Fox Corporation Q4 FY2025 earnings call

Fiscal 2025 was an outstanding year for Fox with record total company revenues over $16B (+17% YOY), record adjusted EBITDA of $3.6B (+26% YOY), and record free cash flow of $3B. Advertising revenues up 26% driven by events like Super Bowl LIX and presidential elections, Tubi growth, news engagement, and sports programming. Successfully completed distributor renewals worth 1/4 of affiliate revenues, total affiliate fees up 5%. Fiscal Q4 had 6% revenue growth and 21% adjusted EBITDA growth, advertising up 7%, Tubi growing, and FOX One launching on Aug 21.

Cable Network Programming segment: 7% revenue growth and 6% EBITDA growth. Cable advertising revenues up 15% due to FOX News engagement, affiliate fee revenues up 7%, other revenues up 39% led by Fox Nation subscribers. Television segment: 6% revenue growth. Advertising revenues up 3% led by Tubi growth, affiliate fee revenues up 4%, other revenues up 34% due to higher content revenues.

Fiscal 2026 advertising market remains healthy with upfront double-digit volume and pricing growth. FOX One launching in a few weeks, $5B share repurchase authorization and dividend increase. Tubi expected to improve profitability in 2026, FIFA World Cup to drive results, with working capital timing headwinds from World Cup rights payments in 2026.

Working capital timing headwinds from FIFA World Cup rights payments in 2026. Competing in a competitive CTV market for Tubi. Ad market comps getting harder for FOX News.

Q: Ben Swinburne asks about fiscal '26 EBITDA expectations and digital investments.

A: Steve Tomsic talks about investment envelope and Tubi's profitability.

Q: John Hodulik asks about cable advertising trends and LatAm strategy.

A: Lachlan Murdoch talks about FOX News' ad strength, Steve Tomsic talks about LatAm sports rights and Caliente TV acquisition.

Q: Michael Morris asks about Tubi's growth and NFL's ESPN investment.

A: Lachlan Murdoch talks about Tubi's success and NFL relationship.

Q: Michael Ng asks about fiscal '26 investments.

A: Steve Tomsic talks about investment envelope and returns.

Q: Jessica Reif Ehrlich asks about M&A and ad market.

A: Lachlan Murdoch talks about M&A focus and strong ad market.

Q: Steven Cahall asks about FOX One bundling and FCC impact.

A: Lachlan Murdoch talks about FOX One bundling and FCC's pro-local stance