Revenue Performance - Total revenues for the three months ended September 30, 2023, were $3,207 million, a slight increase of $15 million or 0% compared to $3,192 million in the same period of 2022[95]. - Affiliate fee revenue increased by $29 million or 2% to $1,740 million, driven by higher fees from FOX Network-affiliated television stations, despite a lower average number of subscribers[95][96]. - Advertising revenue decreased by $20 million or 2% to $1,200 million, primarily due to lower political advertising revenue and decreased ratings at the FOX Network[95][96]. - The Company reported a decrease in revenues from the Cable Network Programming segment by $44 million or 3% to $1,387 million, driven by lower affiliate fee and advertising revenues[106]. - Television segment revenues increased by 4% to $1,780 million for the three months ended September 30, 2023, compared to $1,714 million in the same period of 2022, driven by higher advertising and affiliate fee revenues[108]. - Advertising revenue rose to $910 million, a 1% increase from $905 million, primarily due to the FIFA Women's World Cup broadcast and growth at Tubi[108]. - Affiliate fee revenue increased by 8% to $735 million from $682 million, attributed to higher fees from FOX Network affiliates despite a lower average number of subscribers[108]. Operating Expenses - Operating expenses rose by $206 million or 12% to $1,862 million, mainly due to higher sports programming rights amortization and production costs related to the FIFA Women's World Cup[95][97]. - Selling, general and administrative expenses increased by $32 million or 7% to $480 million, largely due to higher employee-related costs[95][98]. - Total operating expenses increased by 12% to $1,198 million, primarily due to higher sports programming rights amortization and production costs[109]. Profitability - Net income attributable to Fox Corporation stockholders decreased by $198 million or 33% to $407 million, influenced by lower Segment EBITDA and changes in investment fair value[95][101]. - Segment EBITDA for the Cable Network Programming segment decreased by $135 million or 18% to $607 million, attributed to revenue declines and increased expenses[106][107]. - Segment EBITDA for the Television segment decreased by 14% to $351 million from $409 million, as revenue increases were offset by higher expenses[109]. - Adjusted EBITDA for the three months ended September 30, 2023, was $869 million, down from $1,092 million in the same period of 2022[114]. - The company reported a net income of $415 million for the three months ended September 30, 2023, compared to $613 million in the prior year[114]. Cash Flow and Financial Position - The company has approximately $3.8 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility as of September 30, 2023[116]. - Net cash provided by operating activities decreased significantly to $1 million from $270 million, primarily due to higher sports rights payments and lower political advertising receipts[119]. - The company declared a semi-annual dividend of $0.26 per share during the three months ended September 30, 2023[122]. Tax and Market Risks - The effective tax rate for the three months ended September 30, 2023, was 26%, higher than the statutory rate of 21%, primarily due to state taxes[99]. - There have been no material changes in the market risks reported in the 2023 Form 10-K[131].
Fox(FOXA) - 2024 Q1 - Quarterly Report