Name: Fox Corp Q2 2025 Earnings Call
Start: 2025-02-04T13:31:00.000Z

Executive Summary

Strong Q2 FY25: Revenue $5.08B (+20% YoY), Adjusted EBITDA $781M (+123% YoY), Adjusted EPS $0.96 vs $0.34 LY, driven by record political spend, stronger NFL/MLB ratings and pricing, and accelerating growth at Tubi; GAAP EPS $0.81 reflects $170M restructuring charge partly offset by $81M non‑operating gains .
Segment breadth: Cable revenue +31% and EBITDA +16% on stronger FOX News ratings and sports sublicensing; Television revenue +16% and EBITDA swing to +$205M on political and sports advertising and Tubi growth, partly offset by higher sports/digital costs .
Capital returns: Declared $0.27 semiannual dividend (payable Mar 26, 2025; record Mar 5, 2025) and repurchased ~$250M Class A shares in the quarter; $0.9B remaining authorization; cash $3.3B, debt ~$7.2B at quarter end .
Outlook/catalysts: Management cited healthy Q3 ad trends, Super Bowl sold out at record pricing, and advancing direct-to-consumer plans targeting cord‑nevers/cutters with modest incremental costs (no new rights), aiming to launch by year‑end calendar 2025; affiliate renewals impacting FY25 completed .
Estimates context: S&P Global consensus data was unavailable at retrieval; we cannot assess beats/misses vs estimates at this time.

What Went Well and What Went Wrong

What Went Well
- Broad-based ad strength: Total advertising +21% YoY on record political, NFL/MLB pricing, Tubi acceleration, and stronger news ratings; Cable ad +32%, TV ad +19% .
- FOX News momentum: “We are firing on all cylinders… engagement, monetization or profitability” with Q2 FOX News consumption of 4.5B hours and record share; >100 new blue‑chip advertisers added post‑election .
- Tubi acceleration: Q2 Tubi ad revenue +31% YoY; management focused Super Bowl livestream to Tubi with “very low incremental costs” to drive new users and first‑party data .
What Went Wrong
- Cost inflation in sports/digital: Higher sports rights amortization/production and higher digital costs tempered flow‑through; Cable and Television both cited elevated sports and digital costs .
- GAAP volatility from non-core items: $170M restructuring/impairment and other corporate matters reduced GAAP EPS; adjusted metrics excluded these items .
- Subscriber pressure persists: Net subscriber declines ~7% YoY (improved from ~8%), still a structural headwind; skinny bundles viewed positively but too early for major impact .

Financial Results

Overall P&L and EPS vs prior year and prior quarter

Metric	Q2 FY24	Q1 FY25	Q2 FY25
Revenue ($B)	$4.23	$3.56	$5.08
GAAP Net Income ($M)	$109 attributable to FOXA	$827 attributable to FOXA	$373 attributable to FOXA
GAAP Diluted EPS ($)	$0.23	$1.78	$0.81
Adjusted EBITDA ($M)	$350	$1,048	$781
Adjusted EPS ($)	$0.34	$1.45	$0.96
EBITDA Margin (%)	8.3% (350/4,234)	29.4% (1,048/3,564)	15.4% (781/5,078)
Net Income Margin (%)	2.6% (109/4,234)	23.2% (827/3,564)	7.3% (373/5,078)

Revenue composition

Revenue Component ($M)	Q2 FY24	Q1 FY25	Q2 FY25
Affiliate Fees	$1,787	$1,843	$1,900
Advertising	$2,002	$1,329	$2,422
Other	$445	$392	$756
Total	$4,234	$3,564	$5,078

Segment breakdown

Segment	Metric ($M)	Q2 FY24	Q1 FY25	Q2 FY25
Cable Network Programming	Revenue	$1,658	$1,597	$2,165
	Segment EBITDA	$564	$748	$657
Television	Revenue	$2,542	$1,953	$2,961
	Segment EBITDA	$(138)	$372	$205
Corporate & Other	Revenue	$49	$65	$58
	Segment EBITDA	$(76)	$(72)	$(81)

KPIs and balance sheet

KPI	Q2 FY24	Q1 FY25	Q2 FY25
Political Ad Revenue (FY25 H1)	—	—	>$400M cumulative first-half record
Tubi Advertising Growth YoY	—	+19% in Q1	+31% in Q2
Cable Net Subscriber Decline	~8% prior quarter	~7.8%	~7% (second straight improvement)
Super Bowl Inventory	—	—	Sold out, record pricing (for Q3 event)
Share Repurchases (Quarter)	—	$250M	~$250M
Remaining Buyback Authorization	—	$1.15B	$0.9B
Cash / Total Debt (Period End)	—	$4.05B / $7.2B	$3.32B / $7.2B

Notes: EBITDA and net income margins are computed from cited revenue/EBITDA/NI sources.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Digital investment (losses)	FY2025	Guide to improve from mid‑$300M in FY24 to high‑$200M in FY25	“On track”; Q2 digital investment ~+$40M better YoY; expect Q3 step‑up around Super Bowl marketing, full‑year still down	Maintained trajectory
Direct-to-Consumer launch timing	Calendar 2025	—	Target launch by end of calendar 2025; modest subscribers, no incremental content rights	New timing disclosed
Affiliate renewals	FY2025	—	All renewals impacting FY2025 completed	Completed
Dividend	H1 CY2025	—	$0.27 per share payable Mar 26, 2025; record date Mar 5, 2025	Declared
Share repurchase	Ongoing	Authorization $7B	$6.15B cumulative repurchased YTD; intent to utilize full $7B	Continued

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY24, Q1 FY25)	Current Period (Q2 FY25)	Trend
D2C (FOX 1) / Distribution	Venue JV optimism; balanced affiliate growth despite cord‑cutting	D2C service designed for cord‑nevers/cutters; modest subs; no new rights; aiming by year‑end 2025; skinny bundles positive	Advancing; execution focus
Tubi growth & profitability	MAUs/TVT growth; mid‑teens revenue exit; continued investment	+31% ad revenue; Super Bowl livestream to drive users/data; investment down YoY but step‑up Q3; breakeven/profitability on plan	Accelerating revenue; investment disciplined
Political advertising	Expect robust, more local/targeted	Record first‑half >$400M; stations + Tubi both beneficiaries	Strong tailwind
FOX News ratings/advertisers	Ratings re‑acceleration; DR pricing strength	Record audience share; >100 new national clients; DR and scatter pricing strong	Strengthening
Subscriber trends/skinny bundles	Sub declines mid‑8% rate; expect floor over time	Declines improved to ~7%; inclusion in new skinny bundles helps; economics comparable to legacy bundle	Improving trajectory
Sports rights/events	Summer of Soccer; NFL strength; Super Bowl LIX ahead	Record NFL postseason pricing; Super Bowl sold out; MLB postseason uplift; costs elevated	Demand strong; costs up
Sports betting (FanDuel option)	Licensing underway; value highlighted	26 states in process; 18.6% option intrinsic value >$2.8B; 2.5% Flutter stake ~$1.1B	Progressing

Management Commentary

CEO Lachlan Murdoch: “A compelling fall sports schedule combined with a record-breaking presidential election news cycle resulted in second quarter results that reflect the strength and breadth of FOX… our focused strategy of live news and sports programming, coupled with our growing digital initiatives, continues to deliver.”
“We are firing on all cylinders… Total affiliate revenue grew by 6%… advertising growth of 21%… We are sold out with record pricing for this Sunday [Super Bowl 59].”
On D2C: “We are designing an offering to… target… cord cutters and cord nevers… no exclusive rights costs… incremental cost relatively low… targeting a launch by the end of this calendar year.”
CFO Steve Tomsic: “Adjusted net income was $442 million and adjusted EPS was $0.96… Television segment EBITDA grew by $343 million year-over-year to reach $205 million.”
Capital returns: “We have repurchased an additional $550 million fiscal year-to-date… cumulative… $6.15 billion… [and] announced a… semiannual dividend.” (Dividend amount specified at $0.27 per share in 8‑K)

Q&A Highlights

D2C details and timing: Service will package existing FOX brands for cord‑nevers/cutters, priced to avoid cannibalizing pay‑TV; no new rights cost; launch targeted by end of calendar 2025 .
Tubi investment and profitability: Investment down YoY by ~+$40M in Q2; expect temporary Q3 step‑up around Super Bowl user acquisition; breakeven/profitability on plan as scale and ad growth improve .
FOX News ad demand: >100 new national clients joined post‑election, sustained into Q3; strong DR and scatter pricing; management expects momentum to continue .
Subscriber trends and skinny bundles: Sub declines improved to ~7%; FOX channels broadly included in skinny bundles with comparable economics to traditional; positive long‑term distribution dynamic .
Sports betting option: Licensing in 26 states progressing; FanDuel 18.6% option in‑the‑money by >$2.8B on street consensus; 2.5% Flutter stake valued >$1.1B; ample time to exercise (through 2030) .

Estimates Context

We attempted to retrieve S&P Global consensus for Q2 FY25 (EPS, revenue, EBITDA) but the request failed due to an API daily limit (“Daily Request Limit… Exceeded”). As a result, we cannot provide a definitive beat/miss vs Wall Street estimates for this quarter at this time [functions.GetEstimates error].

Key Takeaways for Investors

Mix-driven top‑line strength: +20% revenue and +123% Adjusted EBITDA YoY on election cycle, sports pricing, and Tubi acceleration; this validates FOX’s live news/sports plus AVOD strategy .
FOX News is a monetization engine: Record audience share and advertiser influx underpin ad pricing power, supporting Cable segment despite sub declines .
Tubi is scaling into a mainstream AVOD leader: +31% ad growth in Q2, with Super Bowl activation designed to add users and first‑party data at low incremental cost; profitability remains on plan .
Distribution resilience: Affiliate revenues +6% with improved sub erosion (~7%); inclusion in new skinny bundles preserves economics and broadens reach .
Cost vigilance needed: Elevated sports rights and digital costs temper margins; watch Super Bowl impact in Q3 where ad cash flow is strong but EBITDA can compress from rights amortization .
Capital returns intact: Dividend declared ($0.27) and ongoing buybacks ($0.9B authorization remaining) supported by $3.3B cash and a manageable $7.2B debt load .
Upcoming catalysts: FOX 1 D2C launch (target by year‑end 2025), continued FOX News ratings strength, and sustained Tubi growth; monitor regulatory/distribution developments and progress on FanDuel licensing .

Supporting Details and Additional Context

FOX News ratings corroboration: January press releases highlight cable news share leadership post‑election, record inauguration coverage, and strong demographic reach, reinforcing the Q2 narrative .
Q3 preview: Management indicated Super Bowl LIX sold out at record pricing, with Q3 showing record FCF; expect higher costs from rights amortization but strong advertising uplift (see subsequent Q3 release for detail) .

Fox Corp (FOXA)·Q2 2025 Earnings Summary