FOXA - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for your standing by. Welcome to Fox Corporation Third Quarter of 2020 Earnings Conference Call. At this time, all participation phone lines are in a listen-only mode. And later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. conference President Chief of the and Relations turn Vice Executive Corporate now over Investor to Officer I'll Initiatives, Mr. Dorrego. Joe ahead, go sir. Please

Joe Dorrego

Thank welcome XXXX you, and Third operator. Fiscal Quarter to Earnings our Call. Conference Hello,

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

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

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

Lachlan Murdoch

thanks, Joe. us everyone, afternoon, Thanks, Good today. and joining for

humbles thank sacrifices. nurses, workers we every their workers, and front-line volunteers to our Fox, We who upside so down. We for are Their last of would ourselves. them. care our we could living together, owe brave and our countless all through COVID-XX businesses, been gratitude doctors, work one turned The police, impacted extraordinary all have aged has lives the spoke economy, times. ours. teachers, deep colleagues incredible Since of have imagined other and At our impact

strength in if providing We that, have the with take months to challenges impact let remarks to all me should order from tackle our our the my spent communities; last it At the there strong news, say today, while employees; of protecting bolstering our to away few is best you deal of company is the and ahead. of outset, information a Fox essential position entertainment anything pandemic. that this in the health be these

demonstrated Our by only and outstanding the in quarter results was the has also partially display illustrative clearly delivers navigate cycles. these flow. seen cash of of in the free growth and end the provide quarter, unprecedented XX% impacted third of weeks $X.X of was is the adjusted times The Fox country. we to the which Fox to pandemic in on unaffected been quarter, our strength since across EBITDA strength and review the you XX%, as of of per earnings over financial respectively, XX%, a Starting achieving will delivered services to billion exceptional of our with growth generating communities results, continue have that revenue and share we

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employees, are remain resolve. -- to jobs those their for essential require them We onsite work for their commitment to grateful and whose

for the the We a pandemic local these employees, well-being country out ensure that and at the of protect informing are national every the of have taken actions those of aspect to particularly and community level. in

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have events on production the So been At fall slated the for and deferred been suspended. macro level, a been has business impact the to-date? what of content certain entertainment sports our has

However, our activities intensified. news and around have grown

quarter national with local third ratings audience the have largest been Our and strong in history. FOX news with its News ending

levels in younger have most momentum We further, demos. this audience student current into seen with quarter notably the the accelerate rising

earnings most to gone viewership are the local network's categories entertainment fiscal XX This apparent is our gains the categories stations news to local double year younger our that restaurants, that our news for as reach signs around fourth back the new audience of and News Where ad local I quarter despite FOX has are markets. these the dollars the all TV across categories seen and coming adults nearly not cycle quarter This far entertainment our down pacing to of dormant -- market so retail. is where prior how decline audiences in telecom, On different robust impact call, advertisers advertising auto, clients into local expect, light expanded to states in at our moved local have FOX see municipalities the and this with from to present ago up after to has last News levels. for virus, year looking from programming, open We'll by a from XX thereby, to country, would and streaming in business pandemic the messages mitigating business or engaged demos transition sports of pointed travel, of The or for growth to rest that market. unnoticed return the marketing pullback revenues us leading spending for Categories our the include TV fast-service XX% most local auto, such of will and you the business. levels. tech. pattern retail, insurance, indicated reach only and these local local political

the of political we primaries presidential the third have pandemic, to the of result many that a saw a of seen As of quarter. the the candidates active the in postponement spend contraction in field we slowdown advertising and due state

with that political campaign the away, up fiscal significantly day we traditionally, six spending our months approach again as will expect, first November. quarter, in ramped election category and still However, this intensify we

which total over our has sports, accounts revenue. shutdowns. for of little been by advertising the far Turning revenue annual so XX% affected of Very to this

can't our football the are being of that partners are their their in the active. concentrated the associated scheduling and when most around thoughtful prioritizing is us. first play. seasons in production personnel engines start, roar around and commence all Whenever safety with the of broadcast. their their to of revenue be Like for rest their starting and when partners ready are for ball they hiked to look sports postseason sports America, them NFL close and baseball's wait thrown, We'll conclusions to we'll the contact fans know like they college produce will We're and of the Our pitch again. to sport, the fall ready we with of and all first by decisions they health the and

COVID-XX in This Rich. At for the debut. slated side, this Bob's the for MasterChef and next the affected opera, are of Fox than all will Also less completed time, and new Simpsons, our expect entertainment the enter been animation it, has allow the Guy. fall Filthy production The for fall, will seasons and for early NeXt of On soap the Southern with franchises, new to a return live series Gordon go and in ready The action, psychological all Masked The Bless Harts, year new of of which all production and have we already and production Hell's August Kitchen, to partially great fall the target air, Ramsey of caused should temporary is we we finished Family of thriller, Junior, gothic including Singer, Burgers with program seasons because to nearly Regardless, broadcast stability. deal industry. conditions have Season a cessation the has the in X planning

also dates. for seasons Lego launch mid-season Lone begun and Prodigal new preparing X-X-X: X-X-X, Star, have Masters We of Son

the of businesses, have the along place programming taken with you'll are the that advertisers noted Upfront, our which facing Given variability otherwise advertising next in Monday. schedule, cancellation in our their our potential own uncertainty would have

to unprecedented speak on their event businesses. and Although, the been in the will this that to we to flexibility clients, video with center impact constant advertising we the them traditional conferences have navigate marketplace not with executives be our provide needed partners front our remain these with year, hosting Fox and hosting ensure we times. this dialogue about

provide relationships and of the our sustainability advertising to flexibility the it While be in quarter, priority ensure current preserve certainly will these and the what do health is we that brands. reduced in long-term can their we revenues partners reflected to our and businesses

are with distribution, for for as Finally, the and FOX-affiliated we pleased stations we're viewing increased offerings delivering that partners' video for our our across country.

alter from doubt there so term. it factors outlook for COVID-XX to alone particularly that is likely We pressures that far TV exacerbate Ratings expressed our of declines. days. impact no programming category. TV of their know will a trends people consuming will the As that subscribers, just in event And economic trends. significant demand in in portfolio number pay live are the households a have and These be pent-up there NASCAR the of the across subscriber And a it's pay-TV more major news materially of unclear would brands, of example, video few strong also bearish know subs. is in But relates distributors we cornerstone recent now, know recent publicly return for for we recessionary Nielsen XX beginning, the right near the with

in would weather on in where pressure comments up strong to year subscriber toward will as lean of progresses. subscriber more is the interact these clear numbers this near-term factors all started. my While wrap how a get levels, to bias I become turmoil. I'll have the reflected position Fox and

entered well position capitalized and We of strength so financial others to we the broadcast the exposure us liquid. Our highly this crisis a remain should immediate curbed and has timing impact sports we news, less than of impacted and that be outsized on far. a in genre the that

balance strong management underpin with company's of pace and the the even profile economic States. free the flow shape steadfastly sheet and Our in uncertainty our United around cash the conservative the financial recovery

stronger, we towards be event as skewed advertisers more confident and turn positioned to programming long-term goal crisis come the this future even will emerge, collection I'll As Steve. and maximizing more live and for out value. of brands audiences call company Fox's over the now, of focused shareholder a demand our that alike. agile I by more we'll heavily And continued toward efficient of in am

Steve Tomsic

and Lachlan, good afternoon. Thanks,

discuss on current with results, start of me quarter before Let brief our a conditions. summary to trading third going

delivered operating QX affiliate was segments. led by strength. earlier, revenues mentioned over increased million, to Super standalone year bottom-line the year a million prior ownership revenue Lachlan strength of to of into our or the in Tubi. despite March. across of value over revenue XX%, the a increased up This double-digit subscriber of attributable investment, to $X.XX achieved X%. comparative notwithstanding per revenues XXXX, Fox's other Most As loss of the the in nine operating rate out the Total minority quarter. clear economic $XXX Quarterly portfolio primarily post-tax total the the and company reflecting $X.XX in EBITDA full prior stake financial in the period broadcast current was net the of We in approximately strategically initial advertising growth affiliate fair financials growth net to perspective, revenues of Roku of to AVOD million public billion, was full share following XX% just player stockholders the of the declines comparison XX, of due XX%, a company investment carve times by year $XXX segment, share relative impact convert of reflects company financial expenses the in in reported quarter. $XX change the while lower the to perspective, Roku still year of The increase an demonstrating and versus and offset prior From total television expenses a than demonstration equated all million the growth of our in the period in recognized allowed partially the network a as increases represented investments brands Bowl in channels. gain From the of initial statement was book presentation notably, focused a decline our which income and company or The fiscal of sale segment. of cash of the $XXX costs sale, leading by these programming company's us carve-out our XX% led the Fox other at shareholding net. corporate incurred $X.XX cable

to the growth of this last Excluding reflects impact which in the interest the adjusted of share, standalone as the presentation in quarter. EPS expense, offset interest we net carve-out year's by flagged primarily year structure have $X.XX items, was versus other per $X.XX past, EBITDA, non-core compared and partially in up Fox reflecting higher on the debt significantly prior

quarter, X% for cable the So to the revenue of now up our was $XXX turning performance of X%. growth segments operating EBITDA million on where of

to launch subscribers. at as our of of revenues million, As partially cable sales, advertising expected, distribution new content late growth preemptions by last by was postponement at impact the reflects also of driven coverage quarter. the year, digital with costs segment amortization costs fewer associated was revenues, EBITDA as over breaking and rights the college ratings FOX associated by sublicensing average high FOX strength one-time early by we to offset from affiliate the decrease quarter at a live Media offset accelerate races News events. NASCAR primaries Sling also NASCAR Fox higher including primarily segment quarter, fewer due XX%, reflecting basketball higher by in increased in of included in in the Sports in expenses. higher presidential cable all and investment prior events season revenues of of continued lower contractual COVID-XX. advertising grew $XX partially cable also these at due were partially Sports the impact Nation, our rates revenue FOX continued million, revenues, Sports results offset the News live in X, were pay the of by The our partially segment prior Television programming This an coverage. revenues of of News the the $XXX Bowl to X%, of broadcast to increase Media by reported brands, related Fox revenue of year EBITDA Super of offset Segment impacted growth advertising Other the up Cable television The saw in XX. network XX%. year. Media, sports of over The XX% and result growth with led Super news the production leading Sunday. shoulder on and our from led growth a million by Business $XXX Fox revenues, to FOX was impact net essentially FOX across by the up digital on and higher quarter increase X% FOX X programming across television stations which the agreements News increased in and Bowl growth including

higher up increases at our prior and by impact and closing revenues the the to were strong to of The by on during the both make production been and period, these Television of year investments offset and prior station Fox local of was fees of of retransmission content, of reflecting primarily the partially the offset increase with advertising divisional first EBITDA impact Stations. advertising expenses. revenues participation by playoff partially we continued X%, and by the and our of the year the NFL Bowl to impact of included one have amortization in Excluding affiliate Network COVID-XX our the million programming, over year, programming CPM owned Super would for original higher non-owned coproduction entertainment Similar our from revenues, reflecting increased segment prior the stations and associated programming programming the increased rotating third-party Super in Television stations. which our driven revenues offset game our the Bowl due in our at in studios. rights arrangements operated and XX% $XXX partially These programming XX, impact broadcast quarter, the Television quarter. with costs weeks direct FOX higher affiliates the double-digit write-downs. divisional growth compared less to year, playoff second at expansion WWE expenses political NFL for game revenues

a $XX the the P&L stand-alone in to segment from net of loss reflects full as which of quarter expect quarter loss carve-out mid Finally, million presentation We of range million, our basis our perspective, be full amounted corresponding cost, other to opposed EBITDA other the in year. net in the in the for prior the high year. segment EBITDA to still the $XXX to fiscal the

Turning now flow. cash to

cash revenues the collection As was our more were programming billion flow concentrated in by of supported than quarter in the expected, quarters. of our free strong, $X.X payments sports the from advertising our generation that rights fall prior and fact

in As free activity, cash used cash a net flow invested plus plant reminder, we calculate as operating cash in property, and equipment.

Nexstar $XXX net million. allocation, Television of As part in on a at purchase stations approximately closed previously announced to transaction of we the capital balanced approach our March, price

net in cash million acquisition million earmarked at last of of We $XXX Tubi from month. closing also from of net $XXX approximately our consideration proceeds the Roku, which stake generated was approximately sale the for in

A Class of quarter, million November. in B authorization nearly of now buyback cumulatively the $XXX Class and outstanding for X.X of X% $XXX million. shares billion, the X.X buyback we our repurchased Against have we million, program our purchased launch representing since million the total During shares $X

cash raising we an in X.X%, have then, due average from five-year new took prefund thereby $XXX oversubscribed. in The issuance in perspective, and significantly $X.X out XX-year shares economic bought by quarter uncertain notes with billion of approximately the already since conditions, attractive $X.X weighted crisis. XXXX. Since the add and $X.X debt. sheet liquidity January balance of making onset of billion From billion the ended the which we caution, not strong it a cost we a abundance in perspective of Given back maturity to of current to to the essentially was our position this April, million cost our was opportunity

years, benefits and debt moderate COVID-XX face we almost liquidity, of with absence the of position any flow two the and of strong maturity strength. financial of free So a leverage from challenges cash combined the for

operational proud that are outlook of mentioned, our presents sporting among timing and make Lachlan very we're acutely economy, advertising difficult our cycle gradual for them we that the evolution the business we variables, of a our and reopening the are financial all aware the the forecast challenges that businesses upfront of As moving in number of it COVID-XX beyond and the and We there the the impact achieved, of to of to it of the the of while the stakeholders. results of return very note the short have all events term.

fiscal pacing and as Meanwhile, of down in advertising be immediate would approximately against commentary News inventory operate As business. in at current which Entertainment where to most our partners year. our If by been spot by impact revenues, seeing immediate on be such, only revenue are we at stations, our basis our and prior are XX% the the will is The significant a on to advertising expected displaced advertising on our COVID-XX. insulated advertising and television local continues sectors term. to we many our focus local most is our businesses impact fourth quarter has most where only today sold levels, expect on essentially more

recently, of News attracting help the already year's supported are At that ratings, is a new season inventory of offset the the clients advertising last partially during properties, upfront through our well base. category until along its decline its the growth broadcast that advertising supported strong scatter with market. Entertainment, by by substantially it is we the advertisers, sold being mix from strong was with advertising digital core revenues legacy and

demand QX of $XXX get impact around local and to not national weaker news, advertising to is having anticipate business, or Entertainment $XXX our businesses, million businesses a these the meaningful compared XX% to before prior costs. anticipated at TV be QX stations, COVID-XX on XX% impact So Across do collective year. we Sports we our million to to

it Now impact. makes Sports around impossible uncertainty to to line turning business, our schedule top where forecast

out on worth games on associated However, production networks. P&L expenses it rights events actually the air and is the pointing amortize we our our typically or fees when that

from the being benefit not revenues often events postponed cost. rights advertising a having offset of from the is So line by bottom P&L perspective, expense

future challenging mentioned strength. his for financial company estimate the results and Although position illustrate, these businesses, our to performance make our of entered a us crisis Lachlan as operating to this of it uncertainties the financial in in

our We to the emerge a disciplined And business manner as to Joe. and recovery. call positioned so now of we like to take conservative balance back sheet during turn that, I'd in the will opportunities that advantage to manage continue and well with as possible

Joe Dorrego

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

Operator

from the It Ehrlich looks Bank [Operator our Instructions] Jessica of comes line America. of question first Reif of like

Jessica Reif Ehrlich

Great. Thank you.

been? can if about you're and my you where will I'm the I some what advertising? one in announce sports? is still a ratings I've changes of can Do change that wondering does supposed question. you more advertising business terms WWE your have sports out think So what the thinking advertising fans, has what all been tomorrow. impact And said multipart, nimble just schedule this, without I'm opportunity. of you're super mean, maybe their Thank And demand? there's immediately, efficiencies? Well, find always NFL just entrepreneurial. more the it you to you. in is company, very in of longer-term wondering you Can say about demand the on. talk then

Lachlan Murdoch

Yes. Thanks, Jessica.

questions, answer answer are questions. There of them variations both were I both, them both. think. one, Thank appreciate those There Let but I two me and of I'll you.

position, how I looked we impact. in in we think terms strong we COVID-XX specific have So efficiencies a are we of -- a at terms efficiencies, of because such what haven't in drive

fully each are employees engaged of businesses. their in Our running

we a And a mentioned earlier and agile think, more team, lessons are ways. ways And and as all from from of forward, going of produce what was efficient can we news, And Our flexible through a really are operate as we I many we said creating telecommuting, felt corporate you we separated looked fully there as process very a that our from learned how businesses functions. that, significant time the we at produce went absolutely, comments. we more how platform company, as how we've which when sports, efficient forward. more Disney, more be know, at working go we've we operational. in to innovative in my Having

a before And pleased, a we're So process COVID-XX. see perspective, through. working It's there. with market we're NASCAR From and our be look from strong We've working that we very to there within return obviously, is process a of associated sports XX. through demand May the a to future we're certainly race and opportunities seen on there's with very clients within that races.

see from So advertiser we're very an with pleased demand. we what

gives we tomorrow now teleconferences. over -- them, marketplace, how clients the them their this more can evolving with the now can our health not about our with through say, closely, impact the pleased That closely, be are night we COVID-XX the closely, programming. specific programming I X clients. in event Eastern forward. and have sports that businesses much seeing live of physically us for will conversations understand obviously incredibly their but engaged process going through is Time. tremendous -- of where our releasing weeks digitally crisis us as six We're a should out to But engaged in specific on we more literally them have We're of much and That o’clock We fall. be NFL pent-up come with last particularly schedule hundreds the trigger taking having conversations we worked, demand help

under of week have As job for out, give live have a we're in, very difficult content, And circumstances. out tremendous shout appreciative the us WWE, the for them week I a done WWE. to to delivering They it. very

Jessica. you, thank So

Joe Dorrego

go can next the question. to Operator, we

Operator

in queue line Next Morgan the of Swinburne, is Stanley. Ben

line open. Your is

Ben Swinburne

to we've One year for about if quite like things expectations, be focused I Investor on wanted key a Good a how change be cautious with that sheet, something going a And was And can remember, it, our given was in which over realizing deliver certainly confident curious, rainy at but using since company you. bit. arrived Thank we're on and But driver to feels you sort of about this Day, the evolved retransmission ago at think point. guys that to I look and of, the continue the your it as how to you And of, point, secondly, I a sheet, those reinvent business. then. I has buybacks XX think revenues, advantage times ago is outlook for to that phrased continue day obviously cycle you you which curious think the which was sort growth you balance the balance of your couple much you ask a opportunistic. is strategic would you the then, be a you -- had It's for time. ecosystem changed or just this a years for agree. out I'm afternoon. of John, you world like I to in conservative just then can't the effect has with how

Lachlan Murdoch

I'm does address an think, like we goal. more achieve address I'll billion hairs. remain by we question, me additional the achieve the are we in retransmission you gray Day, our let XX there, first $X -- that to believe everyone a calendar that And question. of at years all few question. perspective, we feel over track I XXXX. for right, goal, it can revenue remind that which ago. on the but a Ben, goal part to John, was we Steve to are and sure affiliate XXX% was the Investor announced John And have pass people, we to So which the confident you're second achieve and From we can second

John Nallen

the asset business. have first of how thanks, particularly we're with balance is the the the of viewed, on strength amount are. Lachlan you operations in uncertainty you're strength sheet sheet us optionality and to And at a no, the company. comments birth think, of -- We've balance always look operating strategic what the of the reflects strength term. and And near-term, give focused think Ben. we company. really as made the the But It made Lachlan. Corporation, longer the I just -- with the be businesses that's I strength of look the really Fox to strong true does -- viewed have the our But fundamentally, right. of The Thanks, balance the the around, sheet of all reflects Steve

the once cautious As pandemic to buyback to while hit. the and this little strategic we for we're have Steve think going I know just said, build the here that continue a asset to paused be And we company.

Joe Dorrego

Operator, next question please.

Operator

of of MoffettNathanson. line go Michael the Nathanson ahead. Please from Comes

Michael Nathanson

I Thanks. have two.

you guys for on most the of there's It mostly do rationale can lot was a and add it. content you is think do a on -- just you guys And one So to Tubi. I in interested the library like are company. where seems there, you value? live-producing

until you the new hear you on I love to for value if I'd can I -- secondly, those you will renewal see you guys were tunnel talking where of post-COVID? wonder the So data were still Tubi. some quarter trends the see to to from terms last Thanks. mentioned then contract. And doing a emerge to pause about any deal call to think, Lachlan, maybe NFL create about and you in that next you come on of the discussions end of points give maybe if continue the of what at the hold you see the and light

Lachlan Murdoch

Thanks, Michael.

Tubi into rate FOX free gets them of strength product continues, our we've but tremendous talk us to hours. Tubi, and FOX FOX I two was month we is also And But growth NOW. say the bigger, direct-to-consumer authenticated platform were trialists obviously in paying from about second-strongest think before for strategy. with gives about it for kind it FOX for strategy an talked very as So the good our We could Nation both on our should achieve has questions, and pleased and through which reach. over-XX% It's authenticated interesting Nation. had the April an subscribers. conversion Nation, I with

paying are Nation for and FOX as that of absolutely enjoying consumers grows. the So, it product

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terms business. year-on-year great in is make like a the viewed, Tubi going So, even can we're lot. and it to grown And greater we XXX% of We them It's great things. do getting but video a an they're think business. know we hours to team,

going important is distribution, it and is be think, exciting. but brands, that it's Tubi's our very to -- really I So

COVID-XX, the down haven't obviously, we NFL, discuss future and been renewal the our the plans On across the with their able sit to deals. of NFL table to

every have the NFL in whole been contact about range things. of day We other with a

NFL. our to feel any and the forward partnership remain a And been differently we business the built they've that in years see of close as our that continuing So built the theirs, very we There's many marketplace about we've to to look that come. for makes us over years. value for them. tremendous we of They've ours nothing with XX today partner

Operator

have Alexia we of the JPMorgan. Quadrani of Next line

Your line is open.

Alexia Quadrani

understand these coming make be tremendous next but you on flexibility. do is amount you, your different much. that front? follow Thank when and for it, I comments and out to I the do there the to very it better upfront games you upfront And will there's such for enough of soon that get of is remain will on meaning component I line know of be willing feel kind helpful, market. the a portfolio, will very that of commitments? being big want guess the sidelines visibility this you sort of advertisers markets occur, Fox's year, they at some to will just get that to will commitments having until up you a on be look year? sports mentioned process I you believe But them do make fall the about

Lachlan Murdoch

Alexia. Thanks,

thing We with fully been over mentioned I six their in question, to affected because as last And we've don't weeks. ways. ad ways. our that impacts different before, see with they So, as Jessica's are COVID-XX agencies virtual will in do clients I of from the different emerge don't our upfront COVID-XX by singular engaged right see all today We think a changing. all clients and the

or in So be services professional different our will from very retail clients or for very will example, Entertainment clients from, different way telecom clients. a say, services. from our insurance COVID-XX emerge auto our financial or

needs each our And to and so them specific continue. the it's as and our we've important we'll NFL are for schedule to work such those and their with us schedule. needs clients to to to back partnership the with that are being those conversations, closely specific and released, as exciting their tailor into ways, such milestones. what them to NASCAR there will But them with work track. as work engaged on are in understand triggers Obviously, And our very unique being continue air, on of

get Masked stable, sports The I schedule thanks which think starting and schedule question a filmed is our to a should open already incredibly our our production animation one the I in of things is key our amount fall from boon by the remember, did the Singer back whether really the schedule been entertainment knock wood, I our fact earlier the to programming large of in schedule, looks we untouched, comments, on and is rest has into or schedule production a great mention, think virtually for schedule. in -- The schedule I way, mid-season virtually that of in animation time us. my by the a for COVID-XX is in only fall the entertainment shape, to aside to take edited phrase is, of can. Alexia, being and fall

So we have a pleased strong are in very fall. entertainment that schedule the we confident and

elephant of room the tremendous the news. course, of is this, the Now ratings in

and that. ever within Our as demographics they've and attractive are ratings ever pleased very we're viewership as that the strongest been. those with news been, is younger within The ratings it's

have sports, entertainment a news and are it's about very just we'll strong and not it's So sports we about that coming quarter. confident, but back,

Joe Dorrego

to question. Operator, can the go we next

Operator

Thank you.

question a Credit Mitchelson, go of line Suisse. have ahead. we the Next Doug from Please

Doug Mitchelson

guess impacted that jump any first you're question a the you on ball. accounting Has And basis when making this the booked I Thanks the investments. work environment I very cash does much. in year is bringing you how back? investments the them made entertainment programming? believe programs for new last

revenues second for seasons have returning any I does receive? second that the that Lachlan, acquisitions Now you that a And start they're you three downstream start question, they've what book you or like and seems terms as we strategy. have it going direct-to-consumer And in and to strung idiosyncratic to next because been was cash should successful, M&A? mix implications part of together an ask, to it's to-date, of expect of interesting you for

helpful. it's So whether actually either mix any on or an next what's whether it's be thoughts specific strategy, for would way, Thank targeted to idiosyncratic a you. M&A

Lachlan Murdoch

cycle in scenes all thing how shows fall, globally. the movie start expensive disruption the me sort let but don't a I excited for impact accounting studio of is go investments with your year, the in shut occurring virtual or the entertainment development where and for as in new first then of have time terms today people are really I'll mid-season plan in we Doug, been seasons we whether there's mentioned, we can -- and that's at new terms is the not and How to sorry, of answer riders be new about, of no to look down behind for an effectively our virtual development on it, shows, which and -- IP. your been any the the for Steve let first for new in new question. for half of fall rooms question, second of One production the I lot. how next

all that which example, behind to of has been For work scenes, the see. positive continuing is

Steve Tomsic

for on -- year. to just be programming range in out Doug, investments, the million and back the we of that just just, we accounting going the again, to called up on Investor And picking million Yes. full called we're to and out pace $XXX Day, $XXX

think so of far of close quarters $XXX the three we'll spend first of in to I So sort the that million year.

still sort we're of we continue invest entertainment programming, first pace, as which won't in So terms Lachlan and accounting going generally The look of forward. change for that amort the at on mentioned, on in us to how we go run. through of

there'll on So no amortization. changes be

Lachlan Murdoch

And as on is or M&A, existing the then investment strength into think put it our existing I to different our two categories. can -- you base. look, One idiosyncratic the expanding

technologies with we gives tremendous markets But advertising strengths. think new that in doing and reach it's for of a It's us. with greater advertisers. our it's today. really more plays putting basis, acquisition We what content with to do content puts opportunity if our Fox new point both example, of association from sales and from I video-on-demand point tremendously from I at can for and they the So digital us, view, impressions look think of strengthen ad we strengthen Tubi They an we them and of the video Tubi that garner view. benefit can a front

it's simple a very one perhaps really us. but So strategy, exciting we that's think for

wheelhouse. is an one businesses what the our do expanding So we in in are way. that bucket They're already exciting

do which can monetize and other, where ways. Fox is we Bet look that existing in at different businesses Credible categories put you into we can -- our how audiences those The

So less its doubled COVID-XX, over revenue doubled should stake is between has in which that which congratulate not goal I equally and revenue to loan revenue. part on look since TSG, played. But less streams, so two volumes there's grow And well with that equity advertising Flutter, Fox was on an ours. is Bet had merger new you It's say the reliant revenues being when should in of closed excited. with size Jackson an those incredible Credible, split Super today, incredibly done our Peter Doubled for, our last we're of affiliate acquisition and year. at Bowl. important which rather an revenue sports roughly Obviously, Monday. its I

serving new are really our strategies based in existing new audiences So, into about getting and best about those ways. businesses our those audiences businesses, are upon really existing -- getting

Joe Dorrego

more question. have Operator, time we one for

Operator

Our us. ahead. line Please of John Wolfe will is the come question your here line Janedis, from go last open for Mr. Janedis, Research.

Joe Dorrego

next Operator: Fargo. the to go think of Wells from I the line we question. Steven Cahall, Come

line Your open Sir. is

Steven Cahall

you. Thank

around TV So first, the pacing talked maybe just XX%. station about you of down

next that to just wondering a as looks a through reopening that know, think quarter, you're down you the down going start I of we've to repeat call you As follow-up point again at that, And political. economy sequential seen but the on to isn't a start improvement come the XX% just bit current in any that's quarter? quick reopen have seeing that makes how and improve parts then, this on if of XX%

Lachlan Murdoch

-- of categories, you that's say, pacing advertising, significantly right? expect mix below -- affected worse the by don't of I different on of reduction projections So that local they're me obviously But are too clearly, plate let all XX% talk local COVID-XX, when broadly and a below. worse our a in being sorts categories national. we over they're to want sort per for or about because would talk The different. XX% than

are that's services, less categories that, are all But are than pharmaceutical. travel, that. by frankly significantly categories ameliorated So XX%. than up and that Professional insurance some like restaurants worse entertainment, pacing down many

it's forward. local signs see are shelter-at-home said really real Again, a perspective, as So, But recover. we It the going markets states say will by orders. state municipalities state their various mix. are to can't as lift going in how a we be and beginning positive from local before, pacing to we

over weeks Over talking weeks the requests for last advertising. have not with a national, the lessening I'm of -- seen now, flexibility last couple we including two severe

and are people quarter market their next get our they year think to how of fiscal to brands starting and front -- are beginning marketers into and and of think look about consumers advertisers their again. in first forward I products the

but just days, we're see that beginning early its -- shift. just we're to So, positive

starts the political couple record to Fourth quarter political third the the was quarter us to a next trough, year. As the as us. the quarter, advertising for for -- fiscal sorry, up the third of pick COVID-XX last -- in the third start first is impact despite advertising always advertising, quarter still a fiscal the weeks for year in us quarter again of political quarter of --

we So that continue. trend to expect

believe advertising you look we a next up are fiscal We be expect the reason ramp is, we our record the political Obviously, political we at on say track for quarter in of hard-fought the a that And election. first season. still it's markets. The if going year. to to

battleground our two Pennsylvania, have including Arizona, to also Minnesota. Senate our Georgia, have or We races. our are Michigan states, I Florida, gubernatorial Wisconsin, about and markets markets them XX some of And races. extent all. of nine Ten have of markets won't markets half list U.S. our

the course, every House has Of contests in market.

I well of lion's our the year. wouldn't next quarter are really Thank say fortuitously, think, are we markets to the share a first positioned capture, So revenue -- fiscal in of you. political but the certainly

Joe Dorrego

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

Operator

your Executive conclude for does call that for Thank gentlemen, you conference and using AT&T Teleconference. today. ladies And

disconnect. now may You

Fox (FOX) 7 May 202020 Q3 Earnings call transcript