10-KPeriod: FY2023

Fox Corp Annual Report, Year Ended Jun 30, 2023

Filed August 11, 2023For Securities:FOXAFOX

Summary

Fox Corporation reported a solid performance for fiscal year 2023, with total revenues increasing by 7% to $14.9 billion. This growth was driven by a 12% increase in advertising revenue, largely due to major sporting events like the Super Bowl LVII and the FIFA Men's World Cup, alongside continued growth at Tubi and increased political advertising. Affiliate fee revenue also saw a modest 3% increase, primarily from higher rates, though offset by a decline in the average number of subscribers. The company maintained a strong balance sheet, ending the year with approximately $4.3 billion in cash and cash equivalents and returning significant capital to shareholders through share repurchases and dividends. Despite increased operating expenses, particularly related to sports programming rights and digital investments, Fox Corporation's net income attributable to stockholders grew by 3% to $1.24 billion. The company's strategic focus on its core news, sports, and entertainment brands, alongside expansion in digital distribution, positions it to navigate the evolving media landscape. Key areas of investment include digital properties like Tubi and FOX Nation, and content rights for major sports leagues, ensuring a resilient business model.

Financial Highlights

51 data points
Beta

Revenue

$14.91B

Net Income

$1.24B

8.3% Net Margin

EPS (Diluted)

$2.33

Total Assets

$21.87B

Cash & Equivalents

$4.27B

Free Cash Flow

$1.44B

Financial Statements
Beta
Revenue$14.91B
SG&A Expenses$2.05B
Interest Expense$349.00M
Net Income$1.24B
EPS (Basic)$2.34
EPS (Diluted)$2.33
Shares Outstanding (Diluted)531.00M

Key Highlights

  • 1Total revenues increased 7% to $14.9 billion in fiscal year 2023.
  • 2Advertising revenue grew 12% to $6.6 billion, boosted by major sports broadcasts (Super Bowl LVII, FIFA Men's World Cup) and political advertising.
  • 3Affiliate fee revenue rose 3% to $7.1 billion, primarily due to higher rates, partially offset by declining subscriber numbers.
  • 4Net income attributable to Fox Corporation stockholders increased 3% to $1.24 billion.
  • 5The company ended fiscal year 2023 with $4.3 billion in cash and cash equivalents.
  • 6Fox Corporation returned approximately $2.3 billion to stockholders through share repurchases ($2 billion) and dividends ($0.3 billion) in fiscal year 2023.
  • 7Tubi, the company's AVOD service, experienced over 50% growth in total view time year-over-year.

Frequently Asked Questions

Revenue growth was primarily driven by a significant increase in advertising revenue, boosted by high-profile sporting events like the Super Bowl LVII and the FIFA Men's World Cup, as well as political advertising revenue and continued growth in the Tubi platform. Affiliate fee revenue also contributed positively due to higher rates, although this was partially offset by a decrease in the average number of subscribers.

Operating expenses increased by 6%, primarily due to higher costs associated with sports programming rights amortization and production for major events such as the Super Bowl LVII and FIFA Men's World Cup, along with increased digital investments at Tubi and FOX News Media. Selling, general, and administrative expenses also rose, mainly due to higher legal costs at FOX News Media.

Fox Corporation is committed to returning capital to shareholders. In fiscal year 2023, the company repurchased approximately $2 billion of its common stock and paid approximately $0.3 billion in dividends. The company has a $7 billion stock repurchase program authorized, with approximately $2.4 billion remaining as of the end of fiscal year 2023.

Key risks include the ongoing shifts in consumer behavior towards digital platforms and away from traditional MVPDs, potential declines in advertising expenditures due to economic conditions or changing media consumption, the highly competitive media landscape, the inability to renew crucial programming rights (especially sports), and potential damage to its brands or reputation. Cybersecurity and data privacy are also significant ongoing risks.