10-KPeriod: FY2024

Fox Corp Annual Report, Year Ended Jun 30, 2024

Filed August 8, 2024For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) reported a 6% decrease in total revenues for fiscal year 2024, primarily driven by a significant 18% decline in advertising revenue. This decline was largely attributed to the absence of major sporting events like Super Bowl LVII and the FIFA Men's World Cup in the prior year, coupled with lower political advertising at its television stations. However, affiliate fee revenue saw a modest 4% increase, supported by higher per-subscriber rates, even with a decline in the average number of subscribers across its networks. The company's Cable Network Programming segment demonstrated resilience with a 9% increase in Segment EBITDA, driven by controlled operating expenses despite a slight dip in overall segment revenue. Conversely, the Television segment experienced a substantial 50% decrease in Segment EBITDA, directly impacted by the revenue shortfall from major sporting events and political advertising. Despite the revenue challenges, Fox Corporation maintained a strong liquidity position, ending the fiscal year with approximately $4.3 billion in cash and cash equivalents. The company also returned $1.25 billion to stockholders through share repurchases and dividends, underscoring its commitment to shareholder returns. Looking ahead, Fox is investing in digital distribution platforms, including Tubi, which showed growth in total view time. The company also highlighted its continued focus on its core strengths in news, sports, and entertainment, aiming to maintain leadership positions through premium programming.

Financial Highlights

50 data points
Beta

Revenue

$13.98B

Net Income

$1.50B

10.7% Net Margin

EPS (Diluted)

$3.13

Total Assets

$21.97B

Cash & Equivalents

$4.32B

Free Cash Flow

$1.50B

Financial Statements
Beta
Revenue$13.98B
SG&A Expenses$2.02B
Net Income$1.50B
EPS (Basic)$3.14
EPS (Diluted)$3.13
Shares Outstanding (Diluted)480.00M

Key Highlights

  • 1Total revenues decreased by 6% to $13.98 billion in fiscal 2024, primarily due to a 18% drop in advertising revenue.
  • 2Affiliate fee revenue increased by 4% to $7.32 billion, driven by higher rates per subscriber, partially offsetting a subscriber decline.
  • 3Cable Network Programming Segment EBITDA grew by 9% to $2.69 billion, supported by expense management and higher affiliate fees.
  • 4Television Segment EBITDA decreased by 50% to $506 million, heavily impacted by lower advertising revenue from major sporting events and political cycles.
  • 5The company ended fiscal 2024 with $4.3 billion in cash and cash equivalents.
  • 6Fox returned $1.25 billion to shareholders through share repurchases and dividends in fiscal 2024.
  • 7Tubi, the company's AVOD service, showed growth with a 40% increase in total view time in fiscal 2024.

Frequently Asked Questions

The primary driver of the revenue decrease was a significant 18% decline in advertising revenue, largely due to the absence of major sporting events like Super Bowl LVII and the FIFA Men's World Cup compared to the prior fiscal year, as well as lower political advertising at its television stations.

The Cable Network Programming segment demonstrated resilience, with a 9% increase in Segment EBITDA, driven by cost management and higher affiliate fees. In contrast, the Television segment saw a substantial 50% decrease in Segment EBITDA, primarily impacted by the decline in advertising revenue from major events and political cycles.

Fox Corporation maintained a strong financial position with $4.3 billion in cash and cash equivalents at the end of fiscal year 2024. The company demonstrated its commitment to shareholder returns by repurchasing $1.25 billion of its stock and paying dividends during the year.

Tubi, the company's advertising-supported video-on-demand (AVOD) service, continues to grow, showing a 40% increase in total view time for fiscal year 2024. This indicates strong engagement and a positive trend for its digital platform.