10-QPeriod: Q1 FY2025

Fox Corp Quarterly Report for Q1 Ended Sep 30, 2024

Filed November 4, 2024For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) reported a strong first quarter for fiscal year 2025, driven by significant revenue growth and a substantial increase in net income. Total revenues rose by 11% year-over-year, primarily fueled by a robust performance in affiliate fees and advertising, with political advertising revenue being a key contributor. The company's Cable Network Programming segment saw a notable 15% revenue increase, benefiting from higher affiliate rates and increased sports sublicensing revenue. The Television segment also performed well, with a 10% revenue increase, boosted by political advertising at its owned stations and growth at Tubi. Net income attributable to stockholders more than doubled, reaching $827 million compared to $407 million in the prior year's comparable quarter. This substantial improvement was driven by higher Segment EBITDA, a significant unrealized gain on its investment in Flutter Entertainment plc, and better cost management, partially offset by increased income tax expenses. The company also demonstrated solid cash flow generation, with a significant increase in net cash provided by operating activities, highlighting operational strength and effective financial management.

Financial Highlights

47 data points
Beta

Revenue

$3.56B

Net Income

$827.00M

23.2% Net Margin

EPS (Diluted)

$1.78

Total Assets

$22.54B

Cash & Equivalents

$4.05B

Free Cash Flow

$94.00M

Financial Statements
Beta
Revenue$3.56B
SG&A Expenses$502.00M
Net Income$827.00M
EPS (Basic)$1.79
EPS (Diluted)$1.78
Shares Outstanding (Basic)461.00M
Shares Outstanding (Diluted)464.00M

Key Highlights

  • 1Total revenues increased by 11% to $3.56 billion, driven by higher affiliate fees (+6%) and advertising (+11%).
  • 2Net income attributable to Fox Corporation stockholders more than doubled to $827 million, a significant increase from $407 million in the prior year period.
  • 3Cable Network Programming segment revenues grew by 15% to $1.6 billion, with strong contributions from affiliate fees and a substantial increase in other revenues, largely from sports sublicensing.
  • 4Television segment revenues increased by 10% to $1.95 billion, boosted by a 11% rise in advertising revenue, notably from political advertising and Tubi's growth.
  • 5Segment EBITDA increased by 21% to $1.05 billion, with Cable Network Programming up 23% and Television up 6%.
  • 6Net cash provided by operating activities saw a substantial increase to $158 million from $1 million in the prior year period, driven by higher Segment EBITDA and lower restructuring payments.
  • 7The company repurchased approximately 6.4 million shares of Class A Common Stock for approximately $250 million during the quarter.

Frequently Asked Questions

Revenue growth was primarily driven by an 11% increase in total revenues to $3.56 billion. Key contributors included a 6% rise in affiliate fee revenue, a 11% increase in advertising revenue (significantly boosted by political advertising due to the 2024 elections and growth at Tubi), and a substantial 47% jump in other revenues, largely due to higher sports sublicensing revenue at national sports networks.

Profitability saw a significant improvement. Net income attributable to Fox Corporation stockholders more than doubled to $827 million from $407 million in the same period last year. This was primarily due to a higher Segment EBITDA, a significant unrealized gain on the company's investment in Flutter Entertainment plc, and favorable year-over-year comparisons in non-operating items, partially offset by higher income tax expenses.

Both major segments performed well. The Cable Network Programming segment saw revenues increase by 15% to $1.6 billion, with Segment EBITDA growing by 23% to $748 million, driven by higher affiliate fees, advertising, and other revenues. The Television segment's revenues rose by 10% to $1.95 billion, with Segment EBITDA increasing by 6% to $372 million, benefiting from strong advertising and affiliate fee growth.

The company reported a significant improvement in operating cash flow, with net cash provided by operating activities increasing to $158 million from $1 million in the prior year. This was driven by higher Segment EBITDA and lower restructuring payments. Fox Corp maintains a strong liquidity position with approximately $4.1 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility.