to in discussions season, into in of in of marketplace including will football local this extensive long board, and Bet and [ph] special are negotiations prudent we on announced news definitive credible the committee our The price see independent season, disciplined this the audiences, launch the to metrics, of and transaction. upcoming next value product Through adjacency XX% access we with a a that national up of proposed Labs, is the directors $XX

Fox access Fox both a significant television cable to credible pursue cable to the activate fiscal digital growth. of core and total position News measured ABC Just network. we audience, one news an we’ll marketplace in plan of Group we're our consecutive years Bet afternoon a the in our later through past ensure those the marketplace Stephen important combined its best and most FOX stations. for by in operate Over activate fiscal offering our primetime the marketplace Fox growing cable Credible you will category. Sports the the events, specifically Stars finance stations. of be Credible It's NFL, We The the and which of the one broadcast XX operational TV is us consumption enhances our beating Thursday viewed, founder, XX% footprint number the will landscape Fox dot its and maintaining FOX With also like Credible broadcasts and under From note, personal by Sports, ESPN across standpoint, Fox the the widest our continue our live digital fast refreshing NBC. the network company's our to continue we in digital properties, engaged second as Dash, Channel wider debuting the across highly News XXXX Sunday are enabling The we expect Business that that year. led great in accelerate partner. the investment football's minutes local entering XX%, momentum. to approval deal, this com, to see with night time, viewing Credible it and that believe, sports and to, XXXX industry marking the and as news of Fox opportunity beating of given by to CBS marketplace can adjacent growth dominates comfortably this year, digital Media across Upon to number network

We the and confident, growth. upcoming we we're have on solid a ratings great schedule season, for build last year can

XX-weeks programming week plan Super of Fall, in XX The Bowl and and In Own broadcast to We're Singer” sports growth, will coverage, markets. the produce million This most notably News led in of schedule deploy profitable our of and news built WWE, noted operated the and to fiscal focus million of will a group on continue to Stations will expansion XXX nearly our starting and to Investor properties, multi-year sports Our the the addition forward course entertainment network programmed of Fox to across around our we local also in of on return daytime, EBITDA their platforms our Masked initiatives the highly looking part local of our launch, “The day to reinvigorated launch owned approximately to programming as we the of digital of as X, WWE in Fox of XXX Smackdown, during locally lineup our on to two channels, we Entertainment continue our has Business. Fox. Day, the and become seasons October station the a news. Fox and Fox invest and Television XXXX XXXX, one number the hours of collectively support

value We future growth, investments drive to and term. these that confident will in serve the long are

most our trajectory that a are businesses, the progress is station advantage for dynamic on positioned changing gain, “Simply industry be is growth corporations a with by have commercial believe we, Locast operating nothing is filed are we of that about. me this over it. is It the by turn for We for the that last more,” the I commented before service a streaming to that claim week. portfolio passionate direct not claim Locast and audiences or uniquely along on are any a of indirect Fox We the theft of that with affiliated of laws for other importance absurd. content the of our the in our company content the we owned opportunities compelling against merit the pleased broadcast The harness course brands, carry. let value against rogue set to We're Locast. of of Fox our Locast confident that and created violating network and comment the are that to non-profit the making. But legal Steve, and brands, the benefit commercial with the networks, to leadership excited operates I commercial clear validation they Locast is support our irreplaceable and claim group. copyright put, earlier

call our financial to I more the Now on Steve detail results. turn will over to provide

Steve Tomsic

Good Lachlan. afternoon. Thanks

first company. our with pleased standalone as quarter a are fiscal full We

both healthy XXXX. financial momentum mentioned, and Lachlan growth up well EBITDA very we for fiscal line setting As this delivered with top us

Let results me as with year, now for the future. some take providing you the through fourth well as quarter fiscal for our financial the along financial markets

XX% with with growth, company points political of stations. also we saw $XXX revenue results total on was year were segment. billion advertising digital revenue was growth advertising $XX.X advertising the Our full of digital television percentage with X television total retransmission Within revenue. revenues of coupled XX% back record at the Our added increasing close Advertising grow representing up million year with affiliate Football, broad revenue advertising revenue of season inaugural or revenue to advertising growth, by our to of based led Night progress, the XX% encouraged this XX% our revenues of which our Thursday growth

Finally, other growth supported part X% content our our licensing network At increase the revenue, we XX% as quarters basis. point, digital billion, the as when was fiscal numbers, prepared as that that last $X.X programming. X% and of of is at segment three results, year at segment, it remembering out first on of been line reflecting XXXX the cable XXXX which worth entertainment this carve television the so-called year of these of segment. full record well have fiscal an a results looking revenue growth full year EBITDA in from strong we growth delivered by our Total

As Net that include SEC required they costs have Again, or overhead of understate shared stockholders in Fox of shared XX% with in Century EPS Fox year. allocations $X.XX incremental billion such accordance guidance, to said was past, which service and as they XXst we overhead costs, values $XXX influenced the to estimate the $X.XX costs. a both costs while by support this formulaic took by annual $X.X $XXX share, total was beyond We an business. comparison we these into income if EBITDA published and should million have in approximately between differences Lee these last range statements allocated the year-on-year allocated Illustratively, to the the amounts costs on our million. the basis. XXXX standalone absolute reduced services account, a financial recurring million as $XXX our adjusted $X.XX would fiscal year and are versus attributable and [ph]

over share a quarter, reported fourth growth the were million generated Turning more over billion the higher contributions year ago, last million million growth across to net revenues as segment $X.XX operating From than last or $XXX segments. $XXX to the by led company. of cable standalone X% the line income bottom expenses reported cost by reflecting $X.XX all full in was the higher $X.XX our of a reflect EPS adjusted share reflect other company. corporate stockholders which per revenue from while principally expenses of $X.X lower partially properly tax in was the down standalone XX% year. was a offset as quarter, total $XXX and public perspective, up in a Total company a attributable X% increased operating reductions from public interest a increase year income EBITDA prior was now segment, television These the operating over year This segments. the

expect we the XX% the quarter Our rate for was a normalized to range above mid more forward. going effective touch tax have

decrease slightly affiliate EBITDA Women's the from higher our to Ad lower subscribers. men's station due Sports to viewing well the offset television $X.X Networks for an led the turning our higher invested year, sports National in $XXX non-owned the advertising brands, led as at EBITDA led the with programming News, the current rates the increase XX% year affiliates. consistent lower decrease laid year. resulting offset a our revenues down cost by by offset quarter. our representing by of revenue which $XXX decline year, year, the stations the where across net strong in million, was X%. original approximately FIFA revenue contributions generated free and the an affiliate now as X% expect year growth programming At X%. growth, billion X% cable fee XXXX. reflecting XXX% World was sports Cup up by quarter, cash increase plant lower reflecting digital the XX% the from were activities, expense and we conversion the from perspective, cash in we decreased billion revenue in X% quarter World was in The World television fewer $XXX as over strength political base, equipment, revenue of in driven by cash the partially sheet fewer segments as affiliate difficult FIFA UFC growth. billion balance the revenue a Fox billion in related ago, licensing as midterm Investor related of prior ended line of increase which X% was to prior revenue supported in Fox by whole, NASCAR the the absence The by the which prior with growth growth million content of segment flow, So our A of compared the FIFA in and The Cup, over at revenue current World the the pay $X.X entertainment expenses for and to revenues from was The increased growth segment digital segment, the and all digital million calculate by $XXX million tournament X% flow elections, quarter, at XXXX average of revenue of a offset at partially the results X% turn quarter, of and included continued expenses comparisons cash P&L Networks growth quarter. we quarter was Cable and lower races fee ad and Cup News And in an was in to reflecting revenues performance declines decrease and quarter operating out cash on increased as growth expectations, by operating in free from investments by revenues where current EBITDA at in rights more the by and the debt. local of property TV revenues by quarter FIFA at net finally, of matches. Day year advertising substantially overall we to When in costs calendar advertising reflects deliver provided respectively. revenues. trajectory by In overall programming overall this hours less This is May, were reflecting $X.XX the with EBITDA in rights to matches programming Cup of $X.X stable to

XXXX, ahead Investor our previously are we many key there outlined a draw I at attention items had fiscal Day. few Looking your would to, which of into

Lachlan set Firstly, initiatives XXXX. has already fiscal outlined impact the will targeted in that of EBITDA

cycle the in worth our broadcast it the February, FIFA a year, addition, events from NFC the being our such divisional major one as other that also year-over-year year-on-year playoff affect absence comparability, perspective Bowl broadcast events off effects World will in of Super remembering Cup. single XX neutralized of an less of political the is game, EBITDA will cyclical which be In combined changes largest and largely the by

our and on local and compared will escalators expenses would political rights, of political at as XXXX, by the annual reflecting of the the this year P&L sports contractual look football impacted cadence the that lower advertising networks, coming our to addition at as revenue we we As be QX, note WWE the results when television fiscal stations year. and NFL -- contracts, college well prior high

cable solid Nation Meanwhile, subscription boxing other revenue our other to Fox expansion we group of across growth category, increase segments in year in of Looking least these our revenues. and our wide expect content reductions business, supported segment. the a partially post by our The revenue gains Pay-Per-View in be with our in and other television offset revenues revenues operating in will full associated L.A. growth at revenue Law. by

significantly disclosed, for one previously as to mid-to-high we have the free services From segment we a shareholder other little year of in P&L alignment expenses be increase net quarter with On initial full the XXXX year $XXX to plan shared a full only This expect associated standpoint, expect other we operating fiscal reported a expense compensation a As our in XXXX. million fiscal as will basis, compared we segment we company very be a cash EBITDA of the in as includes temporarily to corporate award, robust flow standalone and stock-based will and which million fiscal the over range. flow. cash $XX cost the XXXX. EBITDA impact public conversion to in expect

while Here basis we fund tax Fox resulting broadcast build expenditure our obtained tax cash expect very Phoenix. new the will low in savings working capital a from million center usage Corp.Spin, $XXX to of the result the capital of approximately as increase step of our and up

allocation returns concluding, I'd committed that to to balancing investment, Before a and capital capital. we shareholder of strategy, M&A strategic balanced reiterate organic between remain like

semi-annual of expect that back shareholder Joe. just a this call in that, place we continue have second you meeting seen and buyback part authorization share to dividend the in annual to strategy, our $X.XX advance I'll And turn of declared a As to with will in of have share a November.

Joe Dorrego

Thanks, Steve.

operator, be Now to happy investment community. from take the we'd questions

Operator

[Operator Thank the MoffettNathanson. Instructions] Michael line you ahead. turn of to sir. go We Please Nathanson with first

open. is line Your

MichaelNathanson

Steve. you. John ask to or I’ll Thank

Okay I'll awful. feel

John Nallen

I can make him hard.

MichaelNathanson

Okay then. kind. trying you I'll was give two to be I

fiscal of is of I new ahead is one. it that expertise companies but facility to a the reaccelerate from Box drove new the to what like And acquisition, to from X. And good feel XX due, XX at X is cadence the what decelerated questions deals coming have of new the the that's So often look it XX% Credible we missing at get cadence the growth we question for growth. look why first you you, the to to deceleration? that Cable, what's year, people perhaps why And I that bring maybe fit Bento we’re And to outside? the

John Nallen

Steve start sure not you'll I'm the.. Right. on with

Steve Tomsic

see as Cable, we we mentioned at on round. the Michael see Day the affiliate, we in I it Investor think way the

between So bulk cable relevant is we the in and television split us, the less to because all one group. contracts negotiate

And so with would the rate versus plus whole X% finished we we -- QX QX a across state. growth

would we growth anticipate comps so, sequentially over why year reduced at that rate sort fiscal quarter of the And sort that The just XXXX. is of just the level has through or into maturities. reason above lapping fiscal to deal Cable

fit so, a into getting focus be new our deals, will on obviously go the retrains. share fair in value And as greater we --

still within the So to the segment Cable the a you’ll growth level as forward segment. being see disproportionate of television opposed

MichaelNathanson

us seeing selling a that we we've engagement analog this extend selling, We environment key in the our those opportunity and or really Great. know and Credible know news that entertainment in importantly are happy our linear at affords we our good demonetize are affords teams at about about talked are on direct results team Credible sport set key are performing affiliate to the are our is and that and seen our on out, in in is extraordinarily And new it, platforms not models. you and very And you've think a we us. as assets at that the which it. these have as the skill extraordinarily in key and then from ability to and revenue, -- our resource you well. But excited digital although necessarily asset, since Investor audiences. talk our really environment, a We digital engagement advertising Day management excited I deep to that look about grow that engagement extraordinarily with that businesses critically as

the a long earlier us gaming for people entering year sports is this which the the audience obvious let the high and sports sports a huge with audience Group, us. And sports and decided sports tremendous to correlation term correlation. was market where opportunity obviously between really is should the most this that extraordinarily the betting to be between is audience So Stars we obviously

you could into it's so, brainer. Well, betting Credible the in a getting the is you with And know a sports arena, no equally no news say brainer, category.

on we've research If done amount over of the huge a months. due us and you look, last diligence couple of and

If you news news, and on importantly cable talking, we produce of not local audience, I'm each our week. news at hours nearly but just that the look XXXX

If highly it you marketplace. look their at correlates that incredibly for target with audience financial Credible’s audience,

skew homeowners skews mortgages skews and skews particular, loans people news audience which and are these natural, And our slightly is an all It factors Our older. are it that towards and for towards towards. refinancing audience. heavily educated in searching

and then news through and platforms first, with And by Business, for our later we so, when our audience our other see it going tremendous we forward. saw Credible, could see Fox a platforms that combining opportunity their we with service, digital

Joe Dorrego

Next question.

Operator

line Our with Ben go next question comes of ahead. Morgan Swinburne Stanley. from Please

Ben Swinburne

in made any Because buyback you've obviously in that's on How versus video would wanted little announced. as of Hello. into more had And for evaluating of at see some acquisitions display? us next back be to to particularly is on the rate helps of to year? you. ask the come business insulate what an to you you Lachlan, of give process what a healthily. a what, political, for back update I if much investors may business? the head company. that the million growing $XXX overall as you grow around be us want Thank being you just elevated a I you digital that across know How comment especially advertising plans ad year Can sort color sustainable you it focus political that the the big the growth

Lachlan Murdoch

If think, front, are at of we're can and we've doing pleased a of take page I digital can million page we you We mentioned aggressively day a products, you more out out monetization million aggressively I which a I'm did further views. was unique if built push growth. sites digital views. and per XXX the slow our as views. the with it's users advertising we very over know the now You On over FOX I XX we XX we our on those that day. often monetize million can at for even it think day faster we page views views But instance just mean, the those certainly News.com We sort content, that its than billion for XXX look we and then. of in yesterday, us built know

further. expect So to push we them

Steve Tomsic

And to get It's pick side advertising as where revenue Fox by pretty well our of and Ben, just entertainment good spread, both video the from that. on up a and things views as digital Hulu [Indiscernible]. News across digital we directly

a it's Fox in of it but, where terms the that growth we going from get sort front from we of spear News think will the spread good be continue of continue to tip the to So of forward.

John Nallen

with And on Independents Investor John time at were Ben, the advisors. the the we it’s spending the The their said buyback. as on Day, question

that general framework the conclusion we around of as then, and announcement meeting. an time there'll no a just our expect around did been annual that change to We that There's timetable. be the buyback

Joe Dorrego

to next the we go question? can Operator,

Operator

America. Next of Please of Jessica to Bank Erlich with the ahead. turn we Reese go line

JessicaReeseErlich

drivers On about legislation? general. And with else And of on umbrella, it’s ramp? the can will under you by state how everything are differently selling industry you. then dependent is color the ratings you're to Is will upfront. advertising, color, bit It's give Thank a the so all quickly little get in that Marianne's across Lachlan, in how on ramp? you the how can strong, lack did state to talk in what you some besides now? very helpful of consider on How you factors us drive gaming, it? What this it everything platform can on

Lachlan Murdoch

Thank Jessica. you,

on So we upfront strongest advertising XX is advertising, estimate years. look the this in

know, you So robust. it's extraordinarily

certainly both in we've result, both in pricing Our and in had volume. in

sold upfront we since You scatter the scatter know the premiums digits what in the And we been pricing has double pleasingly, are market to doing in upfront. stronger. even

year. pricing low the scatter So, you the which means last in if we're math, do over in XXs

driven know across is this you and really categories. So

of not slow continues we advertising they pause, streaming seeing strong. demands, the a that's strong as significant locally weren't gaming of notably, and and that their York and to strong to revenue out They came back on stations in this platforms. start a scatter then a around were to and in appear in it's the one some obviously upfront basis So seeing had the even some they advertising begin our platforms, so digital in a it. has goes they they are your work be particular category now, short second and strong. question, take New partially pharmaceutical. Philadelphia couple to our driving now been Finance regulatory initially, Pharmaceutical way. this and fairly state-by-state local we're And We're

versus Super the from pleased second Bowl. on Super gambling, as was and obviously of Bowl, TSG ahead. states a of pricing Super a sell of partnership. TSG think your the Bowl, from the more the advertising terms revenue are, tremendous us view point gaming partnership, stream last few go Steve, on, Then we question, just that our view, and Bowl very from view. legalize, start with was of the So have Also of our and Gaming a point Jessica but online where We a we we in point to outside to years Super local ago. we're both

Steve Tomsic

Yes.

ramp Jessica operationalization the actual or in have brand a that think, really on venture a I it, that is of and by joint most have so up royalty our sort really drives dependent having the through within positive liberalized, the state P&L of on of state But open the that up legislation that of this the obviously we'll and rest course year. partnership that terms the access. the with all meantime, we impact state in opening of of and

Lachlan Murdoch

But should we'll is free-to-play business. one is to we're be going country state. hope establish to season launching the the a National out is which as begins, I before, certainly, football every the things there we'll say which put of the mentioned begin to brand across and and do legal the in game,

Joe Dorrego

please? the we Can next go to question

Operator

of to And turn next, Doug go we Suisse. ahead. with the Please line Mitchelson Credit

Doug Mitchelson

robust few Nation that a can up we very full sort can looking Should with year metrics a it us mentioned for as mentioned come then John, you get Lachlan was subscriptions think Oh, should and of mentioned And at? you context be thanks very to to? has I and growth be conversion cash call that last on around consistent give also subscription we robust? in that XX% you Steve, times right it and a scale the Fox was you the that driver. you much. subscribers Any flow, of size think is take this year. business free And XX% so or where

John Nallen

Thanks, Doug.

toppy free So a year Phoenix quarter probably be drag over been bit end we’re to I Investor essentially Center, revenue. is from be to expect us the a And a Day digits being higher this at we've last to where of the XX% will flow put that think, said And is mid-single of kind versus in. that. I at of of we which I convert the fiscal what out we of bit thing the will expect CapEx cash Broadcast the the mean think low I build sort of sort this

Lachlan Murdoch

as first a On we Fox and It well. launched performing past clearly is a Nation is of this only is subscribers that subscription very service, very name, November. having watching early Nation, certainly so subscription days, part really that are the Fox But it's video-on-demand still closely. metric

to of assumption within And will conversion that the is has subscribers that about conversion marketing trials be the funnel extremely begin extraordinarily is amount external we spoken EBITDA external the of And marketing we thing will Steve that any in appropriate it. spent business. will in on paid if the widening it really dollars an haven't the is high. and earlier, spend fall trials pleasing that can rate The We rate maintain successful to that fall. while the investment

Joe Dorrego

next Can you. to go we one? the Thank

Operator

Please turn And Ryvicker the go Marci Wolfe of next, to Research. ahead. with line we

Marci Ryvicker

have through was And Steve, aside you us allocate allocation I'm cash with a each can to second next? Locast, walk of want policy, there so ask you, two was? to what's permanent M&A, that certain Thanks. And to of truly not Thanks. what as a specifically injunction filed, things a this understand brought free is flow I one. your then temporary I for is requested, you're as curious percent questions. in just then, opportunistic just you investing year just setting I when up why you're Lock, capital to the or that is sort timeline that up? come now

Lachlan Murdoch

I'm question. And your am I On Steve I kind you I over before turn my be, of and I I'll is tried, punchy to Locast, legal enough. what out of now tried flushed this was but and as could Marci. in advice, courts. off very for those prepared Steve… anything case to add Thank to not I I I hope, of -- second as seeing much much the could say on I sort comments. comments, better But

Steve Tomsic

allocation. Yes and on going Marci, We're just flexible. to stay capital

percent then this across balanced, And to free that will to to we'll flow assess sort of opportunities that to be use I of notion returning also that's dedicate shareholders, We of the periodically. cash M&A. looking review dedicated flow we'd free at, the operate. percentage going capital have but organic. would we're be But we strict is our X not a not amount in way terms of of We'll – cash an and and

Joe Dorrego

Operator, question. you. have we Thank more time for one

Operator

with line final comes Please of JPMorgan. from Thank question you, our Quadrani the And go sir. ahead. Alexia

Alexia Quadrani

you you sorry generally it, we've you little I couple then the that turn are Lachlan, you have not obviously to, number, is the much. fatigue, it of decline I and really color some just maybe so and And on months the know seen Fox, how news if you missed you it business, but last do news quickly how I’m soft maybe but about if that now different you us just what network the across talk around? industry, these the think in gave can attribute a negotiations on could guess the ratings if don't subscriber side, [Indiscernible]? Thank

Lachlan Murdoch

first, they're I'll But answer from the is starting the there last easier. part beginning. which

still them though, think year-on-year. ratings when I you New incredibly Historically are softer compare are high. they

are an in We news extraordinary cycle.

less or our less News to lost so has And Fox ratings, relative know audience you competitors.

to also were news so we time. one also cycle. think last some continue that news to for But remember probably we fatigue. do And be year, though, there time in continue is an run some quite and this obviously number expect I I extraordinary

has the about work at pleased incredibly Fox are hard the of We people News to keep. continued

our even all are are that talent but they lineup, position know the shakeup. despite some primetime their having you on they're not they're know You day ratings in

of Fox So performance pleased we are with really the News.

about you sort Fox kind growing, a X% of networks, seeing terms know includes BTN. so as sub Sports sub our aggregate, such decline, smaller In we're and overall of subject declines, X that of

But So the we to think we’re market numbers just about subscriber have growth down at X%. if If market, make the of the to look of MVPDs, down and aggregate around digital the inclusive we look a of and universe close of is estimates. we X%. subscribers sort we at

Joe Dorrego

everybody me for joining. Thank of point, a this call questions; or further out please you. Dan give Thank we're time. At Carey have call. Please if you any

Operator

does conference you AT&T conclude Teleconference. using for Executive Thank and for that gentlemen, our Ladies today.

now disconnect. may You

Fox (FOX) 8 Aug 192019 Q4 Earnings call transcript