The paragraph is from the Fox Corporation's First Quarter Fiscal Year 2025 Earnings Conference Call. The operator begins by introducing the call, which features a question-and-answer session later on. Gabrielle Brown, the Chief Investor Relations Officer, addresses the participants, apologizing for earlier technical difficulties and introducing the call. She mentions that executives Lachlan Murdoch, John Nallen, and Steve Tomsic will provide insights, with prepared remarks from Murdoch and Tomsic, followed by questions from the investment community. Brown notes that forward-looking statements regarding financial performance will be discussed, and that non-GAAP financial measures like adjusted EBITDA will be included, with reconciliations available online. Lachlan Murdoch then expresses satisfaction with the strong operating and financial results for the quarter, marking a strong start to their fiscal year.

In the past quarter, FOX Networks experienced significant growth, with EBITDA exceeding $1 billion due to an 11% increase in revenue. FOX News emerged as a leading news source during the election cycle, attracting a substantial audience with high-profile programming like Gutfeld! and interviews with figures like President Trump and Vice President Harris. FOX News achieved its highest-ever ratings for these events, culminating in Brett Baier's interview with Vice President Harris drawing over 9 million viewers. Overall, FOX News content was consumed extensively across platforms, contributing to a more than 40% year-over-year increase in total audience and a 60% increase in the key 25-54 demographic. Consequently, FOX News became the second most-watched network, behind only NBC during the Summer Olympics, and maintained its position as the top cable news network in total day and PrimeTime views.

The paragraph highlights FOX News' strong performance across various demographics and regions, being the top news channel for Republicans, Democrats, and Independents and leading in key swing states. It points out the audience's diversity, loyalty, and engagement, contributing to a rise in ratings and revenue, particularly during elections. Local FOX stations are crucial in generating political ad revenue, though Tubi also benefits significantly due to its targeted advertising capabilities. Tubi's revenue has grown substantially, with expectations to reach $1 billion this fiscal year. Meanwhile, FOX Sports is experiencing a successful fall season.

The paragraph highlights Fox's successful sports and entertainment programming. In sports, Fox achieved high ratings with events like the Yankees-Dodgers World Series and the NFL’s America's Game of the Week, both drawing significant viewership. Fox College Football Fridays launched successfully, and anticipation builds for Super Bowl 59. In entertainment, the fall premiere of "Universal Basic Guys" became the most-watched animation debut in a decade, while "Rescue: HI-Surf" was the top-rated fall drama in four years. Overall, Fox's first quarter performance underscores its strong leadership and effective strategy.

The paragraph discusses Fox's strong financial performance at the start of fiscal 2025, highlighting an 11% increase in total company revenues to $3.56 billion, translating to a 21% rise in EBITDA to $1.05 billion. Advertising revenues grew by 11% year-over-year, driven by political advertising, Tubi's momentum, and Fox News Media's audience growth. Affiliate fee revenues increased by 6%, with notable growth in the Television and Cable segments, while other revenue surged by 47% due to higher sports sub-licensing revenues. Despite an 8% rise in expenses linked to sports programming rights and Tubi costs, net income attributable to stockholders rose to $827 million, or $1.78 per share, compared to the previous year's $407 million, or $0.82 per share.

The paragraph discusses a company's financial performance and growth in various segments. It highlights a 33% year-over-year increase in adjusted net income to $672 million, with adjusted EPS at $1.45. The cable networks segment saw a 15% revenue growth due to higher advertising and affiliate fee revenues, despite industry subscriber declines. Cable expenses rose by 9% due to increased costs related to sports programming and news coverage. Overall, the Cable segment's EBITDA grew by 23%. The Television segment reported a 10% revenue increase, driven by political advertising, growth at Tubi, and higher NFL ratings, despite the absence of the FIFA Women's World Cup. Television affiliate fee revenues also rose by 10%, offsetting subscriber declines.

Television segment revenues increased by 3%, largely due to higher third-party content revenues from entertainment production studios. However, expenses grew by 11% due to higher programming rights amortization at FOX Sports and increased costs at Tubi. Despite these costs, the segment's EBITDA rose by 6% to $372 million. Free cash flow for the quarter was $94 million, aligning with typical seasonal payment patterns. The company actively continued its share buyback program, repurchasing $300 million this fiscal year, with a total of $5.9 billion repurchased since 2019, aiming for a $7 billion total. They ended the quarter with $4.1 billion in cash and $7.2 billion in debt. The floor is now open for questions, and Michael Morris from Guggenheim Partners asked about Comcast considering separating its cable network business.

The paragraph discusses the impact of potential changes in Comcast's plans on Fox, with Lachlan Murdoch indicating that these changes are unlikely to affect Fox. He emphasizes the synergies Fox achieves across its platforms, including the entertainment network, FOX Sports, local television stations, and FOX News, along with the growth of Tubi. Murdoch believes breaking apart the business would be challenging due to costs and the benefits of synergies. Furthermore, there has been a slight improvement in subscriber decline rates, suggesting a potential stabilization.

The paragraph discusses the media company's financial performance and strategic positioning, emphasizing the value of their core package, which includes leading news, sports, and local TV stations. Steve Tomsic notes satisfaction with revenue growth, citing increases in cable and TV driven by price hikes and stabilized subscriber numbers. Benjamin Swinburne asks about the political advertising market, highlighting the role of connected TV, particularly Tubi, in gaining market share. He inquires about the demand for local station buys versus Tubi and whether there's any cannibalization from the station group. He also seeks quantitative insights into political advertising revenues.

In the paragraph, Lachlan Murdoch discusses the changes in political advertising spend compared to four years ago, noting a shift from national to more localized campaigns this cycle. This shift has benefited both the station group and Tubi, which effectively uses geo-targeting to capture political ad dollars. Despite concerns about digital platforms potentially affecting traditional stations, Tubi has complemented traditional advertising. Tubi's ability to reach a diverse, younger audience, who often do not subscribe to traditional cable, underscores its growing importance and market presence as a crucial advertising platform. Steve Tomsic agrees with these insights.

The paragraph discusses the financial performance and growth of Tubi and local stations, highlighting that there has been no cannibalization between the two. The stations experienced a significant revenue increase, particularly due to the political climate, with a notable performance in the first half of the fiscal year. Tubi, which had minimal revenue four years ago, now contributes meaningfully. Additionally, the strength of sports programming has attracted national political advertising. Robert Fishman from MoffettNathanson asks about Tubi's future as it nears $1 billion in revenue and inquires about the potential licensing of FOX Sports content. Lachlan Murdoch begins to respond to the questions.

The paragraph discusses a company's impressive growth, partly driven by political ad revenue, although the company sees sustainable growth beyond that, highlighting its large AVOD library. The speaker discusses the proportion of revenue-share and direct content contribution to viewing. The platform's strength and growing popularity as a way Americans watch free TV are noted, emphasizing its on-demand nature. There's a mention of an ongoing appeal against an injunction related to their "venue" platform, which is seen as beneficial for consumers and competition. They emphasize the company’s focus on brand building and content production, rather than sports licensing. The conversation shifts to a question from John Hodulik about the advertising environment post-election.

In the provided paragraph, Lachlan Murdoch discusses the strong financial performance and future outlook for FOX News, emphasizing the robust health of their advertising revenues. He highlights their success in not being overly dependent on general entertainment. Murdoch mentions significant growth in various markets, referencing the remarkable financial results from a recent World Series and anticipating strong future performances, particularly with the upcoming Super Bowl. He notes that FOX News benefits from strong news ratings in key demographics and discusses the increase in direct response pricing. Additionally, he comments on political advertising spending.

The paragraph discusses the current state of local base markets, noting that industries like auto and retail are struggling, while betting is experiencing growth. Tubi has seen a 19% increase and is gaining momentum. Jessica Reif Ehrlich from Bank of America Securities asks about the approval process for Flutter and FanDuel. Lachlan Murdoch responds, explaining that they have a six-year timeframe and must obtain licenses in 26 states where FanDuel operates. The process is detailed but expected to be completed within a year. Murdoch also hints at potential changes in sales or advertising strategies contributing to Tubi's acceleration.

The paragraph features a discussion about the financial dynamics of the TV segment, with a specific focus on the streaming service Tubi. The conversation highlights improved fill rates at Tubi, which have contributed to accelerated revenue growth despite a competitive market. Steve Tomsic, presumably a financial executive, addresses a question about the financial outlook for fiscal 2025, acknowledging that digital losses are expected to be in the high $200 million range but suggests that strong performance in Tubi is positively impacting the financial picture. He also mentions that political tailwinds, top-line growth in FOX News, and a successful MLB postseason are benefiting the TV segment. However, he notes that the NFL scheduling, specifically the lack of a Christmas game, will be a hindrance to advertising revenue in the second quarter.

The paragraph discusses the impact of sports rights on a company's financial performance in Q2 and beyond. It highlights the costs associated with the Big Ten Expansion and increased rights fees, while noting the absence of WWE and Pac-12 for the rest of the year as partial offsets. The Super Bowl in Q3 is expected to boost cash flow, though not EBITDA. The return of the Q3 entertainment schedule should enhance TV segment performance, while the absence of major soccer events in Q4 is seen as beneficial. Overall, there is optimism about the TV segment's strong performance in the upcoming quarters. The paragraph ends with a note for further inquiries to contact Gabrielle Brown or Charlie Costanzo.

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