Q2 2025 Earnings Summary
- Improving Subscriber Trends and Positive Impact of Skinny Bundles: FOXA is experiencing improving subscriber trends, with subscriber declines reducing to 7%, marking the second consecutive quarter of improvement. The inclusion of FOX's channels in new skinny bundles like DIRECTV's MySports and Comcast's Xfinity Sports and News TV is expected to be financially and economically positive, potentially attracting cord cutters and cord nevers, and further reducing subscriber losses.
- Strong Growth and Path to Profitability for Tubi: Tubi is showing significant growth, with a 31% increase in ad revenues in the quarter, showing acceleration even when excluding political revenue. FOX expects Tubi to reach profitability as per their business plans, indicating a positive impact on their overall revenue base and EBITDA. The Super Bowl livestream on Tubi is anticipated to provide tremendous exposure, attract new users, and capture valuable first-party data to drive future advertising revenues.
- Robust Advertising Growth at FOX News with New Major Clients: FOX News is experiencing strong advertising demand, with over 100 new national clients coming onto the platform due to its record ratings. FOX News achieved a commanding 69% share of the primetime cable news audience, with ratings and revenue accelerating into the third quarter. This strong performance is driving advertising pricing and revenue growth.
- FOX Corporation's direct-to-consumer offering is expected to have modest subscriber expectations and no exclusive rights costs, which may limit its attractiveness and potential revenue growth.
- The company continues to experience subscriber declines of approximately 7%, indicating ongoing challenges in retaining traditional pay-TV subscribers despite some improvement.
- Tubi is expected to continue operating at a loss for at least another year before reaching profitability, signaling ongoing investment without immediate returns.
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | +20% (from $4,234M to $5,078M) | Robust growth driven by improvements across segments – notably Cable Network Programming (+31%) and Television (+17%) – reflecting effective pricing and content strategies that built on a lower baseline in Q2 2024, resulting in a significant overall revenue expansion. |
Cable Network Programming | +31% (from $1,658M to $2,165M) | Strong performance mainly due to higher affiliate fee revenue from contractual increases and improved advertising and sports sublicensing income, amplifying momentum from the lower revenue figures in Q2 2024. |
Television Segment | +17% (from $2,542M to $2,961M) | Incremental revenue gains come from boosted affiliate fees and advertising revenues—factors such as enhanced NFL broadcasts and political ad performance further built on prior period challenges, helping to lift the segment’s figures from Q2 2024 levels. |
Net Income | +260% (from $109M to $393M) | Exceptional profitability improvement is attributable to expanded revenues and enhanced margin performance, with operating and cost efficiencies dramatically turning around the previously lower net income in Q2 2024. |
Basic Earnings Per Share (EPS) | +250% (from $0.23 to $0.82) | EPS surged in line with net income growth, reflecting both stronger operating results and a reduced share count compared to Q2 2024; this signals a significant recovery in profitability per share. |
Cash and Cash Equivalents | -19% (from $4,122M to $3,322M) | Liquidity tightened due to higher cash outflows in investing and financing activities (e.g., share repurchases or strategic investments), even as operating performance improved relative to Q2 2024’s healthier cash levels. |
Net Change in Cash | Shift from +$293M to -$73M | A marked change in cash flow dynamics occurred as increased investing and financing outflows more than offset operating inflows—contrasting with Q2 2024’s positive cash change—indicating a strategic reallocation of funds and tighter liquidity control. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Tubi Revenue | FY 2025 | Expected to cross the $1 billion revenue mark for FY 2025 | No guidance | no current guidance |
Super Bowl Impact | FY 2025 | Anticipated to be a significant driver of revenue and cash flow in Q3, though it will not be EBITDA-accretive | No guidance | no current guidance |
Political Advertising | FY 2025 | Expected to remain a strong tailwind for the Television segment | No guidance | no current guidance |
Affiliate Revenue Growth | FY 2025 | Noted a modest acceleration in affiliate revenue growth for both Cable and Television segments, supported by pricing increases and improvements | No guidance | no current guidance |
Sports Programming | FY 2025 | Strong performance expected from its sports portfolio—including NFL and college football—with Super Bowl 59 sold out at record pricing | No guidance | no current guidance |
Advertising Market | FY 2025 | Described as healthy across the board, with robust advertising dynamics noted in entertainment and sports | No guidance | no current guidance |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Cable Affiliate Fee | Q2 2025 | “Modest acceleration in affiliate revenue growth” | 824 | Met |
Television Segment Rev | Q2 2025 | “Political Advertising expected to remain a strong tailwind for the Television segment” | 2,961 | Met |
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
Subscriber Trends | Q1 2025: Moderation in subscriber declines and the notion of a subscriber “floor” was discussed. Q3 2024: Analysis of cable segment trends noted industry declines in the mid‑8% range with efforts to offset the impact through pricing. | Q2 2025: A 7% decline was reported—marking the second consecutive quarter of moderated declines—with optimism around the effects of skinny bundles and seasonal influences. | Positive trend – Continued moderation and improving sentiment despite declines. |
Tubi Growth | Q3 2024: Tubi showed strong revenue growth (22% revenue growth, increased MAUs, and a solid long‑term profitability outlook). Q1 2025: Tubi achieved 19% revenue growth, highlighted its massive AVOD library, and began benefiting from political ad dollars. | Q2 2025: Tubi recorded a 31% increase in ad revenues, announced its first Super Bowl livestream, and reiterated its pathway toward profitability, reinforcing its role in Fox’s digital strategy. | Positive momentum – Continued strong performance with new high‑impact initiatives. |
FOX News Advertising and Ratings | Q3 2024: FOX News was noted as the most‑watched cable network by day and primetime and maintained a strong share of total day viewing, though advertising faced some pressures from moderating direct response pricing. Q1 2025: Significant ratings growth and expanding advertising revenues were highlighted, with strong performance in key demographics. | Q2 2025: FOX News achieved record ratings—including a 70% audience share in December—and secured over 100 new national advertisers, underscoring record advertising revenue growth. | Consistently strong – Remarkably positive performance with enhanced momentum. |
Political Advertising | Q1 2025: Emphasis on a shift toward more localized and targeted political advertising spending, benefiting both local stations and Tubi. Q3 2024: A positive outlook was offered ahead of the upcoming election cycle, though the cyclical nature was acknowledged. | Q2 2025: Political advertising emerged as a key driver, contributing significantly (record political revenue exceeding $400 million in H1) and driving a 21% overall advertising revenue growth, without explicit mention of cyclic risks. | Positive and steady – Continued robust performance despite inherent cyclicality. |
Sports Programming Rights | Q3 2024: Fox opted not to pursue NBA rights, expressing satisfaction with its current “bouquet” of sports rights and emphasizing broadcast reach. Q1 2025: High profile events (NFL, college sports, World Series) delivered record viewership despite increased sports rights costs. | Q2 2025: Fox highlighted its strategic, multi‑platform reach for sports rights—with emphasis on skinny bundles and record pricing for NFL events—reinforcing its strong market positioning. | Consistently positive – Strong emphasis on strategic spread despite cost pressures. |
Distribution Strategy Shifts | Q3 2024: Distribution shifts were touched upon via a sports‑focused digital joint venture and Tubi’s role in reaching non‑traditional audiences. Q1 2025: This topic was not explicitly discussed. | Q2 2025: Fox provided detailed insights on new distribution approaches including skinny bundles, plans for a direct‑to‑consumer offering aimed at cord‑cutters/cord‑nevers, and enhanced streaming partnerships. | Increased emphasis – New focus and detailed strategy emerging in the current period. |
Cost and Margin Pressures | Q1 2025: Rising expenses were noted with the Cable segment up 9% and the Television segment up 11% due to higher sports rights amortization and news costs. Q3 2024: Limited discussion appeared, with some mention of affiliate fee revenue growth offering partial offset. | Q2 2025: Continued margin pressures were discussed as rising costs—especially linked to sports-related fees—remained partly offset by growth in affiliate fee revenues. | Ongoing challenge – Persistent cost pressures balanced by revenue growth. |
Content Portfolio Decisions | Q3 2024: The earnings call detailed decisions such as not pursuing NBA rights and a strategic shift from scripted to unscripted programming to reduce costs. Q1 2025: This area was not specifically mentioned. | Q2 2025: No direct mention or update on content portfolio decisions was provided, suggesting a reduced emphasis relative to prior periods. | Decreased emphasis – Fewer updates indicate lower topical focus in the current period. |
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D2C Strategy Details
Q: Can you provide more details on the upcoming D2C offering?
A: Lachlan Murdoch explained that FOX is designing a direct-to-consumer service targeting cord cutters and cord nevers who are outside the traditional cable bundle. They have no intention of converting traditional distribution customers into D2C customers and expect subscriber numbers to be modest, pricing the service accordingly. Importantly, there will be no additional incremental rights costs, as the service will package existing content from existing brands. The incremental cost will be relatively low compared to peers. They are targeting a launch by the end of this calendar year. -
Tubi's Growth and Profitability
Q: Can you discuss Tubi's growth, investment needs, and profitability timeline?
A: Lachlan Murdoch stated that investment in Tubi has reduced this year as the business scales and generates very positive advertising growth. FOX will continue to invest in Tubi throughout this year and next before it reaches profitability, but it is on track and on schedule to meet breakeven or profitability as per business plans and expectations. Tubi is expected to have a positive impact on overall revenue and EBITDA in the future. -
Fox News Advertising Strength
Q: What is driving the strength in FOX News advertising, and is it sustainable?
A: Lachlan Murdoch highlighted that FOX News is seeing a tremendous amount of new advertisers, with over 100 new major national clients who had not been FOX News advertisers before. This surge is due to the strength in ratings, which are tremendous and have continued post-election and post-inauguration. The increased demand is driving pricing as well. They see this momentum continuing, with ratings and revenue accelerating in the third quarter off the second quarter. -
Subscriber Trends and Skinny Bundles Impact
Q: Are you seeing benefits from skinny bundle inclusion on subscriber trends?
A: Lachlan Murdoch noted that the 7% subscriber decline this quarter is the second consecutive quarter where subscriber declines have reduced, which is a positive trend. It's too early to attribute this improvement to skinny bundles, but seasonality may play a role. FOX's portfolio is included in new bundles like DIRECTV's MySports and Comcast's Xfinity Sports and News TV, covering FOX Network, FOX News, FOX Business, FOX Sports 1, FOX Sports 2, and the Big Ten Network. From a financial perspective, FOX does as well in these bundles as in the traditional bundle. The emergent bundles are financially and economically positive, and they hope these bundles attract cord cutters and cord nevers. -
Sports Betting Licensing Progress and Sports Rights Strategy
Q: Can you update us on sports betting licensing progress and competing for sports rights?
A: Lachlan Murdoch mentioned that FOX is in discussions with 26 states for sports betting licensing. The process is complex but moving forward, and they expect no significant hurdles. Their option is not due until the end of 2030, providing ample time. Regarding sports rights, FOX believes that their broad reach is the top priority for leagues and their business. By engaging viewers across traditional linear platforms, cable distribution, digital MVPDs, and their own D2C services, FOX aims to be in the best position to serve both viewers and sports fans. The upcoming D2C package will be holistic, including all of their content of sports and news.