Fox(FOX) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported EBITDA of over $1 billion, up 21$3.56 billion, with advertising revenues also increasing by 11% year-over-year [20][22] - Net income attributable to stockholders was $827 million, or$1.78 per share, compared to $407 million, or$0.82 per share in the prior year [22] Business Line Data and Key Metrics Changes - Cable networks revenue grew 15% year-over-year, with advertising revenue up 11%, primarily driven by FOX News Media [23] - Television segment revenues increased by 10%, with advertising revenues up 11%, benefiting from strong political cycles and NFL ratings [25][26] - Tubi experienced a 19% revenue growth during the quarter, with expectations to cross the $1 billion revenue mark this fiscal year [13][20] Market Data and Key Metrics Changes - FOX News total audience grew more than 40$300 million repurchased so far this fiscal year [28] - The company is exploring thoughtful M&A opportunities while maintaining a strong balance sheet [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising marketplace, noting healthy growth across various segments, particularly in sports and news [51] - The company anticipates continued momentum in Tubi and expects to maintain strong advertising revenues post-election [54] - Management believes there is a subscriber floor in the bundled subscriber declines, indicating a stable demand for core packages [34] Other Important Information - The company ended the quarter with approximately $4.1 billion in cash and$7.2 billion in debt, indicating a strong financial position [28] - The company is awaiting the appeal of an injunction related to its venue platform, which it believes is pro-consumer and pro-competition [48] Q&A Session Summary Question: Impact of Comcast's potential separation of cable network business - Management does not foresee any impact on Fox from Comcast's plans, emphasizing the synergies across its platforms [32] Question: Trends in affiliate revenue growth and subscriber declines - Management noted a slight improvement in subscriber trends and expressed optimism about reaching a bottom in bundled subscriber declines [34][35] Question: Political advertising dynamics and Tubi's role - Management highlighted that political spending has shifted back to local and targeted spends, benefiting both local stations and Tubi without cannibalization [39][40] Question: Future of Tubi and its revenue potential - Management is optimistic about Tubi's growth trajectory, expecting it to reach $1 billion in revenue, driven by political advertising and a sustainable business model [44][46] Question: Advertising environment post-election - Management anticipates a healthy advertising environment post-election, with strong pricing and demand across various segments [51][54] Question: Approval process for Flutter and FanDuel - Management expects the licensing process for FanDuel to be completed within a year, with no immediate rush [57] Question: Tubi's accelerating revenue growth - Management attributed Tubi's accelerating revenue growth to improved fill rates and effective pricing strategies [58]