Summary
Fox Corporation (FOXA) reported relatively flat total revenues of $3.21 billion for the first quarter of fiscal year 2024, a slight increase of 0.5% compared to the prior year's quarter. This stability was driven by an increase in affiliate fee revenue, boosted by higher rates from contractual renewals and affiliations, which offset a decline in advertising revenue. The decrease in advertising was primarily attributed to the absence of political advertising post-midterm elections and lower ratings, though partially mitigated by the FIFA Women's World Cup and growth in the AVOD service Tubi. However, profitability saw a significant decrease, with Net Income attributable to Fox Corporation stockholders falling 33% to $407 million. This was largely due to a 12% increase in operating expenses, driven by higher sports programming rights, particularly for the NFL and FIFA Women's World Cup, and increased digital investment costs. Additionally, a substantial negative swing in 'Other, net' and lower income tax expenses compared to the prior year also contributed to the profit decline. Adjusted EBITDA declined 20% to $869 million. The company maintains a strong liquidity position with $3.8 billion in cash and equivalents and an undrawn $1 billion revolving credit facility. Despite the revenue stability, the declining profitability and increased operating expenses, particularly related to sports rights and digital initiatives, are key areas for investors to monitor.
Financial Highlights
48 data points| Revenue | $3.21B |
| SG&A Expenses | $480.00M |
| Interest Expense | $91.00M |
| Net Income | $407.00M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.82 |
| Shares Outstanding (Basic) | 492.00M |
| Shares Outstanding (Diluted) | 494.00M |
Key Highlights
- 1Total revenues remained largely flat at $3.21 billion, up 0.5% year-over-year, driven by higher affiliate fees offsetting lower advertising revenue.
- 2Net income attributable to stockholders decreased significantly by 33% to $407 million, impacted by higher operating expenses and a notable increase in 'Other, net'.
- 3Adjusted EBITDA declined 20% to $869 million, reflecting increased costs associated with sports programming rights (NFL, FIFA Women's World Cup) and digital investments.
- 4The Cable Network Programming segment saw a 3% revenue decrease and an 18% decline in Segment EBITDA, primarily due to lower affiliate and advertising revenues and increased sports costs.
- 5The Television segment reported a 4% increase in revenue, boosted by advertising and affiliate fees, but Segment EBITDA decreased by 14% due to higher operating expenses, particularly sports rights.
- 6The company maintains a strong liquidity position with $3.8 billion in cash and equivalents and an undrawn $1 billion revolving credit facility.
- 7In October 2023, the company issued $1.25 billion in senior notes, and during the quarter, repurchased approximately $250 million of Class A Common Stock.