b978fefebd68406f2299cdf41db419e4ccfc72d3048964be6c043992b9ac015c

| Segment / Quarter                          | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|--------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Cable Network Programming ($ billion)**  | 1.60  **[0001628280-24-044851_fox-20240930.htm:20]**  | N/A     | 1.472  **[0001628280-24-021664_fox-20240331.htm:15]**  | 1.66  **[0001628280-24-003617_foxearningsreleaseq224.htm:1]**  | 1.387  **[0001628280-23-036233_fox-20230930.htm:12]**  | 1.41  **[0001193125-23-205604_d497361dex991.htm:2]**  | 1.57  **[0001193125-23-138936_d370789dex991.htm:1]**  | 1.63  **[0001193125-23-027696_d408745dex991.htm:1]**  |
| **Television ($ billion)**                 | 1.95  **[0001628280-24-044851_fox-20240930.htm:20]**  | 1.62  **[0001628280-24-034974_foxq42024earningsrelease.htm:4]**  | 1.938  **[0001628280-24-021380_foxearningsreleaseq324.htm:2]**  | 2.54  **[0001628280-24-003617_foxearningsreleaseq224.htm:1]**  | 1.780  **[0001628280-23-036233_fox-20230930.htm:12]**  | 1.59  **[0001193125-23-205604_d497361dex991.htm:3]**  | 2.475  **[FOXA_3328292_3]**  | 2.93  **[0001193125-23-027696_d408745dex991.htm:1]**  |
| **Other, Corporate and Eliminations ($ billion)** | 0.065  **[0001628280-24-044851_fox-20240930.htm:20]**  | N/A     | 0.037  **[0001628280-24-021664_fox-20240331.htm:15]**  | 0.034  **[0001628280-24-003617_foxearningsreleaseq224.htm:1]**  | 0.040  **[0001628280-23-036233_fox-20230930.htm:12]**  | 0.035  **[0001193125-23-205604_d497361dex991.htm:1]**  | 0.039  **[0001193125-23-138936_d370789dex991.htm:1]**  | 0.039  **[0001193125-23-027696_d408745dex991.htm:1]**  |
| **Total Revenue ($ billion)**              | 3.56  **[0001628280-24-044851_fox-20240930.htm:20]**  | 3.09  **[0001628280-24-034974_foxq42024earningsrelease.htm:1]**  | 3.447  **[0001628280-24-021664_fox-20240331.htm:15]**  | 4.23  **[0001628280-24-003617_foxearningsreleaseq224.htm:0]**  | 3.207  **[0001628280-23-036233_fox-20230930.htm:12]**  | 3.03  **[0001193125-23-205604_d497361dex991.htm:1]**  | 4.084  **[0001193125-23-138936_d370789dex991.htm:1]**  | 4.61  **[0001193125-23-027696_d408745dex991.htm:0]**  |

7ba9a8deba55bd8c1612fc9ccfba6b09faafcca7ecf4be1380a294bba5420d52

Fox Corporation (FOXA) operates as a news, sports, and entertainment company, managing its businesses through various segments **[0001628280-24-036123_fox-20240630.htm:62]** **[0001628280-24-036123_fox-20240630.htm:3]**. The company produces and licenses content distributed through multiple platforms, primarily in the U.S., and is involved in producing, acquiring, marketing, and distributing programming **[0001628280-24-036123_fox-20240630.htm:62]** **[0001628280-24-036123_fox-20240630.htm:3]**. FOXA's revenue is generated from affiliate fees, advertising, and other operating activities **[0001628280-24-036123_fox-20240630.htm:62]**.

1. **Cable Network Programming** - Produces and licenses news and sports content distributed through traditional and virtual multi-channel video programming distributors and other digital platforms, primarily in the U.S. **[0001628280-24-036123_fox-20240630.htm:62]** **[0001628280-24-036123_fox-20240630.htm:3]**.
2. **Television** - Involves producing, acquiring, marketing, and distributing programming through the FOX broadcast network, Tubi (an advertising-supported video-on-demand service), and 29 full-power broadcast television stations **[0001628280-24-036123_fox-20240630.htm:62]** **[0001628280-24-036123_fox-20240630.htm:3]**.
3. **Credible** - Operates as a U.S. consumer finance marketplace, included in Corporate and Other due to not meeting separate reporting criteria **[0001628280-24-036123_fox-20240630.htm:62]** **[0001628280-24-036123_fox-20240630.htm:3]**.
4. **FOX Studio Lot** - Provides television and film production services, included in Corporate and Other due to not meeting separate reporting criteria **[0001628280-24-036123_fox-20240630.htm:62]** **[0001628280-24-036123_fox-20240630.htm:3]**.

41af0ad4288f361b8a718684d29de6d0d6ce1d748ee4e5bc303ef7eab872bcb6

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

1bc13378c3167263f5798f4969fbc6ccb574ffac2c40715d345cdb26c3241739

f8d0b32a35fe69cf771662b7e6f1b5585e8b3031fab93e61c4b10d37381b58de

1. With Tubi expected to cross $1 billion in revenue this fiscal year, how sustainable do you believe this growth is, especially considering rising competition in the AVOD space and potential increases in content acquisition costs?
2. Affiliate fee revenues grew 3% at Cable and 10% at Television, but subscriber declines are still close to 8%; how confident are you that this moderation in subscriber losses is sustainable, and what strategies are you implementing to address long-term cord-cutting trends?
3. Political advertising significantly boosted your revenues this quarter; with the election cycle concluding, how do you plan to compensate for the anticipated drop in political ad spending in the coming quarters?
4. Cable expenses increased by 9%, primarily due to higher sports programming rights amortization; can you discuss the long-term profitability of your sports rights investments amid escalating costs and intense competition for viewers?
5. Regarding your investment in Flutter and the exercise of your options in FanDuel, what factors are influencing your timing, and how does this align with your overall strategy in the sports betting market, especially considering the regulatory challenges in obtaining state licenses?

bc3a4cdd0ea6ffdc702f4a4817b15da3038883b71ecb57497583e574af3f8b42

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

338ffbd9e90e84b33755a51d67893e9e65f346ced50b6d833d56f6e741dff6dc

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Tubi Revenue**: On track to reach **$1 billion** in revenue.
  2. **Political Advertising**: Expected strong revenue, benefiting local stations and Tubi.
  3. **Super Bowl 59**: Anticipated significant growth in advertising revenues and free cash flow.
  4. **Affiliate Revenue**: Continued growth expected despite subscriber declines.
  5. **Content and Programming**: Investment in digital-led growth initiatives, focus on Tubi, and a shift back to scripted content.
  6. **Sports Programming**: Positive contributions from a strong NFL season.
  7. **Subscriber Trends**: Slight improvement in subscriber decline rates  **[FOXA_3405573_2]** **[FOXA_3405573_10]** **[FOXA_3405573_8]** **[FOXA_3405573_5]** **[FOXA_3405573_1]** **[FOXA_3396564_6]** **[FOXA_3396564_9]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Major Event Cycle**: Significant growth in advertising revenues and free cash flow from Super Bowl 59 and election cycle.
  2. **Affiliate Revenue**: Light year of renewals, with 25% of distribution revenues up for renewal.
  3. **Digital Investments**: Continued investment in digital growth, with Tubi as a focus.
  4. **Content Spend**: Increases in sports amortization, Tubi content investment, and a shift to scripted content.
  5. **Political Advertising**: Robust election advertising cycle expected.
  6. **Venue Sports**: Launch expected in the fall.
  7. **Shareholder Returns**: Increase in semiannual dividend to $0.27 per share and continued share repurchases  **[FOXA_3396564_6]** **[FOXA_3396564_9]** **[FOXA_3396564_3]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Political Advertising**: Strong expectations for national and local races.
  2. **Super Bowl and NFL Schedule**: Anticipated growth in advertising revenues and free cash flow.
  3. **Affiliate Revenue**: Continued growth supported by affiliate renewals.
  4. **Tubi**: Continued growth and investment in digital-led initiatives.
  5. **Venue Sports Streaming Service**: Planned launch in the fall.
  6. **Capital Allocation**: Increase in semiannual dividend and commitment to share repurchases  **[FOXA_3396564_6]** **[FOXA_3387298_3]** **[FOXA_3387298_1]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q2 2024
- **Guidance**: The documents do not provide specific guidance metrics for this period. The call primarily discusses past performance and strategic initiatives without explicit forward-looking guidance metrics  **[FOXA_3372193_3]** **[FOXA_3372193_4]** **[FOXA_3372193_1]** .

7ff0a984b5e87e2171157f8793fa5ff2a52c7dba62eb5cd27155c8e0237385d0

- ABC, NBC, and CBS: These networks broadcast a significantly greater number of hours of programming than the FOX Network, allowing them greater flexibility in designating or changing broadcast time periods  **[0001628280-24-036123_fox-20240630.htm:19]** .
- Other broadcast television networks, cable television systems and networks, direct-to-consumer streaming and on-demand platforms and services, mobile, gaming and social media platforms, audio programming, and print and other media: These are general categories of competitors for audiences, programming, and advertising revenue  **[0001628280-24-036123_fox-20240630.htm:39]** **[0001628280-24-036123_fox-20240630.htm:19]** .
- Other television stations or cable networks: These may change their formats or programming to compete directly with FOX's stations or networks  **[0001628280-24-036123_fox-20240630.htm:39]** .
- SVOD services with advertising-supported offerings, AVOD services, and FAST products: These have intensified competition for audiences and advertising  **[0001628280-24-036123_fox-20240630.htm:39]** .
- Other content creators: Compete with FOX's entertainment programming production businesses for creative talent, new content ideas, intellectual property, and content distribution  **[0001628280-24-036123_fox-20240630.htm:19]** .
- Other content licensors and sellers: Compete with FOX Entertainment Global for content distribution  **[0001628280-24-036123_fox-20240630.htm:19]** .

7667383a0538fd35a31741233326d54530aae4d975050c2b6f2943a8a7ef075f

Cable Network Programming

- Affiliate Fee

- Advertising

- Other

Television

Other, Corporate and Eliminations

Total Revenue

bdeef9830f28e40170a43c76107ebec6c79bc4d2e371c0a1a1ba5cb6d8e3cd57

**Annual guidance for FY 2025:**
- **Tubi Revenue**: On track to reach $1 billion  **[FOXA_3405573_2]**  (no prior guidance)  
- **Political Advertising**: Expected strong revenue, benefiting local stations and Tubi  **[FOXA_3405573_2]**  (no change from prior guidance  **[FOXA_3405573_10]** )  
- **Super Bowl 59**: Anticipated significant growth in advertising revenues and free cash flow  **[FOXA_3405573_2]**  (no change from prior guidance  **[FOXA_3405573_10]** )  
- **Affiliate Revenue**: Continued growth expected despite subscriber declines  **[FOXA_3405573_2]**  (no change from prior guidance  **[FOXA_3405573_10]** )  
- **Content and Programming**: Investment in digital-led growth initiatives, focus on Tubi, and a shift back to scripted content  **[FOXA_3405573_2]**  (no change from prior guidance  **[FOXA_3405573_10]** )  
- **Sports Programming**: Positive contributions from a strong NFL season  **[FOXA_3405573_2]**  (no prior guidance)  
- **Subscriber Trends**: Slight improvement in subscriber decline rates  **[FOXA_3405573_2]**  (no prior guidance)  

b69a293de32d1256cd12039534845df1c29bc90583e0f4b1dd96153b5a169f98

| Name             | Position                           | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|------------------|------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Lachlan K. Murdoch| Executive Chair and CEO            | October 2018     | Lachlan K. Murdoch is the **Executive Chair and Chief Executive Officer** of Fox Corporation. He has held the position of Executive Chair since January 2019 and Chief Executive Officer since October 2018. He has extensive experience in the media industry, having led various international and domestic media companies  **[0001193125-24-226930_d749416ddef14a.htm:94]** **[0001193125-24-226930_d749416ddef14a.htm:13]** **[0001193125-23-240490_d467449ddef14a.htm:13]** . |
| John P. Nallen   | Chief Operating Officer            | October 2018     | John P. Nallen serves as the **Chief Operating Officer** of Fox Corporation. Before joining Fox, he was the Senior Executive Vice President and Chief Financial Officer at 21st Century Fox (21CF) from 2013 to March 2019, and its Executive Vice President and Deputy Chief Financial Officer from 2001 to 2013  **[0001193125-24-226930_d749416ddef14a.htm:94]** **[0001193125-23-240490_d467449ddef14a.htm:94]** .                |
| Adam Ciongoli    | Chief Legal and Policy Officer     | December 2023    | Adam Ciongoli serves as the **Chief Legal and Policy Officer** at Fox Corporation. He has been with the company since December 2023. Before joining Fox, he worked at Campbell Soup Company from 2015 to December 2023, where he held roles including Executive Vice President, General Counsel, and Chief Sustainability Officer  **[0001193125-24-226930_d749416ddef14a.htm:94]** **[0001193125-24-226930_d749416ddef14a.htm:77]** .  |
| Steven Tomsic    | Chief Financial Officer            | October 2018     | Steven Tomsic serves as the **Chief Financial Officer** of Fox Corporation. He has been with the company and its predecessors for **22 years**. Before becoming CFO in October 2018, he served as Deputy Chief Financial Officer of 21CF for two years. He oversees all corporate and operational finance activities  **[0001193125-24-226930_d749416ddef14a.htm:94]** **[0001193125-23-240490_d467449ddef14a.htm:54]** **[0001193125-24-226930_d749416ddef14a.htm:47]** .            |

fe50472ff2aa8a029fe59db113587e57e51051279e33204ca9e071a32bb68732

| Program Details            | Program 1          |
|----------------------------|--------------------|
| Approval Date              | **Not specified**  **[0001628280-24-044851_fox-20240930.htm:7]** **[0001628280-24-044851_fox-20240930.htm:33]**  |
| End Date/Duration          | **No time limit**  **[0001628280-24-044851_fox-20240930.htm:7]** **[0001628280-24-044851_fox-20240930.htm:33]**  |
| Total additional amount    | **$7 billion**  **[0001628280-24-044851_fox-20240930.htm:33]**  |
| Remaining authorization amount | **$1.15 billion** (as of 2024-09-30)  **[0001628280-24-044851_fox-20240930.htm:7]**  |
| Details                    | The program may be modified, suspended, or discontinued at any time.  **[0001628280-24-044851_fox-20240930.htm:7]** **[0001628280-24-044851_fox-20240930.htm:33]**  |

7308173ae027a33a85c3d679d5d1bc8acc6ceabecd779d96881df9b6e206f1cc

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2018  **[0001628280-24-036123_fox-20240630.htm:97]**    | Present  | Current auditor   |

d8cf937efd92ad0e2e398ee775f2815e4339203917dd884a633c37c46107bfbc

2a015d124afe397a4f96e6cd99062dfb7ff5ab6f476f6bf06ffe2196194a10a7

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,564 million in Q1 2025 (+11% YoY from $3,207 million)  **[0001628280-24-044851_fox-20240930.htm:1]** **[0001628280-24-044851_fox-20240930.htm:18]** **[0001628280-23-036233_fox-20230930.htm:17]** **[0001628280-23-036233_fox-20230930.htm:1]**   
- Cable Network Programming: $1,597 million in Q1 2025 (+15% YoY from $1,387 million)  **[0001628280-24-044851_fox-20240930.htm:20]** **[0001628280-23-036233_fox-20230930.htm:13]**   
- Television: $1,953 million in Q1 2025 (+10% YoY from $1,780 million)  **[0001628280-24-044851_fox-20240930.htm:20]** **[0001628280-23-036233_fox-20230930.htm:13]**   
- Other, Corporate & Eliminations: $65 million in Q1 2025 (+63% YoY from $40 million)  **[0001628280-24-044851_fox-20240930.htm:20]** **[0001628280-23-036233_fox-20230930.htm:13]**   
- Net Income: **$827 million (+103% YoY)**  **[0001628280-24-044851_fox-20240930.htm:1]** **[0001628280-24-044851_fox-20240930.htm:18]** **[0001628280-23-036233_fox-20230930.htm:17]** **[0001628280-23-036233_fox-20230930.htm:1]**   
- EPS (Basic): **$1.79 (+116% YoY)**  **[0001628280-24-044851_fox-20240930.htm:1]** **[0001628280-24-044851_fox-20240930.htm:18]** **[0001628280-23-036233_fox-20230930.htm:1]**   

da3e766ac03c226a3ac6f64175cee413bd510342c79eea0ca9e9c86a0ae0e25b

e61784ed5d81259a80324c3899260c69b5153ac33a3146b0262979e702ce5b93

| Year  | Amount Due (Millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|-------|------------------------|------------------------------------|-------------------|---------------------------------------------------------------------------------|
| 2025  | $600                  | 3.050% Senior Notes               | 3.050            | 8.3% = ($600M / $7,199M) * 100 **[0001628280-24-044851_fox-20240930.htm:7]** **[0001628280-24-044851_fox-20240930.htm:2]**                                 |
| 2028  | $0                    | Unsecured Revolving Credit Facility | N/A              | 0.0% = ($0M / $7,199M) * 100 **[0001628280-24-044851_fox-20240930.htm:7]** **[0001628280-24-044851_fox-20240930.htm:26]**                                   |

4fcb465ce28751dd2b54364103bf1517e429c00d0203a787bcdc19e370a7579e

Remaining performance obligations (USD billions)

Number of full-power broadcast television stations (count)

Number of duopolies (count)

Number of full-power broadcast television stations affiliated with the FOX Network (count)

Number of full-power broadcast television stations affiliated with MyNetworkTV (count)

Number of independent full-power broadcast television stations (count)

aa6e8e9cc6a128a2dcab17f43364e8c22e3c2c96c99e88d95bdf4013e253e126

- **Strong political advertising revenue expected** due to tight Senate races in key markets where FOX has major news stations, leading to an "incredibly strong political season" starting in the first half of fiscal 2025.  **[FOXA_3387298_8]**
- **Tubi continues robust growth**, with increased viewership driven by both new and existing users, offering over **250,000 movies and TV series** and around **270 live FAST channels**, with **90% of viewing on-demand**, making it highly valuable to advertisers.  **[FOXA_3387298_5]**
- **Increased television profitability** despite lacking Super Bowl or extra playoff games, driven by a **$70 million growth in affiliate fees** and cost savings from shifting from scripted to unscripted programming, underscoring FOX's operational efficiency.  **[FOXA_3387298_9]**

8bed0666ed8eed42313badc436d89f50fd0968377c3f7ab844bda32628a22da2

1. **Affiliate Fees Growth**  
   **Q:** Can you keep growing affiliate fees in fiscal '25?  
   **A:** We expect to **modestly grow affiliate fees** despite an **~8% subscriber decline** by increasing pricing modestly above that figure. This is based on focusing on our core brands without legacy channel baggage, allowing us to drive appropriate value for our cable brands and retransmission.  **[FOXA_3396564_9]** 

2. **Content Spend and Margins**  
   **Q:** How should investors think about content spend levels?  
   **A:** In fiscal '25, sports rights costs will increase due to regular amortization, with the **NFL being the largest**, partially offset by moving away from WWE. Tubi's content spend will continue to grow, while news will see modest growth. After saving **over $100 million** in fiscal '24 due to the shift from scripted to unscripted programming during the strike, we expect entertainment content spend to swing back slightly towards scripted content. Overall, the cost per hour in entertainment will be **down 10–15%** compared to fiscal '23.  **[FOXA_3396564_9]** 

3. **Advertising Revenue and Political Spending**  
   **Q:** What's the outlook for ad market and political spending?  
   **A:** We achieved strong pricing and volume increases in the upfront, exceeding expectations, led by sports—including football and Major League Baseball—and Fox News. The direct response marketplace saw pricing up in the **high teens**. We expect a **record political ad cycle** this year (excluding the Georgia runoff from four years ago), with significant spending emerging in markets like Atlanta and Phoenix as races tighten.  **[FOXA_3396564_8]** 

4. **Tubi's Performance Outlook**  
   **Q:** Tell us about Tubi's growth amid competition.  
   **A:** Tubi's revenue grew in the **mid- to upper-teens** exiting the fourth quarter, and this momentum continues into the current quarter. Despite increased competition from streamers dropping prices, Tubi maintained sustainable pricing and drove growth through its strong brand, tremendous reach, and quality audience. Investment in Tubi remained around the **mid-$200 million** range in fiscal '24, and we expect slightly less investment in fiscal '25, putting net investment across our growth businesses in the **high $200 million** range.  **[FOXA_3396564_11]** 

5. **Capital Deployment and M&A Plans**  
   **Q:** Where do you expect to deploy capital next?  
   **A:** We are careful and prudent in capital deployment, balancing investments in our businesses, shareholder returns, and an increasing focus on M&A. While we have nothing new to announce, we recognize that M&A remains one of the important levers we have and will act prudently and carefully in exploring opportunities.  **[FOXA_3396564_10]** 

6. **Ad Sales Team Approach**  
   **Q:** Is your ad sales team doing anything differently?  
   **A:** Our ad sales team, led by Jeff Collins, has done a tremendous job. We retain expertise across verticals—sports, news, entertainment, and digital (Tubi). During the upfront, we sold across our entire ONE FOX portfolio, which proved very successful and effective, surpassing our expectations and leveraging our marquee events like **Super Bowl 59**.  **[FOXA_3396564_10]** 

7. **Launch of 'Venue' and Financial Impact**  
   **Q:** Thoughts on 'Venue' launch and its fiscal '25 impact?  
   **A:** 'Venue' is launching later this month at an initial price of **$42.99**, offering a revolutionary way for Americans to view sports. We aim for **5 million subscribers over five years**, targeting cord cutters and cord nevers not currently in the cable bundle. Financially, as shareholders, we'll take the deficit through equity earnings and investment through cash flow. As a content supplier, we'll benefit from affiliate fee revenues in cable and TV. On a net-net basis, it should be **accretive to us on a pretty quick basis**.  **[FOXA_3396564_7]** 

43f6c5a578fe3416e0ce673061b0862cdc34c84e173f538c8f57a1ec41a82f17

- **Ongoing Subscriber Declines and Uncertainty:** Despite slight improvements, Fox executives acknowledge that traditional cable subscriber declines persist, and they are unsure where the bottom is. Steven Tomsic noted that subscriber declines are "running at a touch under **8%**," and while there is "moderation in subscriber declines," they rely heavily on pricing increases for revenue growth, which may not be sustainable long-term.  **[FOXA_3405573_5]**
- **Reliance on Cyclical Political Advertising Revenue:** Fox's strong financial performance is significantly bolstered by political advertising, which is inherently cyclical and will decrease after the election cycle. Lachlan Murdoch admitted that political spend has "assisted us both in the station group, which will have **record political revenues**, but also in Tubi," but there may be a revenue gap once the election period ends.  **[FOXA_3405573_6]**
- **Rising Costs and Potential Margin Pressures:** The company is facing increased costs due to higher sports programming rights fees. Steven Tomsic mentioned that "**NFL scheduling will be a headwind from an advertising revenue perspective**" in Q2, and while the Super Bowl will be "very cash flow accretive for the company," it will "**not be from an EBITDA perspective**," indicating that margins may be under pressure despite revenue growth.  **[FOXA_3405573_10]**

edb576e178f60a8691364473875051a1b13eb327d3a9604830414417bf5cf0be

- **Declining Advertising Revenues**: FOX Corporation reported a **23% decline in cable advertising revenues** at FOX News Media, impacted by a softer direct response marketplace, lower comparative ratings, and higher levels of preemptions due to global events.  **[FOXA_3372193_3]** **[FOXA_3372193_7]**
- **Industry Subscriber Declines**: The company acknowledged **subscriber declines running at approximately 8%**, which could adversely affect their affiliate fee revenues despite rate increases.  **[FOXA_3372193_3]** **[FOXA_3372193_9]** **[FOXA_3372193_7]**
- **Potential Risks from New Sports Joint Venture**: Analysts expressed concerns that the new sports platform could **negatively impact the traditional pay-TV bundle**, which is crucial for FOX's distribution and revenues.  **[FOXA_3372193_9]** **[FOXA_3372193_7]** **[FOXA_3372193_5]** **[FOXA_3372193_6]** **[FOXA_3372193_8]**

bc5c4414c9fbc4ecd6e81d6840fceae2b9d6fb4e3b7000edce259ff396b2a93f

- **Strong Affiliate Fee Growth**: FOX achieved affiliate fee revenue growth despite industry-wide subscriber declines. The Television segment grew by **10%**, and the Cable segment returned to growth, demonstrating the strength of FOX's brands and programming. This growth is expected to continue as rate increases have made up for subscriber declines.  **[FOXA_3372193_9]**
- **Robust Advertising Outlook**: FOX reported solid advertising performance, particularly in sports. The NFL season was strong, and there was a **63% growth** in TubiTV, FOX's streaming service. Upcoming events like the DAYTONA 500 and the MLB season have positive momentum with advertisers, indicating continued advertising revenue growth.  **[FOXA_3372193_7]**
- **New Market Opportunities with Sports JV**: FOX's participation in the new sports joint venture opens up a significant opportunity to reach an estimated **60 million** households currently not in the traditional pay-TV bundle, potentially driving incremental subscribers and revenues without significantly impacting existing pay-TV relationships.  **[FOXA_3372193_5]**

41c9a11ed5430f3affff6bdcb20413c96560a2d27aefaeddb2bf53891874a395

1. **Tubi's Growth and Potential**  
   **Q:** How big can Tubi get with current momentum?  
   **A:** Tubi's growth continues to be impressive, on track to reach **$1 billion in revenue**.  **[FOXA_3405573_7]**  Even excluding political advertising boosts, we foresee continued growth in the second quarter and beyond.  **[FOXA_3405573_7]**  We've significantly improved our fill rate while maintaining pricing, accelerating revenue growth.  **[FOXA_3405573_9]**  Tubi is becoming the way Americans watch free television, boasting the largest AVOD library and increasing viewer engagement.  **[FOXA_3405573_7]** 

2. **Advertising Outlook Post-Election**  
   **Q:** How is the ad environment shaping up post-election?  
   **A:** Our advertising revenues remain very healthy, with strong growth across sports, news, and entertainment.  **[FOXA_3405573_8]**  We expect no significant impact from the election outcome.  **[FOXA_3405573_8]**  Sports programming, including a successful World Series exceeding expectations, and the upcoming Super Bowl—sold out at **record pricing**—bolster our outlook.  **[FOXA_3405573_8]**  News ratings are strong, especially in the key **25-54 demographics**, leading to significant increases in direct pricing.  **[FOXA_3405573_8]** 

3. **TV EBITDA and Fiscal Outlook**  
   **Q:** What are the EBITDA components for TV in fiscal '25?  
   **A:** We anticipate strong performance in our TV segment, driven by political advertising tailwinds and momentum in Tubi and Fox News.  **[FOXA_3405573_10]**  While increased sports rights fees and the absence of certain events may present headwinds, they're partially offset by cost reductions from discontinued content like WWE and TMZ.  **[FOXA_3405573_10]**  The Super Bowl in Q3 will be very cash flow accretive, though less impactful on EBITDA.  **[FOXA_3405573_10]** 

4. **Flutter and FanDuel Update**  
   **Q:** How long to get through Flutter/FanDuel approval?  
   **A:** We need licensing in every state where FanDuel operates—an in-depth process we expect to complete within **a year**.  **[FOXA_3405573_9]**  We see tremendous potential in this asset and are progressing smoothly through approvals.  **[FOXA_3405573_9]** 

5. **Comcast Separation Impact**  
   **Q:** How might Comcast's split impact FOX or the industry?  
   **A:** We don't think Comcast's potential separation affects us at all.  **[FOXA_3405573_5]**  At FOX, we derive tremendous synergy across our platforms—entertainment, sports, news, and local television stations—and breaking apart would be difficult from a customer and revenue synergy standpoint.  **[FOXA_3405573_5]** 

6. **Advertising Shift to Tubi**  
   **Q:** Is Tubi cannibalizing ad dollars from local stations?  
   **A:** We haven't seen any evidence of cannibalization; in fact, it's the reverse.  **[FOXA_3405573_6]**  Tubi is capturing political ad dollars that couldn't be fully absorbed by our stations due to inventory limits.  **[FOXA_3405573_6]**  This demonstrates Tubi's scale and marketplace awareness have elevated it to a must-buy for advertisers aiming to reach a younger, diverse audience.  **[FOXA_3405573_6]** 

2cc5024e4d0b7199d4dce3cec51bb8855bd813abb3f28c722c0bcf5b8f144bed

- **Tubi is expected to face headwinds and difficult revenue comparisons in the next quarter, particularly due to a prior 47% revenue growth that will be hard to replicate, potentially impacting the company's overall growth.**  **[FOXA_3387298_5]**
- **The launch of the new sports streaming joint venture may cause friction with existing distribution partners, raising concerns about cannibalization of traditional pay-TV subscribers, which is FOXA's main revenue stream.**  **[FOXA_3387298_9]**
- **FOX's decision not to pursue NBA rights could limit their sports content portfolio, and the absence of an SVOD service might place them at a competitive disadvantage in securing future sports rights.**  **[FOXA_3387298_6]**

1ecbce0be1e6c0a9c18620cc9da391fd4ba1eaa20acf0f414baf13b873b8ecd8

- **Fox Corporation is experiencing an 8% decline in subscribers**, which may limit future affiliate fee growth as pricing increases are only modestly above this decline rate.  **[FOXA_3396564_9]**
- **Cost savings from shifting to unscripted programming in fiscal 2024, which saved over $100 million**, are not expected to continue in fiscal 2025, potentially leading to increased content costs and impacting margins.  **[FOXA_3396564_9]**
- **Investments in new ventures like Venue Sports are expected to be cash flow negative initially**, taking time to break even, which may impact Fox's earnings due to deficits recorded through equity earnings.  **[FOXA_3396564_7]**

ff3ce5799d56c480dc1a693a54903cdc246ca0a258fc962fccba682bcec1c5fe

1. **Streaming JV and Tubi Integration**  
   **Q:** What's the update on the streaming JV and Tubi's role?  
   **A:** Lachlan Murdoch stated that the beta version of the streaming app is in testing and is "looking tremendously exciting," highlighting its innovative, digital-first focus on cord-nevers and cord-cutters.  **[FOXA_3387298_7]**  He clarified they don't currently see an opportunity to bundle the sports service with Tubi, as Tubi is a different product.  **[FOXA_3387298_7]** 

2. **M&A and Noncore Asset Monetization**  
   **Q:** Any thoughts on monetizing noncore assets like FanDuel option and Studio Lot?  
   **A:** Lachlan Murdoch affirmed their strong belief in the sports betting market and intend to "see through and eventually exercise" the FanDuel option.  **[FOXA_3387298_6]**  Steven Tomsic added they view the Studio Lot as a long-term asset with development plans and have no plans for early monetization.  **[FOXA_3387298_6]** 

3. **Tubi's Growth and CPMs**  
   **Q:** What's driving Tubi's strong growth and CPM outlook?  
   **A:** Lachlan Murdoch attributed Tubi's growth to new viewers discovering the platform and its extensive content offering, including over **250,000 movies and television series** and around **270 live Fast Channels**.  **[FOXA_3387298_5]**  He highlighted that **90%** of viewing is on-demand, which is more valuable to advertisers, and expressed confidence in maintaining CPMs despite market pressures.  **[FOXA_3387298_5]**  He cautioned about difficult comps next quarter due to a **47%** revenue increase in the same quarter last year.  **[FOXA_3387298_5]** 

4. **Sports JV and Distributor Concerns**  
   **Q:** How do you address distributor concerns about the sports-only JV?  
   **A:** Lachlan Murdoch emphasized their commitment to supporting the traditional cable bundle, acknowledging it as their "**#1 revenue stream**."  **[FOXA_3387298_9]**  He explained that the sports JV will target non-traditional pay TV viewers to minimize cannibalization, and they are open with distributors about their strategic focus.  **[FOXA_3387298_9]** 

5. **Political Advertising Outlook**  
   **Q:** Will political advertising return to linear TV as before?  
   **A:** Lachlan Murdoch is confident that political ad spend will flow "ultimately to local television," highlighting tight Senate races in key markets where FOX has big stations, such as **Arizona, Michigan, Pennsylvania, and Wisconsin**.  **[FOXA_3387298_8]**  He anticipates an "incredibly strong political season," noting that the delay is due to a less competitive primary season.  **[FOXA_3387298_8]** 

6. **Television Profitability Without Big Events**  
   **Q:** How did TV profits grow without Super Bowl and extra playoffs?  
   **A:** Steven Tomsic explained they offset the high tens of millions EBITDA contribution from last year's Super Bowl with **$70 million** growth in affiliate fees.  **[FOXA_3387298_9]**  Additionally, reduced entertainment programming costs, driven by a shift from scripted to unscripted content and the impact of strikes, contributed to profitability.  **[FOXA_3387298_9]** 

d04a8d67098646b3f2de7a79991ad959b0581e3c8c85f92a0c25a7963351ed30

1. **New Sports Streaming Service**  
   **Q:** What's the opportunity and risks with the new sports platform?  
   **A:** Lachlan Murdoch described the opportunity as **huge**, targeting approximately **60 million** U.S. households who are "cord-nevers" not currently in the pay-TV ecosystem.  **[FOXA_3372193_5]**  He believes risks to FOX News are **very low** since the new service focuses on a different market segment and won't undermine the traditional bundle.  **[FOXA_3372193_5]** 

2. **Impact on Pay-TV Bundle**  
   **Q:** Will the sports platform affect the pay-TV bundle?  
   **A:** Murdoch is confident it won't significantly affect the traditional pay-TV bundle, emphasizing they wouldn't launch it if it posed a substantial risk. They've conducted extensive sensitivity analysis and remain strong supporters of the bundle, aiming to access a **new market** without undermining existing partnerships.  **[FOXA_3372193_8]** 

3. **Affiliate Revenue Sustainability**  
   **Q:** Is affiliate revenue growth sustainable despite cord-cutting?  
   **A:** Despite an underlying **8%** subscriber decline due to cord-cutting, FOX has achieved rate increases making up for declines. Murdoch believes they can maintain similar growth due to the strength of their brands and programming.  **[FOXA_3372193_9]** 

4. **Advertising Trends**  
   **Q:** What's the outlook for advertising revenue?  
   **A:** FOX saw a solid NFL season and a **63%** growth in Tubi. Scatter pricing is above upfront pricing, and FOX News ratings are improving. They expect a strong political advertising cycle, though local stations face tough comparisons due to last year's Super Bowl revenue of around **$50 million**.  **[FOXA_3372193_7]** 

5. **Sports Sublicensing Income**  
   **Q:** Is sports sublicensing income recurring?  
   **A:** CFO Steve Tomsic indicated the sublicensing income from college sports and international soccer is somewhat of a **one-off** and won't repeat at the same level in future quarters. The benefit can be gauged by the increase in Cable Other revenues year-over-year.  **[FOXA_3372193_9]** 

6. **Approach to Sports Rights**  
   **Q:** Will the Netflix-WWE deal affect your sports rights strategy?  
   **A:** Murdoch stated there's **no impact** from the Netflix-WWE deal on FOX's approach. They will continue to **aggressively compete** for sports rights, with no changes to their strategy.  **[FOXA_3372193_6]** 

7. **Openness to Ad Partners**  
   **Q:** Will you partner with other ad platforms on the new service?  
   **A:** Currently, FOX is **not considering** adding ad partners. The service's **14 linear networks** provide substantial content, and existing advertising from linear networks will flow into the service, increasing reach.  **[FOXA_3372193_8]** 

8. **Cash Contribution to Sports JV**  
   **Q:** What is FOX's cash contribution to the sports joint venture?  
   **A:** It's too early to provide forecasts, but FOX expects the venture to be **accretive**, with affiliate fees collected outweighing funding needs.  **[FOXA_3372193_7]** 

46e0f9321f3a853ff7224903b1f318b549cd4466da2962126e8a2803e5db9eaa

- **Tubi is experiencing impressive growth, on track to surpass $1 billion in revenue this fiscal year**  **[FOXA_3405573_7]** **[FOXA_3405573_6]** , and is becoming a significant recipient of political advertising due to its large, hard-to-reach audience and advanced targeting capabilities  **[FOXA_3405573_7]** **[FOXA_3405573_6]** . This growth is accelerating into Q2  **[FOXA_3405573_7]** **[FOXA_3405573_6]** .
- **Strong advertising revenue growth across all platforms**, driven by political advertising, record-breaking sports events (e.g., the most-watched World Series in 7 years with almost **19 million viewers** for Game 5  **[FOXA_3405573_2]** ), and robust news ratings, especially in the key 25-54 demographics where total audience grew more than **60%** year-over-year  **[FOXA_3405573_1]** , leading to higher direct response pricing  **[FOXA_3405573_8]** .
- **Moderation in subscriber declines**, with the rate of industry subscriber declines improving slightly to just under **8%**  **[FOXA_3405573_5]** , and the company believes there is a floor to these declines  **[FOXA_3405573_5]** . Fox's strong brands across news, sports, and entertainment ensure continued demand for their core packages  **[FOXA_3405573_5]** .

c3b435f7c1285bc297d3c0ce30c2d46a655911c11252821deec9b02e5b86e84a

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