FOXA - Earnings call transcript Q2 2025

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation Second 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

Good Earnings welcome Call. operator. XXXX our Second 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;

Lachlan community. some remarks most will on take questions give then quarter, and we'll Steve from and the First, prepared recent the investment

current performance are may result that forward-looking on statements stated management's financial this based the Corporation's in statements These call is include call SEC and today's could and note of results results. filings. Please Fox operating what identified actual differ expectations, on regarding company's and certain from factors a as

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

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

Lachlan Murdoch

you and morning. this Thank you, us joining all for Gabby, thank

staff has on to homes to Los including and At devastating want all, their priority I not our to of the start, their have who weeks. belongings. affected wildfires profoundly in comment few many top over impact Angeles of our the Just support been losing past Fox, the been ways, much, if

we family, one and truly are with are We you.

days has but over fires, we the donated And as weeks and to million impact raised from But audiences Fox generosity our [ not is learned measured past and to years. employees. community, the have the platforms our in community on of or aid ] broader in across $X the thanks sadly,

as the longer-term their and comprehensively want thank to our tragedy at those now KT it has who of of the affected [ colleagues kept recovery coverage Fox and for informed I community to focus with them. unfolded. News TV around viewers Our ] shifted the the rebuilding most to

We work Thank efforts and and for their first of for responders. grateful you. firefighters also other are deeply the many

to our Now earnings. on

As affiliate and second than demonstrates release These second our just industry-leading record News and performance and continued [ driven strong and both fiscal to continued year-over-year Financially, ] local football League our of advertising election, postseason more through college EBITDA have to the at again and operating Baseball Major growth results Fox financial strong a by coverage you billion. momentum growth on-screen seen in quarter Fox the reflects are underpinned expansion doubled of across the stations, will NFL, of results $XXX of revenue over morning, this revenue viewership million, $X Fox. our delivery quarter and presidential by at strong Tubi. audience XX%

revenue the by quarter on led political back have successfully are revenue by of We higher cylinders. for by in declines affiliate consecutive Total with completed Total on grew renewals local X% record XX% subscriber was affiliate all stations. of advertising growth XXXX. will Notably, company impact improving we now our that driven fiscal all second in rates the part the firing quarter.

cycle, fiscal are we that acceleration into advertising our when strength third a Tubi record. across where quarter portfolio. revenue our also was to seeing even across in has quarter. average was Looked a presidential $XXX showing continued contributor excluding over this advertising holistically at our of million fiscal the revenue. achieving more increase revenue healthy half political trends a year's strong XXXX very political ad revenues, first growth in XX% And

Sports remains robust. remarkably

these pricing Our highest matches. and demand NFL of divisional postseason our the Championship broadcast NFC wildcard unit saw for and ever

direct coming News for blue-chip new well the pricing response are the in trends of clients We Super big across advertising game. XX as wait for can't out with Sunday, Fox Advertising where existing the as from there share Bowl sold is demand to [ increased record record national due are at network its advertisers We audience. this also categories, ]. strong to

is pricing historical at lows to levels. options And differentiated in the its upfront high single tracking above dock continues delivering series Entertainment, drama cancellation X with audience. and currently the at At digits with best medical its scatter [ launch Tubi years of monetize are debut hard-to-reach Fox ].

cordless diverse made on is everyone know call is over is Now not it [ cutters universe. Tubi's traditional audience nevers in currently And and ], cord and cord up will that this of the cable young. XX%

Bowl for related have shoulder unlocked cordless platform with [ digital always on Bowl programming. this our across viewers will While the year, Super and we these Tubi ] Tubi's in we viewers livestream years, first-ever Super past focus

broaden premiered viewers This Tubi the reach will After our the XXX,XXX will library support [ ], the the deliver and content Tubi viewers recently including of great hit of and a game further of ], service, have original to sideline, game, Tubi and will large provide game, to engage me more. QB opportunity new stellar an The a growth. over the the and the much episodes, Des-suite on movies experience [ its access cohort the TV users. and

platforms for delivering audiences. mission The of unique all content to our is large

hours nearly pure ], audience network the prime than [ once and News as consumed in Media again time FOX total the Fox year-over-year. network ]. by viewers XX% evident second day time ended the elexonite primetime XX% News was million the in Fox any its News quarter [ and prime over watched Channel cable Nowhere total more and audience is most with day tuning where by during to viewers growing content turn across billion XX.X that of more platform than On quarter. at X.X other

ratings its audience [ competitor Ponton over and share than peers which share its more XX%, the continued December. Momentum XX% includes viewing Fox of the News outperformed through at has highest closest cable its its and meaningfully posting of after quarterly history inauguration. news in in ] in a share doubling and

close News third coverage viewers, quarter-to-date ] grew it ] inauguration Media's primetime has all most and million up over making XX%. Fox the at day, to of viewership of to Primetime News coverage news cable This a the over ratings Fox watched up ratings television. contributed of the commanding share FOX XX%. [ [ delivering audience XX% XX in On the News

And share Fox News not of network. was the the to cable audience limited

Fox accessed example, by generated For news month growth our Digital supplemented nearly the opportunistically We there nontraditional the where strategy. past closest news cycle, to The saw News an consumers January, or uptick continued Fox information nearly ways. from sources. their their that these and competitor, new million in essential YouTube, and on during solely clearly audiences media was beating views in in are of view media election XXX consuming underscores We NBC, of News X.Xx. growth who this different either our markets

to of Fox primetime outstanding strong politics and news and insightful lineup. News outstanding ] [ coverage commitment achievements breaking to underscore journalism our to our unwavering our

Of time Fox course, and traditionally year the no Sports XXXX to for is strongest exception. our content leadership sport. also was of extends Autumn

events television, nights thrilling the remaining Football in watched League most College in consumption live quarter. With sports and all Friday Major of in leader [ content the Baseball was the second ] the Fox of Series, expanding NFL the World to

Venue we Discovery be Disney. with Warner in forward sports Our Bruges will only moving is [ that and [ sports not ] our venture streaming ], disappointment with joint

of they streaming done preparing genius distribution market are. the our digital the business be wherever access be has content, to distractions our tremendous we While offering continue digital near the future. And in the maximum consumers for our in to the brands truly distribution in platform on, difficult or the around became another a to that legal is what own bear. traditional, DXC for Venue launch whether that team focused amount outlet the was increasingly work Venue end, of to be

sports Encouragingly, seen announced we we launch the of recently. distribution have broadcast distributors major made smaller, Three since new in our partners networks. lower-cost news key us, The positive so the specific and bundles term. sports announced greater gives trend of venue more the these by see so long offerings months and skinny continue. we XX and We packages has a the content recent as this to channels is announced of other both even real news each us of to our [ [ the initiative market of than distributors over and a expect this months. inclusion have suite benefit ] confidence sports, distribution and ] Fox owners. venue, in strides In some for

value continue and every we a over remain and what year, We thoughtful very we committed our track shareholders opportunity solid excited that for come. to our and for Consistent record, to maximize is of first we fiscal to delivering will half had value are in manner, term. explore have the with long our disciplined a to

comments financial Let me for results. to now over quarter's Steve turn his the it on

Steven Tomsic

start Lachlan, Fox million, everyone. fiscal Fox. and the a by strong Underscoring the results quarter morning, of to $XXX in since highlighted Thanks, increase EBITDA good increase revenues the second a seen record we and quarter, the year, delivered in XXX% a XX% in momentum second for standout have

growth ad our local and engagement news. XX% increase at growth at led strength and was and advertising revenue across continued spend in sports across overall Our by collected ratings significant revenues Tubi a robust stations, including ] [ our MLB political strong portfolio, properties, our key with broad-based pricing strong

strength the of prior healthy year Total brands and our of company focused affiliate the quarter, fee once channels. a revenues demonstrating over portfolio again grew X%

at Lachlan we growth. this largely XX% sublicensing increase revenue costs X, impact by growth revenues Other to affiliate on As rights have material our last that mentioned, higher revenues year-over-year in [ impact fiscal no quarter, XXXX offset by year-over-year, corresponding with overall completed a segment. driven all ]. now renewals Similar grew EBITDA sports Cable our successfully in was

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

per income million a than was Excluding non-core over increase $X.XX. share This year. was net -- adjusted and prior more $X.XX EPS in represents adjusted the XXX% the items, recorded $XXX

last quarter. as Cable affiliate starting outpaced renewals just let's subscriber under [indiscernible] sports News operating grew higher Network the over driven which revenues from Cable advertising I the Now the grew other the linear XX% sublicensing ratings quarter from programming earlier. prior to our $XXX FOX prior in improving by the ], X% strength over revenue gains X%, EBITDA year, revenues from fee impact million year to segments, XX% delivered [ growth growth. approximately declines Cable revenues XX% of Cable grew segment due turn affiliate mentioned our revenues with pricing the [indiscernible]. net X% and

segment was along with revenues, partially the modest correspond increase costs. the production expenses, a Revenue to and to amortization increase sports in sports offset by increases in at sublicensing sports attributable that growth in primarily incremental cable XX% the news

Television fee revenues Advertising to by a growth. Now our in the turning Partially at revenue investment offsetting the up million Television subscriber pricing affiliated driven prior continued at the which which All offset revenues strength year-over-year, year-over-year our continued $XXX Tubi. Fox impact in over and million. our at ratings due our affiliate industry healthy across grew as grew owned year, by content to Other revenues, declines. more television segment X% political modest entertainment boosted ] by at segment, tied revenues strong $XXX to revenue segment quarter at higher advertising segment sports growth XX% in, and XX% television were studios. was growth were X% increase the Television our expenses, delivered increased XX% revenues MLB growth to [ and our EBITDA in our from reach schedule primarily Tubi. fees production across than Television stations

and advertising-related deficit Turning entirely our a recorded consistent reflects the the year year. flow, payments which we receivables, of $XXX capital free both seasonality of cash the is of this to of concentration This sports cycle half for the rights half of million where of our of quarter. in our with second fiscal first reversed working fiscal where buildup

of outstanding terms capital bringing in repurchased million cumulative since our $X our We billion the have XX% total the repurchased of remain or full $X.XX launch program, our billion. amount program In of allocation, utilizing buyback through total share $XXX shares buyback we to fiscal committed an buyback authorization to additional XXXX. year-to-date, the approximately of

we per share today, dividend. a XX% addition, semiannual In announced

strength $X.X measures the to These of dividends of of have we sheet million, approximately of Fox Corp. the reached approximately return cash in share this dividend establishment will and quarter returned With the since the cumulative billion debt. $X.X capital our by where with payout $X.X approximately form balance supported billion in $XXX billion in are buybacks both total cash our ended and shareholders

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

Gabrielle Brown

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

Operator

from Hodulik from [Operator UBS. Instructions] John question We a have

John Hodulik

you I ] ] need timing got in launching launching or guys. could you comment you Thanks, whether on near any DXC additional costs in terms done. additional And the future. DTC [ provide on about included what sounds Great. you that Any pricing the with color details a of follow-up Any Lachlan, Okay. of of then and some have nice terms what's [ service. terms in rights talked acceleration? associated the renewals all acceleration there, you or got like that . you it and the saw been driving affiliate, guys volumes that see in

Lachlan Murdoch

John. Thanks,

frankly, most the that then going for to So of on we most sort [ I it bundle for still company. consumers the should cable the DXC our strategy and explaining see traditional the and just the ], start clear very value by value back make as

are be. or offering cord But to there's wherever cable traditionally we say to will able cord they that cable said about But we population, the a supporters reach are target traditional those are and cable huge large cutters and of want traditional of an we'll and always more that, now bundle, cord be not shortly. to really nevers. we So outside the are we cord designing are, the obviously, having in either bundle. do designing we bundle it consumers cutters and nevers that are And

DXC customer intention want, a no and turning into have don't our traditional We we of distribution customer.

incremental price modest or existing rights the the do additional our we that be our those costs any accordingly. And subscriber service our package not brands, to targeting ] and rights cost. not will on of going expectations, be exclusive currently will This so consumers note also existing a [ expectations with bundle. are content in it's service we're to important modest And expect

certainly to So have our cost what in the incremental low, relatively will peers spent this relative be space.

the able talk coming it about And in more to we're months. excited and be to weeks

Steve, of terms calendar launch a we're this timing of targeting you to and want if In affiliate, the On certainly launch, end by talk? year.

Steven Tomsic

John, it's here. Steve

terms from bit is think trend a is rate attrition which last continue So we've in hopefully, a of perspective, And the affiliate, obviously, I for off encouraging these the over of seen, little continue. volume to couple skinny of bundles us. that quarters, see

and the portfolio fact a those of got reflective strategy. pricing, of distributors I think reflection of want, of of their in listen, that And that you're it's channels distribution our also because bundle. terms In reflective we've It's strategy seeing the that prioritizes very of it's inclusion fact them focused really skinny bundles. a the

And And X we negotiations. for see But that should we've we're strategy both take as the of starting distribution, to lead of content us said obviously, are years, these tough share think think last wallet. I so that. and to

Gabrielle Brown

Operator, next question, please.

Operator

from question Guggenheim. We have a Michael Morris . at

Michael Morris

there Are And doing there quality? related to incremental there? stream. concerns be Appreciate that then want deal. streaming little big right? changes bit I'm that? sounds It and that strength I what buyers. achieve about bit. Bowl seeing sustainable sustainability can ask News seems that? I'm on It and demand complicated. just what events I you're think from expand some curious interpreting you costs you like are service you're . I you Fox hope the can the big ask a Can live seeing a about you any you're that of that know about wanted what live the incremental if Because Maybe arguably advertising. that the of like also to Tubi sort at dynamic And about And a talk with from of to is it. -- Super by the advertising seeing

Lachlan Murdoch

much, you and. Mike, Thank very

News elements So on FOX X there's here. advertising,

to We X,XXX%, tremendous seeing You're on the new due platform, X and a right? are really reasons. to of clients coming amount advertisers, that's

I see very the is pleasing comments, think And the in it's inauguration. I are reason prepared and really to strength first momentum the post ratings, which election the mentioned and my our that continue post tremendous. in as that, strength

clients strength, the FOX onto we've not major been clients come national News that platform. who over advertisers, new With seen XXX have

demand continuing. that's and so pricing see And driving as And that well. we driving

In second are quarter. third revenue our see accelerating quarter, ratings in the the fact, we and off

Tubi's So not that a to [ Super unspent be onto in a question. ] excited Bowl. the -- different We're It's strategy. change it's

one platform front -- the always of that have for unlocked costs, technology to opportunity year, -- streaming the there's going Super our us. in on opportunity, digital with tiny some unique of We compared great a and it's But Obviously, Bowl. we're Tubi. focus audience but it's this obviously, obviously, the to

incremental So very low costs.

sort got to really a a and of go critically, obviously, also of advertisers capture them register of important that be drive marketing first programmatic other We'll for exposure to to The tremendous future. lot will and the you hope But we And many first-party our driving our us into obviously is Tubi, time. on first-party on Tubi data and data. the benefit partners as we for platform. CPMs critically and people help

It not opportunity. the for So a And -- about very change we're Tubi and huge excited intensely It's was what in on. the it's but at right. focus to very was it's something I question? keen necessarily strategy, was think we it third a opportunity a big were

Operator

question Ben Stanley. of a Swinburne Morgan from have We

Unknown Analyst

to licensing approval . betting over you double investment just we then investment into EBITDA on how Should might and as benefit see we any progress requiring be the This would various shape get on helpful. on on coming [ made time the front And tap as do line a needs Tubi FOX? incremental growth. Ben. begin a you've for content-related? the when follow-up, sports you just for And update largely is an states about of to the ahead? think time ] business you Thomas that on I think wanted Can dimensionalize the kind the

Lachlan Murdoch

on and continue this Great. has profitability, or growth. advertising in of continues Thomas, We year our this meet we'll Thank expectations day but to you Tubi Tubi before business. that for us to all. really and to for our kind Ben on very and generate much, the positive schedule -- see reduced as invest plans as per very good The investment business profitability reaches the track say and next scale to breakeven throughout in it business on profitability, Tubi and it's year

sorry future and -- into about is XX So we there relatively but time. sports no will XX XX, future. we going I one, process, revenue it's really to our EBITDA significant Tube's And think, it we base talking states the -- for obviously . On impact are process of betting, overall That be licensing. excited for positive expect it's sort that moving and hurdles with a are complicated take but forward. to,

Of XXXX. we've do because plenty our given for course, another of -- ourselves is of option end not time

So before of to ourselves to expect but given another license very would process, years we've through that. sort we X be get the significantly

And the and in $X.X current billion. consensus happy ] is of we're [ is over by XX.X% holding billion the valuation the in our money X.X% $X.X company worth parent [indiscernible] FanDuel over [ today, ], option on the flutter

So has been our for sports the positive and register. our for really very company betting strategy

Operator

Sachs. Ng a question have We Goldman from from Michael

Michael Ng

you bundle there? market And of to X% I follow-up of wanted inclusion you declines inclusion to just of the time then sub improving seeing outperform any trends, because the of -- skinny the expect Steve. a on over the Do are benefits from impact ask to quick declines yet? about subscriber

$XXX the the mid-$XXX as you I there last Any investing outperformance to losses given year well think, . million. around updates high today? just Xb that go million said comments digital had to from, You expect as

Lachlan Murdoch

Mike. Thanks,

positive X% have good trends, Steve we as We look, sub But declines let see lines the to But you're losses. trends [indiscernible]. talk where sub quarter on quarter investments. see sub look, trend. have them is So as consecutive that the this subscriber I'll a in right, very second -- reduced.

early for skinny impact. bundles, say really different. of it's skinny call I that, something having little too sort want too call you them early But a really these this think major bundles, that's it's a I'll to if bit

I subscriber sports middle trends season. energized there in probably with Although is the some seasonality being think in and exciting of obviously

So the that, are we there probably in heartened by direction. moving right is trends some very the but seasonality in

and at on With bundles, our you Xfinity pretty a of News much bundles from of MySports perspective ], [ a entirety the in TV bundles. on are these skinny DIRECTV our or channels, small the if portfolio, Comcast FOX look with exceptions with bouquet of Sports those couple

both of the FOX mentioned, FOX in FOX ] the Big FOX and FOX So I [ Business, XX X, Sports Sports News, network. X those Network,

FOX is this bundle. not a from perspective, is This a so lean skinny And a and bundle. mean

like So it's Jack.

do ] our from And a traditional we [ the JAK -- do from we as well financial as us, in in we perspective, bundle. bundle normal

cordless nevers. trend cable extent not, with pleased economically cord us. subscriber, of the does cord a for will we a doesn't. off. that whole does, hope this the are to But cutters very if that bundle. certainly the we're and it this better We hope would It's attractive in turn I and traditional positive customers, instances, be if So financially the to bundle But some it it and

] bodes So it with [ forward. well the think we -- we're business bundle, the for our pleased for and going emergent

to want do Steve, talk you the.... to

Steven Tomsic

year. Mike, staying alluded to so we're of of digital, for fiscal in -- terms improvement terms on the that in digital track full that Yes, you in investment

MAX we comes look I of of In fact, terms of you Bowl [ balance advantage going with user take the Super comes and just marketing the of acquisition would Tubi's good lower as the for obviously, of ] to that EBITDA with to $XX outlook the year, with investment. sort that. the to the say Tubi. to from digital close have million better this probably that Tubi, just in quarter, Half

at expect that been we'll on extent we're in we to QX. more terms to around in the the but that gas track. bringing that then spot no, But a investing on track But So next moment, opportunities, we've should on step remain the bit opportunistic, little of of them see investment you digital terms in down.

Gabrielle Brown

one question. more we time . for Operator, have

Operator

Your at is . MoffettNathanson. Robert from final question Fishman

Robert Fishman

sports World FOX you how to back the about Just News Nation on clarify Netflix After? other [ for or is ] Netflix continue can FOX following won to sports talk to rights the and content? up rights. for digital the positioned with a Cup, offering just is the And plan strategy. Women's compete you . bidders to on will DXC ] [ that, future then that that Or FOX just sports-only include offering coming feel just

Lachlan Murdoch

much, Robert. Very

So #X, and on the continue the in overall, believe through actually reach that for front and because the it -- certainly our X to and content on ties wants direct-to-consumer continue is sports will consumer strategy our we any what platform every that X every leagues of we priority our platform. for And into to and business. it put strategy

also sports viewers, and fans. we our would we'll content in our our And is with That continue the viewers digital position cord us absolutely with our as holistic will cutters the the -- linear across own across MVPDs traditional announce package, DXC we so engagement driving distribution but platforms of and that future, both to broadest coming put the across to of see all of consumer news. that best package our targeting and by serve package, across nevers these in but sports more really cable DXC package reach services as cord the

Gabrielle Brown

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

Lachlan Murdoch

Thank you.

Steven Tomsic

you. Thank everyone. Thanks,

Operator

Thank Corporation does Second Quarter Fiscal Fox Year Ladies conclude Conference that the XXXX you. gentlemen, and Call. Earnings

Fox (FOX) 4 Feb 252025 Q2 Earnings call transcript