The speaker thanks the participants for joining the Fox Corporation's third quarter fiscal year 2024 earnings conference call. The call will include forward-looking statements and non-GAAP financial measures. The CEO, Lachlan Murdoch, will discuss the company's 7% EBITDA growth and the strength of their brands and strategy. He notes that this is even more impressive considering last year's third quarter had a significant boost from Super Bowl 57.

In the third fiscal quarter, affiliate revenue fees grew 4% due to recent renewals, while headline advertising revenues were down without the Super Bowl and fewer NFL broadcasts. However, overall advertising trends at FOX are improving, especially for sports and FOX News. The upcoming presidential election and Super Bowl, combined with FOX's position as the most watched free TV and movie streaming service, will benefit the company's position with advertisers. FOX News remains the most watched cable network and has gained share within the category, thanks to its dedicated team of journalists delivering relevant coverage and insights to viewers.

FOX is expanding its leadership across all day parts, including mornings, afternoons, and late nights. Their streaming service, Tubi, saw a 22% increase in revenue and has solidified its position as the most watched free TV and movie streaming service in the U.S. with 1.6% of total TV viewing. FOX Sports also had a strong quarter, with impressive numbers for the 30th anniversary of the NFL on FOX, including the most watched NFC Championship game in over a decade.

The fourth paragraph discusses FOX's success in college sports, with strong viewership in football and basketball. The network has also launched the United Football League and is looking forward to a summer of soccer coverage. In addition, FOX Entertainment has a new schedule with popular returning shows and new ones like Krapopolis and The Floor. The company has also formed a new digital distribution platform focused on sports, with a new CEO and a team of engineers and executives working on creating an innovative product for sports fans.

The company has launched an internal data service and is excited to launch it this fall. They have a strong balance sheet and are committed to creating long-term shareholder value. Despite a tough comparison to the previous year's NFL schedule, the company posted solid results with total revenues of $3.45 billion and 7% growth in adjusted EBITDA. Affiliate fee revenues grew 4% and advertising revenues would have grown if not for the impact of the NFL schedule. Other revenues were down 22% due to the timing of sports licensing revenues. Expenses fell 21% due to differences in the NFL postseason schedule.

In the third quarter, the net income attributable to stockholders was $666 million or $1.40 per share, a significant increase from the prior year's net loss. This was due to the growth in EBITDA and the absence of non-core items such as last year's FOX News Media litigation charge and a book gain on the merger transaction of the USFL. Cable revenues decreased by 6%, but EBITDA grew by 3% thanks to higher affiliate fee revenues and lower expenses. Television segment revenues were down 22%, but EBITDA increased by 24%.

TV affiliate fee revenues grew 9% thanks to price increases and offsetting subscriber declines. TV advertising revenues were down 40% due to the absence of last year's Super Bowl and fewer NFL playoff games. TV Other revenues increased $30 million due to timing of deliveries from entertainment production companies. Expenses were lower due to the NFL schedule and industry labor disputes. Quarterly adjusted EBITDA at the TV segment was $145 million, up 24% from the previous year. The company generated strong free cash flow of $1.39 billion in the quarter and has repurchased $300 million under their share buyback program. They have also returned $125 million to shareholders through dividends. The company has a robust balance sheet with $3.8 billion in cash and $7.2 billion in gross debt.

Tubi's growth continues to be strong, driven by both new subscribers and efficient marketing efforts. The platform offers a wide range of content, with 90% of the viewing coming from on-demand content, which is more valuable to advertisers. The company will highlight this at their upcoming upfront presentations.

The speaker expresses confidence in maintaining CPMs at Tubi despite market fluctuations and warns of difficult comps in the next quarter. They also discuss the impact of ongoing NBA negotiations on future sports rights and the value of the FOX Broadcast Network. They decline to comment on the MBI and discuss potential monetization of noncore assets.

The speaker is pleased with their current sports portfolio and did not pursue the MBA in the recent negotiations. They believe that broadcast television is still crucial for sports leagues and their position in the market will only increase over time. They do not see a disadvantage in not having a subscription video-on-demand service as they can partner with others and still reach a large audience. The company also has no plans to sell their noncore assets, such as their sports betting market and Studio Lot, as they believe they hold long-term value.

Lachlan Murdoch discusses the value of the option and equity in Flutter, which is worth over $900 million. Ben Swinburne asks about the streaming JV and how Tubi might fit in. Murdoch mentions having the beta version of the streaming app and it is designed for cord nevers and cord cutters. He also mentions not being able to compare it to a tier of live channels.

Lachlan is confident that political advertising will come back, but it's uncertain if it will come back to linear in the same way. They have a strong balance sheet and are open to potential M&A opportunities in the industry.

Lachlan Murdoch, CEO of Fox Corporation, is confident about the upcoming political season and its impact on their local television stations. Despite a less competitive primary season, they expect a significant amount of money to flow into their stations due to tight Senate races and various issues on the ballot. Murdoch also notes that the delay in the primary season may result in a more contested general election.

The company is expecting to see benefits from their recent investments in the first half of the next fiscal year. They are keeping a close eye on potential M&A opportunities, but have not found anything yet. The company's streaming service, Tubi, is expected to continue growing and benefit from the shift of money from traditional TV to streaming services. The company's CEO expresses confidence in the leadership of Tubi. The next question is about concerns from existing distribution partners regarding the sports-only JV, to which the company disagrees and believes the concerns are unfounded.

Lachlan Murdoch discusses the sustainability of the sports joint venture and its impact on traditional cable television bundle. He emphasizes the importance of supporting the cable bundle and minimizing cannibalization of traditional subscribers. The sports joint venture will be targeted towards nontraditional pay TV viewers, and they are open and transparent with their distributors about their plans.

Steve Tomsic discusses the profitability of television in the previous quarter, stating that the Super Bowl had a significant contribution to EBITDA last year but not this year. However, they were able to offset this with a $70 million growth in affiliate fees. The biggest driver of EBITDA change was the shift from scripted to unscripted programming and the impact of strikes. There were other factors at play, but these were the most significant. The call has ended, but further questions can be directed to Gabrielle Brown or Charlie Costanzo.

This summary was generated with AI and may contain some inaccuracies.