FOXA - Earnings call transcript Q1 2025

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation First Quarter Fiscal Year 2025 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

and and for XXXX welcome earnings operator, But first technical good call. morning, to we you, the apologize difficulties. quarter Thank our fiscal

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

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

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

Lachlan Murdoch

you start discuss to joining operating our fiscal earnings. great all and this morning results. us We've to financial and Thank Gabby, we again you, quarter great our a and thank quarter first strong fiscal for Today, reported had a year.

to XX% results. of the on of and our demonstrating back our and revenue of up outstanding EBITDA which billion of reached the content was ability deliver this XX% power Our strategy the over $X growth, sustained quarter consistently brands

reached the of Networks over million XXX people. alone, In month October Fox

to any key were of Fox with cycle, Fox news turned to itself, and cover leading tomorrow's clearly and made News election. News election events events more other than this programming viewers. hosted in those to up have that and the Among Americans issues During resonated service

garnered viewers the Town tuning X in in Trump its Harris view. by episode by example, with President hosted history bar as this was on strong X viewers also highest-rated interviews joining new with Brett that Trump delivered with a for exceptionally XX Hall which on But were, October as telecasts over followed Vice political these [indiscernible] September President, million Bayer's set almost Falkner, million generating XX. it ratings. For is This Harris, interview notable

of And world mind the job teams election today, done news audience. top for have while is a reporting our the on events our continuously brilliant across

news, delivered consumed hours X during fair dedication media QX. platforms Our balanced content digital across linear almost and and billion to Fox News of

quarter, engagement quarter, than the more During this, watched audience in total News more channel XX-year-old the news grew XX% like the demo. to past television weekday trailing of all in XX- this second that surprise Olympics With only the network Fox no and B.C. than was Summer the it's in year-over-year most key XX% enhanced

Fox the watched quarter most ended over the lead Prime again, Time, in maintaining network as cable peers its Once in watched total News and cable most network. day news while as the

Number one, the and channel. all in the #X quarter, right, demo. channel was among the #X with news with the channel That's the Independents. with news the news #X political News during major channel Additionally, Democrats Republicans, cable news Fox parties #X

viewers. the #X all Hispanic We are and and Asian #X in key states, we are with [swing]

loyal. is It is news it is Our as through as and election audience as as Loyal cycles. remarkably engaged diverse it is valuable.

up race. and prime October, Ratings ratings ratings of to-date News over momentum total this with [indiscernible] prior the through continued total year. at Obviously, to over XX% not presidential XX% second limited election quarter day is Fox

spend. are it's our ballot local down but reach This and advertising. targeting maximize strong geo-targeting perspective, stations audience, X campaigns not look large footprint. stations that election with but material to Tubi reach political capabilities to become seen as it's and and also strategic that its issue station across a political efficiency. coupled are have have the we revenue heroes, of cycle from propositions Tubi's local hard From benefiting just advanced We contested have seen our highly recipient clearly a differentiated

happy that I'm substantial of the record we year, company-wide, have both engagement with for runoff. Now achieved the to coupled dramatic the Strong fiscal inclusive Senate and the of impact Georgia political first quarter healthy XXXX report very revenue full quarter, for growth the $X revenue Tubi of on has the far. direct resulted rate, billion QX this we're response revenue cross growth revenue the mark year. fiscal to looking in accelerated which Tubi in Based XX% during current thus and run

We're Sports. rights. across a fall Fox renowned to strong of our season Turning having portfolio

on ever most roster impressive Green X, Series. example, best and Fox Week, featured in our past of sports dramatic. Detroit World last both the just the years had [indiscernible] and on week, been MOB series has Game America's college highest championship League League Fox rated X and the Penn The the and and XXXX. Ohio watched since State window Major Bay, divisional a Dodgers State the our postseason big and Sports series Baseball Yankees Fox co-season football For

with Series making Major of almost each the Series We X, of Game saw the night viewers of iconic League average XX X Baseball's and most the Butt Game the XX years. And series in X Yankees viewers franchises our course, this the some World versus of in watching watched an biggest million matchup in Dream Dodgers, networks million tuned across of stars. X-game World

with Game all including versus last viewers on Moving NFL Fox Week, program almost X in viewership the Americas best demos younger on #X its the increase averaging XX in The strong XX% to million television, football. to is a on season. of years, off in start the

robust culminating College broadcast September, football pretty XX million a viewers by we Super to where, our Additionally, XX% month. outraging our over first I'm we still in Friday yet of Football Bowl prior each calendar is our come, night successfully watch new Fox Basic already the nearly launched we averaging X week, sorry was which guys in while say And to its have handily Fridays programming at Entertainment. continues past XX record fall to XX X years. drama TV's of served season's decade with in Rescue has debut fall pricing. out TV excitement adults and The the #X and debut are over animation Universal highest-rated among premier comedy at most FOX The sold

the our Fox's quarter highlight of once first again the results merits brands and strategy. leadership of demonstrate strength differentiated our

our to Our that's board. existing for support to our This growing whether momentum our strength an through capital value, the across platforms market balance advertising or coupled across long-term effectiveness, sheet shareholder thoughtful healthy our that M&A outstanding of the by us with business, is and is supported content delivering to our returning commitment operating shareholders.

Steve for further with let now details. it over turn And me some to that,

Steven Tomsic

Thanks, Lachlan, and everyone. morning, good

our XX% growth growth fee As Total total line and a to grew Fox Lachlan company portfolio continued, the company $X.XX Fox's audience This year underscores Media. up in over stations industry-leading growth momentum revenues This to Cable. at at Use growth converted which described, the were the at advertising $X.XX segment content. highlighted strong by increase revenue fiscal Tubi and brands start with broad-based boosted and revenues of XX% X% grew EBITDA, top just prior at this Total XX% to growth revenues growth X% focused billion. affiliate where XXXX. XX% affiliate billion. up Financially, by quarter, to at reached company strength strong Television political is a of revenue our advertising year-over-year,

material was Total company revenue segment. largely on EBITDA impact offset result of revenues corresponding [indiscernible] at This no growth a Cable and in Other our grew in increase revenues XX% a sublicensing overall higher growth. with year-on-year sports cost by

million EBITDA per I million rights the $X.XX change due share Tubi. of to X% year, increase higher growth, our increase company's As share growth compared or in in $XXX or expenses to nonoperating with and with fair stockholders period. up investment coupled by to income reported increased is in amortization of of forced the This value EBITDA recognized $X.XX $X.XX mentioned, offset net. the cost Flutter revenue the Net by attributable in year in partially prior was billion, XX% other underpinned programming the $XXX prior quarterly over per an our

million Excluding increase EPS was of adjusted XX%. noncore $XXX a to $X.XX, equating items, adjusted year-over-year net and was income

to in was advertising turning predominantly and in with last by industry Cable higher the grew higher driven quarter Fox by affiliate Networks, revenues Media offset news outpacing quarter. XX% running digital affiliate by from year-over-year. saw in growth, under pricing ratings, impact improvement from Cable operating X%, our led X% renewals, a grew growth our touch with a slight at subscriber pricing This revenue our associated preemptions declines, News up we the partially fee advertising XX%, from segments, breaking coverage. where Now was where revenue response revenue, direct which

sports sports Cable mentioned segment Cable increased EBITDA primarily gathering Other the $XXX year Fox million. increased rights the quarter News the earlier. Cable due costs revenues presidential of to news to million I U.S. to XX% at increased All coverage higher higher our election amortization at in, revenues reach programming expenses grew and including $XXX prior Media, X%, over sublicensing cycles. due

current advertising we now [indiscernible] up benefit the scheduling by were quarter Cup. year growth a NFL ratings where continued sliding with at and the the local our XX%, more revenues offset back the week Turning the into the political Tubi, X to led of euros benefit by Copper in The our the absence NFL were higher strong and World in Women's season FIFA of stations, September revenues. at segment, cycle of America growth quarter. delivered than of Television Television XX%

across declines. healthy Sports movements higher revenues cost the Tubi. revenue driven X%, than result these production stations at prior Television grew EBITDA Television $XXX a growth quarterly studios. Other in increased segment impact year with primarily to at segment to X% in programming Television increased Collectively, revenues the quarter offset revenues over the Fox resulted million. Fox year-over-year affiliated and at expense subscriber industry fees from affiliate by content fee third-party and rights our increasing tied XX% owned XX% of and Expenses amortization higher entertainment Television our more of

of Free by we $XXX buildup in the buyback sports our characterized seasonality to activities reversed where where operating by far the cash first advertising-related of cycle the our this second half less repurchased $XX year. fiscal working receivables, have in of and year flow, of with drive our for is program, a a year. which our with further the consistent remain provided cash the million active turning which is Now fiscal define net so of quarter. CapEx payments as capital half we positive cash million We both was of share flow. concentration This fiscal

authorization billion, [indiscernible] and remain is of $X the launch XXXX. in $X.X since with $X.X outstanding total repurchased cumulatively the the of committed approximately now balance in buyback have approximately debt. We our representing to quarter strength of utilizing $X.X our the shares in billion of This sheet, our by billion. billion cash We ended where full supported XX% program we

And I'll turn call to with that, Gabi. over the

Gabrielle Brown

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

Operator

Partners. a Guggenheim [Operator from from Instructions] Morris And have question we Michael

Michael Morris

are business may last to Comcast the large? been get considering at video company rest supporter so great be week, the the clearly a Fox cable how that said bundle. or their consistent it'd the your of has of that from they impact network you broadly, industry separating and on thoughts

this maybe one X partners if if could, other of topic. is little your just I'm less seems I curious major like So committed? And one a

TV trends. a feel the Do a and seen Cable have in now. maybe mentioned modest any subscriber quarters in getting in that declines? of you rate bundled in X bottom closer underlying comfortable improvement affiliate this more we You you are subscriber for to growth, the row slight acceleration Steve, revenue

Lachlan Murdoch

Thanks, Michael.

But think want don't they read to any be may their I Comcast it us all. call. may only on in comment the and don't on plans said heard in affects look, So have way or at press specifically what not what I

drive I think all we what amount Fox tremendous our at -- perspective, of our of and platforms. from across could synergy

and baseball X that. are network, that's football, and platform on underpin relationship broadcast, rights driven obviously, with and There capabilities X with and local kind sports. the And growth broadcast, Sports, the the the Sports entertainment of the instance, promotional the the of of stations Fox Tubi, strength that obviously, share and network, our television for and incredible Fox with marketing entertainment synergies and Fox which between cable really assisted So across News. by reach now, is

how we that. see And so from perspective, my I ever do could

would I apart think view point business breaking the view. and a be promotional a synergy both difficult, revenue very part a of of from from and of point customer

obviously, But do is, consumers if don't know who don't a but where of I We it a is package to of do the some rate in add a sub-declines, We this to believe it's all and know declined there subfloor. subfloor the and to Steve quarter, package see. of believe that be will terms and wants pleasing a subscribers has sub-declines In that this. want there includes declined, we have core always our core there is brands. will somewhat

an you stations in One package, package of your consumer you're television that retransmitted news, #X valuable incredible a is #X have local of that want and always very base. in will in it's people of sports, base core to

Steven Tomsic

that, There's XX I ticking very to revenue up excellent plus to the where brought we're in us. at Yes. and moderation with think said, pricing subscriber like And seasonality, have Cable very intrayear obviously, growth pleased pleased for declines listen, helpful. increases quarter, got results both nowadays. got, by TV X% of revenue But driven plus obviously Mike, Most the as with trends, Lachlan subsides. the but really and is no, in think, the we're more I we've the

Gabrielle Brown

question next please? Operator,

Operator

We have a from question from Stanley. Morgan Ben Swinburne

Benjamin Swinburne

Want I in connected of share sort a don't really noticed TV if way, clearly is streaming is to you And gaining like participating advertising is would in past. advertising. this market. [indiscernible] agree, the that feels ask at in it you haven't least the political the cycle in know I about market Tubi guys

and you Like So buys And of you equations any at advertiser -- too. different are taking political the look seeing of would dollars and other I what if do think solving in guys in kind the Tubi? for to Steve, of that seeing for sort money just know don't do quarter station want campaigns holistically cycle, cannibalization terms candidates? they to you're be station Are there you of helpful, there's out demand? are words, versus local of the group or if, in be people quantify the sort how

Lachlan Murdoch

more record in the spend spent. years dollar And some to cycle Four from the of this just was political years both different politics is form station comments, So ways sort more mentioned by way year, This ago. but national was -- there the background, -- I in of campaigns revenues, cycle X like both political a very back group, its there significant sort X which ago, somewhat a talked -- X back being shift, all ago shift think That majority, unique calls well. a has us dollar national of will shifted that have my local not from time, some those earlier first geo-target and specifically as -- was the we spends. also of TV about time, advertisers for the ago. years of reverted have I a and also seeing then, towards for first target years on but spend efficiently and side in in assisted as national local political the of quarterly targeted in in can sides to

we from into in cannibalization seen haven't So stations into or tube. digital of fact, any evidence

quite In the reverse. fact, it's

take much to was that, frankly, political Tubi There was station. we really money pleasing see. capture in that couldn't by is call tidal dollars of entirely of part to well able to wave as a I the such captured have So

some hard They're demographic I a but targeting Most also to reach the Tubi sort younger, that's the Tubi. not wanted are very must to marketplace audience. now graduated have valuable, just on -- of sort to of a this strength think audience. buy the valuable It's reach tier was of of a obviously very has awareness shows diverse and it obviously, it be geo scale this people them -- that and for a shows has the is it's who And of reach. very advertisers it's that [indiscernible]. into -- they're -- the

very pleasing to see. it's So

Steven Tomsic

benefit all it. Yes. the cannibalistic by in it's were just of Georgia If QX And The what and half, between in and the post at stations is Ben, and of last they've half millions local, the at the more it look of just the that to not put if already 'XX. fiscal from sort in around done really stations QX up like Tubi the -- some QX they numbers at more remember more I of quarter, stations. runoff terms I dollars. -- that did then tens of than And sorry, look election,

of year. sort we million we X current this north -- So did fiscal of just $XXX that years we're in in ago in half and that of already north

political. of call ago half national terms meaningful of have number nothing X then first stations sort unbelievable of that as the mentioned, us, you So core. your or Lachlan in a absolutely years had Tubi an from what to sort for went And local virtually

Lachlan Murdoch

And dollars over where weeks I'm the football finally, who's [indiscernible]. it's just political our national beneficiary right? we last employer strength as in. but have the The apologize over of national been And anyone yes, that's then come sports sports, have I labs. their sports has really But of weekend the the the -- driven programming to and enjoying

Gabrielle Brown

question next Operator, please.

Operator

of Robert We question have a Fishman from Nathanson. Moffat

Robert Fishman

Maybe just a Tubi more on broadly. follow-up

just have Now that big future can future it's it to with to think you Sports provide $X the like you other reach a and then license the can us help revenue, or any secondly, of asset Fox do this venue? momentum? current just partners? on about And it get you updates willingness billion doesn't looks can track like If really potential content what in maybe to launch, how this on investors

Lachlan Murdoch

Robert. Thanks,

Obviously, table. continues the October with under the because a Tubi. won't of the number Gabi were I of growth. to me a will We beneficiary Look, pleased political -- tremendous kick it's give money. very the amount you revenue on growth is impressive. First, be very

in share, AVOD share quarter -- of staggering view XX% about XX% we spend the drives and although driven seeing beyond. This content the is growth largest misleading model in is library. of -- second of yet I we revenue be now XX% purchase although to the very continue the revenue statistically. And of of our would think we're the viewing. think it library only see that sort a of sustainable ex-political, we the content direct is X% So

when continues strength. it a sense grow. growing It's business we then platform, fantastic the to from and So to see

choosing channel and way on increasingly absolutely And it's That's case. really, the Americans the a And not be fast the watch the demand adds that also free of course, to we'll fact television. video high platform levels. audience our appeal that obviously, venue, our to increasingly go On choosing are injunction content of the value where that we'll there. at of we watch from proactively we awaiting see and

rights We continue we to we venue when or do not content, it sort launch so. ability business the to of We're tremendous way. and are significant sublicensee excited platform. or substantial we the brands, producing programming, of are building pro-consumer, then sports believe pro-competition in have of in in is a licensing any very licensor to a And we're

Gabrielle Brown

question Great. Operator, next please.

Operator

question from a John Hodulik have We from UBS.

John Hodulik

I Great. Thanks, too, if could.

at the couple there you have same we you to keep the direct a have the what environment quite terms on looks as about comps guys regardless over guys of ad you easier in would the see easier, great. Just any First, And standpoint? from post News. but up you quarters maybe then some maybe shaping How like we've bond perspective sort of election? pricing seeing be momentum now historically, seen recently It not you're maybe the very we have of obviously, ratings how you And expect think easy, do election? comment of strong. of should the outcome And next outcome? Fox

Lachlan Murdoch

to What's Thanks a tomorrow, know. That's question, I the John. helpful. don't lot for going happen

helps we -- a advertising healthy, cable exposed not the programming. very in overly right? that inventory entertainment to we're general revenues look, and It that our from is entertainment, participate general So and advertising marketplace

in, And going very that if a in like so participate obviously, series. had But tremendous the I growth, sports, markets of seeing -- quarter reported. we've you forward, in world growth, we're healthy the a all and just mentioned, healthy we we that at look seeing just we're not

pretty probably revenue I'm within probably I a checked for record X outperformed think World of our and even our expectations. but Game It I haven't amount X Series, it's this, sure, budget it's -- games.

the of for have well, very has coming season. We the we're And Super out course, Bowl regular sold Super Bowl. sold up. Football

what We we had on believe record pricing. are record,

also effect the talked we've about XX-XX how news in News very direct in significantly of quarter. a quarter in And the the second ratings, pricing multiplier at significant helped first being and are, double particularly strong ratings sort demographics. almost by up that's key significantly

our one local-based pushes is if talked for thing very spend Obviously, a out. it's that So you out market political local we've the there strong pricing -- already. about happens direct strong, scatter political entertainment some advertising. and response. point anything Local for

only so much inventory. have You

soft now local auto, you if so betting And look pretty category strong. one at have retail markets, base the that's is you soft, is

XX% sort X of to the in talked I betting already has grow. And accelerating we've year think So about and up returned being quarter. second

So week it I us. this would how think impact? with what election don't happens and would the that impact

of growth I in that tremendous we're markets think seeing, the amount health. again, and seeing we're

Gabrielle Brown

Operator, question please. next

Operator

question have Reif America Jessica Bank Ehrlich of We Securities. of a from

Jessica Reif Cohen

before. a Maybe make Flutter asset? what ultimately, which so the to FanDuel. we approval or to you phenomenal. long bit And just you could do you talk about And you switching it's do little gears then Tubi, characteristics, exercise all And And will take this but think you thing, later? accelerating, how you with and you go do, had one process. if through that once through earlier walked said last Lachlan would it what the you get Can is you to back

is why advertising you or selling accelerating? different So tools? using it differently Are

Lachlan Murdoch

FanDuel. So Flutter and on

we X -- our So options. have in

checked there's it, states. the we now engaged, like So need immediate it's just rush no XX process. in But have to I

get that state in. every have FanDuel in We operates licensed to

think about year were able time. this it able we fill to talked time, is but we'd the the year. And being complete expect process well, It what that some in-depth Tubi. in process. And within we're will before exorbitant -- a very be really I was so seeing, it amount that a take actually question? So process improve to [indiscernible] the and to relatively an Jessica, we take Jessica, go is significantly. of this the sorry, will And very, reduce smoothly, do we've second -- quarter, what rate don't

been our to competitive able to able that been been rate growth. very drive but So a fill we've to we've accelerate hold really in revenue market. pricing, we've

Gabrielle Brown

Operator, we have for question. time one more

Operator

Your final question Michael Goldman from comes the Ng line from Sachs. of

Michael Ng

if know components wondering about 'XX, of TV outperformance. we could about was you for $XXX for Is I bridge about would Steve? that digital the Just you talk think TV? And the high else talked million Specifically, us some Tubi EBITDA this fiscal the at that losses number given going then better? build to flag the as anything year, for you

Steven Tomsic

Yes.

margin all to From revenue the Cable perspective. and be postseason an an amazing be going look TV. political is those from the then the from Tubi revenue political numbers I of year But you for tailwind look of and company, the including -- balance look cyclical the mentioned momentum if underlying sport at obviously, FTS News lot a perspective, and top obviously and uplift in growth, at plus first, TV benefiting segment. which I is Lachlan revenue if beneficial So where you've -- a with got line if question, sort segment Fox had of that momentum is enormous is going it an the [MLB] trading a Tubi to at to both we've the

scheduling an which because specifically, And headwind of college perspective quarter. be cost Christmas If then [indiscernible] for a QX is will particularly we're us in at big from I sort year. QX, last up a revenue advertising football the be from expansion, perspective, a of game, the will is rights down shift sports had NFL reorientation in we whole for a look which us the

also accretive very of going You -- us got also further versus we've have increased think the look which really, really perspective we company And TV but of board, no rights be knock to be last obviously, we've I or will in offset have a second, we flow an year we fees then around, we've not feel the EBITDA for speaking, the driver, coming we cash we in when obviously Bowl discontinued the partially copper impact from got to schedule the where WWE a of for have [indiscernible]. very, FIFA. then and we got very were entertainment And for back strong us. but soccer remainder across with Super that, the sort year. is from and then will be big QX -- which QX, If QX, then either look a perspective, UEFA third it quarter. don't fourth at can Generally out,

So that's helpful going be final to in that quarter.

all So Hopefully, with nice to those across TV that out. that our break of really there's gives try no, verticals. n to segment you But model enough a tailwind

Gabrielle Brown

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

Lachlan Murdoch

Thanks, everyone.

Steven Tomsic

Thank you.

Operator

does Thank call conference Ladies that joining us. and you your today. gentlemen, for for conclude

You may now disconnect.

Fox (FOX) 4 Nov 242025 Q1 Earnings call transcript