Q2 2022 Fox Corp Earnings Call
Speaker 1: St St I.
Uh-huh.
Yeah.
[music].
Ladies and gentlemen, thank you for standing by and welcome to the Fox Corporation second quarter 2022 earnings conference call.
Speaker 2: Ladies and gentlemen, thank you for standing by and welcome to the Fox Corporation Second Quarter 2022 Earnings Conference call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session.
At this time all participants are in a listen only mode.
Later, we will conduct a question and answer session.
Speaker 2: I would like to emphasize that the functionality for the question and answer queue will be given at that time.
I would like to emphasize that the functionality for the question and answer queue will be given at that time.
If you should require assistance during the call. Please press Star then zero.
Speaker 2: If you should require assistance during the call, please press star then zero. And as a reminder, this conference is being recorded.
And as a reminder, this conference is being recorded.
I would now like to turn the conference over to Chief Investor Relations Officer, Mr. Joe <unk>. Please go ahead Sir.
Speaker 2: I would now like to turn the conference over to Chief Investor Relations Officer, Mr. Joe Durago. Please go ahead, sir.
Speaker 3: Thank you, operator. Good morning and welcome to our fiscal 2022 second quarter earnings call. Joining me on the call today are Lachlan Murdoch, executive chair and chief executive officer. John Allen, chief operating officer and Steve Thompson, our chief financial officer.
Thank you operator good morning.
And welcome to our fiscal 2022 second quarter earnings call. Joining me on the call today are Lachlan Murdoch Executive Chair and Chief Executive Officer, John Nolan, Chief Operating Officer, and Steve Tomsic, Our Chief Financial Officer.
Speaker 3: First, Lachlan and Steve will give some prepared remarks on the most recent quarter, and then we'll take questions from the investment community.
First Lachlan and Steve will give some prepared remarks on the most recent quarter and then we'll take questions from the investment community. Please.
Speaker 3: Please note that this call may include forward-looking statements regarding Fox Corporation's 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 file.
Please note that this call may include forward looking statements regarding Fox Corporation's 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 Companys SEC filings.
Speaker 3: 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 FCC filings which are available in the investor relations section of our website. And with that, I am pleased to conclude my remarks.
Additionally, this call will include certain non-GAAP financial measures, including adjusted EBITDA or EBITDA as we refer to it on this call.
Reconciliations of non-GAAP financial measures are included in our earnings release, and our SEC filings, which are available in the Investor Relations section of our website.
And with that I'm pleased to turn the call over to Lachlan.
Speaker 4: Thanks, Joe, and good morning, everyone. We are pleased to be with you today to discuss another really truly remarkable quarter for Fox Corporation.
Thanks, Joe and good morning, everyone.
We are pleased to be with you today to discuss another are really truly remarkable quarter for Fox Corporation.
In our fiscal second quarter, we delivered 9% revenue growth and 2% EBITDA growth, even while continuing to invest in our digital initiatives.
Speaker 4: In our fiscal second quarter, we delivered 9% revenue growth and 2% EBITDA growth, even while continuing to invest in our digital initiatives.
Speaker 4: These results demonstrate our ability to expand our emerging digital businesses while focusing on delivering overall growth for our shareholders.
These results demonstrate our ability to expand our emerging digital businesses, while focusing on delivering overall growth for our shareholders. This.
Speaker 4: This strategy has been unwavering and disciplined, and we have not been convinced to deviate into areas where we cannot be a leader.
This strategy has been unwavering and disciplined and we have not been convinced to deviate into areas, where we cannot be a leader.
Our financial results in the quarter benefited from healthy affiliate revenue growth in what continues to be at least for Fox a robust advertising marketplace.
Speaker 4: Our financial results in the quarter benefited from healthy affiliate revenue growth and what continues to be, at least for FOX, a robust advertising market.
Speaker 4: our advertising revenue grew 6% versus the prior year quarter, which is notable when you consider that last year included a record net political advertising revenue of nearly $250 million.
Our advertising revenue grew 6% versus the prior year quarter, which is notable when you consider that last year included a record net political advertising revenue of nearly $250 million.
From our national advertising sales perspective, we have seen robust CPM growth and broad based demand across most advertiser categories. This is clear evidence that our portfolio of leadership brands, which over index in sports and news continues to deliver the live audiences at scale that our advertising partner.
Speaker 4: From a national advertising sales perspective, we have seen robust CPM growth and broad based demand across most advertiser categories.
Speaker 4: This is clear evidence that our portfolio of leadership brands, which over index in sports and news, continues to deliver to live audiences at scale that our advertising partners seek.
Seek.
Speaker 4: To understand the scale of our reach across the US, you only need to look to our NFC Championship game a week ago, where at peak we had 55 million viewers tune into the game.
To understand the scale of our reach across the U S. You only need to look to our NFC Championship game a week ago. We're at peak, we had 55 million viewers tuned into the game.
The overall market trends in local advertising also remain positive for us as we achieved double digit base advertising revenue growth in the quarter when excluding political revenue.
Speaker 4: The overall market trends in local advertising also remain positive for us as we achieve double-digit base advertising revenue growth in the quarter when excluding political revenue. Perhaps even more important to note, our local advertising revenues have now fully recovered from the impact of COVID and are up over pre-pandemic levels.
Perhaps even more important to note.
Our local advertising revenues have now fully recovered from the impact of Covid and are up over pre pandemic levels.
While we continue to see softness in the local automotive category caused by the ongoing supply chain delays. This is being more than offset by growth in nearly all other categories led by sports betting.
Speaker 4: While we continue to see softness in the local automotive category caused by the ongoing supply chain delays, this is being more than offset by growth in nearly all other categories, led by sports betting.
We have already written over 50% more local sports betting revenue at this point of the fiscal year than we did across all of fiscal 'twenty one.
Speaker 4: We have already written over 50% more local sports betting revenue at this point of the fiscal year than we did across all of fiscal 21.
Speaker 4: We have seen these same local trends continuing thus far into the third quarter.
We have seen the same local trends continuing thus far into the third quarter.
Overall, our operating businesses are performing well underscoring our unique strategy and differentiated position.
Speaker 4: Overall, our operating businesses are performing well, underscoring our unique strategy and differentiated positioning.
Let me touch on some of the highlights.
Speaker 4: The Fox News Channel celebrated its 25th anniversary this past October by reinforcing its exceptional ratings leader.
The Fox News channel celebrated its 20 <unk> anniversary this past October by reinforcing its exceptional ratings leadership.
On the same call last year, we were fielding questions about whether Fox news it peaked.
Speaker 4: On the same call last year, we were fielding questions about whether Fox News had peaked. Yet for the 20th consecutive year, Fox News is the leader in cable news across the board in total viewers and the 25-54 demographic for both total day and prime time.
For the 20th 20th consecutive year Fox News as the leader in cable news across the board in total viewers and the 25 to 54 demographic for both total day and primetime.
Speaker 4: Calendar 21 also marked the sixth consecutive year Fox News led all of basic cable in total day and primetime viewers.
Calendar 'twenty. One also marked the sixth consecutive year of Fox News led all of basic cable and total day and primetime viewership.
Speaker 4: Fox News leads by a wide margin, commanding a 55% share of total date, cable news viewership this past quarter. Fox News's share of the younger demographic was even higher at 57%, marking its second highest quarterly share of the younger demo on record.
Fox News leads by a wide margin commanding a 55% share of total de.
Cable news viewership this past quarter Fox News is chair of the younger demographic was even higher at 57%, marking its second highest quarterly share of the younger demo on record.
Speaker 4: Fox News's audience was also the most politically diverse.
Fox News is audience was also the most politically diverse with more independents and Democrats tuning into the network than to our competitors.
Speaker 4: with more independence and democrats tuning into the network than to our competitors
Speaker 4: Our unmatched programming lineup continues to drive these great ratings results and bring a blue chip roster of advertisers to the channel and its digital extension.
Our unmatched programming lineup continues to drive these great ratings results and bring a blue chip roster of advertisers to the channel and its digital extensions.
Speaker 4: For example, in the aggregate across all of cable news this past quarter, box news delivered 14 of the top 15 programs.
For example in the aggregate across all of cable news this past quarter Fox News delivered 14 of the top 15 programs.
We simply could not be better placed as we look forward to the midterm election cycle later this year.
Speaker 4: We simply could not be better placed as we look forward to the mid-term election cycle later this year.
Meanwhile, the momentum continued at Fox nation, which increase its net subscribers in the quarter by over 30% versus the September quarter supported by strong fresh content to help drive higher subscriber numbers and very low churn.
Speaker 4: Meanwhile, the momentum continued at Fox Nation, which increased its net subscribers in the quarter by over 30% versus the September quarter, supported by strong fresh content that helped drive higher subscriber numbers and very low-turn.
Additionally, Fox weather, which is breaking through a crowded field of established incumbents is off to a great start.
Speaker 4: Additionally, Fox Weather, which is breaking through a crowded field of established incumbents, is off to a great start. And its growth will continue in the current quarter as we expand the distribution of the Fox Weather live video streams across multiple platforms, including YouTube TV, Amazon news, Roku and Fubo.
And its growth will continue in the current quarter as we expand the distribution of the Fox whether live video streams across multiple platforms, including Youtube TV, Amazon News Roku and FUBAR.
At Fox Sports, we also had a strong quarter led by our NFL and college football coverage.
Speaker 4: At Fox Sports, we also had a strong quarter, led by our NFL and college football coverage.
Over the last 12 months Fox sports had more telecast across the top 100 programs than any other network, let alone any other network Sports Division.
Speaker 4: Over the last 12 months, Fox Sports had more telecasts across the top 100 programs than any other network. Let alone any other network, sports division.
And of the total minutes of NFL and college football that Americans walks during the 2021 regular season about a third were viewed on Fox.
Speaker 4: And of the total minutes of NFL and college football that Americans watched during the 2021 regular season, about a third were viewed on Fox.
Speaker 4: I commented on the postseason a moment ago and by any measure it was a great series of games for us and for the NFL.
I commented on the post season, a moment ago and by any measure it was a great series of games for us and for the NFL.
Speaker 4: Audiences and advertisers embrace the postseason which capture record-setting revenue full season for us at Fox in a non-supervolute year.
Audiences and advertisers embraced the post season, which capped a record setting revenue full season for us at Fox and non Super Bowl year.
Speaker 4: demonstrating that growth and the demand, we had 21 advertisers placed in this year's NSC Championship game that were not present a year ago.
Demonstrating that growth and the demand we had 21 advertisers placed in this year's NFC Championship game that were not present a year ago.
Speaker 4: The results from the season underscore the value and importance of our long-term partnership with the NFL that will continue for at least the next 12 years. College football.
The results from this season underscore the value and importance of our long term partnership with the NFL that will continue for at least the next 12 years.
College football and equally impressive results.
Speaker 4: Fox's big noon Saturday window grew by 15% over to the normal twenty nineteen season and with an average viewership of over five point eight million has become the number one window in all of college football.
Fox is big noon Saturday window grew by 15% over its inaugural 2019 season, and with an average viewership of over $5 8 million has become the number one window in all of college football.
Speaker 4: To put the success of our college football strategy in a proper context, in 2016, Fox's last season, prior to adding the big tenorites, our share of college football viewership was just 7%. Today, we have grown this threefold to a 22% share.
To put the success of our college football strategy in a proper context in 2016 boxes last season prior to adding the big 10 rights our share cost football viewership was just 7%.
Today, we have grown this threefold.
Threefold to a 22% share.
Speaker 4: We continue to leverage our leading sports franchises into adjacent opportunities and are pleased with progress at Fox Sports Super 6, which ended the year with more than six million users, up more than 20% over the prior year.
We continue to leverage our leading sports franchises into adjacent opportunities and are pleased with progress at Fox Sports Super six which ended the year with more than 6 million users up more than 20% over the prior year.
Speaker 4: In addition, this coming April , we will launch the USFL, a new innovative Spring Football League, which Fox will control.
In addition, this coming April we will launch the Usfl, a new innovative spring football League, which Fox will control.
And again, our strategy to invest in our flagship brands and serve our loyal audiences has enabled us to realize new and exciting digital growth opportunities.
Speaker 4: And again, our strategy to invest in our flagship brands and serve our loyal audiences has enabled us to realize new and exciting digital growth opportunities. And nowhere.
And nowhere.
Is this more apparent than at <unk>.
While some companies are focused on multibillion dollar content investments in search of streaming subscription growth to be continues its unrelenting focus on advertising video on demand with the strategic and measured investment approach.
Speaker 4: While some companies are focused on multi-billion dollar content investments in search of streaming subscription growth, to be continues its unreliiting focus on advertising video on demand, with the strategic and measured investment approach.
This approach has yielded solid momentum across all key revenue and performance indicators.
Speaker 4: This approach has yielded solid momentum across all key revenue and performance indicators.
Q2.
Speaker 4: Q2, represented to be best performing quarter ever, and December , it's best performing month.
It represented <unk> best performing quarter ever.
In December its best performing month.
Speaker 4: In the quarter alone, 2b achieves 54 of its top 100 revenue days, 55 of its top 100 viewer days, and 50 of its top 100 total view time for TBT days.
In the quarter alone to be achieved 54 of its top 100 revenue days 55 of its top 100 viewer days and 50 of its top 100 total view time or TVT days.
To be exceeded $3 6 billion hours streamed in calendar 2021, marking a 40% increase in TVT over the prior year due in large part to the breadth of its library.
Speaker 4: To be exceeded 3.6 billion hours streamed in calendar 2021, marking a 40% increase in TBT over the prior year, you will large part of the breadth of its library. Now at more than 41,000 titles.
Now at more than 41000 titles.
Our quickly expanding linear news and sports offering with more than 100 channels.
Speaker 4: quickly expanding linear news and sports offering with more than 100 channels.
Speaker 4: It's high return on investment in licensed content and original releases and its world-class technology.
It's high return on investment and licensed content and original releases and.
And its world class technology.
We chose to acquire and now operate television with a singular goal of winning in Avon.
Speaker 4: We chose to acquire and now operate to be with the singular goal of winning in Ava.
Speaker 4: There are no competing priorities internally and no revenue transfer from other assets in our portfolio.
There are no competing priorities internally and no revenue transfer from other assets in our per foot in our portfolio.
Speaker 4: That is to say, to be revenue is truly incremental to us.
That is to say <unk> revenue is truly incremental to us.
Speaker 4: As Steve will discuss in a moment, our focus portfolio of leadership assets and emerging digital businesses is delivering consistent growth in a thoughtful and disciplined manner.
As Steve will discuss in a moment, our focused portfolio of leadership assets and emerging digital businesses is delivering consistent growth in a thoughtful and disciplined manner.
Speaker 4: Taken as a whole, we have the most valuable news franchise in the country, not the world, the leading live sports franchise, and a top broadcast network reinforced by a strategic portfolio of local stations, all of which have digital extensions.
Taken as a whole we are in the most valuable news franchise in the country, if not the world the leading live sports franchise and a top broadcast network reinforced by a strategic portfolio of local stations all of which have digital extensions to their businesses.
And then in the three years since we formed Fox Corporation. We have used this collective platform to develop a rapidly growing eva streaming business and create optionality within the sports betting ecosystem.
Speaker 4: And in the three years since we formed Fox Corporation, we have used this collective platform to develop a rapidly growing ABO streaming business and create optionality within the sports betting ecosystem.
Speaker 4: We feel we are in a strong position and could not be more excited for the months ahead as we prepare for, which should be an active and exceptional fiscal 2023 for fall.
We feel we are in a strong position and could not be more excited for the months ahead as we prepare for what should be an active and exceptional fiscal 2023 for Fox.
Speaker 4: With that, I will turn it over to Steve to take you through the quarter in more detail. Thanks.
With that I will turn it over to Steve to take you through the quarter in more detail.
Thanks, a lot Glenn and good morning, everyone.
We delivered another strong quarter with total company revenues growing 9% year over year.
Speaker 5: We delivered another strong quarter with total company revenues growing 9% year over year.
Once again highlighted by revenue growth across all of our operating segments.
Speaker 5: Once again highlighted by revenue growth across all of our operating.
Speaker 5: A total company affiliate revenues grew 11% against the prior quarter, reflecting healthy increases at folks at cable networks and television.
With total company affiliate revenues grew 11% against the prior year quarter, reflecting healthy increases in both the cable networks and television segments.
Speaker 5: The rate of subscriber decline helps steady in the quarter with trailing 12 month industry sub losses continuing to run below 5.
The rate of subscriber declines held steady in the quarter with trailing 12 months industry sub losses, continuing to run below 5%.
Notwithstanding the tough comparison against a record political advertising revenues in the prior year quarter at total company advertising revenues grew by 6%.
Speaker 5: Notwithstanding the tough comparison against our record political advertising revenues in the prior quarter, our total company advertising revenues grew by six...
As Lachlan mentioned, we benefited from the premium pricing in our core brands, we're able to extract from a healthy marketplace continued growth in television and a full season of college football following the disruptions caused by Covid in the prior year.
Speaker 5: As Lockland mentioned, we've benefited from the premium pricing our core brands were able to extract from a healthy marketplace.
Speaker 5: continued growth of 2B and a full season of college football following the disruptions caused by COVID in the prize.
Taking a step back from the comparability challenges versus fiscal 'twenty, one Fox as total advertising revenues and now running a healthy 12% ahead of Q2 fiscal 'twenty, which was pre COVID-19 and unaffected by political advertising revenues. This.
Speaker 5: Taking your step back from the Comparability Challenges versus Fiscal 21.
Speaker 5: Fox's total advertising revenues are now running a healthy 12% ahead of Q2 fiscal.
Speaker 5: pre-COVID and unaffected by political advertising.
Speaker 5: before taking into account the contribution of 2V to our current day advertising revenues, which take the reported growth rate up to 20%.
This is before taking into account the contribution of television to a current day advertising revenues, which take the reported growth rate up to 20%.
Meanwhile, total company other revenues increased 20% supported by a full college football season that drove high sports sub licensing revenues at the cable segment. Following the disruptions caused by Covid last year.
Speaker 5: reported by a full college football season that drove high sports sub licensing revenues at the Cable's Fagman, following the disruptions caused by COVID-19.
Speaker 5: Adjusted the bidder increased to 2% to $310 million. As the revenue increases were partially offset by higher operating rates.
Adjusted EBITDA increased 2% to $310 million as the revenue increases were partially offset by higher operating expenses associated associated with normalized sports and entertainment programming schedules contractual sports rights escalators and the digital investments we called out on previous calls at Fox News media and television.
Speaker 5: with normalised sports and entertainment programming skills.
Speaker 5: contractual sports rights escalators and the digital investments we called out on previous calls at Fox News Media and TV.
The net loss attributable to stockholders of $85 million or <unk> 15 per share varies from the net income attributable to stockholders of $224 million or <unk> 37 per share in the prior year quarter, primarily due to the change in fair value of the Companys investments in Florida, which we recognized in other net.
Speaker 5: The net loss attributable to stockholders of $85 million or $15 cents per share varies from the net income attributable to stockholders of $220-$24 million or $37 cents per share in the prior quarter. Primarily due to the change in fair value of the company's investment in flyer, which we recognize enough.
Excluding the impact of this and other noncore items adjusted EPS of 13 cents in the current year quarter was down modestly when compared to the 16 <unk> reported in the prior year quarter.
Speaker 5: Scruting the impact of this and other non-core items, adjusted ETS of 13 cents in the current year quarter was now modestly when compared to the 16 cents reported in the prior year quarter. Primarily due to the higher depreciation and amortization, resulting from our new broadcast facility coming online late last fiscal year.
Primarily due to the higher depreciation and amortization, resulting from our new broadcast facility coming online late last fiscal year.
Speaker 5: Now let's turn to our business segment results, beginning with cable.
Now, let's turn to our business segment results beginning with the cable networks.
Speaker 5: Cable revenues increase 10% year over year, with 12% growth in cable affiliate revenue.
CAGR revenues increased 10% year over year with 12% growth in cable affiliate revenues.
Speaker 5: As a reminder, the reported 12% growth includes the impact of distribution credits we accrued for last year as a result of cancelled college football games due to COVID.
As a reminder, the reported 12% growth includes the impact of distribution credits, we accrued for last year as a result of canceled college football games due to Covid.
Excluding the impact of the distribution credits underlying cable affiliate revenues increased low single digits in the December quarter, reflecting contractual pricing gains across our portfolio of networks, even without the benefit of any meaningful renewals this year.
Speaker 5: excluding the impact of the distribution credits, underlying cable affiliate revenues increased low single digits in the December quarter, reflecting contractual pricing gains across our portfolio of networks, even without the benefit of any meaningful renewals.
Cable advertising revenues grew 3% primarily as a result of continued pricing strength across the portfolio led by Fox News media and additional MLB playoff games at the National Sports networks.
Speaker 5: Cable advertising revenues grew 3% primarily as a result of continued pricing strength across the portfolio led by Fox News Media and additional MLB playoff games at the National Sports
Speaker 5: Despite the difficult comparison to last year's election cycle, Fox News media actually expanded a millennia advertising revenues in the quarter. A testament to the clearly-to-ship position of...
Despite the difficult comparison to last year's election cycle Fox News media actually expanded its linear advertising revenues in the quarter, a testament to the clear leadership position in the channel.
Speaker 5: Cable other revenues increased by $26 million, led by highest sports sub-life and single revenues, which were impacted by COVID last year, as well as continued subscription momentum at Fox.
Cable other revenues increased by $26 million.
Led by higher sports sub licensing revenues, which were impacted by Covid last year as well as continued subscription momentum at Fox nation.
Cable EBITDA increased 17% over the prior year, reflecting healthy revenue growth, partially offset by higher programming costs associated with contractual rights escalators and normalized schedules at the National Sports networks.
Speaker 5: Caterleab it's our increased 17% over the prior year, reflecting healthy revenue growth, partially offset by higher programming costs associated with contractual rights escalators and normalised schedules at the National Sports Network.
We also increased our digital investment in Fox News media, including expanded programming and marketing at Fox Nation, and the launch of folks with us.
Speaker 5: We also increased our digital investment at Fox News Media, including expanded programming and marketing at Fox Nation, and the launch of Fox Weather.
At television, we delivered 8% revenue growth in the quarter.
Speaker 5: At television, we delivered 8% revenue growth in the quarter. This was led by a 10% increase in television affiliate revenues, reflecting double digit rate increases for both our directory transmission revenues at our own and operated stations.
This was led by a 10% increase in television affiliate revenues, reflecting double digit rate increases for both our direct retransmission revenues at our owned and operated stations.
And programming phrase fees from <unk> station affiliates.
Speaker 5: programming freeze fees from non-owned station affiliates.
Speaker 5: We also delivered advertising revenue growth of 6% despite the absence of the record political advertising revenues we generated in the prize.
We also delivered advertising revenue growth of 6%. Despite the absence of the record political advertising revenues, we generated in the prior year.
This growth reflects continued pricing strength at the Fox network, where our full sports lineup led by the NFL College football in the World series delivered record Q2 advertising revenues for out of network sports business.
Speaker 5: This gross reflex continued pricing strength at the Fox Network, where our full sports lineup led by the NFL, College Football and the World Series delivered record Q2 advertising revenues for our network sports.
We also continued to see strong momentum at <unk> with revenues up by over 40% in the quarter and a meaningful rebound in the base market at the Fox television stations.
Speaker 5: We also continue to see strong momentum at Ubi, with revenues up by over 40% in the quarter, and a meaningful rebound in the base market at the Fox television.
Speaker 5: As Lockham mentioned, supply chain constraints had no real observable impact on our portfolio, with softness in the local audit demand more than offset by the growth in other categories, including sports.
As Lachlan mentioned supply chain constraints had no real observable impact on our portfolio with softness in the local auto demand more than offset by the growth in other categories, including sports betting.
Television and other revenues increased $31 million pre.
Speaker 5: Television other revenues increase $31 million, primarily reflecting higher content revenues of Fox Entertainment, as well as the acquisitions of Marvista and TM.
Primarily reflecting higher content revenues and Fox entertainment as well as the acquisitions of Mira Vista and TMZ.
Speaker 5: EBITDA at our television segment was down $88 million against the prior period. Primarily as a result of higher programming and costs associated with the normalised entertainment schedule and sports rights escalators at the Fox Network and the planned ramp up of digital investment at two.
EBITDAR that television segment was down $88 million against the prior year period, primarily as a result of higher programming costs associated with a normalized entertainment schedule and sports rights escalators at the Fox network and the planned ramp up of digital investment at <unk>.
Turning now to free cash flow, where we recorded a deficit in the quarter of $753 million, which reflects the normal working capital cycle of the business with a concentration of payments for sports rights and the buildup of advertising related receivables in the first half of our fiscal year.
Speaker 5: Turning out a free cashflow where we recorded a deficit in the quarter of $753 million, which reflects the normal working capital's cycle of the business.
Speaker 5: concentration of payments for sports rights and the buildup of advertising related receivables in the first half of our fiscal year.
Speaker 5: We continue to be active with respect to capital returns to our shareholders with a further $300 million of additional buybacks since the start of the December quarter.
We continue to be active with respect to capital returns to our shareholders with a further $300 million of additional buybacks since the start of the December quarter.
Speaker 5: We remain committed to utilizing our full buyback authorization of $4 billion, of which we have now cumulatively repurchased $2.15 billion, representing over 10% of our total shares outstanding since the launch of the buyback program in November , 2000.
We remain committed to utilizing our full buyback authorization of $4 billion of which we have now cumulatively repurchased to one 5 billion.
Representing over 10% of our total shares outstanding since the launch of the buyback program in November 2019.
From a balance sheet perspective, we finished the quarter with $4 6 billion in cash and $7 95 billion in debt.
Speaker 5: From a balance sheet perspective, we finished the quarter with $4.26 billion in cash and $7.95 billion in cash.
Speaker 5: subsequent to quarter end we use cash on hand to repay our $750 million January .
Subsequent to quarter end, we used cash on hand to repay our $750 million January bond maturity.
Our ability to deliver another successful quarter. Despite the continued uncertainty of COVID-19 and difficult comparisons against the prior year political cycle gives us confidence in the remainder of our fiscal 'twenty two.
Speaker 5: Our ability to deliver another successful quarter, despite the continued uncertainty of COVID, and difficult comparisons against the prior political cycle, gives us confidence in the remainder of our fiscal 22.
Speaker 5: previously discussed with only approximately 5% of our total company affiliate revenues up for renewal this fiscal year. We expect affiliate revenue growth will moderate in the back half.
As previously discussed with only approximately 5% of our total company affiliate revenues up for renewal. This fiscal year, we expect affiliate revenue growth will moderate in the back half of the year.
Speaker 5: However, the demonstrated strength of our focused portfolio positions us well for our next major renewals.
However, the demonstrated strength of our focused portfolio positions us well for our next major renewal cycle, which begins in fiscal 'twenty, three and where we have approximately 70% of our total company affiliate revenues due for renewal across fiscal 'twenty, three and 'twenty four.
Speaker 5: begins in fiscal 23 and where we have approximately 70% of our total company affiliate revenues due for renewal across fiscal 23 and 24.
We plan to continue invest to invest in our digital assets given our success today.
Speaker 5: We plan to continue to invest in our digital assets, given our success today.
Speaker 5: Now that we are at the midpoint of our fiscal year, we anticipate the years total net EBITDA and investment out digital initiatives, along with the expected impact of the inaugural youth season of the USFL, to land towards the lower end of the $200 to $300 million range that we have previously out.
Now that we are at the mid point of our fiscal year, we anticipate that these total net EBITDA investment in our digital initiatives along with the expected impact of the inaugural season of the Usfl to land towards the lower end of the $200 million to $300 million range that we've previously outlined.
As Lachlan mentioned, we anticipate a strong fiscal 'twenty three with the financial tailwind from Super Bowl 57, the early exit of Thursday night football November's midterm elections, and the start of our next major distribution renewal cycle with that I will hand, it back to Joe.
Speaker 5: At Lockman mentioned, we anticipate a strong fiscal 23 with the financial title wins from Super Bowl 57, the early exit of Thursday night football, November's midterm elections, and the start of our next major distribution renewal cycle. And with that, I'll hand it over.
Speaker 3: Thank you, Steve. And now we'd be happy to take questions from the investment community.
Thank you, Steve and now we'd be happy to take questions from the investment community.
Okay.
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Speaker 2: And our first question comes from the line of Robert Fishman with Moffitt, Nathanson. Please go ahead.
And our first question comes from the line of Robert Fishman with Moffett Nathanson. Please go ahead.
Speaker 6: All right, good morning. I've wanted to quit ones on sports betting if I can. As sports betting continues to be legalized across more states, he just discussed how you're thinking about growing FoxBet from here while balancing the Flutter and Fandual relationship. And then maybe if you can just expand on your prepared comments about the local advertising benefit as these states continue to be legalized, including
Hi, good morning.
One or two quick ones on sports betting if I can.
As sports betting continues to be legalized across more states can you just discuss how you think about growing Fox bet from here, while balancing the flutter in Danville relationship and then maybe if you can just expand on your prepared comments about the local advertising benefit as these states continue to be legalized.
<unk> may.
Speaker 6: Maybe any early data after the January launch in New York. That would be very helpful. Thank you.
Maybe any early data after the January launch it in New York That'd be very helpful. Thank you.
Speaker 4: Thanks Robert. So obviously we're still engaged in sort of arbitration with really based around the...
Thanks, Robert So obviously, where we're still are.
Engagements of our arbitration with really based around the.
Speaker 4: you know, the structure of our option into a in the Fandule, so that, and we expect that.
The structure of our option.
Into <unk>.
In the <unk>.
And we expect that that arbitration to sort of conclude sort of the middle of the calendar year sort of in the summer late summer.
Speaker 4: that arbitration to sort of conclude sort of the middle of the calendar year, sort of in the summer to late summer.
Speaker 4: And we can't really say much more about that. But overall, the operations of FoxBet, and starting with, as I talked a little bit about in my prepare comments, starting with FoxBet Super Six, we've been incredibly pleased with.
And we can't really say much more about that.
But overall the operations of Fox bet and starting with <unk>.
I talked a little bit about in my prepared comments starting with Fox.
Fox Sports Super six we've been incredibly pleased with.
Speaker 7: our ability to drive.
Our ability to drive.
Speaker 4: our engagement with our sports viewers in Fox Sports.
Our engagement with our sports viewers and Fox sports into Fox Sports Super Six then ultimately into.
Speaker 4: into FoxBet Super 6, then ultimately into FoxBet where it's operational, has been proven as we continue to execute on that strategy. Our only frustration is that we've only been launched in four...
Fox bet, where it's operational.
It has been sort of proven.
As we continue to execute on that strategy are only frustration is that.
We've only been launched in four.
Speaker 4: betting markets for states and obviously we'd like to see that you know increase significantly as we roll out Fox Bet. Having said that on the other side, I don't know so the other side of the ledger, but in the traditional business and in the local television station.
Bedding markets for states, and obviously, we'd like to see that increase significantly.
As we rollout our Fox bet.
Having said that on the.
On the other side on the other side of the ledger.
In the traditional business and the local television stations Fox.
Speaker 4: Fox, Fox sports wagering revenue is
Wagering revenue.
Is.
Speaker 4: are leading category of growth and really is a, you know,
Our leading category of growth and really is.
Significantly driving.
Speaker 4: significantly driving the revenue increases across our station group where we're wadering is legal. I think for the, we're pasting up over 100% in the sports wadering category to date. So, we're very pleased both on the Fox bedside, where we're operating bedding businesses, but also on the advertising revenue side. Self-deep- Brian prepared for racial housing increases.
Yes.
Revenue increases.
Across our station group.
We're wagering is legal I think for the we're pacing up over 100% in the sports.
Wagering.
Category two.
So now we're very pleased both on the Fox bet side, where we have operating operating businesses, but also on the advertising revenue side.
Thank you operator, we can go to the next question.
Speaker 2: We have a question from John Hadoolick with the UVF. Please go ahead. Great.
We have a question from John Hodulik with UBS. Please go ahead great.
Speaker 8: Great, thank you. Two quick points. First, can you give us a sense of where we are, the 200 to 300 million in digital delusion for the year? I think you guys have said it would be more in the back end of the year if you could give us a sense for where we are thus far would be great. And then any color you can give us on the recent licensing extension you guys did with Hulu, either magnitude or it impacts on the financials or is there any more to come from some life things?
Great. Thank you two quick ones first on the.
Could you give us a sense of where we are in the $200 million to $300 million in digital dilution for the year. I think you guys had said it would be more in the back end of the year. If you could give us a sense for where we are thus far would be great and then.
Any color you can give us on the recent licensing.
Extension, you guys did with Hulu either magnitude or.
The impact on the financials or is there.
Is there any more to come from that from from lifestyle.
I'll, let were at the lower end of the range went through an alternate but ill, let Steve yeah. So John .
Speaker 4: I let we were at the lower end of the range, but to an internal, but I let you. Yeah. So John , we so so far this halfway.
Satisfy this half with sort of.
Approaching nine digits on that investment so we would expect sort of a little bit more back weighted in the second half, but as I'm. So it is pointed out in the prepared remarks I think like.
Speaker 5: approaching nine digits on that investment, so we'd expect a little bit more back-weighted in the second half, but as I've pointed out in the prepared remark, I think likely every close to the 200 and 300 for the full year.
Likely to be closer to 203 hundred for the full year.
The pacing perspective on those digital investments.
Probably the most so it is.
Speaker 5: focus of that investment of the back half a year will generally be around two weeks.
The focus of that investment in the back half of year will generally be around <unk>. So thats, what you should expect to see that in the television segment in the second half.
And then in terms of our Hulu output deal.
Speaker 4: And then in terms of the Hulu output deal, it's a...
It's a.
Speaker 4: It's a good one, but it's relatively small. It's an apodil for Hulu to stream out of season.
Yes, it's a good one but it is relatively small it's an output deal for Hulu to stream out of season.
Speaker 4: episodes of box unscripted and animated series. So it's things like, I can see your voice, the mass singer, the mass dancer, in case you missed that, and animated comedy from Ben to Box House Broken. So I think it's something we're very happy with and have to continue our really positive relationship with Hula.
Episodes of Fox Unscripted and animated series so it seems like.
I can see your voice the masked singer.
The masked answer in case, you missed that and an animated comedy from vendor box Housebroken. So I think its some.
It's something where we're very happy with and happy to continue our really positive relationship with Hulu.
Operator, we can go to the next question.
Thank you. Our next question comes from Doug Mitchelson with credit Suisse.
Speaker 2: Thank you. Our next question comes from Doug Mitchell-Fan with Credit Tweets. Please go ahead.
Please go ahead.
Speaker 9: thanks so much uh... you know pre-healthy results this quarter if i can have the follow-up of the first question it's going on two years since you uh... started investing sports wagering in lockland you mentioned optionality in sports betting in your repair remarks under what circumstances would fox increase
Thanks, so much.
Pretty healthy results this quarter, if I can ask a follow up to the first question. It's going on two years. Since you started investing in sports Wagering and Lachlan you mentioned Optionality and sports betting in your prepared remarks under what circumstances would Fox increase its investment in sports betting and I mean, it was $4 3 billion of cash on the balance sheet right Im talking about increasing your.
Speaker 9: it's investment in sports betting i mean with four point three billion of cash the balance sheet right i've talked about increasing your investment by billion so she just as a follow-up that first one and my question is regarding the up front just curious on your thoughts going to the up front um... you know i know you just said the ad market is strong so i'm sure you're feeling good i'm curious like how formally integrated into add sales is to be
Our investment by billions so.
As a follow up to that first one and then my question is regarding the upfront just curious on your thoughts going into the upfront.
I know you just said the AD market is strong so I'm sure you're feeling good but I'm curious like how formerly integrated into AD sales is <unk>.
Speaker 9: you're relative to fox and on the NFL you know it was good season for everybody others I think might have had a little bit better ratings growth than you do you had is that gonna impact relative share when it comes to NFL advertising so anything on the upfront will be helpful thanks so much
Relative to Fox and on the NFL you know it was a good season for everybody others, I think might've had a little bit better ratings growth and you do you have is that going to impact relative share when it comes to NFL advertising. So anything on that front would be helpful. Thanks, So much.
Thank you very much so.
Speaker 4: On the first question, the way we look at sports betting is less about
On the first question.
The.
The way the way we look at sports betting is.
Less about.
Speaker 4: while it was starts from a place and less about sort of investing in
Well it starts from a place and less about sort of investing in sports betting in wagering and more about the.
Speaker 4: in sports betting and wage-ring, and more about the value of our existing investment in sports broadcasting, right? When you have a business which is the leading sports broadcasting business in this country, when you look at our new 12 year,
The value of our existing investment in sports broadcasting.
When you have a business, which is the leading sports broadcasting business in this country. When you look at our our new 12 year.
Speaker 4: agreement and deal with the NFL and the viewership that we know we um
Agreement and deal with the NFL and the viewership that we.
Speaker 4: We expect to be guaranteed to engage with those fans for the next 12 years. We really think about what's the future monetization.
We expect the recent are guaranteed to engage with those those fans for the next 12 years, we really think about whats the.
What's the future monetization of of that engagement with our with our our viewers and sports fan. So so thats why we begin we already have a multi billion dollar.
Speaker 4: of that engagement with our viewers and sports fans. So that's where we begin. We already have a multi billion dollar.
Speaker 4: investment in engaging with sports fans. What will sports fans be doing with their time? What will they be doing with second screens? What will they be doing leading into a big sports weekend? Clearly, as states open up to sports wagering, wagering is going to be a major part of that journey. And it's a part that we want to, you know,
Investment in in engagement with sports fans are what will sports fans be doing with their time.
What will they be doing with second screens, what will they be doing leading into.
A big sports weekend, clearly as states open up to sports Wagering wagering is going to be a major.
Part of that of that journey, and it's a part that we want to.
You know a.
Speaker 4: journey we want to embark with them because we think it's a win-win. It'll it'll make them more engaged with us more engaged with their their favorite teams and ultimately watch more of box sports. So we see it as a win-win. So when we think about that and we look at the sports.
Journey, we want to embark with them because we think it's a win win it'll it'll make them more engaged with us more engaged with their favorite teams and ultimately a watch more of Fox sports. So we see it as a win win.
So when we think about that and we look at the the sports some.
Speaker 4: So the wagering ecosystem, you know, what we have already with our our you know small ownership but valuable ownership states in in flutter When we look at our our option into a fandule
Sorry, there was a wagering ecosystem, what we have already with our our small ownership, but valuable ownership stake in in Florida. When we look at our option into sandal and our joint venture in Fox bet and also critically the top of the funnel.
Speaker 4: and our joint venture in FoxBet. And also, you know, critically, you know, the top of the funnel are, you know, very successful strategy with FoxBet Super 6. You know, we see ourselves continuing to...
Our very successful <unk>.
Strategy with Fox bet Super six.
We see ourselves continuing to to improve and operate those and when the right opportunities.
Speaker 4: to improve and operate those. And when the right opportunities emerge and come up to continue to invest.
Emerge and come up to continue to invest.
In this space.
Speaker 5: On the, do you want to add anything to that first? No, but I think the in terms of deploying capital, the optionality we have with the option structures gives us time to see how the markets develop our relationship with flood and develops before we actually need to deploy that capital.
On the Steve you want to add anything to that or not but I think the in terms of deploying capital that the optionality. We have with the option structure gives us time to see how the markets develop a relationship with flooded develops before we actually need to deploy that Kevin.
Yes.
And we are limited in structure to some extent because of the licensing rules and I think I said in the last call we're actively exploring getting licensed.
Speaker 4: And we are limited in instructor discipline because of the licensing rules. I think I said in the last call, we were actively exploring getting licensed, not to operate a book, but actually to,
Not to operate.
Our book, but actually to.
Potentially sort of maximize.
Speaker 4: potentially maximize the value that we can capture in this space. So it's something that we continue to explore. In terms of the upfront,
The value that we can capture in this space. So it is something that we.
We continue to explore in terms of the upfront.
Speaker 4: As a sort of an overall comment, what you're seeing, I think across the marketplace, is a softness in entertainment and in its scripted entertainment ratings, not just for us, but for all of the broadcasters. And you're seeing, due to that softness, you're seeing major advertisers and marketers.
From an overall comment what what youre seeing I think across the marketplace.
Is.
Softness in entertainment and stripped it entertainment ratings.
Not just for us, but for all of the.
Broadcasters and.
And youre seeing due to the softness youre seeing major.
Major advertisers and marketers.
Speaker 4: I'm starting to look at where they can capture their consumers in other places. And where they're flowing to and where they're dollars and marking focus.
Start to look at where they can capture.
Uh huh.
There.
Consumers.
In other places in the.
Where they are flowing through and whether their dollars and marketing focus is moving towards quite strongly as live news and live sport and to a large extent digital which were which.
Speaker 4: is moving towards quite strongly is live news and live sport. And to a large extent digital, which we're utilizing to be extraordinarily well.
We are utilizing.
To be extraordinarily.
Extraordinarily well.
Speaker 4: So when we think about the F-ROM, when we think about that, you know, the sort of selling season, and I think, you know, it's our early May, we lead the F-ROM, but...
When we think about the upfront when we think about that sort of a selling season on from where it's at.
Our early May we lead to the upfront, but between now and then we're having a.
Speaker 4: between now and then we're having a majority of our conversations and
The majority of our conversations.
Speaker 4: you know, with our partners, you know, we'll be selling as I think others will, you know, our entire portfolio of assets. So we'll be selling the entertainment network, news, sports, and to be in a very integrated fashion. It really designed to capture, you know, our marketing partner sort of a
With our partners.
We will be selling as I think others will our entire.
Portfolio.
<unk> of assets. So we will be selling the entertainment network news sports and to be in a very integrated fashion. It really designed to capture.
Uh huh.
Our marketing partner sort of AR.
Speaker 4: Yeah, money and their average housing dollars in the most efficient way. And I think we are uniquely positioned because of our leadership across new sports and digital for it's duty.
Sure.
Your money.
And they're advertising dollars are in the most efficient way and I think we are uniquely positioned because of our leadership across our new sports and digital activity.
Operator, we can go to the next question.
Speaker 2: Our next question comes from Jessica Rice, Airelich, with BFA Securities. Please go ahead. Hi, hi everybody.
Our next question comes from Jessica Rice, Erlick with BFA Securities. Please go ahead.
Hi, Hi, everybody.
I have two questions.
First on U S S L.
Speaker 10: You get some color on your roll out, the cost, your partners, what will it look like over the next?
Can you give us some color on your rollout the cost to partners like what will it look like over the next couple of years.
The second question is greater than the second quarter is it was.
Speaker 10: The greatest, the second quarter is, or was, fiscal 23 looks even better. I mean, you've got clearly strong...
Fiscal 'twenty three looks even better I mean, you've got <unk>.
Clearly strong advertising with the Super Bowl political to be is growing you said you are going through a new affiliate cycle beginning next year, our sports betting is growing and hopefully there'll be more.
Speaker 10: I said you're going through a new affiliate cycle, beginning next year, what's betting is growing, and hopefully there'll be more states coming on. So, you know, the offset, like, this digital investment peak this year, or this...
States coming on.
The offset to this digital investment peak this year at its peak next year.
Are there other things we should be thinking about thanks.
I don't know if I can hi, Jessica I don't know if I can answer the second question as well as you did in Europe .
Speaker 4: answer the second question as well as you did in your uh... in the in the question uh... it's good so let me start with that you know i think we we are we are looking forward to physical 23 uh... you know we have uh...
And the question.
So let me start with let me start with that and there are I think reasonably well we are looking forward to fiscal 'twenty three.
We have.
Speaker 4: I think over the two years, we have two thirds of our affiliate renewals up. Obviously with the lesser or not, or less of the smaller renewals we've had this year are setting a tremendous amount.
Ah.
I think over the two years, we are two thirds of our affiliate renewals.
Up.
Obviously with the Saar.
The lesser of anonymous or less of the smaller or.
Renewals, we've had this year are setting a tremendous arm.
Speaker 4: benchmark for what we expect coming in the renewals over the next couple of years. So we advertising revenue with the political cycle. We expect to hit new records. I think four years ago, we did $180 million worth of political advertising.
A benchmark for what we what we expect coming in.
And the renewals over the next our next couple of years so.
We advertising revenue with the political cycle, we expect to hit New Records I think four years ago, we did a $180 million worth of political advertising.
Speaker 4: I think we will easily, I want to put the number on it, but I think we can't be a guest, but I think we'll easily exceed that and break new records in this midterm election. So, you know, we're well positioned, I think for a tremendous amount of three. I don't care, remember if you also mentioned it in your question, but obviously Thursday night football was a, um, uh,
I think we will easily.
Number on it but I think right now we can't it would be a guess, but I think it will easily exceed that and break new records in this.
Yes.
Midterm.
Terminal action.
So we are well positioned I think for a tremendous amount I don't remember if you also mentioned it in your question, but obviously.
Thursday night football was a.
Hi.
Speaker 4: an investment for us and with releasing Thursday night football. For Amazon, I think they'll do a great job with it, but obviously there's a savings, a significant savings there for us not having Thursday night football. So, so we are, we're, we're,
An investment.
For us and <unk> and with.
Releasing Thursday night football.
For Amazon I think they'll do a great job with it but obviously, there's a savings are significant savings there for us not having not having Thursday night football so.
So we are.
Had a great quarter, great year. This year I think next year will be.
Speaker 4: I think next year will be even better. On the USFL, we are...
We'll be even even better.
On the Usfl.
We are.
Speaker 4: We're very much looking forward to the new league. I've got to actually compliment the NFL for being great partners and for helping us think through how we structure the USFL. The rules of the...
We're very much looking forward to the New League I've got X are actually.
Complement the NFL for being great partners and for helping us think through how we structure the usfl.
The rules of the.
The play.
Speaker 4: play is closer to NFL than the college football. Where we've changed the rules slightly are really being for television and for I and just gonna make the game.
Yes.
As are closer to the NFL and then our college football where we've changed.
The rules slightly are really being four for television and for us and it's going to make the game.
As as exciting and as close there.
Mattresses as possible. So so we're very excited.
For launch in the U S F L.
It's obviously something that we'll.
Speaker 4: the digital rights we control, every part of the game, with us and NBC as the broadcasters, we think it has the best opportunity for a broad platform and the most viewers at launch. We've, by bringing in outside investors into the league, we've effectively underwritten the investment in the US of all. I think for the next two or three minutes.
Control, we control the digital rights for control.
Every every part of the game.
With us and MPC as the broadcasters we think of.
It has the best opportunity for a broad platform.
And in the most viewers at launch.
Speaker 4: You know, we've, by bringing in outside investors into the league, we've, you know, effectively, you know, underwritten the investment in the USFL. I think for the next two or three years at least. So, from a risk perspective, I think we've done it in a...
We have by bringing in outside investors into the league we have.
Effectively underwritten the investment in the U S at all.
I think for the next two or three years at least so.
So from a.
From a risk perspective, I think I am.
We've done it in our NII ambitious, but but.
Speaker 4: ambitious but, but in your disc morning life.
But a disciplined buyer so anything else.
Speaker 5: anything else on. Yes, so Jessica as I mentioned in the remarks, within the two to three hundred million that we called out for the year, USFL will be part of that and it will be a sort of low to mid-tenze millions of dollars, even though...
As I've mentioned in the remarks.
Within the two to 300.
In that we called out for the year.
Usfl will be part of that and it will be a sort of low.
Low to mid tens of millions of dollars EBITDA.
Negative for us this year.
Thank you.
Operator, we have time for one more question.
Thank you that question will come from the line of Michael Morris with Guggenheim. Please go ahead.
Speaker 2: Thank you. That question will come from the line of Michael Morris with Guggenheim. Please go ahead.
Speaker 8: I thank you. Good morning. Two questions for me. First.
Hi, Thank you good morning too.
Two questions for me.
Speaker 8: a bit more strategic, Waclin. I mean, do you see a path to perhaps a super fan?
A bit more strategic Laughlin, maybe do you see a path to perhaps a superfan streaming sports business that could complement the linear service that you have that features your marquee games.
Speaker 8: streaming sports business that could complement the linear service that you have that features your marquee games.
Speaker 8: Maybe something similar to ESPN with ESPN plus.
Maybe something similar to ESPN with ESPN plus.
Speaker 8: Is that an approach that you would consider taking or do you feel that it's already sort of an overdeveloped or another reason not to do something like that?
Is that an approach that you would continue that consider taking or do you feel that it's already sort of in.
Overdevelop, a reasonable to do something like that.
Speaker 8: And then my second question, a bit more tactical, maybe looking at the TV segment, I believe last spring, you guys sized the EBITDA drag from Thursday night football in the range of sort of $350 to $400 million.
And then my second question a bit more tactical maybe looking at the television segment I believe last spring you guys size, the EBITDA drag from Thursday night football in the range of $350 million to $400 million.
Speaker 9: Curious any updated thoughts on that estimate, how that savings may be redeployed.
Curious any updated thoughts on that estimate how that savings may be redeployed.
Versus falling to the bottom line in the near term.
Speaker 9: versus falling to the bottom line in the near term. And I guess maybe a bigger picture. I know that that will go into the re-Upsen Sunday contract going forward, but you also have the renewal cycle coming. So I guess maybe just thinking long term, how do you expect that savings to impact the business? Thank you.
And I guess, maybe bigger picture I know that that will go into the re ups on Sunday contract going forward, but you also have the renewal cycle coming so I guess, maybe just thinking long term, how do you expect that savings to impact the business. Thanks.
Speaker 4: Thank you, Michael. So...
Thank you Michael so.
Speaker 4: I'll let Steve answer the second question on the savings. But as regards the first question, we are...
Ill, let Steve answer the second question on the <unk>.
On the on the savings but.
But.
As regards to first question like we are.
Speaker 4: today, this morning, a focused very much on broadcast television and how we monetize our investment in sports and our sports partnerships is really fundamentally through our partnerships with cable operators, satellite TV operators, and our local affiliate.
Today this morning.
Focused very much on broadcast television and how we monetize our investment in them.
In in sports on our sports partnerships is really fundamentally through our partnerships with them with cable operators satellite television operators and in our on our local our local affiliates.
Speaker 4: And so, you know, from a live sports broadcasting perspective, and it's different with some obviously opinion and sort of shoulder programming, but from a live sports perspective, we see, we continue to see, the best way to monetize.
And so from a live sports broadcasting perspective is different with some obviously.
Opinion, and sort of shoulder programming, but from a live sports perspective, we see we continue to see the best way to monetize.
Speaker 4: you know our investment in sports is clearly through our partnerships with our affiliates and our distributors. So that's our focus today. Let's do you answer the savings question. Yeah, Mark, so the 350 to 400 still a good number for us for next year in terms of...
Our investments forward is clearly through our our partnerships with our affiliates and our distributors. So.
That's our focus today I'll, let Steve answer the savings in <unk>. So the $3 50 to 400 is still a good number for us for next year in terms of the net EBITDA impact of losing Thursday night football that includes the reinvestment in the slot. So whatever we decide to put into that time time sledding. This schedule is in that $3 50 to 400.
Speaker 5: The netty of it are impacted by losing a certain night football. That includes the reinvestment in the slot for whatever we decide to put into that time. Time slot in the schedule.
<unk>.
Speaker 5: So it's a net to us and a good guy to us next year. Obviously part of that gets absorbed the following year which he increased our monitors and UNFL contract for all other things.
It's a net to us and at good guide to US next year, obviously part of that gets absorbed the following year with the increased ammo orders and new NFL contract.
All other things being equal you should see that $3 50 to 400 flow to the bottom line next year.
Speaker 3: At this point, we're out of time, but if you have any further questions, please give me or Dan Carrier call. Thank you once again for joining today's call. Thanks, everyone. Thank you. Take care.
At this point, we're out of time, but if you have any further questions. Please give me or Dan Carey a call. Thank you once again for joining today's call. Thanks, everyone. Thank you take care.
Ladies and gentlemen that does conclude our conference for today we.
Speaker 2: Ladies and gentlemen, that does conclude our conference for today. We thank you for your participation and for using AT&T Executive Teleconference.
We thank you for your participation and for using AT&T executive teleconference.
You may now disconnect.
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We're sorry your conferences ending now please hang up.