FOX REPORTS FIRST QUARTER FISCAL 2025 REVENUES OF $3.56 BILLION, NET INCOME OF $832 MILLION, AND ADJUSTED EBITDA OF $1.05 BILLION
NEW YORK, Nov. 4, 2024 /PRNewswire/ -- Fox Corporation (NASDAQ:FOXA, FOX, ", FOX", or the ", Company", )) today reported financial results for the three months ended September 30, 2024.
The Company reported total quarterly revenues of $3.56 billion, an increase of $357 million or 11% from the amount reported in the prior year quarter. Affiliate fee revenues increased 6%, driven by 10% growth at the Television segment and 3% growth at the Cable Network Programming segment. Advertising revenues increased 11%, primarily due to higher political advertising revenues at the FOX Television Stations, continued growth at Tubi, higher ratings and higher pricing in the direct response marketplace at FOX News Media, and the impact of the "Summer of Soccer" at FOX Sports, including the broadcasts of the UEFA European Championship and CONMEBOL Copa América. These were partially offset by the absence of the prior year broadcast of the FIFA Women's World Cup. Other revenues increased 47%, primarily due to higher sports sublicensing revenues at the national sports networks.
The Company reported quarterly net income of $832 million as compared to the $415 million reported in the prior year quarter. The increase includes the change in fair value of the Company's investments recognized in Non-operating other, net. Net income attributable to Fox Corporation stockholders was $827 million ($1.78 per share) as compared to the $407 million ($0.82 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders1 was $672 million ($1.45 per share) as compared to the $537 million ($1.09 per share) reported in the prior year quarter.
Quarterly Adjusted EBITDA2 was $1.05 billion, an increase of $179 million or 21% from the amount reported in the prior year quarter, primarily due to the revenue increase noted above, partially offset by higher expenses. The increase in expenses was primarily driven by higher programming rights amortization at FOX Sports and higher costs at Tubi.
Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said:
"Fiscal 2025 is off to a solid start across our portfolio with strong audience growth at FOX News, record political advertising across the company, accelerating revenue growth at Tubi and a compelling start to our fall sports calendar. Collectively these contributions have combined to deliver particularly strong financial results in our fiscal first quarter led by notable top line revenue and earnings growth. Our strategy and our focus are delivering for our audiences, advertising and distribution partners, and the FOX shareholders."
REVIEW OF OPERATING RESULTS
Three Months Ended September 30,
2024
2023
$ Millions
Revenues by Component:
Affiliate fee
$ 1,843
$ 1,740
Advertising
1,329
1,200
Other
392
267
Total revenues
$ 3,564
$ 3,207
Segment Revenues:
Cable Network Programming
$ 1,597
$ 1,387
Television
1,953
1,780
Corporate and Other
65
54
Eliminations
(51)
(14)
Total revenues
$ 3,564
$ 3,207
Adjusted EBITDA:
Cable Network Programming
$ 748
$ 607
Television
372
351
Corporate and Other
(72)
(89)
Adjusted EBITDA3
$ 1,048
$ 869
Depreciation and amortization:
Cable Network Programming
$ 20
$ 18
Television
29
29
Corporate and Other
42
49
Total depreciation and amortization
$ 91
$ 96
CABLE NETWORK PROGRAMMING
Three Months Ended September 30,
2024
2023
$ Millions
Revenues
Affiliate fee
$ 1,037
$ 1,005
Advertising
321
290
Other
239
92
Total revenues
1,597
1,387
Operating expenses
(702)
(649)
Selling, general and administrative
(151)
(135)
Amortization of cable distribution investments
4
4
Segment EBITDA
$ 748
$ 607
Cable Network Programming reported quarterly segment revenues of $1.60 billion, an increase of $210 million or 15% from the amount reported in the prior year quarter. Affiliate fee revenues increased $32 million or 3% as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenues increased $31 million or 11%, primarily due to higher ratings, higher pricing in the direct response marketplace and higher digital advertising revenues, partially offset by the effect of higher preemptions associated with breaking news coverage at FOX News Media. Other revenues increased $147 million, primarily due to higher sports sublicensing revenues at the national sports networks.
Cable Network Programming reported quarterly segment EBITDA of $748 million, an increase of $141 million or 23% from the amount reported in the prior year quarter, primarily due to the revenue increase noted above, partially offset by higher expenses. The increase in expenses was driven by higher programming rights amortization at the national sports networks and higher newsgathering costs, including costs relating to presidential election cycle coverage, at FOX News Media.
TELEVISION
Three Months Ended September 30,
2024
2023
$ Millions
Revenues
Advertising
$ 1,008
$ 910
Affiliate fee
806
735
Other
139
135
Total revenues
1,953
1,780
Operating expenses
(1,333)
(1,198)
Selling, general and administrative
(248)
(231)
Segment EBITDA
$ 372
$ 351
Television reported quarterly segment revenues of $1.95 billion, an ...
