Q1 2021 Fox Corp Earnings Call
[noise], ladies and gentlemen, thank you for standing by welcome to the Fox Corporation first quarter fiscal year 2021 earnings Conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session I would like to emphasize that functionality for the question.
Answers Q has recently changed instructions will be given at that time, if you should require assistance during the call. Please press Star then zero as a reminder, this conference is being recorded I'll now turn the conference over to Chief Investor Relations Officer, and that could be a vice president of corporate initiatives. Mr. Georgia Riggle. Please go ahead Sir.
Thank you Greg.
Hello, and welcome to our fiscal 2021 first quarter earnings call.
Joining me on the call today are locked in Murdoch Executive Chairman and Chief Executive Officer, John Allen, Chief Operating Officer, and Steve Thompson, Our Chief Financial Officer.
First lock when Steve will give some prepared remarks on the most recent quarter and then we'll take questions from the investment community.
Please note that this call may include forward looking statements regarding Fox corporations financial performance and operating results.
These statements are based on management's current expectations and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings.
Additionally, this call will include certain non-GAAP financial measures, including adjusted EBITDA or EBITDA as we referred to it on this call reconciliations of non-GAAP financial measures are included in our earnings release, and our SEC filings, which are available on the Investor Relations section of our website.
And with that I'm pleased to turn the call over to walk with.
Thanks, Joe Good morning, and thank you all for joining us to discuss our first quarter results.
Today is a big day for Fox.
And not just because we get to brag about our strong financial performance continued operating momentum and burgeoning digital assets, such as boss bat and to be.
Because every four years, we have the privilege and the responsibility of reporting on a us presidential election.
This very moment as we speak our viewers are starting your election day, turning on their TV sets to where they left them last night.
Fox News channel are opening their web browsers, Fox news dot com or.
Checking the Fox news App for the latest report.
Throughout the day tens of millions of Americans around the country, well turn to Fox to follow our coverage of the presidential election, as well as sand at state and local races.
They do this because they trust us and are Legion of hardworking and diligent news professionals.
Hours ago, our studios across the country were lit for today's coverage and anchors producers camera operators Engineers news editors reporters and more all got ready for a long day and night ahead.
But the real preparation for today began years ago in.
In fact, it is over 12 months since we launched our democracy Twentytwenty campaign.
This intentional careful planning has served us well.
The energy and excitement are comparable and the news rooms, our local Fox television stations and at Fox News, where Bret Baier and Mark in Macau will be live from studio App.
In just a few hours.
The news teams at the Fox television stations and Fox News have done a superb job throughout this election season and viewers from across the political spectrum have been turning to us in record numbers as a result.
Fox News finished September as the first cable network to lead all broadcast networks in weekday prime with total viewers for the full quarter.
In fact Fox news has been the most watched network in all of television from Memorial Day.
Through election day.
We achieved ratings growth in total day and time time throughout the first quarter.
Fox News total day ratings were up 28% total viewers and 31% among adults 25 to 54 years old profit.
Primetime ratings increased even more substantially up 43% in total of yours and up 54% among adults 25 to 54 years old.
This demo is sought out by advertisers, making these gains particularly impactful.
Already in the second quarter the rate of growth in both total viewers and in the 25 to 54 demo has accelerated from last quarter.
Just one recent example last Tuesday October 27, Tucker Carlson Tonight on the Fox News channel had more total viewers than the season premiere of Nbcs. This is us that same night.
And while our linear platform is remarkably strong.
Our audience is also increasingly accessing our digital products to connect with us.
Fox News digital ended the first quarter with record engagement.
More than 11.5 billion total video views.
Total minutes watched clocked in at 14.2 billion and unique visitors jumped to 115 million per month.
Fox news not only draw the largest audiences nationally and also draws more politically diverse audience in more strategically important states than any other cable news network.
According to Nielsen Fox News Dominic's, you're viewing in swing states and key Blue States.
Excuse accounts for 50% of total primetime viewership in swing states compared to MSNBC with 28% and CNN with 23%.
This is only possible because we speak the broadest audience or anyone in our competitive set.
Our audience includes the greatest number of registered independent and likely voters of any cable news network.
News is relied on by 38% a registered independents.
This speaks directly to the quality of our journalism and the balance of our quarter.
People have noticed.
This year, both presidential candidates and the tax supporting them have turned to Fox news to reach our large engaged and diverse audience in.
In fact 28 different political candidates or groups advertise on Fox news during the month of October.
Additionally, we have shattered the record for political advertising at our local stations, surpassing the previous high said during the 2018 midterms.
The geographical mix of our stations includes both the largest dms and locations that are long standing and newly emerging swing states.
This allows us to capture a significant share of local political aspect.
Since I spoke to you in August we've gained increased visibility into local advertising pacing.
Last quarter, our local stations, we're experiencing a year over year decrease.
In our base add market of approximately 40% compare.
Compare that to this first quarter, where our core stations were down approximately 20%.
Including the benefit of political and station acquisitions. We are now pacing ahead over the same time last year.
Looking at it slightly differently.
At the beginning of Cologuard, our stations were pacing down nearly 50% compared to the prior year.
Today, they are pacing ahead.
This is a tremendous return to stress in a remarkably short period of time.
All of our stations also play an important role in connecting audiences and key sports markets with football baseball and other Fox sports programming we.
We have stations in nearly all NFC markets, including our recent additions in Seattle and Milwaukee.
While overall NFL viewership has been has seen year to year declines across all of its partners boxes Americas game of the week is well on its way to our 12 consecutive season as Tvs most watched show.
Americas game of the week is averaging over 24 million viewers.
Up slightly over last year.
We used this or 27 season of NFL on Fox to accelerate awareness and use of free to play box that Super six app.
By week five of the NFL, we signed up more than 1.3 million new users meaningfully surpassing our estimates and increasing total installed users to over 2.9 million.
More than 1.2 million people play in our November Onest NFL Super six game.
By promoting the box pet Super six app across our entire portfolio, we have greatly expanded its user base.
Expect more sports and non sports games and promotions across our platforms given the results we are seeing.
One week ago Sunday, the Super six App was number six in the entire iOS App store only behind apps like Facebook Snapchat.
Super six is consistently at or near the top of the sports category and iOS and Android downloads.
Drafting off the success of Super six Fox bat are our sports betting App is also energizing users.
GAAP, which is currently available in Colorado, New Jersey, and Pennsylvania has been the third most downloaded sportsbook app for the past two consecutive weeks.
That will only increase as we launched new states we.
We anticipate our next launch will be in Michigan early next year.
All of our core businesses are committed to our partnership with flatter and propelling this growth the supertex and Fox Pitt platforms.
Each week, we are driving over 100 million media impressions across our portfolio of owned and operated box assets.
Another important digital expansion for the company our AD supported streaming platform to be driving.
Let me start with the astronomical growth we've seen this quarter.
In August to be recorded 33 million monthly active users, representing a 65% year over year John.
More importantly, since acquisition to be has averaged approximately 100% increase year over year. In total you time, the most meaningful metric when measuring the performance of any Avon service.
This is due in part to the more than 41 Hawk titles currently available on TV, including the mass senior Gordon Ramsay is 24 hours to Helen Bath and Lego Masters.
When should we began streaming the mass singer the show quickly became to be number one television series overall.
We use the show to introduce viewers to tubing and we are also driving them to the platform through marketing across our networks, including the Fox network and Fox News.
Most recently two we sponsored the post game show during the majorly playoffs.
And the World series on Fox.
Using these internal Fox marketing opportunities will increase consumer awareness or to be which will drive exploration and viewing.
We are also using our television stations to promote and differentiate tubing.
As part of today's news on to be launched on Roku Amazon fire in October.
Now have access to live feeds from 18 Fox owned and operated stations in top markets, including New York, Los Angeles, Chicago and Dallas.
The news on to the offering also includes content from third parties, including Limber TV and NBC news now.
News on two we serve several important objectives.
Provide viewers with the best in local news and further leveraging the assets or Fox, while also expanding consumers understanding of what to be offers.
With news on TV platform is for the first time, providing live viewing opportunities.
And we are now monetizing this new content and our impressions on our impressive viewership gains we are including to lead in all of our AD sales discussions.
The power of the Fox and TV partnership is evident.
Since September 1st to be has achieved 45 of the top 50 revenue days in its history.
With a median age of 34 to his audience is young.
Diverse and in demand from many brands.
The leading Fox entertainment programs that feed to be are an important synergy that we will continue to capitalize on with new and returning shows.
All Fox Entertainment, returning shows, including the 911 franchise products on their residents and last man standing our Bakken production with scheduled return date in early January.
As in previous years thoughtful launch a robust and strong slate of shows midseason utilizing the end of the NFL season, NFC championship as a springboard.
Despite pandemic related production halt in the summer that impacted its fall lineup Fox Entertainment had a successful premiere week this television season.
For Premier week, which is the week of September 20, Onest Fox was the number one network for Entertainment program.
But also pick up the 2020 2021 follow up television season with the number one new series.
The number one comedy and the number one drama.
Softness continue that leadership position ranking as the number one network for the week of October 19th.
Each of our core brands is a powerhouse distinctly positioned to differentiate itself from competitors and appeal to viewers.
The power of our total portfolio, though is even greater than the sum of its parts.
Look on the share of voice recently achieved by the Fox Network and the Fox News channel on Thursday October 29th.
Together these networks made up 65% of TD total viewer share compared to the rest of broadcast.
The reliable primetime strength a thought.
News in combination with NFL on costs captured nearly two thirds of all viewers watching broadcast television that even.
On several October evenings, our leadership brands accounted for at least half of all viewers watching broadcast television.
And that occur as we have sports on the network and also when we air one of our entertainment hits.
The power of our brands is not only recognized by our audiences and advertisers. It is also valued by our distribution partners.
In the first quarter, we saw affiliated revenues grow by 10% driven by healthy rate increases.
While we did continue to see a decline in subscriber volume that trend is improving.
This past quarter, we store industry subscribers declined around 6%, which is an approximately 50 basis point improvement from what we experienced last quarter.
And our recent agreements coupled with updates we heard during a recent earnings earnings calls in October from agency, Comcast and charter give us an encouraging look into the December quarter.
Our networks and content continued to be essential to the services offered by traditional and virtual and be ptcs.
We're sustaining our momentum and building on our strengths with increased visibility to the market and the resumption of sports and entertainment production, we are optimistic about and excited for the remainder of the fiscal year.
And now Steve will take us through the details of the quarter.
Thanks, a lot Lynn and good morning.
It's a busy day say, let's get straight to our results.
The company delivered total revenues of $2.72 billion up 2% over the comparative period in fiscal 2020 led by affiliate revenues that grew 10% once again, demonstrating the strength of our brands and have focused portfolio of channels.
From an advertising revenue perspective, we continue to see strong growth at Fox News media and record political revenue source returning to growth at Fox television stations.
Its underlying and sustained strength was offset by COVID-19 related supply side effect is that still the postponement of live sports events in key scripted entertainment content as the Fox network.
Quarterly adjusted EBITDA was $1.17 billion.
Up $310 million over the comparative period fiscal 22, the topline revenue increases in revenue and timing of programming expenses as a result of Cove at 19.
This improvement in EBITDA flow through to the bottom line, where net income attributable to stockholders of $1.11 billion or $1.83 per share was higher than the $499 million or 80 cents per share in the prior year quarter.
This increase included a one time gain recognized in other net associate with the reinvestment of the cash tax prepayment from these neat following the disposition of certain 21st century Fox assets.
Excluding the impact of the Disney reinvestment and other non core items adjusted EPS of $1.80 was up 42% compared to last year's 83 cents per share, primarily reflecting revenue and EBITDA growth.
Turning to the performance of our operating segments for the quarter with cable networks EBITDA of $781 million was up 14% on revenue growth of 3%.
Cable affiliate revenues increased 4%.
Supported by higher average rates, partially offset by an increase net decrease in pay TV subscribers of 6%.
Cable advertising revenues increased 18% led by another quarter of impressive linear and digital growth at Fox News media, partially offset by the postponement of live sporting events, namely became Pac 12 football at our cable sports net.
Cable other revenues decreased by $39 million due to the absence of sports sub licensing revenues, which in turn a broadly offset by a commensurate reduction in rights costs.
EBITDA guidance segment increased $97 million over the prior year period. This.
This reflects the revenue growth that I, just noted as well as as well as lowest sports programming rights amortization and production costs, principally due to the postponement of live events as a result of code 19.
Partially offsetting these lower costs at Fox Sports will increase expenses at Fox News media due to the coverage of breaking news, including the presidential election, and continued investment in digital news initiatives.
The television segment reported EBITDA of $457 million, an increase of $206 million, while revenues were essentially in line with the prior year quarter.
Television affiliate revenues increased 23% in the period, reflecting double digit increases for both at programming fees from non owned station affiliates.
And direct retransmission revenues at our owned and operated stations.
From a television advertising perspective.
Local TV stations generated record political advertising revenues in the quarter.
Reversing the cobot driven trend in the June quarter to be up versus prior year.
This coupled with the addition of revenues from the fast growing too.
Was more than offset in the segment by coated related Postponements College football.
And K scripted entertainment program, along with comparability items, most notably two fewer NFL regular season broadcast windows and a broadcast of the Emmy Awards in the prior year period.
EBITDAR that television segment increased $206 million over the prior year period on the back of lower operating expenses.
The decrease in expenses was driven by lower programming rights amortization and production costs at Fox sports, including fewer NFL broadcast windows additions.
Additionally, there were five Heald college football games in the quarter.
Folks into time and also a low skill low programming rights amortization due to delayed productions of key scripted titles as a result of code in the current quarter and the broadcasted The Emmy Awards in the prior year quarter.
Turning now to free cash flow, which we calculate as net cash provided by operating activities less cash invested in property plant and equipment.
In the quarter, we generated $150 million and free cash flow, which is entirely consistent with the seasonality of working capital in our business.
Reflecting both our confidence in the business and our balanced approach to capital allocation satisfied. This fiscal year, we have deployed $305 million of capital to repurchase approximately 8 million class a shares and three meeting class B shares.
Against that buyback authorization of $2 billion, we have net cumulatively repurchased just over $900 million, representing approximately 4.5% to that total shares outstanding since the launch of the buyback program in November.
From a balance sheet perspective, we ended the quarter with $5.1 billion in cash and $7.9 billion in debt.
Looking through to the second quarter, the strong advertising momentum at news.
Local television stations and to be have will carry forward into the first month of this current quarter.
We anticipate that these factors coupled with a heavy scheduled live sports events will translate into improved retention growth in overall that advertising revenue in the fiscal second quarter.
Notwithstanding what remains and mid season focused entertainment slate with the return of our key scripted shows in the new calendar year.
Meanwhile, from a cost perspective, we anticipate that the timing benefit seen announced this quarter content costs from sports events and entertained slight postponements will begin to unwind in the second quarter through the remainder of the fiscal year.
In terms of cash flow, we continue to anticipate relatively low working capital usage over the course of the full fiscal year.
Than normal working capital within.
Our normal working capital patterns for the first half deficit that largely reverses in the second half.
As we foreshadowed in the past we continue to expect a high level of capital expenditure in fiscal 21 to support the final phases of the build out of that technical broadcast facility in Arizona and the upgraded some of that station facilities.
All of this of course assumes that the cobot driven disruptions to major sports and the production delays to our key entertainment properties and behind Us.
As our first quarter results demonstrate we have seen a meaningful recovery in our underlying business.
This operating momentum combined with the benefits of strong free cash flow and liquidity moderate leverage and the absence of any debt maturity until early 2012 Twentytwenty two.
Question is particularly well for the future.
And with that ill now turn the call back to Joe.
Thank you, Steve and now we'd be happy to take a few questions from the investment community.
Ladies and gentlemen, I'd like to again emphasize that functionality for the question and answer queue has recently changed if you'd like to ask a question. Please press. One then zero on your Touchtone phone you will hear a tone, indicating you have been placed in Q you may remove yourself from Q at any time by once again pressing one then zero if you are using a speakerphone.
Please pick up the handset before pressing the numbers. It has been requested that you limit yourself to one question. Once again, if you have a question. Please press one zero at this time and one moment. Please for your first question.
Your first question comes from the line of Doug Mitchelson from Credit Suisse. Please go ahead.
Thanks, so much local I think maybe the obvious question is I know you like to have some walking around money with $5 billion of cash on the balance sheet are you seeing.
A lot of interesting activity in the M&A market. When you think about the increased visibility that you just talked about on this call relative to what we had three months ago or six months ago does that change your focus in terms of.
Your appetite for buying back stock how are you thinking about deploying that capital over time.
If you don't mind, one quick follow up are you willing to give us what the total viewing time is for to be I know you noted that it was up 100%. Thanks.
Thanks, so much.
Thanks, Doug.
Good to hear voiced hope you're well.
First of all on our own.
On the thank you broke also pointing out our our $5.1 billion of cash on are really superb balance sheet position.
We worked hard to create.
The position, we're in and I think we are looking for and I'm as I sort of alluded to in my prepared comments, we are now coming through a period of uncertainty for.
All businesses.
Yes, many of your PR either appear to we are seeing greatly.
Improved visibility going forward. So I think you know what that means is that we have a good idea of what our future capital on needs are and were deeply our confidence in our underlying business and cash generation. So as we as we look at our cash on the balance sheet, we really think about in a ballot.
Seeing how we deploy that towards some acquisitions organic investments in our business and capital returns to our shareholders and we don't have a formula in terms of.
How we would how we would allocate between those those categories.
But we have today, while back $900 million worth of our our stock, which leaves us with $1.1 billion.
Of capacity under our.
Our buyback authorization, which we fully intend to complete.
[music].
To your second question that to the total volume total time spent viewing.
In September alone was 202 hundred 20 million hours viewed.
Thanks, Doug.
We can give you the next question.
Your next question comes from the line of Alexia Quadrani from Jpmorgan. Please go ahead.
Thank you very much.
You really had some impressive milestones at QB, adding a lot more new content Im curious when we may get maybe some more information or bigger update on your long term DTC strategy and then just a quick follow up any color you can share on the NFL negotiations how quick maybe.
Good morning.
Okay.
Let me now.
Thanks, Alexia, let me, let me address the second question.
First obviously, we're not going to get into the detail of our NFL Nick.
Negotiation.
But.
As I've previously mentioned, the NFL and Aung earlier earnings calls as well the NFL, along obviously major League baseball opera remains.
Amongst our very top priorities and and our really our number one.
Programming.
Partner Subpoena partnership that's gone back 27 years, we look.
Look for.
To continuing that partnership and and you can see it in our in our ratings, while NFL ratings have been soft this year because of a number of factors, which we believe are are unique to this.
This particular year with sports.
Premium sports moving all of the fall creating a.
More on a crowded.
Marketplace for sports fans and also with frankly, the the new cycle, where we've seen on news during the year to remember that the news audience on the on the sports audience, particularly the NFL audience has a tremendous overlap cable news I think is up 46%. During this this NFL season.
So we think some of the softness in the ratings is unique to this to this season.
And because of that we're confident in the partnership in our partnership with the NFL going forward.
In terms of to be us as as you see our.
Fragmentation in the linear television market particular, particularly in linear entertainment.
To me is the beneficiary of that to be sits on the other side of that ledger, which is gaining ADR.
Audience and users.
From from linear television market. So we think to be is is that has a lot of tailwinds behind it and we're excited to report on on its milestones as you've been going forward.
We can go to the next question your.
Your next question comes from the line of Michael Morris from Guggenheim. Please go ahead.
Hi, Thank you good morning.
One question on expenses can you share what expense growth would have looked like excluding the programming disruptions that we've experienced I think your operating expenses looks like it's down about 14% in the quarter and Steve you referenced sort of an unwind of that going forward. So I'm curious how much of that does on wind and weather this disruption.
Impacted how you think strategically about that mix of investment and scripted programming.
Versus sports and news and then one other just real quick if I could.
I'm curious if you can share any thoughts on how the outcome of today's presidential election May impact Fox news going forward do you think ratings can vary based on an outcome and.
And also president has in the past referenced perhaps starting the news network and how you would think about that competitively. Thanks guys.
So Steve I should answer the first question is going to.
Yes.
Yes.
Yes.
Let me Michael.
In terms of expenses.
The impact of covenant getting hotter and how to split out because.
You just I know, where the advertising would have the counterfactual on the advertising, but if I just look at expenses.
And really just trying to isolate for things that have been scheduled added Q1 into Q2, Q3, Q4, I'd say that we benefited from it that 270 $280 million.
In Q1 that will shift into the back half for the back three quarters in the U.S.
You'll have a reasonable concentration of that in Q2, because that's when you'll have a heavy concentration of but the NFL and college football and then we'll see the entertainment heat Q last from Q3 to Q4.
And then to your second.
Question Michael.
As far as the.
The impact on Fox news of the presidential election and of course, it's been a you know.
Today, an incredible.
New cycle throughout the election, but also through the other.
Incredible new stores and massive new stores throughout the year obviously.
Covered being being the main one.
We see us as we and by the way that's driven ratings, it's driven revenue.
Thats news revenue advertising revenue was up.
36%.
Which is which is a tremendous result.
But as you as you look at our our audience and you look at our our ratings you have to look at and this is true for the whole news ecosystem you have to look in two different ways. One is the.
Total news audience and the appetite for news and the second is share.
The first.
The appetite for news and the new cycle, the new stores that are out are sort of out of our control.
And I would expect as we enter more normal new cycle, which.
Has to happen eventually.
That appetite for news will shift back to appetite for great American pastimes of watching football and watching baseball and watching watching them asking our or I can see your voice.
And we look forward to that ships, having said that what we can control within within the news ecosystem, where we aim to control his share and.
I strongly believe and Weve seen this through I think now 18 years.
Top my head of different administrations and different.
Local cycles.
We have maintained our number one position through all of that.
So.
So that I think to answer the first part of the question or give you some insight on how we're thinking about the first part of your question. So.
The new cycle will will will moderate we fully expect to be number one and and maintain share through that I.
I think the second part of your question Michael was around our new entrants and competition into the into the news environment now we love competition, we have always on thrived with competition.
And.
We have strong competition now I will say the only.
Difference today versus some years ago as our audience has grown.
And our reach has grown we see our competition as no longer only.
Cable news providers, but also as the traditional broadcast networks and as you know Fox News has been the number one network, including raw.
Broadcast networks now as I mentioned through from Labor day through too.
Election day.
We can go to the next question you're.
Your next question comes from the line of Michael Nathanson from Moffettnathanson. Please go ahead.
Yes, Thanks, I want to lock on one for Steve Laughlin on sports gambling I believe you have an option to buy a 25% of Fanduel next year and 21.
I Wonder how do you think about that and just given how the market is valuing sports gambling.
How are you thinking about putting excess capital in.
In into that business and then for Steve We always ask you about affiliates is when people are disappointed this quarter youre surprised on the upside you've given us the update on subscriber trends was there anything else going on a little bit of new pricing, perhaps some new deals come through so any more color on on the acceleration until it used to be helpful. Thanks.
Thank you. Thanks, thanks, very much so on Omnilink.
They are fanduel option. This is an easy answer on a quick on it we have a 10 year option.
Our 18.5% of Fanduel we.
We think it's a huge opportunity we think that option today has has has tremendous value.
And we work on a on literally a daily basis.
With slaughter.
To both increase the value of sandal and also increase the value of off spec and Super six our 50 50 joint venture with them. So yes, we are.
Our excitement about the.
The space.
In sports Wagering is unabated.
But with the nature of a long term option, we would wait until.
Corporate kind of exercise that option that you wouldn't expect us to do that in the near term.
Hey, Michael its Dave in terms of the affiliate if I look at it sequentially. The biggest driver is just the.
Subs were a little bit better versus Q4, so Q4, as often mentioned versus Q1. This year with 50 basis points to the data is a couple of small things in it.
We are lapping quote.
Quarter last quarter, we were up there with dish for small period of time. This quarter, we had no keep Americans connected sort of accrual in the number that it's it's more underlying that is any any particular one offs.
Okay.
We can go to the next question.
Our next question comes from the line of Jessica Wright Ehrlich from Banc of America Securities. Please go ahead.
Thank you I also have a question on sports gambling and one quick follow up.
Welcome.
You talked about I guess over a year ago.
Stay at home change consumer behavior or your expectations for the long term opportunity.
And maybe you can frame the long term opportunity of the various pieces and what led to the partnership that you recently signed with the Philadelphia Eagles, where you're incorporating brick and mortar strategy into your approach and.
The Fox Pitt studio and lounge, that's being built at Lincoln field.
And then just a quick follow up on QB, what was the advertising contribution this quarter can you frame what advertising.
And would have been without Tobey. Thank you sure.
So first.
On Fox bet.
I think wage your line I know.
Wagering has exploded during cobot and then stay at home.
People, who.
Particularly as as as well while sports was.
In a hiatus.
[music].
Gaming was was.
It was growing strongly and esports came back a sports wagering.
Group grew tremendously.
So.
Yep.
The if you look at the the trajectory of where that industry is going and as particularly as as states.
Incrementally because of credit or consensus consensus really.
Consecutively sorry.
Open up to wagering that this business remains.
A larger and larger opportunity for us however, Jessica as you'll remember the structure of our partnership with a flutter is that they control the Fox bet.
Business today, and they fund the Fox that business today as.
As Fox Corporation is not a licensed entity.
Having said that we.
Worked with them incredibly closely in terms of the promotion a fox back in order to grow the the value within that that joint venture.
The second part of question on to be.
We are now we have we have now for several months.
Selling to be and I should have actually have also spoken to this with Elecsys question.
We are selling to be in every single one of our conversations with our advertising partners.
To be increases foxs reach by over 20% and it's a young and diverse.
Our audience.
Which is on duplicated our largely on duplicated.
Part of the Fox audience, and so you know the every time I talk to far at which is.
Very regularly there's.
Theres a new.
Daily revenue.
Record that he hits and.
Which is which is tremendous.
And look to be honest, we're only at the beginning so when we think of.
Both the the key metrics of time spent viewing.
Total users and.
As importantly, or maybe most importantly.
Revenue to be.
Consistently anchor.
And continually is exceeding every expectation in our acquisition pace.
Operator, we have time for one more question okay.
Okay that question comes from the line of Ben Swinburne from Morgan Stanley. Please go ahead.
Thanks, Good morning.
Steve You mentioned record political I'm wondering if you could size that.
In this at the stations either this quarter or for the cycle.
Should we think about that.
Contribution from political in the television segment over the over the six month period or so accurately.
And then.
Maybe I'll just ask about Sunday ticket in the NFL for Laughlin or whoever wants to take it there was some press reports overnight, but yes at 18, she is probably not going to attain that package I'm. Just wondering as you guys think about the NFL landscape is that a package that could be interesting to sox.
Maybe over a to be like platform or are you concerned that that may go wider than the satellite distribution model, we've seen in the past impacting potentially the the local broadcast ratings. Just curious if you have a perspective on that on the outcome there.
Hey, then ill.
Ill take the political advertising live it's been amongst a quarter and amongst the half floor.
So for the quarter way across the the good thing about it the cycle is being its not just been a local story, we've been booking significant amounts of national political revenue for the quarter, we need a shade under 100 million across the group of which 70% of that was local.
And then when we look at it across the first half so july 1st through to today.
With that let me field under the next earnings call, we'll push close to $300 million of AD revenue political ad revenue.
For the full six months.
Of which about just north of 200 will be local so its been an enormous quarter and half floors.
And then just before I touch on Sunday ticket I think one of the unique.
Elements of this the political cycle Ben is the growth in national political advertising as Steve.
Mentioned.
In in prior years.
Political Avalon advertising has been almost entirely a local and the growth in national political advertising, particularly on on Fox news, but but also.
Importantly.
In sports has been a new and I think.
[music].
Very positive development.
Development and it goes obviously also to the quality of our audience.
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Data also by the way has the impact of usually.
I think usually Geske asked a question about the advertising market.
So if there were more important things to discuss but.
But.
What the what the political the robustness of the local market has really done is really drive our scatter pricing up as as as advertisers have scramble to find time so.
Scatter advertising across local stations.
Across sports across news and across entertainment is up strongly and we took the strategic decision to.
Hold back.
A little bit more time than we normally would in our upfront negotiations about roughly 5% more time, we held back for scatter and that.
That bet.
Is paying off.
Handsomely.
As we move on to two to Sunday ticket look it's on.
Sunday ticket is.
Tremendous consumer offering it doesn't.
Work I think without a subscription on or anything other than a subscription model. So.
So it's not really something that we would have.
We would we will consider or have the.
The business model to to monetize.
But thank you for the question Ben.
At this point, we're out of time, but if you have any further questions. Please give me or Dan carry a call. Thank you all once again for joining todays call.
And ladies gentlemen, thanks, everyone.
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