Summary
Fox Corporation (FOXA) reported its first quarterly results as a standalone entity following its separation from Twenty-First Century Fox (21CF) and subsequent distribution on March 19, 2019. The company's performance for the nine months ended March 31, 2019, showed a significant revenue increase of 14% to $8.9 billion, driven by strong advertising and affiliate fee growth across its Cable Network Programming and Television segments. Despite these revenue gains, net income attributable to stockholders decreased by 34% to $1.14 billion, primarily due to the absence of a significant tax benefit recorded in the prior year from the Tax Cuts and Jobs Act. Key financial developments include the issuance of $6.8 billion in senior notes and a $8.5 billion dividend paid to 21CF (net of a $2.0 billion payment from Disney). The company also benefited from an increased tax basis in its assets post-separation, expected to provide annual tax deductions and cash tax savings. Looking ahead, Fox Corp is entering a sports wagering partnership with The Stars Group, signaling strategic moves to leverage its brands in new growth areas. Investors should note the impact of corporate allocations from 21CF, increased interest expenses from new debt, and the ongoing integration as a new standalone entity.
Financial Highlights
47 data points| Revenue | $2.75B |
| SG&A Expenses | $336.00M |
| Interest Expense | $81.00M |
| Net Income | $529.00M |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 621.00M |
| Shares Outstanding (Diluted) | 621.00M |
Key Highlights
- 1Total revenues increased by 14% to $8.88 billion for the nine months ended March 31, 2019, compared to the prior year period.
- 2Net income attributable to FOX stockholders decreased by 34% to $1.14 billion for the nine months ended March 31, 2019, largely due to the absence of a significant tax benefit recognized in the prior year.
- 3The company issued $6.8 billion in senior notes in January 2019, contributing to a significant increase in interest expense.
- 4Operating expenses increased by 18% for the nine months ended March 31, 2019, primarily due to higher sports programming rights amortization and production costs.
- 5Segment EBITDA, a key performance indicator, grew by 6% to $1.97 billion for the nine months ended March 31, 2019.
- 6Fox Corp announced a sports wagering partnership with The Stars Group (FOX Bet) and invested $236 million for a 4.99% stake, signaling expansion into new revenue streams.
- 7The company successfully completed its separation from 21CF and began trading as an independent entity, with a new $1.0 billion revolving credit facility in place.