Fox Corporation Q1 FY2026 earnings call

• Fiscal 2026 Q1 started with 5% revenue growth and 2% EBITDA growth. Advertising revenue grew 6% despite no political revenue last year, with strength in news, sports, entertainment, and Tubi.
• Distribution revenue grew 3%, with subscriber declines remaining below 7% for the third consecutive quarter.
• Launched FOX One, with subscriber uptake exceeding expectations; has a balanced mix of sports (driving weekend viewership) and news (driving weekday viewership).
• FOX Sports had strong NFL and college football viewership: NFL on FOX averaged almost 22M viewers in September (12% increase y-o-y), and FOX's America's Game of the Week was TV's #1 show through September; college football Big Noon Saturday window averaged over 6M viewers (22% increase y-o-y). MLB post-season ad revenues likely to surpass last year.
• Tubi achieved 27% revenue growth and profitability in Q1; its expansive content library and differentiated user base solidify its position as the top premium AVOD platform in the U.S.
• FOX News sustained strong ratings, had highest first quarter ad revenue in history, and FOX News Digital closed the quarter with over 6.5 billion social media video views (record).
• Announced a $1.5 billion accelerated share repurchase transaction commencing tomorrow, expected to complete in the second half of fiscal 2026.

Cable Networks: Revenue grew 4% year-over-year. Cable advertising revenues increased 7% driven by robust pricing at FOX News, while cable distribution revenues grew 3% with pricing growth from affiliate renewals outpacing subscriber decline impact. Cable content and other revenues rose $13M, led by higher sports sublicensing revenues. EBITDA at Cable segment was $800M, a 7% increase year-over-year. Television: Revenue grew 5% year-over-year. Television advertising revenues increased 6% due to growth at Tubi and strong sports pricing/engagement, while television distribution revenues grew 2% with healthy fee growth at FOX owned and affiliated stations. Television content and other revenues jumped 17% primarily from higher entertainment production studio content revenues. EBITDA at Television segment grew 7% to $399M. Tubi: Achieved 27% revenue growth in Q1, driven by an 18% increase in total view time, and reached profitability in the quarter. Revenue contribution percentages weren't explicitly stated in absolute terms but Tubi's growth was highlighted as a key driver in advertising and overall revenue.

• Fiscal 2026 Q1 momentum continuing into Q2 with a strong advertising market.
• Expect total company distribution revenue growth for the full year, driven by the Cable segment.
• Tubi is expected to be a meaningful contributor to EBITDA in the medium term, with margins anticipated to be in the 20%-25% range.
• The $1.5 billion accelerated share repurchase transaction will commence tomorrow and is expected to be completed during the second half of fiscal 2026.

No specific risks detailed in the transcript, but forward-looking statements note that actual results could differ from expectations due to certain factors identified on the call and in SEC filings.

Q: Any color on FOX One sub uptake, engagement, and Tubi margin trajectory?

A: Lachlan Murdoch stated FOX One uptake exceeded expectations, with a balanced mix of sports and news viewing; on Tubi, margins are expected to improve with a medium-term outlook of margins in the 20%-25% range.

Q: Pricing on FOX News and investment moderation at Tubi?

A: Lachlan Murdoch mentioned FOX News pricing is strong due to market share (63% share in total day, 65% in Primetime year-to-date), with 350 new national clients; Tubi's profitability moderates the expected net investment in digital initiatives.

Q: Distribution growth drivers and FOX One impact, ASR?

A: Lachlan Murdoch discussed skinny bundles and FOX One being additive but not material in the short term; Steven Tomsic elaborated on distribution revenue growth expectations and the ASR split due to B shares trading at a discount to A shares.

Q: Balance sheet flexibility, M&A, advertising color?

A: Lachlan Murdoch noted the strong balance sheet and interest in M&A, while on advertising, he highlighted a strong market across segments including pharma, financial services, tech, sports, and local stations.

Q: Investment levels and FOX One customer acquisition?

A: Lachlan Murdoch praised Amazon's partnership in FOX One's success and Steve Tomsic mentioned investment levels are still conservative but Tubi's profitability moderates the initial estimate.