The following is a summary of the Fox Corporation (FOX) Q3 2024 Earnings Call Transcript:
Financial Performance:
Fox Corporation reported Q3 total revenues of $3.45 billion, with adjusted EBITDA growing by 7% to $891 million.
Total affiliate revenue fees rose by 4% in Television and Cable segments due to pricing benefits from recent renewals.
Advertising revenues saw a decline due to fewer NFL broadcasts and the absence of the Super Bowl. However, excluding these factors, advertising revenues would have seen a marginal increase.
The company maintains a strong financial position ending the quarter with $3.8 billion in cash, and a net leverage of just 1 time.
Business Progress:
Fox News increased its ratings by gaining 50% of total rating points.
Streaming service Tubi reported 22% revenue growth, with increased user engagement and a growing user base.
Sports broadcasting through Fox Sports saw strong ratings, and the United Football League (UFL) was launched.
Anticipated political advertising for 2025 is expected to boost revenues.
A new digital distribution platform targeting non-traditional TV sports fans was set up in collaboration with Disney and Warner Bros Discovery.
Tubi's growth is expected to continue due to the ongoing shift from linear entertainment television to Ad-supported streaming services.
Absence of major events like the Super Bowl was offset by growth of affiliate fees in the television segment.
Future bundling of Fox's sports service with other SVOD services is in consideration.
With a strong balance sheet, Fox Corporation is looking into accretive M&A opportunities in line with their strategic goals.
A shift from scripted to unscripted content in the television segment is being implemented to reduce costs.
More details: Fox Corp-B IR
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