FOXA - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I 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

Hello, conference to call. Operator. fiscal second XXXX earnings and you, our welcome quarter Thank

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

on Steve note and prepared some may regarding management’s forward-looking that as quarter, this give most from the Fox and expectations, remarks These take certain operating filings. are based from and stated statements performance results. results actual then is call factors call differ SEC we’ll will a current questions the Corporation’s could investment the recent Lachlan First, today’s statements on and community. and financial of company’s Please in identified include what on result

certain our measures or financial our to call release Additionally, with of Reconciliations including to on our include that, in this call website. as And SEC EBITDA which the non-GAAP both pleased this will included earnings over section EBITDA of are it turn to available Relations call. refer I’m in we are Investor and the filings, Lachlan. measures adjusted financial non-GAAP

Lachlan Murdoch

Good everyone our XXXX just for unique our quarter market. thanks joining us the fiscal underscores We quarter afternoon reported of earnings Joe. call. which exceptional and Fox and second an really for strength Thanks the position in

Super LIV. greater this weekend past Bowl our than broadcast uniqueness display with that strength of on and Nowhere culminating with groundbreaking

our outset, the company. at say I of efforts me pleased entire Let am the how of

history Sports, enormous the its of highest to Singer from X lineup immersive after in from $XXX unmatched Bowl News, NFL right surrounded the telecast of watched Masked local this the a Season And of stations. an revenue had Sunday's TV game the innovative Miami for Sports gross Fox the TV's generating activity around Sunday, rated which And advertisers day Super in the while over our launch our Super platform delivering and Our advertising, reality an massive through delivered pregame On years. goes Singer. virtually viewers more the than And million Masked it X been programming expense XXX as the use providing partners. people amount we with there's to of eight Fox we with across XXX and most that our Fox game platform other guaranteeing Fox planning at became unique of for for event across the XXXX. delivered television largest flawless distribution revenue million of country extraordinary and Bowl, live imperatives and is not business. the We broadcast a ratings broadcasting and place

Fox one station of for for revenue delivered impressive News growth achieved the Fox number already of growth. have milestones baseball results gaining months credible attaining momentum. We and our cable. viewers status Fox's we major on our fiscal in substantial Fox including of number and key a the acquiring Fox We completed market key by the deals and to X with WWE, activating the distribution expectations, the sports Bet. strong During six Business the expansion and And a and support stations. of Launching and Network local year, footprint first in football. particularly across line were of local have substantial position carriage number broadcast operating in them Among FOX advertisers of announced and two maintaining calendar of Delivering acquisition we Sling. the financial News with of number a led all

audiences, financial, top revenue year. brands validating as some around scatter level Steve upfront market all advertising at results nearly the time. will well live strength that growing first Fox, of the we over are power of delivering our currently illustrate and seen where trending market importance and Overall, sizable it running most seeing further strategy streamers, sports, include than categories are local, - auto. shortly. this these top provide out line build is our knocked illustrated are we results news half that ahead demand advertising and markets, domestic six audiences our This current revenue partners the the The for to But of of by Total nicely. buoyant, quarter, we've Fox financial the around leading because months intensity we have And park. And and our categories except live higher are At color see same a really by are foreign. us the our level, television technology, of our are national networks XX% foreign the pricing for national is of autos our X% levels. insurance, increased fiscal revenue in not both event and of affiliate programming. the first prominent our brands. the for we Across local to

increasingly audience that number its is made Overall, Fox and season to On and seeing Fox in network business demographic Middle in network. led own strength the to and The for after advertising categories. our our financial Fox news they XX the the promise large years. across digital FOX News of Fox by May the particularly finish upfront a in America. XX our advertisers fall took the last advertising part fall across significant more from and spot engaged reach linear are large side XX top technology delivering both look first the across one advertising Business broadcast more entire News as This audience Fox business, sought national marking client a by expansion is the at their would rating based the on

with the the the and non-scripted in half the in success entertainment Hell is season history of the in top I Fox. gains of Fox We're and second to It's watching like momentum X-X-X the time number only this in Deputy fall sustaining and truly also fueled our total focused X-X-X with debuts the year-over-year viewers Star the and network Additionally, the of your the Masked by to network the Masked series the the Fox content Hours for show newest the of Singer Back, XX year XX Singer, both achieve as on our and in XX viewers new tonight in to on Prodigal all Gordon demo. Masters third and Ramsay's Lone ranked Son. addition one LEGO family. which great. whole suggest first

signature side our to sports continue the to drive we of business, On our unparalleled audiences programming.

to of college Soccer Team, year fiscal Women's Sports game inaugural National riveting World SmackDown seven of been the the Sunday home Fox and the this partnership presentation U.S. and has broadcast FOX Bet. with of with new the football football broadcast which strategy was Bowl a and NFL XX. TSG far clearly, ambitious WWE launch FOX a for culminated And So great and Series, our Super it year

more on that football XX% year this row, for Night level. expand over half viewing and aggregate, able XXXX. worth and second its noting no football Football, In combined regular to a the college was Thursday audience Fox up total was than season NFL, For in up Saturdays network college Fox, was NFL other It's football Sundays.

is history. we've its calendar in cable top Fox of in XXXX cable achieving News While beating primetime broadcast seen a the for over basic a Fox fourth performance year the network rated highest and finished been as all network competitors rated nearest the momentum a as impressive by at News. equally networks has row, across strong, its XX%

last Given to hard year well-documented cable the the Fox headwinds to subsiding. continues trend the it's enduring a audience is testament to viewers news ability cycle facing News the power and The see News's of its Fox passionate broader to drive over brand. industry, to grow that current

command November the in Bowl, presidential build election and and a Democracy debates, significantly as these caucuses, Fox on equivalent and is home broadcast simple of the that achievements the cable started XX of Super rated point the is in. election. through year. We in News branded be the the focus the country will to cycle and event, exciting of the Fox. culminating network all entire full XXXX night All Tuesday, swing. fact. a is be Bowl to with first Super the an audience news coverage engagement XXXX most already the presidential position event, on viewed election events levels X. history the upcoming any primaries attention News the on both If to progresses of that conventions, the is the top broadcast our to Media set of the same home coverage exciting the Equally our has We and network guide, across calendar second now Fox is two Fox in the

see benefits at As We'll we Fox revenue sizable a not our uplift stations. ad November, limited to towards build are local financial the television News.

during calendar XX%. by election, XXXX, political Obama-Romney midterm reference, XXXX that As gross the the generated set to collectively excess previous shattering $XXX revenues election of in record million, in record our last during stations

political on calendar positions record Sunday unmatched a it saw the of spending seeing level a we're us further reach the our We spending which are the in television. it deliver and Bowl for to local for national the are on signs stations a we been with in Super spend at in already increased XXXX. very of to early seeing new Although revenues we season, political political dedicated vast already of majority

by announced Our already further in state, expanding soon Virginia station of in fact that previously will perennial Pennsylvania, footprint acquisition into Michigan, our the strengthened and another includes which confidence with Fox the swing stations affiliate is the Wisconsin, Milwaukee. Minnesota, we be Florida,

have As our the we networks you of rapid our recognition with great I'm partners. by the tell distribution that of and value can the progress thrilled made

course, we importance that our have renewals paid on an our distribution our earlier, reflects the completed indicated to subscriber business. trends of in universe the goals market. recognized As But, which impact we we the of in has achieved all the have content the

comScore in consumers into examples subscriber to relationships importance the inclusion expand bring platforms over Digital to total more in minutes up million with this unique models. we medium-term, users consumed by of evaluate are fee Fox engagement to Fox-owned not had Fox still know Fox and quarter. solid their averaged record FOX And of previous both direct-to-consumer total that on begun ends for pay streamed XX% also partners we also record in our It our near- highest is total opportunities calendar for part three over of large Digital NFL our a at and a visitors. growth streamed business can some value time. and the will dependent consumed. - the first or XX.X Nevertheless, base time. continue have offerings. season initiatives Super retail was digital XX%. predict know over XXXX revenue the reserving XXX increasing and normalized our you last component allocating existing and was Super Fox where their over momentum video regular company's we while refer million but digital Bowl, year streaming businesses subscriber over quarter one in views directly News while grow will Credible, to last Between, growth social which on and unique sustaining FOX versus and XX% time, game the capital of and existing minutes Monthly views where all there Bowl I'm Nation, had platforms. digital cnn.com Nonetheless, by the calendar our our the time, across ever, to the was Fox base plans revenues business a distribution this Well I’ll traditional in News XXXX, the pay television where consumption to both ecosystem our be As on I XX% TV for of last grown their year total most Sports going beating streamed and for the recent

balance strategic our and While capital how M&A of also to targets, we appropriate organic we to capital have of our remain demonstrated shareholders. to hitting have our operational deploy plans look investment, we our executing financial against focused on return an

Fox investment Fox broadcast EBITDA announced began our investment previously along to Fox organic and rights the at the and with WWE on greater $XXX On in the side, digital $XXX SmackDown million and our by co-production ramp the the up Nation investments to this Network, with led of million quarter originality initiatives investment in refresh past business.

exceptional In growth signs In seen we owned $XXX terms of - in the excess for time of. previously mentioned acquisition October, have we million the strategic M&A, the of the the Credible Credible of Labs, capable approximately deployed we short business Labs. have is

revenue loan Credible drove and experienced its close substantial example, registered volume of XXXX, For base doubled user top record calendar line during more both than which cumulative growth.

and also Nexstar exchange for We in around in - committed $XXX stations to the acquire Seattle have television station Milwaukee in Charlotte. million stations our

in this remains shareholders so. to expect our to And the an to element commitment deal our We of our capital allocation next close strategy. or capital return month integral

the now committed $XXX addition semiannual of when In billion to months to $X we dividend, million we announced have just that finished repurchases initial the announced ago. we share authorization three the

As we manner in remain this we through balanced consistently to capital have value approach. noted, disciplined maximize to deploying shareholder committed a

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

Steve Tomsic

afternoon. Thanks Lachlan, good and

strong affiliate year revenue subscribers the delivered and calendar decline line X%. continuing This you We continue operating As that just top in in our second growth led to quarter by industry quarter heard, X% past we rate the continued goals growth we an internal commence pay in exceed of at TV we to XXXX. with. the excess achieved over year increase aggregate to this total of a despite momentum

the where past subscribers representing over MBPDs over distributors at where week this partially continued by of grown X.X saw this period, whom MBPDs sequential reported least losses last digital quarterly by have across many growth million. of digital grow growth million During X.X of offset XX%. In quarter, we traditional

investments complete achieve up term to natural This and our broadcast the the Fox business the which us in in due and in - season. low and from longer As we've timing seasonality entertainment is distribution the are which includes this Network well our second an have remaining we sports margin targets. of content EBITDA fall outlined, of the highlighted standpoint. This entertainment at cycle quarter expenses concentrated the have past, renewals primarily sports financial watermark in as that our traditionally is the the set to previously means

of our the the remind that second In you in through $XXX factors generated Let second $X.XX the EBITDA quarter some along you me results. our operating period all million of And key compares remainder growth over X% up fiscal the period. which year. reflecting the revenues total revenue now take of the way, segments. quarter, in comparative million, we shaped across billion, was reported XXXX, to company the fiscal prior-year $XXX

stand-alone the primarily costs and billion. latter segment a cable statements carved Roku current television market Stars basis. segment the the net than offset to This other company quarter. current due growth of It in income expenses a to being than $X.X perspective, by From The presentation recognized was change $X.XX on company's operating impact or reflects at of of lower together financial the for the the attributable corporate of net the was which approximately growth of year. other Fox per operating higher in an As out million reported $X group is the a was prior now the value at value more the the stockholders public results segment and line in as year the $XXX in share. investments share of fair or including per in bottom million the quarter. have $X.XX This prior-year actual

expense, Excluding now which to flagged this the interest change year’s reflects and cents $X.XX have amount onetime compared a in company. per as EPS last $X.XX items, associated in with the impact EBITDA other was adjusted of share, we past reflecting stand-alone operating and down the

revenues EBITDA rates as was where offset across growth of net essentially that the the revenue cable of increased brands Cable I So, was of earlier. affiliate higher the X% of up X%. our $XXX of mentioned impact television turning X% our by quarter partially for in now average performance all segments decrease the million operating to network on pay subscribers

sports Ortiz bout revenues the to programming and broadcast stations quarter. advertising programming operated robust costs FOX Bowl was and election $XX midterm FOX includes television continued WWE a at on that over an over by the at the non-renewable at for at as national X%. rights quarter offset expenses revenues of the offset increase increased non-owned From year our existing FOX retransmission seven-game the cable and stronger loss is higher boxing XX. UHC subscription of in These FOX owned by also the rate and partially programming revenues stations. recent the in expenses we Television FOX with Media the our very with its to between at well to heavyweight increased of the breaking of increase and investments related increases our segment driven in achieved or Nation. fiscal growth quarter on successes advertising X. segment market New growth costs sports affiliate from impeachment revenue segment Series, and reflecting an that Assuming coverage essentially preemptions were presidential advertising national Championship our loss EBITDA of in segment coupled the expenses the production strong year networks Friday in effect. SmackDown. production quarter political in the FOX impacts at with despite and of television Yankees and digital. networks. increase national the Houston revenue million, rights result conditions fee amortization our and and million these The decreased World FOX $XXX at Media anticipate revenues revenue investment million the from than of current record a just the in half owned accelerating revenue pay-per-view more $XXX television offset increases news by our programming growth Series at NFL coverage described, we EBITDA This elections impact the savings due the by made fewer revenue other reflecting due The sports of Nation. York revenues NFL The digit associated cable which delivered by expenses the sports the subscriber full investment networks as was with million around USC of double is prior costs This shoulder both Entertainment we've the revenues anticipated higher in volume led Super reflecting The coverage Sports units take resets associated higher contractual in X%. News us including X% schedule trends between with have our licensing programming News Night sports from decreased prior growth. the year. to along MLB growth Cable continue X% underpinned year introduction the Astros ratings, Lachlan in of in held of television American over increase million year second elevated sports from over as Wilder programming absence perspective, by sub costs by prior the and It the along Cable growth revenues in XX% than strong continue, Media programming. third at from operated to the results we This cost worth League increased compelling driven It $XXX noting increased includes flat. segment while our EBITDA the was reported our of to were hearings cable revenues was the as from advertising high contractual million. the begin $XX higher sports our the costs station was grew growth in our of prior by a prior of on fiscal double anticipate revenue versus at were renegotiations modestly increase This direct an $XX led affiliate News agreements lapping digit affiliates in of

our During participation of the of WWE, with the the premiere third entertainment in quarter, programming coproduction these party arrangements studios. and included original investments expansion

of perspective, the costs a P&L EBITDA quarter out as in quarter in carve loss other the presentation year. the amounted our segment a corresponding reflects from the million net which basis Finally of standalone full prior oppose to$XX at to

Turning now cash flow. to

fiscal activities flow cash calculate of Over the equipment. cash plant cash the in and negative free first we company invested operating million six in of XXXX net as months used generated plus property $XXX which

to a see As reminder, capital the reflects in typical of seasonality anticipated business. the use expect this you should

year the and and harvest deficit therefore to our the fiscal under our of in cash revenues cash the EBITDA overall and sheet natural we with in cash first sports debt. significant the payments payments, an free full prior the surplus. revenues is recognized all cash just are the capital as the our cash for with associated sports collect from percentage and annual balance rights advertising subside billion our from benefit flow. broadcast of ended yet season. capital Here On resulting to in half rights concentration but sports of benefit working convert the from of These in we basis our were that along a impacted and factors programming by perspective, results reversed a second entertainment of business in full-year From quarter quarters peak will usage tax low $X.X a significant advertising billion our $X the half that collection with company's on we working the fiscal year,

initial As earlier, three stock million $XXX we comprising of repurchase that of we A million mentioned ago and the $XXX B million completed shares goal shares. $XXX outlined have Class Class Lachlan months

have our just seen we dividend a declared that share. of semi-annual also $X.XX You'll

the Nexstar call stations that, net announced to million. price of with XX% And a the in Labs to October. turn acquisition our transaction Finally, we regulatory approval on snow in approximately Credible we of as a to And with close $XXX Joe. stake and television secured back purchase early part capital expect to of closed at see allocation, I like the approach would previously balanced now

Joe Dorrego

from to we'd And the Steve. happy you, Thank be community. questions investment take now

Operator

of [Operator question from line Michael go comes Nathanson. our Instructions] And the ahead. first Please

Michael Nathanson

take anyone I have a to two want for who it.

is out, you have assumption separated was guys distributors less channels have this you’d with the first when So defend. bargaining more clout because you one to new company

believe us and goals in just maybe the Could the As goals changed Lachlan terms chord you negotiations you cap talk those or I X% fits in a how these with of still secondly, allocation that week Roku. happened. cutting? have your you how sense especially said achieved in what in then you own change given were guys last scheme with your of goals landscape with stake for And had Could the asset Roku. give in about light you of what happened impacts

So thanks.

Lachlan Murdoch

success Michael, affiliate much you John, for thank I’ll question. address Two you to our questions. do Roku. and very address want fees, the with

John Nallen

Yes.

now. was I our in because was FOX of separation America were months as we with of right the said unprecedented Lachlan a all plans. successful Michael, of right two use clout we a channels say distribution And standpoint standpoint. amount bargaining we year the and which internal of than at leverage to the that renewals referred now us six that So, had you're of the FOX the It power thanks. we pricing And earlier full to Network full in News and are on your and phrase successful the those first on had television XXCF. the most opportunity were goals for when against the would our different were

for were with what use levels above distribution So to we able that we partners. at or at achieve channels that multi-year to fully those planned distribution pricing our were and

on. the I are So those that think we were really two focused

Lachlan Murdoch

in Michael. light of And that

You $X affiliate announced revenue still that that our additional we say know know I say the will I'm and know we do that of we number a absolutely calendar are hurdle. by we hit can I think expectation cross to can you – XXXX, billion that expecting

the volume and So subscriber declines. in factoring that's

in able normal frankly sort I have through In unlike doing in of becomes regards very Friday course ultimately the of is know was with So a platforms non-resolution but the what public with and terrific Roku, We all widely the often last our What the job expiring. Throughout like distributors. distributors of a a of agreement these and really on a Roku benefit. our Fox prepare to deal their distribution content negotiation negotiations and affiliate driving were they it went platform agree to new and not was resolve brands really with we're sort to both I fees. all professional. think this mutual as our it issues, differences so and our negotiations as think happens very them all value for we reported of you to those sides we of

and the company. We have a of they're shareholders huge of company Anthony tremendous be regard top really we his in if leading the a the stake, think for happy at Roku. doing not Wood streaming the We are and management one to team positioned lead beneficiary over the

Joe Dorrego

I next question. for the think ready we're

Operator

comes go Please with of Quadrani question next from The line JPMorgan. ahead. Alexia

Alexia Quadrani

great like the you my you've continue. And gross sell? us you an News to question seen which up give is might you I advertising could think on Do discussions a follow such news on can then the inventory FOX kick really environment NFL, ratings the any guess this momentum on terms just looks rebound, have you the will color well when On given of for in? how capitalize enough renewal a perspective? in

John Nallen

advertising. on So,

as We're that right. we continuing. my – mentioned just see as of at but well that well. our at the comments I And earlier obviously strength you're strength the in doing News FOX obviously and really because just ratings not So, FOX Network, rating

FOX I I’ve CNN fact double seen the the MSNBC of I But combined. and In think numbers. last night over have you know already. – the the of because Maybe Union broadcast ratings of were State many ratings News

as break. use build of So innovative tremendous to breaking others This have sort units of the advertising performance. the I that news our some the as it having is sort we been also sort ad you and really can. of think split doing ad using is while followed squeezing in working screen we've where showing cover What experience back lead includes the a can advertising of and of a many or

that as So revenue are gathering we as of possible. much

think around is marketers want we on placing the America your I market important if to no brand, Middle sense the there's advertising though partners number on expansion than of really that that FOX and note the have your in News. the FOX News in place you reach There's than News. better advertising a growing FOX

run have So, none have local to that’s capture Carolina, we to soon are North of advertising to a Minnesota placed Texas not job and them the Wisconsin is significant as we tremendous have political our towards And Virginia, well mentioned spend in a of this markets, and say upside the states now the stations it in of we we through amount team revenue addition the doing election. be a we expect advertising amount obviously California this now with will three swing in two markets, significant where very season.

Lachlan Murdoch

part of question. Second the

John Nallen

them. in I stages have the practically Oh, of provoked last the the the all owners of NFL was feel of begun. and both NFL the obviously We we're week certainly to spent both conversations too of administration for the many We first place have renewal sorry, the early good question. they NFL with on but part work a with the of terrific teams. families

partner important in the know, renew going most days conversations. our But forward. As to to early you it's rights our

Joe Dorrego

next Operator, we can I the go question. think to

Operator

ahead. with Please will Michael question of go line Guggenheim. be next from the Our Morris

Michael Morris

your level My in as tailwind have in of there the or what saw MVPD move next that revenue to second clear virtual make other reported into done? on you parse first. to have year the your You I time also Did was with will ups been would that to door step And incremental affiliate And sort the be it do that’s sense. with traditional an when then beneficial. doings your providers? the left if digital. open all that you believe the partnerships new that that side, to something you question you that that the just anything were the fiscal But you’ve about acceleration. quarter is similar digital a you renewals guided you it parts? can is that driven On case

If there pursue still bolster current what that ready? you product Thank perhaps would have or you have need you content you to you. base, do a that look places at to to specific want are your

Lachlan Murdoch

want I’ll me the that? affiliate. You take to take

John Nallen

just affiliate, of of So outlined. what the the Michael, you combination in terms

So we in benefit last completed the a the increasing with year. period we the renewals that of calendar an final year of stub that quarter got couple of calendar the

sort The sort growth just bit of talk subscriber to the obviously recent it around we heightened more a other bit is and level - little given mix deal than the some remarks benefited affiliate cable there. of growth pricing - better the piece opening of year. doesn't MVPDs continue digital a of older deals little The the to and of that vintage we where is fiscal that to said in increases in my so it progressive expect second from our this going as I into we'll we but get half

Lachlan Murdoch

and big we our to do on to news, then, we and play have asked experience. live what And programming. And or direct-to-consumer our in you - think those if to Michael, entertainment succeed very a always need strengths whether sectors question, we clearly in I strengths it's broadcast are the we're event live sport the going digital on

of two cable number have in the our number and channels most broadcast the network We one the America watched channel. one the

engaging content our number in streaming. think Bowl of XX.X a our content. not They're audiences our my was remarks, via earlier mentioned Super million people different today clearly in So broadcast. I I the it forms with with just are watched engaging

Bowl of it our of actually we watch which on streaming XX% platforms of is XX% that - remarkable XX.X million own. Super broadcast that a those Our and number

I just product Nation trial, Nation is So I importantly a of And just convert the which December excellent of and also really out News. January paid in them terms the of obviously - already months call sample also that And free history sort and subscriber Fox and were platform. highest are should as to progressing both terms XX% of a direct-to-consumer out of acquisition are who subscribers. in path. the we think two but Fox people down take Fox on engagement in of XX%

So, how progressing we're well. with very Nation really as is Fox happy

Joe Dorrego

question next the please. Operator,

Operator

Please ahead. Credit be next Doug from Mitchelson Our question go will Suisse. with

Doug Mitchelson

of you direct-to-consumer. It's interesting investments in sort mentioned hear to

And point take lean has priority think to maybe for the an ask weeds you're - last sort urgent pivot so the three premium be rates a sort year-over-year in just the happen any year, could in better for want the wholesale is continue know interesting of an that, you that I I that of But year And News, this the put what on color them rate ad Is a comp investors want to environment I a would rate? increase or be going become But to to to last bit next your little to few you. So would that. something what rates or imagine the broader if years just that as want half super the at on are along second sort ad show question. I into this massing Fox the was Fox Broadcast He capture I around year season Network certain to company would to à ad big of carte around online had well, theme. for than company. years la just Thank growth? at that what John the interesting?

Lachlan Murdoch

our looking subscribers. amount it's but we business we eye an not from cable Look, on where generate and we're always the something and revenue growing of tremendous have still what current at, damaging also model

us have the So with I we direct think that capability we that took we consumer. when separated technology Disney. go from built We to the

different Nation We Sports are manner and pay-per-view Credible. a in running with businesses direct-to-consumer Fox through in with Fox

we happy what we'll we're where future see and the now, brings. are So,

John Nallen

this, top each But the up XX% sports. you'll over of upfront remember, that. our that haven't now or for like up leading both And of and while. is we advertising, as our and on I touched XX% this is just and Doug, just scatter And advertising of look, seen was it's on think shows products a entertainment Lachlan each markets Steve guys whether into just

like not it's now. So, so is massing. what very It benefit of upfront, we're was the fully a market the sold enjoying right active in

Joe Dorrego

think Operator, question. have one more time Okay. for I we

Operator

Please the go question UBS. ahead. line Hodulik Our John last comes from with of

John Hodulik

the give the been Can more election TV up I'm Maybe pacing secondly, color you and question the through this benefits the Lachlan, you us last maybe that’s for maybe of side some of political on maybe sort the is year and million. you versus following $XXX and saw And and cycle saw Steve. the sort on the on side. for as then cable

think buyback, should pacing forward? of leverage. buyback completed low very obviously the million the How You going we $XXX

Lachlan Murdoch

of that I'll - piece. John. steal give don't on the John the… John so. amount detail - the approval on that have answer But share buyback buyback expect some we let mean fully thunder, the let But buyback spend to But remaining I $X.X billion we I your I’ll to more

John Nallen

for you thank Yes, your headline.

Lachlan Murdoch

- So sorry, John.

pacing, very advertising but On really seen spectrum. it's - we've sides very it. from national the strong the it's of at it's from - political beginning both of political we're Obviously the

is as the starting of of basis out. in week-to-week we’ve earlier to But haven't the strong the to think stations. democratic of a reported side. lot mentioned campaign very our has we its so sort On on from seen expect President's and But and Bloomberg expected markets campaign it's in advertising Bloomberg the locally of to obviously relatively to come was campaign. that the be advertising local I I a already it this double our side week. predict spend reelection seen TV course it local It's buying advertising hard short from particularly yet we in the of But any

John Nallen

it's just of capital is We shareholders billion the respect it an I'll to balance beginning. we're allocation. our authorization Lachlan overall commitment the returns going the - that. to John, committed at is John. $X on complete the buyback and said to end This with element a to capital is which something really of to integral

Joe Dorrego

point, give out if Carey today's call. for questions please of once again Okay But are we at you a any Dan Thank time. or have call. joining further this me you

Lachlan Murdoch

everyone. Thanks

Operator

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

You disconnect. may now

Fox (FOX) 6 Feb 202020 Q2 Earnings call transcript