FOXA - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation Fourth Quarter Fiscal Year 2024 Earnings Conference Call.

[Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Ms. ahead, go Please Brown.

Gabrielle Brown

Good earnings welcome call. operator. XXXX our fourth quarter morning, you, to and fiscal Thank

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

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

will in certain EBITDA which SEC release on our this filings, measures, including call Relations section as refer financial this website. non-GAAP our in are included of of available financial include measures to adjusted we non-GAAP are earnings call. it the EBITDA, Investor or our Additionally, and Reconciliations

Lachlan. I'm And to call over turn the that, pleased to with

Lachlan Murdoch

our year that never the EBITDA. and has fiscal of clear. start the underscore the financial Thank fiscal you, Fiscal consistency $X.XX quarter delivery new The our you Gabby, we which was us for $XX FOX, just our of of delivered soundness billion of year strategy, ended XXXX for successful more in and fourth from another year results. celebrate to the nearly and strength of momentum been this morning and position joining our billion thank our of all revenue the

movie clear fiscal our from scale engaged the to service and total World and affiliate 'XX, in the share ratings Bowl brands United our absence renewals, Tubi's platforms our were and revenue Fox watched total and time and achievements growth growth States the Cup. streaming 'XX as ability in our at across The News. Fox strong. Looking audiences fiscal strong our remains quarter spent reinvigorated of all across despite businesses company Men's TV at deliver position including remarkably increased generating the FIFA viewing ongoing power cementing free each of Super most brands delivering back, in there

Nielsen, again, viewing as growth surpassing in fiscal college XX% a Saturday in year. time, with while Tubi subscription growth year, News measured FOX week video-on-demand than in ranked more by competitor. in was, #X watched with big of 'XX, viewing was network a and news services. with cable grew And Sports high of viewing, for absolute an Fox 'XX, leading the straight the minutes America's XX% easily its this the closest minutes third game new most football fiscal window fiscal X-year viewership in

the solid from year for news and our coming recent this short for carry 'XX has major been another year of the fiscal is news cycle fiscal nothing sports The momentum foundation Our into we as brand moments. most events, particularly clear businesses. of for extraordinary. of during to strength breaks, remains Fox news coverage they our is news trust. and first people the the And when turn news pivotal News unmatched The choice viewers

total exited in fourth all channel the cable gained primetime total News political primetime cable and return FOX day news our day share year. at coverage saw levels as in by both FOX and and lineup. last watched network growth The amongst most and quarter to versus in driven the News strong fiscal networks audience of prime the in year

its extended News demo highest viewers in in last improve over fiscal News continued rally to FOX had and in at with primetime year. of ever Butler, over grew XX rated year, the million its July, story XX%, coverage when to rating the FOX X.X the into grew viewers in XX July total Furthermore, this nearly tuning to Trump weekend in Pennsylvania. XXX%

time linear highest beating These XXXX. for across News positive XX%. cycle. for the fact, of in momentum. nearest not viewers But news cable the channel total prime board prime bode broadcast with we business competitor rated in news and as television through by the audience across In news #X share news July extraordinary And only had all weekday the our nearly August well this since is FOX continue its trends great FOX News

its an most also streaming service impressive free revenue total X% viewership TV of watched be saw viewton the and and [ year ] library viewership Tubi momentum million by the status expansive enjoying at XX of is upon and a viewing. in U.S. the an Tubi To growth. high TV all-time during metrics monthly in consumer. by record the offers driven growing something of fiscal improved XX%, every total movie reaching continued as high users fourth for quarter, finishing that active

also it revenue audiences is content and viewership the quarter. Tubi. a Tubi only that digital during the this Not on in growth find only tough has the complex advertising largest marketplace the X% can drove a U.S., Notwithstanding comparison unique but year-on-year library,

Importantly, however, in despite revenue continued inventory overall the steady that the has with growth into in this ended teens, we increased and pace market. pricing with month the quarter of June

on UEFA game Cup expectations. over regular viewers Soccer", on to it's and weeks, each X.X and watched quarter European the Football that two of million season the the game thanks a set The and Broadcast XXXX Network audiences above Xx and and in FOX. tournament. College Sports, the other Fox matches. But averaged very above viewers watching now a Copa The Major FSX, just Major rank increase a the ever at fourth also across of positively is well special viewers Fox's back broke NFL The America soccer our summer. and our or we X.X just Baseball few World tournament. soccer the records. are Baseball exceeded League over FOX broadcast was which performed matches Rickwood And AllStar And than million Championship records expectations short XX% welcome as "Summer trending Over XXXX finals Fox not most averaged the League the of the gain also all active,

from FOX's Chiefs weak FOX. of Our XXXX on windows the Town, this a NFL the [ our like ] in Murder XX in like will a Mask of saw schedule rematch debuting at culminating new versus this with Dallas preview year's you of lineup course, Fox return cabar and Hi-Surf last start strong. a in the [ nor includes three Americas And first for Kitchen many and and and of upfront Super shows of our presentation strong game a dramas schedule and be to Health debut successful will Entertainment, Bowl Also Super popular games fall new of of which a May. February ] Small Bowl. Singer

of I Speaking one referred upfront, the the we X nuance a months ago. see healthier market to much than

were our evidence, strong. upfront commitments As

Our entertainment digital in sports, the as advertising of in focused both commitments year-over-year overall linear growth portfolio portfolio market-leading well delivered and pricing in and properties streaming as this news, upfront. growth in year's

more pricing as as cycle election that incredible we tightens, saw testament At we Notably, the map quarter. of we stable are anything, markets If election -- volume streaming will price our operate. extended local advertising double-digit which be poll the to at which very the expecting may the its is the in level, Tubi, in robust marketplace. momentum to to in a second the a weighted growth be and

News on enter Bowl and stations revenue at fall. cycle of we our XX local exciting As XXXX, such focus our the we the service of very distribution Super continue launch will a the FOX and events Sports fiscal as to Fox, with execution renewal on of Venue the streaming the U.S. in election X/X

on underpin to balance deliver Our meaningful of shareholder strong confidence differentiated with strength continuing our position, coupled the our sheet, returns.

I'll Steve. over that, hand with And to

Steven Tomsic

Lachlan, $XX affiliate total of delivered Television of completed Fox good of by in driving these company growth everyone. this in Thanks, the the [indiscernible] billion. with growth X/X benefits X% year, We million EBITDA at revenues, segment. successfully our adjusted renewals XXXX of fee X% fiscal total once company $X.XX in and led renewals and with almost approximately financial revenues morning, financially again

Our the World Super FIFA the the XXXX against including marquee the record-breaking events, and cycle. XX, Men's of compare election fiscal prior results midterm Cup year Bowl

comparison revenues, and more sublicensing the in events revenues total cyclical advertising to by other contributed higher XX% offset Total WGA with these decline revenues. an content anticipated, sports company the year-over-year, than disputes. company revenues SAG to were by As lower down X% impacted labor

Super Total due decreased expenses Bowl and of associated the largely year. the Cup the with World prior Men's in absence company costs to X%,

was $X.X or partially to up entertainment Net new under share step-up year or to agreement. versus per programming decrease strikes. $X.XX XXXX. in by rights However, per $X.XX fiscal was due reported overall this billion to Also the NFL $X.XX attributable income stockholders first the the contributing expenses were lower offset this costs share, billion our in

corporate charges contributed investment company's and Football was litigation gain of in book on partially impairment matters value the other Media by impacted FOX joint change fair the and Flutter, by by assets was other last United the nonoperating Restructuring, the net venture. offset year News the USFL associated to impacted in with the

adjusted adjusted year net billion $X.XX was items, noncore EPS $X.XX Excluding a and income full share. was

X% of offset X% renewals. Total our delivered affiliate and to of growth and company our Fox from Total lower advertising revenues EBITDA company from television year was the at revenues of revenue prior by prior prior our of Network. grew billion, and as ratings quarterly fee cable fiscal generated of year were Summer the X% supported by at up and FOX adjusted from over recent Tubi Soccer pricing affiliate quarter. both with quarter growth the up Turning quarter. the segments cycle flat million, total fourth revenues our $X.XX $XXX year, the

was revenues the X%. XX% of lower a year other sales third-party company Growth current primarily in and total to Total company content held volume in expenses down due were quarter. to

by along Here, Entertainment scripted at the the Tubi the and Euro production higher and at the with costs programming Copper versus digital America were UEFA costs offset mix investments of associated lower and broadcast USFL partially Fox the of from content. with deconsolidation of unscripted

of the $X.XX attributable million $XXX down prior or reported the million or versus $XXX in income Net per was year $X.XX share share to per stockholders quarter.

adjusted while X% $X.XX to a noncore net grew in adjusted million, the $XXX increased share. EPS Excluding to items, income quarter

to results turning our of Now main quarterly segment. operating the

revenues in from range. year-over-year. increased fourth mid-X% X% Networks the in subscriber declines with affiliate Our grew fee affiliate pricing Cable our revenue X% industry impact Cable from renewals, growth the outpacing quarter running

advertising USFL advertising FOX unchanged [indiscernible] at from national at higher revenues benefited the and the Cable to the the at improved essentially at ratings X% lower networks of broadcast of ad grew from Championship the expenses European were than EBITDA News, America. other over the primarily prior the benefited revenues offset UEFA partially and Cable the at UEFA preemptions. year due slightly prior the News, from to deconsolidation lower pricing, by prior lower reach Cable Cable America and were programming sports grew Euro year adjusted revenues quarter, quarter Copper and costs quarter. XX% the million. segment quarterly $XXX year the Copper XX% All-in, FOX

volume result segment, quarterly revenues as and by ratings other operated a at was continue growth Turning to at were FOX-affiliated X% and revenues X% as by Copper UEFA of stations third-party and our in the outpace a Television fee Television Euros Television the affiliate fell fell growth across lower television revenues the where Network. delivered revenues. FOX offset X% XX% America impact broadcast quarter, This lower declines. advertising to owned in content price from and led subscriber of sales. pricing increases the in the primarily of we growth and Tubi Fox

into adjusted X% quarter with programming prior television UEFA costs at and production to the Taking Television the EBITDA the year investment grew at Copper prior over $XXX partially associated primarily due of quarterly Fox costs lease at by the XX% factors the lower Expenses Tubi, America year Entertainment. to declined and Euro against quarter offset segment digital and segment account million.

we coming cash this to for drive capital items which year, which Most by revenues sheet, less both $X.X define XX, operating to returned will billion and notably, led some of net we cash in During we the event provided allocation expect as Super cycle ] in activities advertising key free fighting fiscal and growth another fiscal we year. CapEx generated balance we flow, flow. significant XXXX, cash worth [ get it's before major by free Bowl full

and contract, However, under amortization. this elevated Bowl accordingly, first NFL the is have rights new Super our we'll

year perspective, We in of total relatively up election renewals cable our of political we continue which From first half will segment. the for to a more of to light benefit have are from our distribution affiliate X/X renewal advertising revenue expect weighted fiscal cycle the an our strong the with Stations which Group. particularly revenues company year approximately

our to continue to expect digital-led We invest growth in initiatives.

the improved the Here, be to digital of Tubi collective continue EBITDA expected will to with XXXX. relative portfolio spend focus investment to deliver

forward Sports look expected this launch of also fall. the We to Venue

be a Returning As our venue from results EBITDA to capital recorded reminder, allocation. earnings. share below will in of equity ownership

of our billion shares the the year, semiannual of a Today, Over dividend course our share. and in A we repurchase further we fiscal $X per the Class of to $X.XX an announced million through dividend capital shareholder $XXX continued commitment to returned increase in returns. $XX payments, underlining million

XXXX. since share billion payment into over of taking the of year-end, since to spin will shareholders in With $X.XX repurchase capital account our activity we returned this cumulatively dividend and the

shares representing the by the is balance and ended the quarter $X.X in sheet, cash of includes strength our with we debt. share where November outstanding total of program $X.X This supported billion buyback since XXXX. in our over This XX% approximately of of in launch billion all $X.XX the repurchases, billion

And to Gabby get with I'll with back call Q&A. that, started to the turn

Gabrielle Brown

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

Operator

Your Ben of from Swinburne from Stanley. Morgan first line the question [Operator Instructions] comes

Benjamin Swinburne

launching ask want I quite to which about is venue soon.

you guys product how us to about Lachlan, now the or that think you they've this guess, wanted are but point. given just is about launch fits thoughts sense know out thinking is? and your how You potential, price audience pricing of don't it's you've have some and to that announced product I subscriber announced sort on revisit the if of that longer-term share I you who or

keeping any financials And revenue venue from or in statement obviously flow are of be fiscal equity guys the be Steve, also we know will that is thinking and terms impact should I there generation on? anything the 'XX we eyes product? income about from sort should in to of across partners cash the our you statement benefit

Lachlan Murdoch

much very we've development milestones gone as practically month, you of and thank the good the and releases you on have number Ben, for later launch as this lead every the Obviously, venue this a new towards question, beta been achieved morning. day. through the of beta

is a product are both And sport. good, looking in way really in the revolutionary excellent, Americans also quite to going view the but

launch to the pricing the right be We business of So announced $XX.XX think we remain excited want really incredibly we about as an venue initial as what that it, the for hits as but their a and a target price. mark also consumer proposition.

to bundle. are is level mid-single-digit we millions. subscriber and years. really that And We X partners to are marketing cable in Steve? very us feel expectations on target cutters the subscribers to achieve. venue to feel in acquisition those of our the it's leads all Obviously, on there's strong no our very that television that the fans update and our X million sports business that cord what's focused in can that's subscriber that aiming important That's really and the and subscribers plan, what That's we're currently over us. not nevers. cord important in what

Steven Tomsic

Thanks, Ben.

venue a relationship So statements, on impact in terms obviously, of had sports. financial X-sided we with

as is sort So flow shareholder, listen, to time a going some get the of breakeven. the take to business cash

So deficit from and flow. investment equity cash you'll perspective, that the in through earnings come through shareholder the through. We'll investment a the P&L see take

JV the our supplier the in being see benefit revenues, to cable supplier of key a fee through TV. we're you'll networks our sports come and in and obviously, both affiliate so But a that content of

touch a early. it's So

of impact. accretive a calls I it any basis, launch think in date lockdown XXX% terms But give guide a in on said, saw quantum on fiscal you I earnings sort us as terms net-net a ago of should we 'XX to to basis. on be think couple of pretty of I quick

Operator

comes line of question Hodulik from next the John Your UBS. from

John Hodulik

of quick market. couple the a Maybe ad on questions

side on all, versus pricing the of side, seeing you on First guys what port you the you Could lower you're mentioned delineate seeing. entertainment? TV that were

head on any And then cable, we've cable from into versus we great just size political previous or thus outlook, would other as sort the way would given just political ad this the political far what just sort what ratings and provide And of I elections unprecedented spending presidential can in situation. of any lastly, of outlook on expect be on -- strong to sort call I mean, XQ? you seen you

Lachlan Murdoch

Thanks very much, John.

business our our overall, of So had the both XX% upfront. increases of and is and pricing is we in-house. very now we've strong, -- volume closed out pricing upfront, our coming We've

we've process the to now So -- upfront successfully. very completed and report happy I'm is completed.

totally to into honest, was outs. there ins be upfront Going the and

were you saw the -- achieved, we I'm we could again, could cautiously that and still actually the about see, And optimistic headwinds but businesses. expectations. some we upfront what through momentum we our our be were in came that pretty with There remain pleased above

with sport we have and events course, this by we led Of this Super was the that both in the year. Bowl in that -- XX culminating have marquee sport inventory

in in was but Major incredibly Baseball. League just strong, Sport also not football,

in we our for that of the direct expect pricing political, very we're direct strength teens in in I The So runoff, But Fox that. terms right? increases. of look most and the in response we've remarkable for then ex., pleasingly, and obviously, ratings calls, Georgia the return News times a on this the cable, pleased probably -- with volume most high we previous about that's a When bodes great coupled In importantly, number pricing saw line with really marketplace to business. response in is talked of increases upfront, think also and growth well really at

as cycle money political flow So marketplace. we're is this expect in race as we apples-to-apples look mentioned I the the And at my record marketplace as new into year. you tighten. prepared emerging, cycles, up, comments, more particular, the rates And in heats if would the a seeing political

now weeks. Atlanta last instance, and of of placed For in there's where Phoenix, amount significant a the being money couple only

expect political ago. very political cycle cycle, ex., robust the runoff Georgia we So do a and years we X a record think

Operator

MoffettNathanson. Your Robert next Fishman the from of comes line from question

Robert Fishman

fees growing drive there Can you given of share how recent pricing room pricing keep fiscal your your from spend sports content of affiliate in much renewals sports I FOX's and in the and across exclusive just separately, Maybe through after to importance latest to the more is expectations 'XX roll unscripted the retrans if about right the company? between the with how and entertainment, scripted then balance should Tubi. just content the investors and pay-TV even increases think ecosystem, can, help us level

Lachlan Murdoch

very light Robert, so growing I you Thank grow continue fees to on affiliate in of, declining modestly volume our think much, to obviously, the we subscribers. fees, of expect affiliate

that not Sports Fox or also be of cable which think the The television we'll that focus of the subscribers the quarter, able for channels, X%, as I for FOX of are above around value to leverage mid-X% fact modestly of cable legacy above be channels support. retransmission. or in carrying and have our we're can last sort core -- but that appropriate to entertainment going that, News use on the driving core to and quarter, past brands our to we based focused be really our that's are called it's entirely we our continues, out the any on number. And stations baggage We reduction in grow pricing brands.

Steven Tomsic

Robert. Yes,

sort regular that, away think and should in fact got rights. just spend, October, have, us if increases. Tubi, go verticals that through partially continue grow by largest key fiscal the amortization sports the I to I in WWE program content. 'XX, we've college the the with we single of In offset to NFL of you Obviously, is expect from move that's piece at sports, content the terms of we

content active Some of terms and some so originals revenues from license is that share the that and of deals. is -- passive come of the because of in much revenue

the advertising with grows user shipment just that so And growth. of amount

to With obviously, growth. strike, so the final the to scripted that entertainment and to and very scripted was worth news do the with very then unscripted. probably by unscripted think is significant you and fiscal a talent 'XX, shift from News impacted predictable breaking and coverage was noting it's were of one, that, modest lot that from programming. had you sort pretty and very of shift I A that alluding to

partially that don't north save Fiscal is entertainment of $XXX the us thematic. was expect well, in of in trend terms amplified was that's And costs, that continue to programming million 'XX and basically -- happen. particularly that -- to it

the it sort other portfolio more In bit will we slight year little with of way rebalance scripted fact, swing fair. back to little the next bit as a a

content. entertainment, of fiscal I perspective per look though look serves hour we our to content our versus want I XX% down. cost to perspective it the per do monetize that think But down broadcast to monetize at 'XX, our we that its from of balanced will of hour how and when a what serves and obviously look think at we And I capacity we our when network compare capacity sort get is have to the probably serves our cost like advertising ownership needs, fiscal 'XX in XX%. downstream cross-promotional an windows from

we're to it. be about So going balanced

Operator

from the Your Ehrlich comes next America. Reif Jessica question Bank of line of from

Jessica Reif Cohen

One question. follow-up and one

the sales in like great like like I'm that great first that So a year new upfront. ad follow-up, obviously sounds but doing events. results, approach? have you had of is it different great they're wondering if a team. this had You've on anything there But anything your the also you that's Is

your assets next like of where since traditional is key areas you sheet you're the like do of live that media deploy just the the one sports, wondering, of opportunity, news Where expect to are And and couple capital? secondly, strength. industry still balance like of company do you your in And the growing. then see already

Lachlan Murdoch

Jessica. very much, Thanks

all done well And team, we're is has monetizing very, the tremendous to out. generate. them the of performance. very Collins with and effectively. Jeff role First, very that ad we're calling the sales team on their for able a obviously, happy into and the impressions They've leading stepped I'm thank job, you the

very with that. we're So pleased

bit the into structured, think not little organizations of different the structure other the entire I of than expertise retain sort upfront, the Going But aware a media across across verticals. industry. sales advertising of companies we're I'm we some the

So very of team, importantly, is which focused a a have our more entertainment more a team, focused Tubi. obviously sports very part is we team, great and we news and have digital

So while in have in the sort this very able those upfront, we portfolio, in ONE and very be proved of and expertise the across portfolio, that entire effective sell to teams, to successful FOX our were we upfront.

So I'm not sure the a if that's us very is different from we but its works value for doing, think what has that year. proven marketplace everyone and it's certainly else in structure this

terms are we with we and how I sheet of deployers deploy going capital, In our do we of what that's capital, prudent think and to want balance careful to continue.

-- our of of businesses shareholders M&A. the and the in capital mix then organic investment have right in investment We return our in to focus business investment increasingly, on

M&A say and we're We of prudent we one but than the to you and levers capital. we other latter aware be in nothing that that to have how we deploy update going the to category careful, on remains are have important

Operator

from from of line Ing question Sachs. Michael next Your comes the Goldman

Unknown Analyst

this on I'll and on about for bit some revenue in heightened fiscal the wondering was fiscal year connected could ended is I and Tubi. us more despite just outlook on strength side, the that quarter TV 'XX great competition where little your growth, in a update you talk 'XX. up then an if give ask one investments Mid-teens losses digital the which

Lachlan Murdoch

Great.

to over Tubi, to Steve. Tubi hand continues start then from with I'll to strength. me Let strength go

teens, continue July, in see I we've in seen with quarter was growth July. as importantly, moved I fourth good exiting upper we the into that this think momentum revenue think to and see, the very momentum to that mid- into quarter to

have entering put of the revenue pricing market. That lot in entering streamers reach caused their drop growth Tubi drove a strength audience. supply Prime, that the be You of streaming and not of to did Amazon fight their of really advertising its this the this business. for really and hard advertising-supported of tremendous a market streaming to on in its tremendous a to [indiscernible] other brand and context the and pricing. quality into with sustainable

in further very the we're we So expect and pleased as Tubi growth that, year with progresses.

Steven Tomsic

Good Lachlan. hear from to Mark. Thanks, you,

landed I of in just at growth of the was across investment 'XX, we our single investment, Tubi So terms for look fiscal the largest if where driver portfolio.

were of in investment was fiscal 'XX. level consistent clip we its a at where So to

if So whether the $XXX range. collectively across that sum studios it And out, numbers. credible, businesses, of another building other sort growth look rough nation, about all I million the that XXX be we're entertainment in mid to weather the

Looking investment perspective Tubi, forward a in those from improvement comes I businesses. and to from put I the think most a of should 'XX, fiscal Xs, less at think, high little investment which us the across net

Gabrielle Brown

so But time. you joining today. At much or us out of this Thanks call. questions, point, any we're have if further please me give a for Charlie Costanzo

Operator

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

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Fox (FOX) 6 Aug 242024 Q4 Earnings call transcript