Q3 2023 Fox Corporation Earnings Call

May 9, 2023

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Operator: Ladies and gentlemen, thank you for standing by. Welcome to the FOX Corporation Third Quarter Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Gabrielle Brown. Please go ahead, Ms. Brown.

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 and answer queue 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, Ms. Gabrielle Brown. Please go ahead Ms Brown.

Gabrielle Brown: Thank you, Kiley. Good morning, and welcome to our fiscal 2023 third quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer; John Nallen, Chief Operating Officer; and Steve Tomsic, our Chief Financial Officer. 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 note that this call may include forward-looking statements regarding FOX Corporation's financial performance and operating results.

Gabrielle Brown: 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 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.

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.

Lachlan Murdoch: Thank you, Gabby, and thanks, everyone, for joining us this morning. FOX's strong fiscal third quarter operating results once again demonstrate the power of our content and the brands it underpins and the repeated capability of our focused strategy to deliver solid financial results.

Fox is strong fiscal third quarter operating results once again demonstrate the power of our content and the brands it underpins and the repeated capability of our focused strategy to deliver solid financial results.

Lachlan Murdoch: In the quarter, we grew top line revenue by 18%, led by the remarkable 43% growth in advertising and a solid 3% growth in affiliate revenue. Underpinning this performance was a record Super Bowl LVII on the FOX Broadcast Network which generated approximately $650 million of gross advertising revenue across our businesses and was the key driver of our 61% advertising revenue growth at our Television segment.

Underpinning this performance was a record Super Bowl 57 on the Fox broadcast network, which generated approximately $650 million a gross advertising revenue across our businesses and what's the key driver of our 61% advertising revenue growth at our television segment.

Lachlan Murdoch: This year's Super Bowl matchup between Kansas City and Philadelphia delivered 115 million viewers across FOX platforms, making Super Bowl LVII the most watched program in U.S. television history and the pinnacle of an extraordinary year for FOX Sports.

Lachlan Murdoch: The strong lineup of programming and advertising demand for FOX Sports continues into our fourth quarter, which includes the return of NASCAR the second season of the USFL, the start of Major League Baseball's 2023 season, the finals of the UEFA Nations League and a first for FOX the Belmont Stakes. Leveraging the reach of a Super Bowl lead-in, we launched the second season of Next Level Chef, which promises to be the next big lifestyle franchise from our Studio Ramsay partnership. Our entertainment business also found success with the number one new series and new drama over the year in Accused and the number one new unscripted series in Special Forces: World's Toughest Test. FOX has now debuted the top new unscripted series for 5 consecutive seasons.

Leveraging the reach of our Super Bowl, leading we launched the second season of next level set which promises to be the next big lifestyle franchise from our studio Ramsey partnership. Our entertainment business also found success with the number one new series and new drama over the year and accused and the number one new unscripted series and special forces world's toughest test. Fox is now debuted the top new unscripted series for five consecutive seasons.

Fox is now debuted the top new unscripted series for five consecutive seasons.

Lachlan Murdoch: In fact, the combined power of our sports and entertainment programming places FOX at number one amongst broadcast network season to date in the key 18 to 49 demo. Yeah.

Lachlan Murdoch: Our strong sports calendar also had a halo effect at the FOX Television stations, which saw many local advertising verticals higher in the quarter. In what continues to be mixed local advertising market conditions, we are encouraged by growth in categories, including auto, restaurants and entertainment, but are watchful across other categories, including bedding, retail and telecom.

Retail and telecom.

Lachlan Murdoch: Meanwhile, Tubi's performance in the third quarter was nothing short of stellar with revenue growth of 31% supported by sustained gains and engagement, where total view time increased 38% year-on-year. And while still early in the fourth quarter, the April results for Tubi show the momentum across the platform accelerating. Having recently marked the 3-year anniversary of our acquisition of Tubi, our progress over this longer-term time frame is just as impressive having grown quarterly TBT by over 200% and revenue by 400%.

With revenue growth of 31% supported by sustained gains in engagement, where total view time increased 38% year on year.

And while still early in the fourth quarter. The April results for TV show the momentum across the platform accelerating having recently marked the three year anniversary of our acquisition of <unk>. Our progress over this longer term timeframe is just as impressive haven't grown quarterly TVT.

By over 200% and revenue by 400%.

Lachlan Murdoch: Just as importantly, the Tubi brand has asserted itself on the broader media landscape. Our viral Tubi spot in the Super Bowl, which received massive press coverage, had almost 7 billion impressions. And our strong growth and engagement has now led to Tubi's inclusion in Nielsen's The Gauge, marking the first time Tubi has reached 1% of total TV viewing minutes and making Tubi the most watched fast service in the United States.

And our strong growth and engagement has now led to two bids inclusion and nielsen's the gauge Martin to first time <unk> has reached 1% of total TV viewing minutes and making to be the most watched fast service in the United States.

Lachlan Murdoch: And just last month, we announced the formation of Tubi Media Group, under Paul Cheesbrough, which brings together our digital capabilities in a more formalized and coordinated way to help us better monetize our digital touch points across all our FOX properties. We thank Farhad for his entrepreneurial leadership at Tubi over the last 3 years and, of course, before he leaves the business in terrific shape with an outstanding team to drive continued strong growth.

We think farhat for his entrepreneurial leadership with <unk> over the last three years and of course before he leaves the business in terrific shape with an outstanding team to drive continued strong growth.

Lachlan Murdoch: At FOX News Media, we retained our leadership position amongst our peers. The FOX News Channel ended the third quarter as the most watched cable network in total day and prime time while maintaining its lead as the most watched cable news network beating CNN and MSNBC combined. Also notably, the FOX Business Network ended the quarter as the most watched business cable network, leading CNBC in total viewers during the business day and market hours for the fourth consecutive quarter.

Also notably the Fox business network ended the quarter at the most watched business cable network, beating CNBC and total viewers during the business day and market hours for the fourth consecutive quarter.

Lachlan Murdoch: Let me briefly address the settlement of our dispute with Dominion Voting Systems. We made the business decision to resolve this dispute and avoid the acrimony of a divisive trial and a multiyear appeal process. Our decision clearly in the best interest of the company and its shareholders. The settlement in no way alters FOX's commitment to the highest journalistic standards across our company or our passion for unabashedly reporting the news of the day. We're proud of our FOX News team, the exceptional quality of their journalism and their stewardship of the FOX News brand.

And clearly in the best interest of the company and its shareholders.

The settlement in no way alters Fox his commitment to the highest journalistic standards across our company or our passion for unabashedly reporting the news of the day.

We're proud of our Fox news team the exceptional quality of the journalism and their stewardship of the Fox News brand.

Lachlan Murdoch: Whether it be our coverage of politics and elections, world events such as the war in Ukraine or domestic issues, such as the crisis at the border, our journalists bring compelling news home to our viewers every day. The standards behind this reporting are not only what makes us the number one cable news network by the number one network in all of cable. In fact, in a recent poll, 41% of respondents chose FOX News as their most trusted network news provider.

The standards behind this reporting on not only what makes us the number one cable news network, but the number one network in all of cable.

In fact in a recent poll, 41% of respondents <unk> Fox news as their most trusted network news provider.

Lachlan Murdoch: So as we look ahead, we are confident in the strength of the FOX brands and the strength of our balance sheet. And while we are not completely immune to the headwinds facing the broader industry and the general economy, we are well positioned given our areas of differentiation. Nonetheless, you can expect us to be even more focused on our cost base as we look to reinforce our strategy for future growth.

Nonetheless, you can expect us to be even more focus on our cost base as we look to reinforce our strategy for future growth.

Lachlan Murdoch: We remain committed to driving long-term shareholder value creation through the thoughtful management of our existing business, the pursuit of new and exciting adjacencies and returning capital to our shareholders. With that, I'll turn it over to Steve to take you through the details of the quarter.

With that I'll turn it over to Steve to take you through the details of the quarter.

Steven Silvester Tomsic: Thanks, Lachlan, and good morning, everyone. FOX again delivered strong underlying financials in our fiscal third quarter with 18% revenue growth and 3% EBITDA growth, bolstered by a record-breaking Super Bowl LVII. Our advertising revenues increased 43%, led by the Super Bowl, along with the higher volume of NFL playoff windows and accelerating growth at Tubi.

<unk> again delivered strong underlying financials in our fiscal third quarter with 18% revenue growth and 3% EBITDA growth bolstered by a record breaking Super Bowl 57, alright. Our advertising revenues increased 43% led by the Super Bowl, along with a higher volume of NFL playoffs, windows and accelerating growth at <unk>.

Our advertising revenues increased 43% led by the Super Bowl, along with a higher volume of NFL playoffs, windows and accelerating growth at <unk>.

Steven Silvester Tomsic: Meanwhile, our affiliate revenues grew 3% on the back of pricing benefits from recent renewals partially offset by trailing 12-month subscriber losses continuing to run in the 7% range. Quarterly adjusted EBITDA was $833 million, up $22 million over the prior year quarter as these revenue increases were partially offset by higher expenses. This was primarily due to higher sports rights amortization and production costs associated with our NFL, Super Bowl and playoff schedule.

Quarterly adjusted EBITDA was $833 million up $22 million over the prior year quarter. As these revenue increases were partially offset by higher expenses. This was primarily due to higher sports rights amortization and production costs associated with their NFL Super Bowl and playoff schedule.

Steven Silvester Tomsic: The net loss attributable to stockholders was $54 million or negative $0.10 per share compared to net income of $283 million or $0.50 per share reported in the prior year period. The variance was primarily due to other net where we recognize charges associated with the FOX News Media litigation, partially offset by the gain associated with the change in fair value of the company's investments.

The variance was primarily due to the net where we recognized charges associated with the Fox News media litigation.

Actually offset by the gain associated with the change in fair value of the company's investments.

Steven Silvester Tomsic: Excluding these and other noncore items, earnings growth was strong with adjusted net income growing 8% to $494 million and adjusted EPS of $0.94 per share, up $0.13 against last year's $0.81 per share.

Steven Silvester Tomsic: Now turning to our segments, starting with Television, where revenue grew an impressive 36% in the quarter. Television advertising revenues led this growth with a 61% increase fueled by Super Bowl LVII, which, as Lachlan mentioned, generated over $650 million in gross revenue. We also benefited from 2 additional NFL playoff games, 1 divisional and 1 wildcard partially offset by the timing of 1 less regular season game.

Television advertising revenues led this growth with a 61% increase fueled by Super Bowl 57, which as Lachlan mentioned generated over $650 million in gross revenue. We also have benefited from two additional NFL playoff games, when divisional and one wildcard partially offset by the timing of one less regular season game.

We also have benefited from two additional NFL playoff games, when divisional and one wildcard partially offset by the timing of one less regular season game.

Steven Silvester Tomsic: Momentum at Tubi remained strong with advertising revenues up 31% to $170 million on the back of increased engagement and stable pricing. These strong advertising tailwinds in the Television segment were partially offset by lower prime time ratings at the FOX Network and mixed base market conditions at our local stations when excluding the Super Bowl. Television affiliate fee revenues were up 9% and as healthy growth in pricing across FOX owned and operated and affiliated stations continued to outpace the impact from subscriber declines. Other revenues remained essentially unchanged from the prior year quarter.

The strong advertising tail winds in the TV segment were partially offset by lower primetime ratings at the Fox network and mixed based market conditions at our local stations when excluding the Super Bowl. Television affiliate fee revenues were up 9% as healthy growth in pricing across Fox owned and operated an affiliated stations continued to outpace the impacts from subscriber declines. Other revenues remained essentially unchanged from the prior year quarter.

Television affiliate fee revenues were up 9% as healthy growth in pricing across Fox owned and operated an affiliated stations continued to outpace the impacts from subscriber declines. Other revenues remained essentially unchanged from the prior year quarter.

Other revenues remained essentially unchanged from the prior year quarter.

Steven Silvester Tomsic: EBITDA at our Television segment was up $82 million to $117 million. Expenses increased in the quarter driven by higher costs related to the Super Bowl and a higher volume of NFL games. The increase in expenses was partially offset by lower costs at FOX Entertainment, including the absence of a write-down of certain scripted programming in the prior year quarter.

Expenses increased in the quarter driven by higher costs related to the Super Bowl and a higher volume of NFL games.

The increase in expenses was partially offset by lower costs at Fox entertainment, including the absence of a write down of certain scripted programming in the prior year quarter.

Steven Silvester Tomsic: Our net EBITDA investment in Tubi of approximately $60 million was broadly in line with the prior year quarter. At Cable, we saw revenues generally in line with the prior year. Cable advertising revenues were down 7% due to the impact of a softer direct response marketplace at FOX News Media, while being partially offset by the benefit of the World Baseball Classic on the national sports networks. Cable affiliate fee revenues were broadly flat, coming in at $1.1 billion with rate growth broadly offset by subscriber declines. Cable other revenues were up 10% in the quarter led by higher FOX Nation subscription revenues.

At cable we saw revenues generally in line with the prior year.

Cable advertising revenues were down 7% due to the impact of the softer direct response marketplace at Fox News media, while being partially offset by the benefit as the World Baseball classic at the National Sports networks. Cable affiliate fee revenues were broadly flat coming in at $1 1 billion with right growth broadly offset by subscriber declines. Cable other revenues were up 10% in the quarter led by higher Fox nation subscription revenues.

Cable affiliate fee revenues were broadly flat coming in at $1 1 billion with right growth broadly offset by subscriber declines. Cable other revenues were up 10% in the quarter led by higher Fox nation subscription revenues.

Cable other revenues were up 10% in the quarter led by higher Fox nation subscription revenues.

Steven Silvester Tomsic: EBITDA at our Cable segment was $792 million compared to the $864 million reported last year largely due to these revenue impacts along with elevated legal costs at FOX News Media and higher expenses associated with the second season of the USFL and the World Baseball Classic at FOX Sports.

Compared to the $864 million reported last year largely due to these revenue impacts along with elevated legal costs at Fox News media and higher expenses associated with the second season of the Usfl and the World Baseball Classic at Fox Sports. Sure.

Sure.

Steven Silvester Tomsic: Now turning to cash flow where we generated strong free cash flow of $1.48 billion in the quarter, reflecting our normal seasonal cycle of collecting advertising revenues from our fall programming coupled with our major sports rights payments being concentrated in the first half of our fiscal year. From a share repurchase perspective, as we foreshowed on our last call, we continued with our normal cost buyback activity of $250 million in the quarter and deployed $1 billion of additional capital to an accelerated share repurchase transaction. We retired approximately 80% of the shares associated with the ASR in the March quarter and expect the remainder to settle in the coming months.

From a share repurchase perspective, as we foreshadowed on our last call. We continued with our normal course buyback activity of $250 million in the quarter. And deployed $1 billion of additional capital to an accelerated share repurchase transaction. We retired approximately 80% of the shares associated with the ISI in the March quarter, and expect the remainder to settle in the coming months.

And deployed $1 billion of additional capital to an accelerated share repurchase transaction. We retired approximately 80% of the shares associated with the ISI in the March quarter, and expect the remainder to settle in the coming months.

We retired approximately 80% of the shares associated with the ISI in the March quarter, and expect the remainder to settle in the coming months.

Steven Silvester Tomsic: We remain committed to fully utilizing our current $7 billion authorization, where we now cumulatively repurchased approximately $4.4 billion, representing 20% of our total shares outstanding since the launch of the buyback program in November 2019. These meaningful capital return measures are enabled by the strength of our financial position, where we closed the quarter with $4.1 billion in cash and $7.2 billion in debt. While this reported cash balance does not include the impact of the Dominion settlement, we continue to maintain a very robust balance sheet that supports our ongoing commitment to capital returns as well as flexibility to pursue value-accretive investment. And with that, let me turn it back to Gabby to open Q&A.

Any 20% of our total shares outstanding since the launch of the buyback program in November 2019. These meaningful capital return measures are enabled by the strength of our financial position, where we closed the quarter with $4 $1 billion in cash and $7 2 billion in debt.

These meaningful capital return measures are enabled by the strength of our financial position, where we closed the quarter with $4 $1 billion in cash and $7 2 billion in debt.

While this reported cash balance does not include the impact of the Dominion settlement. We continue to maintain a very robust balance sheet that supports our ongoing commitment to capital returns as well as flexibility to pursue value accretive investments and with that let me turn it back together to open Q&A. Thank you and now we will.

Gabrielle Brown: Thank you, Steve. And now we would be happy to take questions from the investment community.

Operator: Thank you. [Operator Instructions] We'll go to the line of Robert Fishman with MoffettNathanson. Good morning, everyone.

If you wish to ask a question. Please press one then zero on your Touchtone phone.

You will hear tone, indicating that you've been placed in Q you may remove yourself from Q&A anytime by once again pressing one than Seattle, if youre using a speakerphone. Please pick up your handset before pressing the numbers it. 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 one. One moment please for the first question. We'll go to the line of Robert Fishman with Moffett Nathanson.

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 one. One moment please for the first question. We'll go to the line of Robert Fishman with Moffett Nathanson.

One moment please for the first question. We'll go to the line of Robert Fishman with Moffett Nathanson.

We'll go to the line of Robert Fishman with Moffett Nathanson.

Robert S. Fishman: Good morning, everyone. I have a couple of related questions, if I can. Lachlan, after the Dominion settlement, is there anything that you can share to better understand the future settlement risk? And then related, can you discuss whether the departure of Tucker Carlson will lead to changes in the prime time programming strategy and then potential opportunities for more national advertising? And then for John and Steve, just if you can expand on the early confidence you have from recent MVPD renewals? And after seeing the acceleration in retrains growth this quarter, any more insight on whether you can get better pricing to outpace the elevated levels of cord-cutting or just more economics from your affiliate partners? Thanks very much.

Lachlan after the Dominion settlement is there anything that you can share to better understand the future settlement risk and then related. Can you discuss whether the departure of tackle Tucker Carlson will lead to changes in the Prime time programming strategy, and then potential opportunities for more national advertising and then for John and Steve. If you can expand on the early confidence you have from recent MVP renewals and after seeing the acceleration in Retrans growth this quarter any more insight on whether you can get better pricing to outpace the elevated levels of cord cutting or just more economics from your affiliate partners. Thanks very much.

Can you discuss whether the departure of tackle Tucker Carlson will lead to changes in the Prime time programming strategy, and then potential opportunities for more national advertising and then for John and Steve. If you can expand on the early confidence you have from recent MVP renewals and after seeing the acceleration in Retrans growth this quarter any more insight on whether you can get better pricing to outpace the elevated levels of cord cutting or just more economics from your affiliate partners. Thanks very much.

If you can expand on the early confidence you have from recent MVP renewals and after seeing the acceleration in Retrans growth this quarter any more insight on whether you can get better pricing to outpace the elevated levels of cord cutting or just more economics from your affiliate partners. Thanks very much.

Lachlan Murdoch: Thanks, Robert. I don't know where to start. I'll talk about the 7 questions. So -- but thank you very much, and good to hear from you. On -- so let me start and hand over, I suppose, to Steve, for that -- the final questions. So I'm obviously limited about what I can say about any ongoing litigation, but I can make the following comments in regards to Dominion. And I referred to some of this in my prepared remarks.

Second question. But. Thank you very much and good to hear from you. So let me start and I'll hand over to Steve for the final final questions. So. I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

But. Thank you very much and good to hear from you. So let me start and I'll hand over to Steve for the final final questions. So. I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

Thank you very much and good to hear from you. So let me start and I'll hand over to Steve for the final final questions. So. I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

So let me start and I'll hand over to Steve for the final final questions. So. I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

So. I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks.

Dominion. And I referred to some of this in my prepared remarks.

And I referred to some of this in my prepared remarks.

Lachlan Murdoch: Look, as we've stated many times, we always acted as a news organization reporting on the newsworthy events of the day. We certainly included allegations being made by the sitting President of the United States and his lawyers in the aftermath of a hotly-contested presidential election. Now we have been and remain confident in the merits of our position that the first amendment protects a news organization's reporting and allegations being made by a sitting President of the United States.

We have always acted as a news organization reporting on the newsworthy events of the day. We're certainly included allegations being made by the sitting president of the United States and his lawyers and the aftermath of a hotly contested presidential election. We have been and remain confident in the merits of our position that the first amendment protects a news organizations reporting on allegations being made by a sitting president of the United States.

We have been and remain confident in the merits of our position that the first amendment protects a news organizations reporting on allegations being made by a sitting president of the United States.

Lachlan Murdoch: However, the Delaware court severely limited our defenses and trial through pre-trial rulings, one example of being not being able to point to the newsworthy nature of the allegations. So we determined that the best course of action for the company and its shareholders was to settle instead of proceeding with a 6-week trial and potentially 2 or even 3 years of appeals. As you know, we have a pending case with Smartmatic, which is a fundamentally different case than Dominion and that all of our full complement of First Amendment defenses remain, and we'll be ready to defend this case surrounding extremely newsworthy events when it goes to trial, likely not until the calendar year 2025.

So we determined that the best course of action for the company and its shareholders, which to settle instead of proceeding where the six week trial and potentially two or even three years of appeals. As you know we have been we have a pending case with smart <unk>, which is a fundamentally different case and dominion and that all of our full complement of first amendment defenses remained and we will be ready to defend this case surrounding extremely newsworthy events. When it goes to trial likely not until the calendar year 2000. 25.

As you know we have been we have a pending case with smart <unk>, which is a fundamentally different case and dominion and that all of our full complement of first amendment defenses remained and we will be ready to defend this case surrounding extremely newsworthy events. When it goes to trial likely not until the calendar year 2000. 25.

25.

Lachlan Murdoch: As regards to our programming strategy in prime time, there's no change to our programming strategy at FOX News. It's obviously a successful strategy. And as always, we are adjusting our programming and our lineup, and that's what we continue to do. We are pleased with the strength of the advertising demand throughout our schedule, but particularly prime time. Steve, do you want to talk to the MVPD?

At Fox News. It's obviously a successful strategy. And. As always we are adjusting our programming and our lineup and that's what we continue. To do we are pleased with the. The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes. And. As always we are adjusting our programming and our lineup and that's what we continue. To do we are pleased with the. The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

It's obviously a successful strategy. And. As always we are adjusting our programming and our lineup and that's what we continue. To do we are pleased with the. The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

And. As always we are adjusting our programming and our lineup and that's what we continue. To do we are pleased with the. The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

As always we are adjusting our programming and our lineup and that's what we continue. To do we are pleased with the. The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

To do we are pleased with the. The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

The strength of the advertising demand throughout our. Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

Schedule, but particularly primetime. Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

Steve you want to talk to the Mvpds, yes, sure on the affiliate side Robert Yes.

Steven Silvester Tomsic: Yes, sure, on the affiliate. So Robert, yes, listen, we're pleased with the way our affiliate negotiations are going. You know that this year, we had roughly 34% the total affiliate book up for renewal. We've been successful in generating and establishing new pricing benchmarks for the network in FOX Sports or retrains and Fox Sports in those negotiations. And so with another sort of 1/3 of our book due for renewal in fiscal '24 and a touch under 30% during fiscal '25, we feel pretty confident that we can continue to deliver pricing gains in subscribers. If the subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company.

Of the total affiliate book up for renewal. We've been successful in generating and establishing new pricing benchmarks for the network and Fox Sports, where Retrans and Fox sports in those negotiations. With another sort of third is due for renewal in fiscal 'twenty, four and touch on the 30% June fiscal 'twenty five we feel pretty confident that we can continue to deliver pricing gains as subscribers. The subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company.

We've been successful in generating and establishing new pricing benchmarks for the network and Fox Sports, where Retrans and Fox sports in those negotiations. With another sort of third is due for renewal in fiscal 'twenty, four and touch on the 30% June fiscal 'twenty five we feel pretty confident that we can continue to deliver pricing gains as subscribers. The subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company.

With another sort of third is due for renewal in fiscal 'twenty, four and touch on the 30% June fiscal 'twenty five we feel pretty confident that we can continue to deliver pricing gains as subscribers. The subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company.

The subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company.

Gabrielle Brown: Operator, we can take the next question.

Operator: And that will come from the line of Ben Swinburne with Morgan Stanley. Thanks, Good morning.

Benjamin Daniel Swinburne: I just want to ask about advertising. As you guys look into the rest of the year and head into the upfront, does Tubi give you guys an advantage as you go in to what is, at least, I would describe it as a soft demand environment for advertising and trying to drive pricing kind of across your properties, particularly with the new Tubi Media Group, just wondering if you think that's going to matter enough this year for us to maybe notice as we head into the fall. And then just on the direct response weakness at FOX News, do you guys have any visibility on sort of whether that's improving here in Q4 or what the drivers of that are? Any relationship to sort of some of the broader volatility around FOX News? Just wanted to get your updated thoughts on that. Thanks very much.

Just to give you guys an advantage as you go in to what is I would describe as a soft demand environment for advertising and trying to drive pricing kind of across your properties, particularly with the new <unk> Media group. Just wondering if you think that's going to matter enough. This year for us to maybe notice as we head into the fall and then just. On the direct response weakness at Fox News do you guys have any visibility on sort of whether that's improving here in Q4, what the drivers of that arent, even any relationship to sort of some of the broader volatility around Fox news just wanted to get your updated thoughts on that.

On the direct response weakness at Fox News do you guys have any visibility on sort of whether that's improving here in Q4, what the drivers of that arent, even any relationship to sort of some of the broader volatility around Fox news just wanted to get your updated thoughts on that.

Thanks very much.

Hey, Thanks Ben.

Lachlan Murdoch: Hey. Thank, Ben. I'm glad Robert left your question. But on advertising, look, we -- I think you've alluded to a softness in the market. We're really not seeing that across our major platforms. I'll give you a bit of the detail. The national market, the sports market for us is very strong, very robust. Obviously, as we enter the summer, it's a slower acquired, a quieter -- always is a quiet period for us until the fall when our key marquee sports programming is on air, but we are seeing pretty robust demand for time and availability in the sports market. So we're very confident with sports. In news.

I'm glad Robert left your question. But on advertising, look, we -- I think you've alluded to a softness in the market. We're really not seeing that across our major platforms. I'll give you a bit of the detail. The national market, the sports market for us is very strong, very robust. Obviously, as we enter the summer, it's a slower acquired, a quieter -- always is a quiet period for us until the fall when our key marquee sports programming is on air, but we are seeing pretty robust demand for time and availability in the sports market. So we're very confident with sports.

Uh huh. But. On advertising look we. <unk>.

But.

On advertising look we.

<unk>.

I think you alluded to softness in the market. Really not seeing that across our major platforms. Give you a bit of the detail. The national National market sports. Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports. The national National market sports. Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

Really not seeing that across our major platforms. Give you a bit of the detail. The national National market sports. Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports. The national National market sports. Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

Give you a bit of the detail. The national National market sports. Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

The national National market sports. Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

Market for us. It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

It is very strong very robust obviously as we enter the summer. Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

Slower acquired are always isn't required period for us. Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

Until then until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with. With sports.

With sports.

Lachlan Murdoch: In news, the direct response issues, which is a market issue, it's not a FOX News issue, has stabilized. So we're not seeing any more deterioration in direct response pricing. So we feel pretty confident in the stabilization of that piece of revenue. Again, that's really a product or a result of oversupply in -- with our competitors with direct response. It's not so much a FOX News issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to. But again, that issue has stabilized, and we think it offers us a pretty good platform going forward. Another thing to mention on news, which is just a small data point, we're seeing political revenue earlier than we've ever seen before.

The direct response. Issues. Which is a market issue, it's not a Fox news issue. Hi. Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty. I'm pretty confident in the. The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

Issues. Which is a market issue, it's not a Fox news issue. Hi. Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty. I'm pretty confident in the. The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

Which is a market issue, it's not a Fox news issue. Hi. Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty. I'm pretty confident in the. The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

Hi. Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty. I'm pretty confident in the. The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty. I'm pretty confident in the. The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

I'm pretty confident in the. The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

The stabilization of that. Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

Piece of revenue again, that's really. A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

A product or. The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

The result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve the premium pricing that we've been used to but again that that issue has stabilized and we think as offices.

Pretty good platform going forward. The other thing I mentioned on a news, which is just a small data point, we're seeing political revenue earlier than we've ever seen before.

Lachlan Murdoch: It's still small, but it's sort of unheard of to have it this early in the political cycle. So again, we think that bodes well for the fall and as we enter the more significant part of the political cycle. And then coming on to Tubi, the revenue is accelerating there. It's -- revenue is -- while it's accelerating pretty strongly -- Gabby doesn't want me to give the number. It would break most of your models. But it's not keeping pace with TBT. TBT continues to grow even faster, which is a great metric. So we have the avails. We're looking forward to Tubi being a central part of our upfront negotiations. It's clearly not only a strategic driver for us but have been an important driver going forward. Then when you get down to local.

For the fall.

As we enter.

The more significant part of the political cycle.

And then coming on to <unk>.

The revenue is is accelerating there.

Revenue is wallet is accelerating.

Pretty strongly Gaby doesn't want me to give the number.

Break most of your models, but. But it is not keeping pace with with TVT TVT continues to grow even faster, which is which is a great metrics. So we have we have the <unk> we're looking forward. To to be being a central part of our upfront negotiations. It is clearly. Not only strategic. Driver for us, but an important driver going forward.

But it is not keeping pace with with TVT TVT continues to grow even faster, which is which is a great metrics. So we have we have the <unk> we're looking forward. To to be being a central part of our upfront negotiations. It is clearly. Not only strategic. Driver for us, but an important driver going forward.

To to be being a central part of our upfront negotiations. It is clearly. Not only strategic. Driver for us, but an important driver going forward.

It is clearly. Not only strategic. Driver for us, but an important driver going forward.

Not only strategic. Driver for us, but an important driver going forward.

Driver for us, but an important driver going forward.

Lachlan Murdoch: Then when you get down to local base markets, that's where we're seeing more mixed results in the different kind of verticals of revenue. We're very pleased to see auto, again, continuing its rebound with strong growth in the auto category. The entertainment category, we're also seeing growth in and the restaurant category, where we're seeing growth in. But this is offset by weakness across other categories such as retail, telecom, and sports wagering and betting.

Mixed results in the different kind of. Verticals revenue. We're very pleased to see. Auto again, continuing its rebound with a with strong growth in the auto category. The entertainment category, we're also seeing growth in and restaurant category, where we're seeing growth, but this was offset by weakness across our other categories, such as retail telecom and obviously sports wagering.

Verticals revenue. We're very pleased to see. Auto again, continuing its rebound with a with strong growth in the auto category. The entertainment category, we're also seeing growth in and restaurant category, where we're seeing growth, but this was offset by weakness across our other categories, such as retail telecom and obviously sports wagering.

We're very pleased to see. Auto again, continuing its rebound with a with strong growth in the auto category. The entertainment category, we're also seeing growth in and restaurant category, where we're seeing growth, but this was offset by weakness across our other categories, such as retail telecom and obviously sports wagering.

Auto again, continuing its rebound with a with strong growth in the auto category. The entertainment category, we're also seeing growth in and restaurant category, where we're seeing growth, but this was offset by weakness across our other categories, such as retail telecom and obviously sports wagering.

The entertainment category, we're also seeing growth in and restaurant category, where we're seeing growth, but this was offset by weakness across our other categories, such as retail telecom and obviously sports wagering.

Lachlan Murdoch: So the local market does feel -- overall. But again, we're looking forward for our businesses. Particularly in sports and news, we're looking forward to a strong -- a decent summer and a strong fall season. I think that's all the questions. Thanks, Ben.

Strong.

This summer and a strong.

The fall season.

I think thats all the questions. So thanks, Ben next question. Please.

Operator: We'll go to the line of Phil Cusick with JPMorgan.

Philip A. Cusick: Hi, thanks. A couple of questions and then a quick one. On tub, it sounds like your TBT is still outgrowing revenue, but are you starting to unleash the revenue and profit there a little bit. And then on the legal side, any direction on legal expenses from here? And then one stand-alone, any thoughts on appropriate leverage and capital return from here? We appreciate the $1 billion, but how should we think about this? Are you still going to sit on the cash until we get to the next sort of legal view? Or should something happen between now and then? Thank you.

<unk> it sounds like you are. TVT is still outgrowing revenue, but are you starting to unleash the revenue and profit there are a little bit. And then on the legal side any any direction on legal expenses from here. And then one standalone any thoughts on appropriate leverage and capital return from here. We appreciate the billion dollars, but but how should we think about this. Are you still going to. Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

TVT is still outgrowing revenue, but are you starting to unleash the revenue and profit there are a little bit. And then on the legal side any any direction on legal expenses from here. And then one standalone any thoughts on appropriate leverage and capital return from here. We appreciate the billion dollars, but but how should we think about this. Are you still going to. Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

And then on the legal side any any direction on legal expenses from here. And then one standalone any thoughts on appropriate leverage and capital return from here. We appreciate the billion dollars, but but how should we think about this. Are you still going to. Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

And then one standalone any thoughts on appropriate leverage and capital return from here. We appreciate the billion dollars, but but how should we think about this. Are you still going to. Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

Are you still going to. Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

Lachlan Murdoch: Thanks very much, Phil. On -- let me start with Tubi and apologies, Steve, for the capital management element of the question. So on Tubi, we're going to continue to invest in Tubi. It's at the same levels. We've been investing over the last year or so. We just think it's a tremendous opportunity for us. As I mentioned in my comments, the fact that we're now -- Nielsen's Gauge now has us over 1% of the U.S. television viewing is a tremendous sort of benchmark to have hit, and I see continued growth there. So from a consumer aspect and from a marketer's aspect, Tubi is becoming more and more a central part of usage and sort of an opportunity.

Very much Phil.

John .

Sure.

I mean, let me start with <unk>.

I'll pass over to Steve for the for the.

Some of the capital management.

Element the question so.

So on <unk>, we're going to continue to invest in <unk> is it the same.

Levels.

We've been investing over the last.

Year or so we just think it's a tremendous opportunity.

For us as I mentioned in my comments, the fact that we're now.

Wilson gauge now has some over 1% of the U S. TV viewing is a tremendous sum.

Sort of benchmark.

We have hit and I see continued growth there so from a consumer aspect and from our marketers aspect to be becoming more and more a central part of.

Usage in sort of an opportunity.

And this is really because.

Lachlan Murdoch: And this is really because the focus Tubi's had or not -- we think of it over the last 3 years with our involvement, but obviously, the team there has done a tremendous job not only over the last 3 years but before that in really sort of driving sort of the best-in-class personalized AVOD experience, building an incredible library with nearly 55,000 titles in the U.S. alone. And again, to put that in context, that's 5 times the size of the Netflix library and now really being able to monetize that viewing in a more efficient, better way.

Our library with nearly 55000 titles in the U S alone and again to put that in context, that's five times the size of the Netflix library and never will. Being able to monetize that viewing in a more efficient. Better.

Being able to monetize that viewing in a more efficient. Better.

Better.

Better way so so we're incredibly opt.

Lachlan Murdoch: So we're incredibly optimistic. And I would say the results are -- and we're incredibly pleased with the performance of tb going forward, and we think it's an appropriate area for us to continue to invest in. On the -- I'll turn it over to Steve on the -- on sort of capital management. But just on it, I'll just start by saying, look, we have a $7 billion buyback authorization. I think we spent about $4.4 billion of that. So we've -- my math's incorrect this time of the morning, a $2.6 billion remaining of the authorization. We fully expect to deploy all of that capital back to shareholders through our buyback. And any litigation has no impact on that at all. Yes, Steve.

The results are in where embedded incredibly pleased with the performance to be going forward and we think it's appropriate area for us to to continue to invest in omni I'll turn it over to Steve on the <unk>.

Until the capital management, but it just.

And I'll just start by saying look we are.

We'll have a $7 billion buyback authorization I think we spent about $4 four.

Billion events that we have. My math incorrect. This time in the morning, a $2 $6 billion remaining. Your authorization, we fully expect to deploy all of that capital back to shareholders through our buyback. Any litigation has no impact on that at all.

My math incorrect. This time in the morning, a $2 $6 billion remaining. Your authorization, we fully expect to deploy all of that capital back to shareholders through our buyback. Any litigation has no impact on that at all.

Your authorization, we fully expect to deploy all of that capital back to shareholders through our buyback. Any litigation has no impact on that at all.

Any litigation has no impact on that at all.

Steven Silvester Tomsic: Thanks, Lachlan. So Phil, just to go back on legal costs, legal costs over the last two or three quarters have been elevated. Obviously, we've been deep in the depositions and pretrial preparation for Dominion. So I'd expect that to subside over the next couple of quarters. And then to just pick up on Lachlan's point, listen, we -- the leverage is the debt we have, $7.2 billion, we've got a maturity in January, which we'll make a call on as to whether to repay or refinance. But the leverage feels about right where we are at the moment. And our cash position is strong. And so we would anticipate whatever happens with future litigation, we can continue to continue to go with our buyback pacing as it has been over the last couple of years now or a few years now as well as leaving us flexibility to invest in the business or take advantage of any inorganic opportunities, but we'll be balanced about it as we've been saying since the formation of the company.

Data in the depositions and pre trial preparations. Dominion, So I'd expect that to subside. The next couple of quarters. And then so just. Pick up on <unk> point with the law. Leverage is. The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

Dominion, So I'd expect that to subside. The next couple of quarters. And then so just. Pick up on <unk> point with the law. Leverage is. The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

The next couple of quarters. And then so just. Pick up on <unk> point with the law. Leverage is. The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

And then so just. Pick up on <unk> point with the law. Leverage is. The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

Pick up on <unk> point with the law. Leverage is. The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

Leverage is. The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

The debt, we have $7 $2 billion, we've got a maturity in January which will make a call on as to whether to repay or refinance but the leverage feels about right, where we are at the moment and our cash position is strong and so we would anticipate.

And our cash position is strong. And so we would anticipate whatever happens with future litigation, we can continue to continue to go with our buyback pacing as it has been over the last couple of years now or a few years now as well as leaving us flexibility to invest in the business or take advantage of any inorganic opportunities, but we'll be balanced about it as we've been saying since the formation of the company.

Continue to go with have buyback pacing it as it has been over the last couple of years now a few years now as well as leaving us flexibility to invest in the business, who will take advantage of any inorganic opportunities, but we'll be balanced about it as we've been saying since the formation of the company.

Gabrielle Brown: Operator, next question please.

And that will come from the line of John Hodulik with UBS. Great. Thanks, guys, maybe getting back to the sports theme. Viewership remained strong across the board.

Operator: And that will come from the line of John Hodulik with UBS.

Great. Thanks, guys, maybe getting back to the sports theme.

John Christopher Hodulik: Great. Maybe getting back to the sports theme, where viewership remains strong, I'd say, across the board. I mean First of all, how would you gauge the success of the USFL? Second, anything you could tell us about your appetite for additional sports rights, especially to fill in the summer months? And then how does the sort of relative weighting on sports versus entertainment programming position you guys given what could be a protracted writer strike? Thanks. Thanks, Sean.

Viewership remained strong across the board.

How would you gauge the successful Usfl. Second. Anything you could tell us about your appetite for additional sports rights, especially as to fill in the summer months and then how does the sort of. Relative Lady on sports versus Entertainment program programming position, you guys, given what could be a protracted rider strategy. Thanks.

Second. Anything you could tell us about your appetite for additional sports rights, especially as to fill in the summer months and then how does the sort of. Relative Lady on sports versus Entertainment program programming position, you guys, given what could be a protracted rider strategy. Thanks.

Anything you could tell us about your appetite for additional sports rights, especially as to fill in the summer months and then how does the sort of. Relative Lady on sports versus Entertainment program programming position, you guys, given what could be a protracted rider strategy. Thanks.

Relative Lady on sports versus Entertainment program programming position, you guys, given what could be a protracted rider strategy. Thanks.

Lachlan Murdoch: Thanks, John. Look, USFL, it's still -- it's just the start of the second season. We're very pleased with it. We're pleased with both its ratings, the quality of the games, its performance on television and ratings. And also, frankly, it's a performance on the ground with ticket sales and engagement with football fans. So early days, but we couldn't be more happy with it -- with how it's tracking today.

It's still it's. Just the start of the second. Season. We're very pleased with it we're pleased with focus on its ratings the quality of the games. Is it performance. On television the ratings and also frankly, it's our performance on the ground with ticket sales and. And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

Just the start of the second. Season. We're very pleased with it we're pleased with focus on its ratings the quality of the games. Is it performance. On television the ratings and also frankly, it's our performance on the ground with ticket sales and. And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

Season. We're very pleased with it we're pleased with focus on its ratings the quality of the games. Is it performance. On television the ratings and also frankly, it's our performance on the ground with ticket sales and. And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

We're very pleased with it we're pleased with focus on its ratings the quality of the games. Is it performance. On television the ratings and also frankly, it's our performance on the ground with ticket sales and. And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

Is it performance. On television the ratings and also frankly, it's our performance on the ground with ticket sales and. And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

On television the ratings and also frankly, it's our performance on the ground with ticket sales and. And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

And engagement with the football fan so early days, but. But we couldnt be more happy with how it's how it's tracking to date.

But we couldnt be more happy with how it's how it's tracking to date.

Lachlan Murdoch: In terms of additional sports rights, we look across our portfolio of sports rights. We're constantly managing them. We look at sports rights as they come up. And we also look at them as they get renewed just to make sure that they are efficient for us and that we're paying a responsible and appropriate amount for those rights. So we're constantly adjusting, but we do it with, I think, a real commitment to discipline in terms of what rights we would acquire or dispose of. So it's a moving -- it's always a moving feast, but I wouldn't expect anything dramatic at all in that area. Now what was the latter one last one.

Look across our. Portfolio of sports rights. But we're constantly managing them well. Look at sports rights as they come up and we also look at them as they as they get renewed just to make sure that they are efficient for us and that we are. We're paying. Responsible and appropriate. Mount for those rights. So we're constantly adjusting but we do it with them I think. Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's obviously, it's a moving. As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

Portfolio of sports rights. But we're constantly managing them well. Look at sports rights as they come up and we also look at them as they as they get renewed just to make sure that they are efficient for us and that we are. We're paying. Responsible and appropriate. Mount for those rights. So we're constantly adjusting but we do it with them I think. Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's obviously, it's a moving. As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

But we're constantly managing them well. Look at sports rights as they come up and we also look at them as they as they get renewed just to make sure that they are efficient for us and that we are. We're paying. Responsible and appropriate. Mount for those rights. So we're constantly adjusting but we do it with them I think. Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's obviously, it's a moving. As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

Look at sports rights as they come up and we also look at them as they as they get renewed just to make sure that they are efficient for us and that we are. We're paying. Responsible and appropriate. Mount for those rights. So we're constantly adjusting but we do it with them I think. Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's obviously, it's a moving. As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

We're paying. Responsible and appropriate.

Responsible and appropriate.

Mount for those rights. So we're constantly adjusting but we do it with them I think.

Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's obviously, it's a moving. As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

So it's obviously, it's a moving. As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

As far as moving feast, but I wouldn't expect anything dramatic at all. In that. And that area.

In that. And that area.

And that area.

Lachlan Murdoch: What was the last question? The writer strike. So thank you. On the writer strike, look, I think for us, we are well positioned for the writer strike. We think that with our strategic priorities and sort of strengths in sports but also in news, these are 2 areas that are not affected by the writer strike. And the audience will pivot on a -- when they're watching television to those categories. In entertainment, you have to remember as well, we only program 2 hours of entertainment at night. That's a mixture of both scripted and unscripted content. So we feel very well positioned there with that not to be affected by the writer strike really at all. There'll be some scheduling changes with some of this descriptive content, but it's not something that'll have a significant financial impact on us.

On the writer's strike look I think for US we are well positioned for the writers strike and we think that. With our. Strategic priorities and sort of strength in sports, but also in news. These are two areas that are not affected by the writers strike and the audience we'll pivot. When the Washington, Halliburton to those to those categories and entertainment you have to remember as well we only program two hours of entertainment a night, that's a mixture of both scripted and unscripted content. So we feel very. Well position there would not be affected by the writers strike. Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us.

With our. Strategic priorities and sort of strength in sports, but also in news. These are two areas that are not affected by the writers strike and the audience we'll pivot. When the Washington, Halliburton to those to those categories and entertainment you have to remember as well we only program two hours of entertainment a night, that's a mixture of both scripted and unscripted content. So we feel very. Well position there would not be affected by the writers strike. Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us.

Strategic priorities and sort of strength in sports, but also in news. These are two areas that are not affected by the writers strike and the audience we'll pivot. When the Washington, Halliburton to those to those categories and entertainment you have to remember as well we only program two hours of entertainment a night, that's a mixture of both scripted and unscripted content. So we feel very. Well position there would not be affected by the writers strike. Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us.

When the Washington, Halliburton to those to those categories and entertainment you have to remember as well we only program two hours of entertainment a night, that's a mixture of both scripted and unscripted content. So we feel very. Well position there would not be affected by the writers strike. Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us.

Well position there would not be affected by the writers strike. Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us.

Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us.

Gabrielle Brown: Operator, we have time for one more question.

And that last question will come from the line of Jessica Reif Ehrlich with Bank of America. Thanks, I just wanted to maybe follow up on loved ones at this point that youre not overly dependent on. Live and in the script I mean, given your life in unscripted, you're not overly dependent on the riders for. For entertainment so given that can you talk about your outlook for the upfront. Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

Multiple: [Operator] And that last question will come from the line of Jessica Reif Ehrlich with Bank of America. [Jessica Reif Ehrlich] I just wanted to maybe follow-up on Lachlan's last point that you're not overly dependent on live and unscripted -- I mean, given you're live and unscripted, you're not overly dependent on the writers for entertainment. So given that, like, can you talk about your outlook for the upfront, also given macro, I mean, you seem to be in a very different position than most people, but the market is, most people say choppy, and then also given the decline in the paid TV universe. Can you just talk about how you see FOX News and sports transitioning over time?

Reif Ehrlich with Bank of America. Thanks, I just wanted to maybe follow up on loved ones at this point that youre not overly dependent on. Live and in the script I mean, given your life in unscripted, you're not overly dependent on the riders for. For entertainment so given that can you talk about your outlook for the upfront. Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

America. Thanks, I just wanted to maybe follow up on loved ones at this point that youre not overly dependent on. Live and in the script I mean, given your life in unscripted, you're not overly dependent on the riders for. For entertainment so given that can you talk about your outlook for the upfront. Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

Thanks, I just wanted to maybe follow up on loved ones at this point that youre not overly dependent on. Live and in the script I mean, given your life in unscripted, you're not overly dependent on the riders for. For entertainment so given that can you talk about your outlook for the upfront. Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

Live and in the script I mean, given your life in unscripted, you're not overly dependent on the riders for. For entertainment so given that can you talk about your outlook for the upfront. Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time.

Can you just talk about how you see Fox news and sports transitioning over time.

Lachlan Murdoch: Great. Hi, Jessica. Thank you very much. So look, I agree with you on the writer strike. I think for us, our focus on sort of live, live news, live sports, and frankly, the network a healthy balance of scripted and unscripted content on the network puts us in a tremendous position. I think what it -- the timing of the strike, obviously with the upfronts next week creates some what's the word I'm hesitancy of? It's hard to present an exact schedule, right? I you're only in entertainment, it's not if you're in news and sport. So I think it positions us very well in the upfront. And that's, of course, as I mentioned before not including the strength of Tubi going to this upfront as well. And Tubi will certainly be front and center in all of our upfront presentations, but also in our negotiations going forward. So, we feel very well positioned. It's early with the upfront, these negotiations will take time, but I think we're in a best position as we could, you know, possibly, hope for.

So look, I agree with you on the writer strike. I think for us, our focus on sort of live, live news, live sports, and frankly, the network a healthy balance of scripted and unscripted content on the network puts us in a tremendous position. I think what it -- the timing of the strike, obviously with the upfronts next week creates some what's the word I'm hesitancy of? It's hard to present an exact schedule, right? I you're only in entertainment, it's not if you're in news and sport. So I think it positions us very well in the upfront. And that's, of course, as I mentioned before not including the strength of Tubi going to this upfront as well. And Tubi will certainly be front and center in all of our upfront presentations, but also in our negotiations going forward. So, we feel very well positioned. It's early with the upfront, these negotiations will take time, but I think we're in a best position as we could, you know, possibly, hope for.

Look Europe .

I agree with you on the writer's strike I think for US our focus on sort of live live news live sports.

And frankly the network are healthy.

Balance of scripted and unscripted.

Our content on the network puts us puts us in a tremendous position I think what the timing of the strike obviously with the Upfronts next week.

Creates some.

What's the word.

It's hard to present, an exact schedule right.

Youre only in entertainment is not if youre in news and sports. So I think it positions us very well in the upfront and that's of course as I mentioned before.

Not including the strength to be going into this upfront as well and <unk> will certainly be front and center in all of our upfront a. Our presentations, but also in our negotiations are going forward. So we feel. Very well positioned. Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of.

Our presentations, but also in our negotiations are going forward. So we feel. Very well positioned. Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of.

Very well positioned. Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of.

Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of.

It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of.

Best position as we could possibly. Hope for in terms of.

Hope for in terms of.

Lachlan Murdoch: In terms of the, you know, so the cable universe and what we plan to do with news and sport, you know, going forward in terms of any sort of a direct-to-consumer or alternative kind of distribution strategy. You know, as I think we've said before, you know, we are ready to go. We have the technology in place. I think we have the, you know, the teams and the people in place to go D2C when we deem that necessary or prudent. But, you know, for the moment we continue to drive industry leading pricing out of the MVPD and DMVPD universes. Steve mentioned this before.

Cable universe, and with what we plan to do with news and sports.

Sure.

Going forward in terms of any sort of direct to consumer or alternative distribution.

Our strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Mvpds and D Embry PD universes.

Lachlan Murdoch: Steve mentioned this before, our pricing has been, it's not theoretical. Our pricing has now been set in contracts, going forward. So for the -- we have a third of our distribution deals by third volume this year, this fiscal year, and another third, the next fiscal year. And we're very pleased with where we sit and where we've established a market price for our brands. The, -- and when you, just speaking of the brands, when you have, when you have the best sports business brand and the best news business and brand, these are products that ultimately right, will be part of any scaled platform, regardless of what technology is used to deliver that content and that platform. And so we see D2C in the future, and it will come eventually, as just one component of a broader distribution strategy. But it's certainly across any of those platforms or technologies, it's hard to see not having our sports and our news on those platforms. So, we feel pretty well positioned, Jessica.

In contracts. Going forward so for the <unk>. Third of our distribution. Deals by sort of volume this year this fiscal year and another third the next fiscal year and we're very pleased with where we sit and where we've established a market price for our brands. <unk>. And when you just speaking of the brands when you have. When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

Going forward so for the <unk>. Third of our distribution. Deals by sort of volume this year this fiscal year and another third the next fiscal year and we're very pleased with where we sit and where we've established a market price for our brands. <unk>. And when you just speaking of the brands when you have. When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

Third of our distribution. Deals by sort of volume this year this fiscal year and another third the next fiscal year and we're very pleased with where we sit and where we've established a market price for our brands. <unk>. And when you just speaking of the brands when you have. When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

Deals by sort of volume this year this fiscal year and another third the next fiscal year and we're very pleased with where we sit and where we've established a market price for our brands. <unk>. And when you just speaking of the brands when you have. When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

<unk>. And when you just speaking of the brands when you have. When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

And when you just speaking of the brands when you have. When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

When you have the best sports business brand and the best News business and brand. These are products that ultimately Brian will be part of any scaled platform. <unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

<unk> of what technology is used to deliver that content on that platform and so we see D C in the future. It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

It will come eventually. That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

That's just one component of a broader distribution strategy, but certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica.

On those on those platforms, so that we feel pretty well positioned Jessica.

Gabrielle Brown: At this point we are 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.

EMEA, Dan Carey a call. Thank you once again for joining today's call.

Operator: And ladies and gentlemen, that does conclude your conference call for today. Thank you for your participation and for using ATT Executive teleconference. You may now disconnect. Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of. So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Operator: And ladies and gentlemen, that does conclude your conference call for today. Thank you for your participation and for using AT&T Executive teleconference. You may now disconnect.

We're sorry your conferences ending now please hang up. Okay.

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Operator: disconnect. Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of. So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

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Ladies and gentlemen, thank you for standing by welcome to the Fox Corporation third quarter fiscal year 2023 earnings conference call at.

Thank you Kelly good morning, and welcome to our fiscal 2023 third 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.

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 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 filings. Additionally, this call will include certain non-GAAP financial measures, including adjusted EBITDA or EBITDA as we refer to it on this call. Conciliation 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.

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 refer to it on this call.

Conciliation 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. Thank you Gabby and thanks to everyone for joining us this morning. Fox is strong fiscal third quarter operating results once again demonstrate the power of our content and the brands it underpins and the repeated capability of our focused strategy to deliver solid financial results. In the quarter, we grew top line revenue by 18% led by the remarkable 43% growth in advertising and a solid 3% growth in affiliate revenue.

Thank you Gabby and thanks to everyone for joining us this morning.

In the quarter, we grew top line revenue by 18% led by the remarkable 43% growth in advertising and a solid 3% growth in affiliate revenue.

Underpinning this performance with a record Super Bowl 57 on the Fox broadcast network, which generated approximately $650 million of gross advertising revenue across our businesses and was the key driver of our 61% advertising revenue growth at our television segment. This year's Super Bowl matchup between Kansas City, and Philadelphia delivered 115 million viewers across Fox platforms, making Super Bowl 57, the most watched program in U S television history, and the pinnacle of an extraordinary year for Fox sports. The strong lineup of programming and advertising demand for Fox Sports continues into our FERC fourth quarter, which includes the return of NASCAR. The second season of the Usfl The startup Major League baseball as 2023 season. The finals of the UEFA Nations League and a first for Fox The Belmont Stakes. Leveraging the reach of our Super Bowl lead and we launched the second season of next level set which promises to be the next big lifestyle franchise from our studio Ramsey partnership.

This year's Super Bowl matchup between Kansas City, and Philadelphia delivered 115 million viewers across Fox platforms, making Super Bowl 57, the most watched program in U S television history, and the pinnacle of an extraordinary year for Fox sports.

The strong lineup of programming and advertising demand for Fox Sports continues into our FERC fourth quarter, which includes the return of NASCAR. The second season of the Usfl The startup Major League baseball as 2023 season. The finals of the UEFA Nations League and a first for Fox The Belmont Stakes.

Leveraging the reach of our Super Bowl lead and we launched the second season of next level set which promises to be the next big lifestyle franchise from our studio Ramsey partnership.

Our entertainment business also found success with the number one new series and new drama over the year and accused and the number one new unscripted series and special forces world's toughest test. Fox is now debuted the top new unscripted series for five consecutive seasons. In fact, the combined power of our sports and Entertainment programming Places Fox at number one amongst broadcast network season to date in the key 18 to 49 demo. Our strong sports calendar also had a halo effect at the Fox television stations, which saw many local advertising vertical is higher in the quarter and will continue to be mixed local advertising market conditions. We are encouraged by growth in categories, including auto restaurants, and entertainment, but are watchful across other categories. Including bedding retail and telecom.

Fox is now debuted the top new unscripted series for five consecutive seasons.

In fact, the combined power of our sports and Entertainment programming Places Fox at number one amongst broadcast network season to date in the key 18 to 49 demo.

Our strong sports calendar also had a halo effect at the Fox television stations, which saw many local advertising vertical is higher in the quarter and will continue to be mixed local advertising market conditions. We are encouraged by growth in categories, including auto restaurants, and entertainment, but are watchful across other categories.

Including bedding retail and telecom.

Meanwhile, <unk> performance in the third quarter was nothing short of stellar. With revenue growth of 31% supported by sustained gains in engagement, where total view time increased 38% year on year. And while still early in the fourth quarter. The April results for TV show the momentum across the platform accelerating having recently marked the three year anniversary of our acquisition of <unk>. Our progress over this longer term timeframe is just as impressive haven't grown quarterly TVT. By over 200% and revenue by 400%. Just as importantly, the <unk> brand has asserted itself on the broader media landscape.

With revenue growth of 31% supported by sustained gains in engagement, where total view time increased 38% year on year.

By over 200% and revenue by 400%.

Just as importantly, the <unk> brand has asserted itself on the broader media landscape.

Our viral <unk> spot in the Super Bowl, which received massive press coverage had almost 7 billion impressions. And our strong growth and engagement has now led to two bids inclusion and nielsen's the gauge marking the first time <unk> has reached 1% of total TV viewing minutes and making to be the most watched fast service in the United States. And just last month, we announced the formation of <unk> Media group under Paul <unk>, which brings together, our digital capabilities and a more formalized and coordinated way to help us better monetize our digital touch points across all our Fox properties. We think farhat for his entrepreneurial leadership at <unk> over the last three years and of course before he leaves the business in terrific shape with an outstanding team to drive continued strong growth. At Fox News media, we retained our leadership position amongst our peers.

And our strong growth and engagement has now led to two bids inclusion and nielsen's the gauge marking the first time <unk> has reached 1% of total TV viewing minutes and making to be the most watched fast service in the United States.

And just last month, we announced the formation of <unk> Media group under Paul <unk>, which brings together, our digital capabilities and a more formalized and coordinated way to help us better monetize our digital touch points across all our Fox properties.

We think farhat for his entrepreneurial leadership at <unk> over the last three years and of course before he leaves the business in terrific shape with an outstanding team to drive continued strong growth.

At Fox News media, we retained our leadership position amongst our peers.

The Fox News channel ended the third quarter as the most watched cable network in total day and prime time, while maintaining its lead as the most watched cable news network, beating CNN and MSNBC combined. Also notably the Fox business network ended the quarter at the most water business cable network, beating CNBC and total viewers during the business day and market hours for the fourth consecutive quarter.

Also notably the Fox business network ended the quarter at the most water business cable network, beating CNBC and total viewers during the business day and market hours for the fourth consecutive quarter.

Let me briefly address the settlement of our dispute with Dominion voting systems, we made the business decision to resolve this dispute and avoid the acrimony of a divisive trial and a multi year appeal process. And clearly in the best interest of the company and its shareholders. The settlement in no way alters Fox his commitment to the highest journalistic standards across our company or our passion for unabashedly reporting the news of the day.

And clearly in the best interest of the company and its shareholders.

The settlement in no way alters Fox his commitment to the highest journalistic standards across our company or our passion for unabashedly reporting the news of the day.

We're proud of our Fox news team the exceptional quality of the journalism and their stewardship of the Fox News brand. Whether it be our coverage of politics and elections world events, such as the worn Ukraine or domestic issues such as the crisis at the border or journalist sprint compelling news home to our viewers every day. The standards behind this reporting on not only what makes us the number one cable news network by the number one network in all of cable. In fact in a recent poll, 41% of respondents truss Fox news as their most trusted network news provider.

Whether it be our coverage of politics and elections world events, such as the worn Ukraine or domestic issues such as the crisis at the border or journalist sprint compelling news home to our viewers every day.

The standards behind this reporting on not only what makes us the number one cable news network by the number one network in all of cable.

In fact in a recent poll, 41% of respondents truss Fox news as their most trusted network news provider.

So as we look ahead, we are confident in the strength of the Fox brands and the strength of our balance sheet and while we are not completely immune to the headwinds facing the broader industry and the general economy, we are well positioned given our areas of differentiation. Nonetheless, you can expect us to be even more focus on our cost base as we look to reinforce our strategy for future growth. We remain committed to driving long term shareholder value creation through the thoughtful management of our existing business, the pursuit of new and exciting adjacencies and returning capital to our shareholders.

Nonetheless, you can expect us to be even more focus on our cost base as we look to reinforce our strategy for future growth.

We remain committed to driving long term shareholder value creation through the thoughtful management of our existing business, the pursuit of new and exciting adjacencies and returning capital to our shareholders.

With that I'll turn it over to Steve to take you through the details of the quarter. Thanks, a lot and good morning, everyone. <unk> again delivered strong underlying financials in our fiscal third quarter with 18% revenue growth and 3% EBITDA growth bolstered by a record breaking Super Bowl 57, alright. Our advertising revenues increased 43% led by the Super Bowl, along with a high volume of NFL playoff windows and accelerating growth of TV. Meanwhile, our affiliate revenues grew 3% on the back of pricing benefits from recent renewals, partially offset by trailing 12 months subscriber losses, continuing to run in the 7% range.

Thanks, a lot and good morning, everyone.

<unk> again delivered strong underlying financials in our fiscal third quarter with 18% revenue growth and 3% EBITDA growth bolstered by a record breaking Super Bowl 57, alright.

Our advertising revenues increased 43% led by the Super Bowl, along with a high volume of NFL playoff windows and accelerating growth of TV.

Meanwhile, our affiliate revenues grew 3% on the back of pricing benefits from recent renewals, partially offset by trailing 12 months subscriber losses, continuing to run in the 7% range.

Quarterly adjusted EBITDA was $833 million up. Up $22 million over the prior year quarter. As these revenue increases were partially offset by higher expenses. This was primarily due to higher sports rights amortization and production costs associated with our NFL Super Bowl and playoff schedule. The net loss attributable attributable to stockholders was $54 million or negative <unk> 10 per share compared to net income of $283 million or <unk> 50 per share reported in the prior year period.

Up $22 million over the prior year quarter. As these revenue increases were partially offset by higher expenses. This was primarily due to higher sports rights amortization and production costs associated with our NFL Super Bowl and playoff schedule.

The net loss attributable attributable to stockholders was $54 million or negative <unk> 10 per share compared to net income of $283 million or <unk> 50 per share reported in the prior year period.

This was primarily due to the net where we recognized charges associated with the Fox News media litigation, partially offset by the gain associated with the change in fair value of the company's investments. Excluding these and other non core items earnings growth was strong with adjusted net income growing 8% to $494 million and adjusted EPS of <unk> 94 per share upsetting against last years 81 per share. Now turning to our segments, starting with TV, where revenue grew an impressive 36% in the quarter. Television advertising revenues led this growth with a 61% increase fueled by Super Bowl 57, which as Lachlan mentioned generated over $650 million in gross revenue.

Excluding these and other non core items earnings growth was strong with adjusted net income growing 8% to $494 million and adjusted EPS of <unk> 94 per share upsetting against last years 81 per share.

Now turning to our segments, starting with TV, where revenue grew an impressive 36% in the quarter.

Television advertising revenues led this growth with a 61% increase fueled by Super Bowl 57, which as Lachlan mentioned generated over $650 million in gross revenue.

We also have benefited from two additional NFL playoff games, when divisional and one wildcard partially offset by the timing of one less regular season game. Momentum at TV remains strong with advertising revenues up 31% to $170 million on the back of increased engagement and stable pricing. The strong advertising, Thailand in the TV segment were partially offset by lower primetime ratings in the Fox network and mixed based market conditions at our local stations when excluding the Super Bowl. Television affiliate fee revenues were up 9% as healthy growth in pricing across Fox owned and operated and affiliated stations continued to outpace the impacts from subscriber declines.

Momentum at TV remains strong with advertising revenues up 31% to $170 million on the back of increased engagement and stable pricing.

The strong advertising, Thailand in the TV segment were partially offset by lower primetime ratings in the Fox network and mixed based market conditions at our local stations when excluding the Super Bowl.

Television affiliate fee revenues were up 9% as healthy growth in pricing across Fox owned and operated and affiliated stations continued to outpace the impacts from subscriber declines.

Other revenues remained essentially unchanged from the prior year quarter. EBITDA at our television segment was up $82 million to $117 million expense. <unk> expenses increased in the quarter driven by higher costs related to the Super Bowl and a higher volume of NFL games. The increase in expenses was partially offset by lower costs at Fox entertainment, including the absence of a write down of certain scripted programming in the prior year quarter. And net EBITDA investment in <unk> is approximately $60 million was broadly in line with the prior year quarter.

EBITDA at our television segment was up $82 million to $117 million expense.

<unk> expenses increased in the quarter driven by higher costs related to the Super Bowl and a higher volume of NFL games.

The increase in expenses was partially offset by lower costs at Fox entertainment, including the absence of a write down of certain scripted programming in the prior year quarter.

And net EBITDA investment in <unk> is approximately $60 million was broadly in line with the prior year quarter.

At cable we saw revenues generally in line with the prior year cable advertising revenues were down 7% due to the impact of the subsidy direct response marketplace at Fox News media, while being partially offset by the benefit of the World Baseball classic with the National Sports networks. Cable affiliate fee revenues were broadly flat coming in at $1 $1 billion with right growth broadly offset by subscriber declines. Cable other revenues were up 10% in the quarter led by higher Fox nation subscription revenues. EBITDA at our cable segment was $792 million. Compared to the $864 million reported last year largely due to these revenue impacts along with elevated legal costs at Fox News media and higher expenses associated with the second season of the Usfl and the World Baseball Classic at Fox Sports. Now turning to cash flow, where we generated strong free cash flow of 148 billion in the quarter, reflecting our normal seasonal cycle of collecting advertising revenues from a full programming coupled with a major sports rights payments being concentrated in the first half of the fiscal year.

Cable affiliate fee revenues were broadly flat coming in at $1 $1 billion with right growth broadly offset by subscriber declines.

Cable other revenues were up 10% in the quarter led by higher Fox nation subscription revenues.

EBITDA at our cable segment was $792 million.

Now turning to cash flow, where we generated strong free cash flow of 148 billion in the quarter, reflecting our normal seasonal cycle of collecting advertising revenues from a full programming coupled with a major sports rights payments being concentrated in the first half of the fiscal year.

From a share repurchase perspective, as we foreshadowed on our last call. We continued with our normal course buyback activity of $250 million in the quarter and deployed $1 billion of additional capital to an accelerated share repurchase transaction. We retired approximately 80% of the shares associated with the ISI in the March quarter, and expect the remainder to settle in the coming months. We remain committed to fully utilizing our current 7 billion dollar authorization, where we now cumulatively repurchased approximately $4 4 billion. Representing 20% of our total shares outstanding since the launch of the buyback program in November 2019.

We retired approximately 80% of the shares associated with the ISI in the March quarter, and expect the remainder to settle in the coming months.

We remain committed to fully utilizing our current 7 billion dollar authorization, where we now cumulatively repurchased approximately $4 4 billion.

Representing 20% of our total shares outstanding since the launch of the buyback program in November 2019.

These meaningful capital return measures are enabled by the strength of our financial position, where we closed the quarter with $4 $1 billion in cash and $7 2 billion in debt. While this reported cash balance does not include the impact of the Dominion settlement, we continue to maintain a very robust balance sheet. Our ongoing commitment to capital returns as well as flexibility to pursue value accretive investments and with that let me turn it back to Gary to open. The Q&A. Thank you and now we would be happy to take questions from the investment community. Thank you, ladies and gentlemen, I would like to emphasize the functionality for the question and answer queue. If he.

While this reported cash balance does not include the impact of the Dominion settlement, we continue to maintain a very robust balance sheet.

Our ongoing commitment to capital returns as well as flexibility to pursue value accretive investments and with that let me turn it back to Gary to open. The Q&A. Thank you and now we would be happy to take questions from the investment community.

Thank you, ladies and gentlemen, I would like to emphasize the functionality for the question and answer queue. If he.

SaaS a question. Please press one then zero on your Touchtone phone. We'll hear tone, indicating that you've been placed in Q you may remove yourself from Q&A anytime I once again pressing one than Seattle. If youre using a speakerphone please pick up your 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. One moment please for the first question. We will go to the line of Robert Fishman with Moffett Nathanson. Good morning, everyone I have.

We'll hear tone, indicating that you've been placed in Q you may remove yourself from Q&A anytime I once again pressing one than Seattle.

If youre using a speakerphone please pick up your 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.

One moment please for the first question.

We will go to the line of Robert Fishman with Moffett Nathanson.

Good morning, everyone I have. A couple of related questions if I can. When after the Dominion settlement is there anything that you can share to better understand the future settlement risk and then related. Can you discuss whether the departure of tackle Tucker Carlson lead to changes in the Prime time programming strategy, and then potential opportunities for more national advertising and then for John and Steve Just if you can expand on the early confidence you have from recent MVP renewals and after seeing the. Acceleration in Retrans growth this quarter any more insight on whether you can get better pricing to outpace the elevated levels of cord cutting or just more economics from your affiliate partners. Thanks very much. Thanks, Robert I don't know where to start.

A couple of related questions if I can.

When after the Dominion settlement is there anything that you can share to better understand the future settlement risk and then related.

Can you discuss whether the departure of tackle Tucker Carlson lead to changes in the Prime time programming strategy, and then potential opportunities for more national advertising and then for John and Steve Just if you can expand on the early confidence you have from recent MVP renewals and after seeing the.

Acceleration in Retrans growth this quarter any more insight on whether you can get better pricing to outpace the elevated levels of cord cutting or just more economics from your affiliate partners. Thanks very much.

Thanks, Robert I don't know where to start.

Second question. But. Thank you very much and good to hear from you. Thank you very much and good to hear from you. Thank you very much and good to hear from you. Thank you very much and good to hear from you. Thank you very much and good to hear from you. So let me start and I'll hand over to Steve for the final final questions. So let me start and I'll hand over to Steve for the final final questions. So. I'm, obviously limited about what I can say about any ongoing. Litigation, but I can make the following comments in regards to. Dominion. And I referred to some of this in my prepared remarks. As we've stated many times. We have always acted as a news organization reporting on the newsworthy events of the day. We're certainly included allegations being made by the sitting president of the United States and his lawyers and the aftermath of a hotly contested presidential election.

But.

Thank you very much and good to hear from you.

So let me start and I'll hand over to Steve for the final final questions.

So.

I'm, obviously limited about what I can say about any ongoing.

Litigation, but I can make the following comments in regards to.

Dominion.

And I referred to some of this in my prepared remarks.

As we've stated many times.

We have always acted as a news organization reporting on the newsworthy events of the day. We're certainly included allegations being made by the sitting president of the United States and his lawyers and the aftermath of a hotly contested presidential election. Now we have been and remain confident in the merits of our position that the first amendment protects a news organizations reporting on allegations being made by a sitting president of the United States.

Now we have been and remain confident in the merits of our position that the first amendment protects a news organizations reporting on allegations being made by a sitting president of the United States.

However, the Delaware Court severely limited our defenses of trial through pre trial rulings. One example, being not being able to point to the newsworthy nature of the allegations. So we determined that the best course of action for the company and its shareholders wish to settle instead of proceeding with a six week trial and potentially two or even three years of appeals. As you know we have a pending case with smart <unk>, which is a fundamentally different case and dominion and that all of our full complement of first amendment defenses remain and we will be ready to defend this case surrounding extremely newsworthy events. When it goes to trial likely not until the calendar year 2000.

So we determined that the best course of action for the company and its shareholders wish to settle instead of proceeding with a six week trial and potentially two or even three years of appeals. As you know we have a pending case with smart <unk>, which is a fundamentally different case and dominion and that all of our full complement of first amendment defenses remain and we will be ready to defend this case surrounding extremely newsworthy events. When it goes to trial likely not until the calendar year 2000.

As you know we have a pending case with smart <unk>, which is a fundamentally different case and dominion and that all of our full complement of first amendment defenses remain and we will be ready to defend this case surrounding extremely newsworthy events. When it goes to trial likely not until the calendar year 2000.

25. As regards to our programming strategy in Prime time, there is no change to our programming strategy.

As regards to our programming strategy in Prime time, there is no change to our programming strategy.

At Fox News. It's obviously a successful strategy. And. As always we are adjusting our programming and our lineup and that's that's what we continue. To do we are pleased with the. <unk>. The strength of the advertising demand throughout our. Scheduled but particularly. Primetime. Steve you want to talk to the Mvpds, yes sure on the affiliate. Robert Yes, listen we were pleased with the way our affiliate negotiations are going you know that this year, we had roughly 34%. The total affiliate book out for renewal.

It's obviously a successful strategy.

And.

As always we are adjusting our programming and our lineup and that's that's what we continue.

To do we are pleased with the.

<unk>.

The strength of the advertising demand throughout our.

Scheduled but particularly.

Primetime.

Steve you want to talk to the Mvpds, yes sure on the affiliate.

Robert Yes, listen we were pleased with the way our affiliate negotiations are going you know that this year, we had roughly 34%.

The total affiliate book out for renewal.

We have been successful in generating and establishing new pricing benchmarks for the network and Fox Sports will retreads and Fox sports in those negotiations. With another sort of third available due for renewal in fiscal 'twenty, four and a touch under 30% in fiscal 'twenty five we feel pretty confident that we can continue to deliver pricing gains as subscribers as the subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company. Operator, we can take the next question. And that will come from the line of Ben Swinburne with Morgan Stanley .

With another sort of third available due for renewal in fiscal 'twenty, four and a touch under 30% in fiscal 'twenty five we feel pretty confident that we can continue to deliver pricing gains as subscribers as the subscriber rate of attrition stays at the same level, we expect to post ongoing affiliate revenue growth for the company.

Operator, we can take the next question.

And that will come from the line of Ben Swinburne with Morgan Stanley .

Thanks, Good morning. I just wanted to ask about advertising as you guys look into the rest of the year and head into the upfront. Just to give you guys an advantage as you go in to what is at least I would describe as a soft demand environment for advertising and trying to drive pricing kind of across your properties, particularly with the new <unk> Media group. Just wondering if you think that's going to matter. This year for us to maybe noticed as we head into the fall and then just on the direct response weakness at Fox News do you guys have any visibility on sort of whether that's improving here in Q4, what the drivers of that arent any relationship to sort of some of the broader volatility around Fox news just wanted to get your updated thoughts on that thanks very much. Hey, Thanks Ben.

I just wanted to ask about advertising as you guys look into the rest of the year and head into the upfront.

Just to give you guys an advantage as you go in to what is at least I would describe as a soft demand environment for advertising and trying to drive pricing kind of across your properties, particularly with the new <unk> Media group. Just wondering if you think that's going to matter.

This year for us to maybe noticed as we head into the fall and then just on the direct response weakness at Fox News do you guys have any visibility on sort of whether that's improving here in Q4, what the drivers of that arent any relationship to sort of some of the broader volatility around Fox news just wanted to get your updated thoughts on that thanks very much.

Hey, Thanks Ben.

<unk>. I am glad Robert left you a question. Yes. But notice. On advertising look we. I think you alluded to softness in the market. Really not seeing that across our major platforms. Give you a bit of the detail. The national National market sports. Market for US is very strong very robust obviously as we enter the summer. Slower acquired are always is required or period for us. Until the fall when when. Our key marquee sports programming. On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with.

I am glad Robert left you a question.

Yes.

But notice.

On advertising look we.

I think you alluded to softness in the market.

Really not seeing that across our major platforms.

Give you a bit of the detail.

The national National market sports.

Market for US is very strong very robust obviously as we enter the summer.

Slower acquired are always is required or period for us.

Until the fall when when.

Our key marquee sports programming.

On air, but we are seeing pretty robust demand for for time and availability in the sports side in the sports market. So we're very confident with.

With sports. In news. The direct response. Issues. Which is a market issue, it's not a Fox news issue. Hi. Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty. We're pretty confident in that. The stabilization of that. That piece of revenue again Thats really. A product. Sure. Result of oversupply. With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve that premium pricing that we've been used to but again that that issue has stabilized and we think is.

In news.

The direct response.

Issues.

Which is a market issue, it's not a Fox news issue.

Hi.

Has stabilized so we're not seeing any more deterioration in the indirect response, our pricing so we feel pretty.

We're pretty confident in that.

The stabilization of that.

That piece of revenue again Thats really.

A product.

Sure.

Result of oversupply.

With our competitors with direct response is not so much a fox news issue, but it's something that certainly has affected our ability to achieve that premium pricing that we've been used to but again that that issue has stabilized and we think is.

Yes. Pretty good platform going forward. Other thing there mention on news, which is just a small data point, we're seeing political revenue earlier than we've ever seen before. It's still small, but it's our it's sort of unheard of to have at this early in the political cycle. So again, we think that bodes well for the. For the fall and as we enter. Okay. The more significant part of the political cycle. And then coming onto <unk>. The revenue is is accelerating there. Revenue is wallet is accelerating. Pretty strongly Gaby doesn't want me to give the number. Like most of your models, but. It is not keeping pace with with TVT TVT continues to grow even faster, which is which is a great metric. So we have we have the <unk> we're looking forward. To to be being a central part of our upfront negotiations.

Pretty good platform going forward.

Other thing there mention on news, which is just a small data point, we're seeing political revenue earlier than we've ever seen before. It's still small, but it's our it's sort of unheard of to have at this early in the political cycle. So again, we think that bodes well for the.

It's still small, but it's our it's sort of unheard of to have at this early in the political cycle. So again, we think that bodes well for the.

For the fall and as we enter.

Okay.

The more significant part of the political cycle.

And then coming onto <unk>.

The revenue is is accelerating there.

Revenue is wallet is accelerating.

Pretty strongly Gaby doesn't want me to give the number.

Like most of your models, but.

It is not keeping pace with with TVT TVT continues to grow even faster, which is which is a great metric. So we have we have the <unk> we're looking forward.

To to be being a central part of our upfront negotiations.

It is clearly. Not only is strategic. Driver for us, but it's been an important driver are going forward. Then when you get down to local. Base markets, that's where we're seeing more mixed. Mixed results in the different kind of. Verticals of revenue. We're very pleased to see. Auto again, continuing its a rebound with a with strong growth in the auto category. The entertainment category. We're also seeing growth in <unk> and restaurant category, where we're seeing growth, but this is offset by weakness across our other categories, such as retail telecom and obviously sports wagering. Bedding, so so the local market or does feel soft overall, but again, we're looking forward for our for our businesses, particularly in sports and news we're looking forward to. Strong. This summer and are strong. The fall season. I think thats all the questions. So thanks, Ben next question. Please. We will go to the line of Phil Cusick with J P. Morgan.

Not only is strategic.

Driver for us, but it's been an important driver are going forward.

Then when you get down to local.

Base markets, that's where we're seeing more mixed.

Mixed results in the different kind of.

Verticals of revenue.

We're very pleased to see.

Auto again, continuing its a rebound with a with strong growth in the auto category. The entertainment category. We're also seeing growth in <unk> and restaurant category, where we're seeing growth, but this is offset by weakness across our other categories, such as retail telecom and obviously sports wagering.

Bedding, so so the local market or does feel soft overall, but again, we're looking forward for our for our businesses, particularly in sports and news we're looking forward to.

Strong.

This summer and are strong.

The fall season.

I think thats all the questions. So thanks, Ben next question. Please.

We will go to the line of Phil Cusick with J P. Morgan.

Hi, Thanks. Couple of questions and then a quick one. <unk> it sounds like you are. TVT, you're still outgrowing revenue, but are you starting to unleash the revenue and profit there are a little bit. And then on the legal side any any direction on legal expenses from here. And then one standalone any thoughts on appropriate leverage and capital return from here. We appreciate the $1 billion, but but how should we think about this. Are you still going to. Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you. Thanks. Very much Phil. On. Sure. I mean, let me start with that. To be in the Pos. Also to Steve for the. For the. Some of the capital management. Element of the question so.

Couple of questions and then a quick one.

<unk> it sounds like you are.

TVT, you're still outgrowing revenue, but are you starting to unleash the revenue and profit there are a little bit.

And then on the legal side any any direction on legal expenses from here.

And then one standalone any thoughts on appropriate leverage and capital return from here. We appreciate the $1 billion, but but how should we think about this.

Are you still going to.

Sit on the cash until we get to the next sort of legal view or should something happen between now and then thank you.

Thanks.

Very much Phil.

On.

Sure.

I mean, let me start with that.

To be in the Pos.

Also to Steve for the.

For the.

Some of the capital management.

Element of the question so.

So on <unk>, we're going to continue to invest in <unk> is it the same. The levels. We've been investing over the last hour. Year or so we just think it's a tremendous opportunity. For us as I mentioned in my comments, the fact that we're now. Nielsen's gauge now has us over 1% of their U S. TV viewing is a tremendous. Ah. Sort of benchmark to have hit and I see continued growth there so from a consumer aspect and from our marketers aspect to be becoming more and more a central part of. Sure. Usage in sort of an opportunity. And this is really because. The focus that <unk> had over none of them, we think of it over the last three years with our involvement but obviously the team there has done a tremendous job nano of last three years before that and it really sort of driving sort of the best in class personalized <unk> experience building an incredible. Our library with nearly 55000 titles in the U S alone and again to put that in context, that's five times the size of the Netflix.

The levels.

We've been investing over the last hour.

Year or so we just think it's a tremendous opportunity.

For us as I mentioned in my comments, the fact that we're now.

Nielsen's gauge now has us over 1% of their U S. TV viewing is a tremendous.

Ah.

Sort of benchmark to have hit and I see continued growth there so from a consumer aspect and from our marketers aspect to be becoming more and more a central part of.

Sure.

Usage in sort of an opportunity.

And this is really because.

The focus that <unk> had over none of them, we think of it over the last three years with our involvement but obviously the team there has done a tremendous job nano of last three years before that and it really sort of driving sort of the best in class personalized <unk> experience building an incredible.

Our library with nearly 55000 titles in the U S alone and again to put that in context, that's five times the size of the Netflix.

<unk> and <unk>. Being able to monetize that viewing in a more efficient. Better. Better way so so we're incredibly. Optimistic and I would say. The results are in we are embedded incredibly pleased with the performance to be going forward and we think it's appropriate area for us to continue to invest in our omni I'll turn it over to Steve on the <unk>. Until the capital management, but just. And I'll just start by saying look we. We'll have a $7 billion buyback authorization I think we spent about $4 four. Billion of that so we have. My math incorrect. This time in the morning, a $2 $6 billion remaining. The authorization, we fully expect to deploy all of that capital back to shareholders through our buyback. And any litigation has no impact on that at all yes, Steve. Thanks, often so if youll just to go back on legal costs legal costs over the last two or three quarters would be the elevated obviously with being.

Being able to monetize that viewing in a more efficient.

Better.

Better way so so we're incredibly.

Optimistic and I would say.

The results are in we are embedded incredibly pleased with the performance to be going forward and we think it's appropriate area for us to continue to invest in our omni I'll turn it over to Steve on the <unk>.

Until the capital management, but just.

And I'll just start by saying look we.

We'll have a $7 billion buyback authorization I think we spent about $4 four.

Billion of that so we have.

My math incorrect. This time in the morning, a $2 $6 billion remaining.

The authorization, we fully expect to deploy all of that capital back to shareholders through our buyback.

And any litigation has no impact on that at all yes, Steve. Thanks, often so if youll just to go back on legal costs legal costs over the last two or three quarters would be the elevated obviously with being.

David in the depositions and pre trial preparations. Dominion, So I'd expect that to subside. The next couple of quarters. And then so just. Pick up on <unk> point with the leverage is. The debt we have seven $2 billion, we've got a maturity in January which will make the call on as to whether to repay or refinance that the leverage feels about right, where we are at the moment. And our cash position is strong and so we would anticipate. What are the whatever happens with future litigation, we can continue to. Continue to go with have buyback pacing it as it has been over the last couple of years now a few years now as well as leaving us flexibility to invest in the business, who will take advantage of any inorganic opportunities, but we'll be balanced about it as we've been saying since the formation of the company.

Dominion, So I'd expect that to subside.

The next couple of quarters.

And then so just.

Pick up on <unk> point with the leverage is.

The debt we have seven $2 billion, we've got a maturity in January which will make the call on as to whether to repay or refinance that the leverage feels about right, where we are at the moment.

And our cash position is strong and so we would anticipate.

What are the whatever happens with future litigation, we can continue to.

Operator next question please. And that will come from the line of John Hodulik with UBS. Great. Thanks, guys, maybe getting back to the sports theme. Viewership remained strong across the board I mean first of all how would you gauge the success of the Usfl. Second. Anything you can tell us about your appetite for additional sports rights, especially to fill in the summer months and then how does the sort of relative Lady on sports versus Entertainment program programming position you guys, given what could be a protracted rider strategy. Thanks.

And that will come from the line of John Hodulik with UBS.

Great. Thanks, guys, maybe getting back to the sports theme.

Viewership remained strong across the board I mean first of all how would you gauge the success of the Usfl.

Second.

Anything you can tell us about your appetite for additional sports rights, especially to fill in the summer months and then how does the sort of relative Lady on sports versus Entertainment program programming position you guys, given what could be a protracted rider strategy. Thanks.

Thanks, Sean. You look Usfl, where it's still it's just the start of the second. Season. We're very pleased with it we're pleased with focus on its ratings are the quality of the games. Is it performance on. On television ratings and also frankly its performance on the ground with ticket sales in. An engagement with a football fan so early days, but we couldnt be more happy with it but for tablets. How its tracking to date.

You look Usfl, where it's still it's just the start of the second.

Season.

We're very pleased with it we're pleased with focus on its ratings are the quality of the games.

Is it performance on.

On television ratings and also frankly its performance on the ground with ticket sales in.

An engagement with a football fan so early days, but we couldnt be more happy with it but for tablets.

How its tracking to date.

In terms of additional sports rights. We look across our. Portfolio of sports rights. We're constantly managing them, we look at sports rights as they come up and we also look at them as they as they get renewed just to make sure that they are efficient for us and that we're on. We're paying. Responsible and appropriate. Mount for those rights. So we're constantly adjusting but we do it with them I think. Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's. It's a moving. It's always a moving feast, but I wouldn't expect anything dramatic at all in that. In that area. Now what was the latter Alaska.

We look across our.

Portfolio of sports rights.

We're constantly managing them, we look at sports rights as they come up and we also look at them as they as they get renewed just to make sure that they are efficient for us and that we're on.

We're paying.

Responsible and appropriate.

Mount for those rights. So we're constantly adjusting but we do it with them I think. Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's. It's a moving. It's always a moving feast, but I wouldn't expect anything dramatic at all in that. In that area. Now what was the latter Alaska.

Real commitment to discipline in terms of what rights, we would acquire or dispose of it so. So it's. It's a moving. It's always a moving feast, but I wouldn't expect anything dramatic at all in that. In that area. Now what was the latter Alaska.

So it's. It's a moving. It's always a moving feast, but I wouldn't expect anything dramatic at all in that. In that area. Now what was the latter Alaska.

It's a moving. It's always a moving feast, but I wouldn't expect anything dramatic at all in that. In that area. Now what was the latter Alaska.

It's always a moving feast, but I wouldn't expect anything dramatic at all in that. In that area. Now what was the latter Alaska.

In that area. Now what was the latter Alaska.

Now what was the latter Alaska.

The writers strike so now thank you. On the writer's strike look I think for US we are well positioned for the writers strike and we think that. With our. Strategic priorities and sort of our strengths in sports, but also in news. These are two areas that are not affected by the writers strike and the audience we'll pivot. When the Washington, TV to those to those categories and entertainment you have to remember as well we only program on two hours of entertainment a night, that's a mixture of both scripted and unscripted content. So we feel very. Well position, there would that not to be affected by the writers strike.

On the writer's strike look I think for US we are well positioned for the writers strike and we think that.

With our.

Strategic priorities and sort of our strengths in sports, but also in news. These are two areas that are not affected by the writers strike and the audience we'll pivot.

When the Washington, TV to those to those categories and entertainment you have to remember as well we only program on two hours of entertainment a night, that's a mixture of both scripted and unscripted content. So we feel very.

Well position, there would that not to be affected by the writers strike.

Really at all there'll be some scheduling changes with some of these descriptor content, but it's not something that will have a significant financial impact on us. Operator, we have time for one more question. Our last question will come from the line of Jessica Reif Ehrlich with Bank of America. Alright. Thanks, just wanted to maybe follow up on La Quinta point that youre not overly dependent on. Live and in the script I mean, given you're alive in unscripted youre not overly dependent on the riders for.

Operator, we have time for one more question.

Our last question will come from the line of Jessica Reif Ehrlich with Bank of America.

Alright. Thanks, just wanted to maybe follow up on La Quinta point that youre not overly dependent on.

Live and in the script I mean, given you're alive in unscripted youre not overly dependent on the riders for.

For entertainment so given that can you talk about your outlook for the upfront. Also given the macro. I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can. Can you just talk about how you see Fox news and sports transitioning over time. Great Hi, Jessica Thank you very much. So. Look. I agree with you on the writer's strike I think for US our focus on sort of live live news live sports. And frankly the network are healthy. Balance of scripted and unscripted. Our content on the network puts us puts us in a tremendous position I think what the timing of the strike obviously with the Upfronts next week. Creates some. What's the word. It's hard to present, an exact schedule right. You are only an entertainment is not if you are in news and sports. So I think it positions us very well in the upfront and Thats of course as I mentioned before. Not including the strength of to be going into this upfront as well and <unk> will certainly be front and center in all of our upfront. Our presentations, but also in our negotiations are going forward. So we feel. Very well.

Also given the macro.

I mean, you seem to be in a very different position than most people, but the market is most people say choppy and then also given the decline in the pay TV universe can.

Can you just talk about how you see Fox news and sports transitioning over time.

Great Hi, Jessica Thank you very much.

So.

Look.

I agree with you on the writer's strike I think for US our focus on sort of live live news live sports.

And frankly the network are healthy.

Balance of scripted and unscripted.

Our content on the network puts us puts us in a tremendous position I think what the timing of the strike obviously with the Upfronts next week.

Creates some.

What's the word.

It's hard to present, an exact schedule right.

You are only an entertainment is not if you are in news and sports. So I think it positions us very well in the upfront and Thats of course as I mentioned before.

Not including the strength of to be going into this upfront as well and <unk> will certainly be front and center in all of our upfront.

Our presentations, but also in our negotiations are going forward. So we feel.

Very well.

Positioned. It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of. So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

It's early it's early with the upfront. These negotiations will take time, but I think we are going to. Best position as we could possibly. Hope for in terms of. So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Best position as we could possibly. Hope for in terms of. So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Hope for in terms of. So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

So the cable universe. And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

And with what we plan to do with with news and sports. Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Sure. Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Going forward in terms of any sort of our direct to consumer or alternative distribution. Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

Strategy. I think we've said before we are ready to go we have the technology in place I think we have the. The teams and the people in place to go DTC, when we deem that necessary or prudent. But for the moment, we continue to drive industry, leading pricing out of the. Mvpds and D Embry PD universes.

The teams and the people in place to go DTC, when we deem that necessary or prudent.

But for the moment, we continue to drive industry, leading pricing out of the.

Mvpds and D Embry PD universes.

As Steve mentioned this before. Our pricing has been it's not it's not theoretical or pricing has now been set. In contracts. Going forward so for the <unk>. Third of our distribution. Deals by sort of volume this year this fiscal year and another third the next fiscal year and we're very pleased. With where we sit and where we've established a market price for our brands. And when you just speaking of the brands when you have. When you have the best sports. Business brand and the best news business and brand. These are products that ultimately Brian will be part of any scaled platform, regardless of what technology is used to deliver that content on our platform and so we see D C in the future. It will come eventually. As just one component of a broader distribution strategy, but its certainly across any of those. Platforms or technologies, it's hard to see not having our sports and our news. On those on those platforms, so that we feel pretty well positioned Jessica. At this point, we are 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. Thank you. And ladies and gentlemen that does conclude your conference call for today. Thank you for your participation for using AT&T executive teleconference. You may now disconnect.

Our pricing has been it's not it's not theoretical or pricing has now been set.

In contracts.

Going forward so for the <unk>.

Third of our distribution.

Deals by sort of volume this year this fiscal year and another third the next fiscal year and we're very pleased.

With where we sit and where we've established a market price for our brands.

And when you just speaking of the brands when you have.

When you have the best sports.

Business brand and the best news business and brand. These are products that ultimately Brian will be part of any scaled platform, regardless of what technology is used to deliver that content on our platform and so we see D C in the future.

It will come eventually.

As just one component of a broader distribution strategy, but its certainly across any of those.

Platforms or technologies, it's hard to see not having our sports and our news.

On those on those platforms, so that we feel pretty well positioned Jessica.

At this point, we are 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. Thank you.

And ladies and gentlemen that does conclude your conference call for today. Thank you for your participation for using AT&T executive teleconference. You may now disconnect.

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