10-KPeriod: FY2021

Fox Corp Annual Report, Year Ended Jun 30, 2021

Filed August 10, 2021For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) demonstrated revenue growth in fiscal year 2021, reporting $12.9 billion, a 5% increase over the prior year, primarily driven by strong performance in its Cable Network Programming and Television segments. Affiliate fee revenue saw a significant jump of 9%, bolstered by rate increases from renewals and existing agreements. Advertising revenue also climbed 2%, supported by strong political advertising and the consolidation of Tubi, though partially offset by comparisons to the prior year's Super Bowl broadcast. The company's focus on "appointment-based" content, particularly in live sports and news, remains a key strategic advantage. Investments in digital properties, including Tubi and FOX Nation, signal a commitment to expanding direct consumer engagement. Financially, the company reported a substantial increase in net income attributable to stockholders to $2.15 billion, up from $999 million in fiscal 2020. This improvement was driven by higher segment EBITDA, a reimbursement from Disney related to divestiture taxes, and robust investment gains. Despite ongoing investments in content and technology, the company maintained a strong liquidity position with approximately $5.9 billion in cash and cash equivalents and an unused $1 billion revolving credit facility. The company also continued its shareholder return program, repurchasing approximately $1 billion in common stock during fiscal 2021 and paying dividends.

Financial Highlights

51 data points
Beta

Revenue

$12.91B

Net Income

$2.15B

16.7% Net Margin

EPS (Diluted)

$3.61

Total Assets

$22.93B

Cash & Equivalents

$5.89B

Free Cash Flow

$2.15B

Financial Statements
Beta
Revenue$12.91B
SG&A Expenses$1.81B
Interest Expense$395.00M
Net Income$2.15B
EPS (Basic)$3.64
EPS (Diluted)$3.61
Shares Outstanding (Basic)621.00M
Shares Outstanding (Diluted)595.00M

Key Highlights

  • 1Revenue increased by 5% to $12.9 billion in fiscal 2021, driven by affiliate fee and advertising growth.
  • 2Net income attributable to stockholders more than doubled to $2.15 billion in fiscal 2021, up from $999 million in fiscal 2020.
  • 3Cable Network Programming segment EBITDA grew 6% to $2.88 billion, benefiting from higher advertising and affiliate fees.
  • 4Television segment EBITDA saw a significant increase of 29% to $555 million, driven by strong affiliate fee growth and the inclusion of Tubi.
  • 5The company repurchased approximately $1 billion of its common stock during fiscal 2021.
  • 6Fox announced an expanded 11-year media rights agreement with the NFL, extending through the 2033 season, including digital rights for DTC opportunities and Tubi.

Frequently Asked Questions

Fox Corporation's revenue growth in fiscal 2021 was primarily driven by increases in affiliate fee revenue, attributed to higher average rates from renewals and contractual increases, and advertising revenue, which benefited from strong political advertising and the performance of Tubi. The Cable Network Programming and Television segments were the main contributors to this growth.

The acquisition of Tubi in April 2020 had a positive impact on Fox Corporation's financial performance. Tubi contributed to the growth in advertising revenue in fiscal 2021, experiencing record viewership and advertising revenue. Its inclusion also bolstered the Television segment's overall performance and expanded the company's digital reach and direct consumer engagement capabilities.

Fox Corporation secured an expanded 11-year media rights agreement with the NFL in March 2021, extending coverage of premier NFC games through the 2033 season. This agreement also includes new exclusive holiday games and expanded digital rights, which are crucial for future direct-to-consumer opportunities and programming on platforms like Tubi. This indicates a strong, long-term commitment to and positive outlook for its sports broadcasting business.

As of June 30, 2021, Fox Corporation reported approximately $5.9 billion in cash and cash equivalents. The company also has access to an unused $1 billion unsecured revolving credit facility. The company's principal sources of liquidity are internally generated funds, and it has managed its debt effectively, with all covenants under its credit facility being met. The company also actively returned capital to shareholders through stock repurchases and dividends.