10-KPeriod: FY2019

Fox Corp Annual Report, Year Ended Jun 30, 2019

Filed August 9, 2019For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) became a standalone publicly traded company on March 19, 2019, following its separation from Twenty-First Century Fox, Inc. (21CF). This 2019 10-K filing covers the fiscal year ending June 30, 2019, and marks the company's first as an independent entity. The company operates primarily in two segments: Cable Network Programming and Television, with a strong focus on news, sports, and entertainment content. Key brands include FOX News Media, FOX Sports, FOX Entertainment, and FOX Television Stations. Financially, FOXA reported total revenues of $11.4 billion for fiscal year 2019, a 12% increase from the prior year, driven by growth in affiliate fees and advertising. The company experienced a net income of $1.6 billion, a decrease from $2.2 billion in fiscal 2018, largely due to the absence of a significant tax benefit recorded in the prior year. Despite the decrease in net income, the company's operating performance remained robust, with Segment EBITDA increasing by 8% to $2.7 billion. The company also secured significant long-term sports rights and launched new digital initiatives like FOX Nation and FOX Bet.

Financial Highlights

47 data points
Beta

Revenue

$11.39B

Net Income

$1.59B

14.0% Net Margin

EPS (Diluted)

$2.57

Total Assets

$19.51B

Cash & Equivalents

$3.23B

Free Cash Flow

$2.29B

Financial Statements
Beta
Revenue$11.39B
SG&A Expenses$1.42B
Interest Expense$203.00M
Net Income$1.59B
EPS (Basic)$2.57
EPS (Diluted)$2.57
Shares Outstanding (Basic)621.00M
Shares Outstanding (Diluted)621.00M

Key Highlights

  • 1Fox Corporation successfully spun off as a standalone public company on March 19, 2019, with a focused portfolio of domestic news, sports, and entertainment assets.
  • 2Total revenues increased by 12% to $11.4 billion in fiscal 2019, driven by robust growth in affiliate fees (up 7%) and advertising (up 17% in the Television segment).
  • 3Net income attributable to Fox Corporation stockholders decreased by 27% to $1.6 billion in fiscal 2019, primarily due to the prior year's benefit from tax reform not recurring.
  • 4Segment EBITDA showed strong operational performance, increasing by 8% to $2.7 billion, indicating healthy underlying business growth.
  • 5The company holds significant long-term programming rights, including agreements for NFL Thursday Night Football through 2022 and MLB World Series and All-Star Games through 2028.
  • 6Fox Corporation expanded its digital presence with the launch of FOX Nation (an OTT service for FOX News) and invested in The Stars Group to launch FOX Bet, a sports wagering partnership.
  • 7The company ended fiscal 2019 with $3.2 billion in cash and cash equivalents and $6.8 billion in borrowings, demonstrating financial flexibility and a significant debt load post-separation.

Frequently Asked Questions

Fox Corporation is a diversified news, sports, and entertainment company. Its main segments are Cable Network Programming, which includes brands like FOX News and FS1, and Television, which comprises the FOX broadcast network and owned-and-operated stations.

In fiscal year 2019, Fox Corporation reported a 12% increase in total revenues to $11.4 billion, driven by strong affiliate fee and advertising growth. However, net income attributable to stockholders decreased by 27% to $1.6 billion, mainly due to the absence of a significant tax benefit recorded in the prior year. Despite the net income drop, the company's operational performance, as measured by Segment EBITDA, grew by 8% to $2.7 billion.

Fox Corporation's strategies focus on maintaining leadership in live news and sports, increasing revenue through high-quality content, and leveraging its strong brands to expand online distribution offerings. This includes investing in premium programming, developing new digital platforms like FOX Nation and FOX Bet, and capitalizing on its strong position in live sports and news.

The spin-off on March 19, 2019, means that the 2019 fiscal year is the first period presented on a standalone, consolidated basis. Prior years' financial data are presented on a combined basis and may reflect allocations of corporate expenses from 21CF, making direct year-over-year comparisons require careful consideration of these transitional aspects.