Q4 2023 Fox Corporation Earnings Call
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Ladies and gentlemen, thank you for standing by welcome to the Fox Corporation fourth 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 I would like to emphasize that the functionality for the question and answer queue will be given at that.
Time, if you should require assistance during the call. Please press Star then zero 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.
Thank you operator, good morning, and welcome to our fiscal 2023 fourth quarter earnings call. Joining me on the call today are Lachlan Murdoch Executive Chair and Chief Executive Officer, John Nolan, Chief Operating Officer, and Steve Tomsic, Our Chief Financial Officer.
Lachlan and Steve will give some prepared remarks on the most recent quarter and then we will 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 expectation 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.
Thanks, Debbie and thanks to everyone for joining us this morning.
With this morning's earnings release, we closed out a very strong fiscal 'twenty.
2023 fueled by successes across every aspect of our business.
While Steve will cover the details of the fourth quarter in just a moment for the full year, we generated record annual revenue and EBITDA.
Notably, we reported revenue growth of 7%, including 12% advertising growth supported by major Tentpole events like the mid term election Super Bowl 57, and the FIFA Men's World Cup as well as the outstanding growth of <unk>.
And 3% affiliate growth led by the first third of our distribution renewal cycles.
These results demonstrate that Fox is differentiated strategy continued to deliver engaged audiences at scale for our advertising and distribution partners across our sports and news verticals, while also driving exceptional growth across our digital businesses.
In a world of increasing audience fragmentation Fox is collective linear and digital viewership was up 8% year over year.
Beyond screen reflection of that strategy was clearly apparent throughout fiscal 'twenty three across our networks and platforms.
Fox broadcast of Super Bowl 57 was the most watched television show of all time.
Our Thanksgiving day game was the most watched NFL regular season game of all time.
In the U S. England match was the most watched U S men's World Cup match of all time.
Fox News maintained as lead at both the top rated National cable news channel as well as the top rated network across the entire cable ecosystem and ranks as the number two national network in all of U S. TV.
And on the streaming front to be made its debut in Nielsen the gauge growing total consumption in fiscal 2023 by 79%, making it the number one Avon player with consumption levels equal to a top five cable network.
<unk> fiscal 'twenty three was nothing short of spectacular underpinned by growth in total view time, which in turn powered revenue growth it.
It was a year of increased awareness and engagement for tubing, whether that was being recognized by Nielsen as America's most watched Ewald service.
It's expanding content library, and TVT metrics or the five Cannes Lions Awards bestowed upon TV Super Bowl spot.
Each quarter during the year saw success of gains to be in the fiscal fourth quarter was its most impressive all with revenue growth of 47% driven by strong engagement.
With total viewer time growing by 65%.
Each month of the quarter set new records for monthly viewers.
With two b's revenue and engagement accelerating in fiscal 'twenty three we're looking to further strengthen <unk> position in fiscal 'twenty four.
To that end, we are very excited to welcome Angela sued as the new CEO of <unk> and look forward to seeing to be flourish further under her leadership.
At Fox News media, we continue to lead both in ratings and engagement. The Fox News channel ended the fourth quarter as the most watched cable network in total day for the ninth consecutive quarter, while maintaining its lead as the most watched cable news network, beating CNN and MSNBC and both total viewers.
And the demo.
For both primetime and total day.
Fox News debuted its tweaked primetime lineup last month, we are pleased with the initial results and are confident that our deep bench of talent will continue to set the standard for all new services as we move towards the 'twenty 'twenty four presidential election.
This past year Fox News leadership position was never at risk, we sustained double digit advantages in total viewership over our nearest competitors for the entire fiscal year, even during the period, where our primetime lineup was in transition.
In fact since mid July debut Fox News is new Primetime lineup is up over 35% and total viewers and up over 40% and the 25% to 54 demographic versus the June schedule.
Meanwhile, the Fox business network ended the quarter as the most watched business cable news network, beating CNN CNBC and total viewers during the business day for the fifth consecutive quarter.
Across and Fox Entertainment, we had a solid year notching multiple wins, including the number one entertainment telecast with next level SaaS the.
The number one new drama of 2023 with the accused and the number one new unscripted series with special forces worlds toughest test.
Our local television station group delivered a record midterm election sales cycle that was just shy of the last presidential cycle.
We are very pleased with fiscal 'twenty, three a year, where Fox again delivered best in class results and further differentiate differentiate itself from its peers.
We enter fiscal 'twenty four from a position of strength, despite headwinds facing our industry and the lingering lingering effect of some macroeconomic uncertainty.
We will renew the next third of our distribution agreements and navigate a variable AD environment supported by solid results from the recent upfront for our unique content offering which distinguish itself in any marketplace.
You've heard me say this many times Fox.
<unk> focus strategy is different.
From our peers.
It's uniquely good.
Nowhere is that more evident than in the current environment, where Fox as leadership position is proven.
In this year's upfront, we believe Fox led the market in both price and volume across our live sports and news offerings.
While it's early in the quarter underlying AD trends have shown signs of improvement over last quarter. We are seeing an uptick in scatter driven largely by sports and National News is solid.
And at <unk>, we saw further momentum in both revenue and TVT growth in July .
This promises to be another strong year for Fox as we wrap up the women's World Cup and a few weeks with stellar advertising support before kicking off American football in early September with the Big 10, and the NFL.
We're already seeing our live sporting events continue to break records with the women's World Cup broadcast the U S versus the Netherlands on Fox was the most watched women's World Cup group stage match ever on U S. English language TV.
We'll also broadcast our first UEFA European Soccer Championships later this year.
Further we expect that our relaunched <unk> lineup will continue its momentum as we head into the presidential election cycle, which will also be a boon to our local stations.
And of course, we expect to boost growth and scale to extend even further.
Underpinning all of this we can't forget our balance sheet, which remains robust even after this year's legal costs. We ended the quarter with $4 3 billion in cash and approximately $7 2 billion in debt, giving us a net leverage ratio of roughly one times the best balance sheet in the <unk>.
<unk>.
We've said it time and time again, our mix of assets puts us in a uniquely stronger position than our peers with this strength and a relentless focus on our core business. We are committed to delivering value for our shareholders in a thoughtful and disciplined manner as we look forward to 2024.
And with that I'll turn it over to Steve to take you through the operating details of the quarter and full year.
Thanks, a lot Glenn and good morning, everyone.
<unk> delivered strong financial results for fiscal 2023, with total company revenue growth of 7% and record EBITDA.
Advertising revenues across the company were up 12% led by a 17% increase at our television segment made all the more impressive when comparing against revenues generated from last year's broadcast of Thursday night football.
This growth was driven by a banner year of events, including the record breaking Super Bowl 57, FIFA Men's World Cup in the midterm election cycle, along with the considerable momentum we are driving it to be.
We completed approximately one third of our distribution renewals this year supporting the lifting our total company affiliate fee revenues of 3%.
As signaled previously the impact from these initial renewals primarily benefited our television segment, leading to an 8% increase year over year.
Total company other revenues saw a 5% increase the result of the full year impact of Mira Vista, TMZ and studio Ramsey Global which were acquired in fiscal 'twenty, two along with the higher Fox nation subscription revenues.
From a bottom line perspective is robust companywide revenue growth was the key driver of the 8% increase in full year EBITDA to $3, one 9 billion.
Net income attributable to stockholders was $1 two 4 billion with $2 33 per share.
Versus the $1 billion to $1 billion or $2 11 per share reported in fiscal 'twenty two.
As you May recall other net was impacted this year by charges associated with the Fox News media litigation and the gain associated with the change in fair value of the company's investment in Florida.
Excluding this impact and other noncore items full year, adjusted net income increased 17% to $187 billion.
With adjusted EPS up 26% to $3 51 per share.
Turning to our fiscal fourth quarter results folks delivered total company revenues of $3 3 billion.
Which is consistent with the amount reported in Q4 fiscal 'twenty two quarterly.
Quarterly EBITDA was $735 million down from the $770 million.
In the prior year.
This was largely due to the cyclical comparison with the prior midterm election, and advertising impacts on our Fox news and folks into tiny businesses, along with a modest increase in overall expenses.
Total company affiliate revenues grew 3% in the quarter as the pricing benefits from our recent renewals were partially offset by the by the impact of the industry subscriber declines.
Total company advertising revenues decreased 4%, which was primarily a result of lower political advertising revenues at our TV stations, especially when compared to a June quarter record June quarter last year, along with the impact of the softer direct response marketplace at Fox News media.
The momentum we've seen at <unk> throughout the fiscal year accelerated in the fourth quarter with revenue up 47% on the back of increased engagement and stable pricing.
Total company other revenues were essentially unchanged from the prior year.
Growth in total company expenses was held to 1% and includes investments at <unk>, albeit at a slower rate than <unk> revenue growth.
And the expansion of the Usfl as well as high programming rights amortization and production costs at Fox Sports.
Net income attributable to stockholders of $375 million.
With 74 cents per share was up versus the $306 million or <unk> 55 per share reported in the prior year quarter.
The EBITDA movements, just described along with the restructuring and other below the line costs were more than offset by the mark to market increases of our investment in Florida.
Excluding noncore items adjusted net income in the quarter increased to $443 million and adjusted EPS increased 19% to 88 cents per share.
Now turning to the quarterly results of our main operating segments.
At cable networks fourth quarter revenue saw a 3% decrease year over year cable affiliate fee revenues were down 2% in the quarter as pricing gains from our affiliate renewals were more than offset by net subscriber declines of approximately 8%.
Cable advertising revenues fell 11% largely on the back of the softer direct response marketplace with Fox News.
Cable other revenues increased 7% led by revenues generated by the second season of the USF out.
Quarterly adjusted EBITDA at cable was down 7% as the as these revenue impacts were partially offset by lower expenses led by lower digital news gathering costs at Fox News media, partially offset by higher costs associated with the Usfl.
The television segment reported 4% growth in quarterly revenues. This was led by a 9% increase in television affiliate fee revenues as healthy growth in pricing across Fox owned and operated and Fox affiliated stations continued to outpace the impact from subscriber declines.
Television advertising revenues fell 1% as the strong growth at <unk> was offset by lower off cycle political revenues and a slower rebound in the base market at the Fox television stations and lower ratings at Fox Entertainment.
TV and other revenues grew 8% in the quarter, primarily a result of increased activity at our entertainment production company.
Quarterly adjusted EBITDA at our television segment remained flat compared to the prior year quarter as the increase in revenues was offset by higher expenses, where we had higher programming rights amortization and production costs at Fox sports.
Costs at <unk> were also higher than the prior year. However, this without price outpaced by the rate of revenue growth to deliver improved EBITDA in the quarter.
During the full year, we generated free cash flow, which we define as net cash provided by operating activities less capex of $1 4 billion inclusive of legal settlement payments.
Before we get to capital allocation and balance sheet. It is worth noting some key items for fiscal 'twenty four.
We will of course be comparing to the marquee events in fiscal 'twenty, three including the Super Bowl and the midterm election cycle as well as transitioning to the first year of our NFL rights renewal and growth in broadcasting our first UEFA European Championship.
At the cable sports networks, we expect margins to improve in fiscal 'twenty four reflecting our disciplined approach to college sports rights renewals net of sub licensing income.
In terms of affiliate revenue, we make no predictions on industry subscriber volumes.
As we've previously indicated we have another third of that total company distribution revenues up for renewal this year and expect to see the benefit of those renewals towards the back half of the year and skewed towards our television segment.
We expect to continue to invest in our growth initiatives <unk> will be the focus of the investment spend with the collective portfolio are expected to deliver EBITDA in line or better than fiscal 'twenty three.
And from a cash flow perspective, we expect folks will be subject to the new corporate alternative minimum tax beginning this fiscal year. This will not impact our P&L tax provision, but we'll likely elevate our cash taxes in the near term.
However, we still expect to realize the full benefit of our cash tax asset over time.
Okay.
Returning to capital allocation.
Over the course of fiscal 'twenty, three we returned $2 billion of capital through the repurchase of 46 million class a shares and $7 5 million class B shares.
This includes the cash impact of our previously announced $1 billion accelerated share repurchase transaction.
Despite back activity was supplemented by over $260 million in dividend payments in the year.
And underlining our continued commitment to shareholder returns today, we announced an increase in our semiannual dividend to <unk> 26 per share.
With the payment of this dividend, we will have cumulatively returned over $6 billion of capital to our shareholders since the spin in 2019.
This includes over $4 6 billion of share repurchases, including the ISR representing over 22% of our total shares outstanding since the launch of the buyback program in November 2019.
This is all supported by the strength of our balance sheet, whereas Lachlan mentioned, we ended the quarter with $4 $3 billion in cash and approximately $7 2 billion in debt.
Fiscal 2023 was another year of strategic focus and strong execution at Fox.
That combined with the most robust balance sheet in the industry supports our ongoing commitment to capital returns as well as flexibility to pursue value accretive investments and with that let's turn the call back to Gabby to get started with Q&A.
And now we would be happy to take questions from the investment community.
Ladies and gentlemen, I would like to emphasize the functionality for the question and answer queue. If you wish to ask a question. Please press. One then zero on your Touchtone phone you will hear atone, indicating you have been placed in Q you may remove yourself from queue at any time by once again pressing the <unk> zero, if youre using a speakerphone please pick up the handset.
Before pressing the numbers. It has been requested that you limit yourself to one question. Once again, if you have a question. Please press one zero at this time.
One moment. Please for your first question.
For your first question comes from the line of Phil Cusick from Jpmorgan. Please go ahead.
Hi, guys a couple of quick ones. If I can first ESPN talking about looking for partners given your portfolio of sports rights could have sports centric JV makes sense for Fox and Alternatively, what a league investment and appear or competitor run into legal issues.
Then second can you just give us any update on the overall ad environment, including demand for linear versus digital.
Hi, good morning, Thanks for the questions. So.
Yes.
As regards.
Fox sports and our sports portfolio and any sort of.
Direct to consumer proper.
Proposition.
I think the.
Our business is fundamentally.
Very similar to ESPN and so we face the same strategic.
Priorities.
<unk> probably looking at.
Doing them.
Looking at similar paths forward.
As we go forward with our with our portfolio.
The thing that we put first and foremost as relate to protect our premium sports content.
And place it in front of consumers wherever we can at the moment that premium content drives the most value from being behind.
Paywall within the traditional cable and satellite pay TV, our universe, and we think that that pay TV ecosystem continues to be of <unk>.
Tremendous value for our businesses and really.
Drives.
The value of Fox sports.
That content.
For a long time to come having said that as consumer.
Demands change consumer tastes change, we will we will endeavor to put our content and our our brands.
In front of consumers in whichever manner.
Makes the most sense for them provided that it remains behind.
All in we get full value for those rights in those brands, but is very important to say thats not a either or proposition. It's not we don't envision a moment when you leave a pay TV universe and quickly transition to.
Our direct to consumer universe.
We think you will enter a phase.
We're both are important.
Choosing between one or the other or ultimately the consumer might choose between one or the other but that will be well positioned in any distribution mechanism.
Mechanisms some.
I can't answer your question on the legal.
Ramifications of having league investors and am.
And our platform, but I can give you an update on the.
Broader advertising environment.
Pleased with with our.
Upfront from a national.
Advertising perspective or upfront.
<unk>, we're very pleasing, we're able to drive both pricing and volume across our key categories of news and sports.
Obviously, you've heard about the <unk>.
The tremendous growth at <unk>, this past quarter and in fact.
All year.
Categories that really are.
Impacted.
The upfront we're like positive in August for National remained with National Auto on mobile very strong category across travel and the upfront very strong and pharmaceuticals.
From a local perspective.
If you.
Look at our local pacing ex.
Political obviously, you've got a year on year comparison with very strong political year last year.
X political were pacing flat to slightly up that includes some of the local digital revenues and those categories are similar to auto was very strong financial services strong health, but offset by softness in sort of retail telecom and we know as we've talked about in past quarters, our wagering.
So overall.
We're very pleased with where we are and we think we're going to have a pretty decent second half.
Calendar second half.
Yes.
Next question comes from the line of Jessica Reif from Bank of America. Please go ahead.
Thank you.
We will get back to the balance sheet I know you've commented in your prepared remarks, but litigation aside you really do have the strongest balance sheet and at this point it feels it seems like youre attractive assets possible attractive assets.
Press multiples can you give us.
A little bit more of your thought process in terms of what you what areas are interesting to you or is it really just about returning capital to shareholders and then our content you've mentioned the sports step up with the NFL.
Overall content spend likeable entertainment.
Are you rethinking, how you're spending on entertainment overall content spending up or down in coming years.
Okay. Thanks, Thanks, very much Jessica.
On the balance sheet and Steve can chime in but we continue to.
Agree with you wholeheartedly that I think we have the best balance sheet.
In the business that gives us tremendous flexibility moving forward in both how we.
Return.
Capital to shareholders, whether it's through dividends or share repurchases.
I think.
Steve mentioned in his remarks, I mean, we purchased $2 billion worth of our shares.
This past year as probably an elevated level because as we as we look across the landscape, we didn't see any attractive M&A opportunities.
This past year.
<unk> caught our attention.
Our always on.
Looking for businesses.
That fit our portfolio.
Will be.
The attractive growth businesses for.
For the business.
But we take us where they are.
What's the word dispassion, just passionate kind of view in terms of what's going to drive the best sort of long term shareholder value. So we balance up return of capital in accretive value opportunities.
I'm pretty much a daily basis. So Steve you want to add anything about 19, I think that's exactly right. Luckily I think with the balance sheet that with assembled gives us the flexibility to til.
To look at everything.
And we will ultimately do whats what delivers the ultimately the best value for shareholders Jessica just on your content.
Spend question Nicky as a bit of the year on year changes heavily influenced by the fact that we didn't have the Super Bowl running through the amortization line.
Our content costs, but if you look sort of through that we would expect content spend to increase we've got.
Increasing amortize rights amortization costs of the sports business the entertainment business from a linear perspective, probably hold steady if you normalized for the strike it will probably be down given the strike, but then we're going to continue to invest in content at <unk> <unk>.
That is passive in the form of revenue share tightened the rules will be active in terms of production and licensing costs and uses a relatively sodas.
Low growth, but continued growth and increased spending in content. So hopefully that gives you enough color there.
Operator next question please.
Next question comes from the line of John Hodulik from UBS. Please go ahead.
Hey, thanks.
You guys recently announced that you will be winding down Fox bet.
So I guess three quick ones sort of first any financial implications to that has your view on the sort of sports betting opportunity in the U S changed in <unk>.
I think you can tell us about your sports betting strategy going forward.
Thanks, Sean.
Why don't I start.
Back to front with the strategy and.
Sure.
The shuttering of Fox bet.
A joint venture or at least <unk> and Steve can.
Jumping on the financial implications.
So.
Yes, so as we announced last week it was announced last week, a flutter exercised its right to terminate the Fox bet.
Joint venture.
They have every right to do that they are the operator and really the entire funder of Fox bet.
And when they reached a certain.
Benchmark.
Investment they have the right to <unk>.
So that joint venture.
And really chose to focus on their other brand fan duo which is America's number one sports wagering site. So while.
It's fair to say we were disappointed by this outcome ultimately we aspire to be operators.
Wagering on sports Wagering business now we did anticipate it.
And I can't.
Yes, more that we are extremely pleased with the financial outcome and the value value creation.
Through Fox bet that we've generated for all of our shareholders and to explain that I should just step back a moment and remind.
We're one of a couple of things.
And a Fox bet.
<unk>.
Sure.
Didn't spend any capital in Fox bet, there was entirely funded by.
By flutter.
We have the option to pick up 50% of Fox bet.
Upon licensing we became a license them.
Betting operator in the United States.
So while we didn't put any cash into the Fox bet joint venture.
We've derived.
Extremely successful.
And we drive significant value from it and one of the remaining.
Elements of value.
Coming out of Fox bet is.
The brand of Fox Sports Super six which is the most successful.
Free to play.
Wagering business.
In the United States and offers a tremendous funnel for wager in sites going forward and this is a brand.
<unk> operation that we continue we will continue to operate.
<unk>.
Of course.
We anticipated potential this potential outcome.
Sadr moving away from Fox bet, So we're able to.
Negotiate or 18, 6% option.
In.
<unk>.
As I mentioned the number one.
Site in the United States.
If you just look at the value of drafting the increasing value of drafting over recent times some people have put that.
The value of our option and <unk> of up to $2 billion.
So.
We are we are very pleased with that outcome and we were spaniel.
We continued success, we also as part of this journey invested in the Topco Aflutter.
Two 5% of the.
Of the business.
For roughly $400 million.
I think that investment in assets at a value of over 800.
And importantly, now with as we move forward.
We are now free to.
Work with any of the other.
Adding operators.
Many of them have reached out to us already.
We feel these are existing sort of our performance in phosphate has been terrific. We've built a tremendous amount of value.
And we're really positioned well to continue to benefit from the emergence of sports.
<unk> in the United States. So that's what gives you kind of an overview of where we are.
Point in time, but Steve you want to <unk> financial.
Pretty comprehensive Andrew and financial overview.
So financially.
Just to reiterate as Lachlan mentioned, we went funding the business at all so there's no. There's no change to us from that perspective that would seem pretty small sort of commercial payments between Fox Pitt and folks.
Which would be very material to us in the Grand scheme of things and it potentially ameliorated by the fact that we're now sort of afraid to look at other partnerships.
From that perspective, I think it's a bit of a push either way and then as Lachlan mentioned.
We absolutely preserve the value of the <unk> auction, which is which is very valuable to us as well as the value of our holdings in the Haynesville.
But I think what can come at a pretty low these opening remarks, operator next question. Please.
Your next question comes from the line of Ben Swinburne from Morgan Stanley . Please go ahead.
Thanks, Good morning.
And could you talk a little bit more about the long term strategy around to be particularly on the programming side, how you see that product evolving over a multiyear period and I don't know if I apologize. If you guys have already talked about it but any sense of sort of the impact.
From EBITDA to be.
Is that still in investment mode like when you see that turning profitable and I was just curious if you could talk about the big 10 quickly with the additional expansion whether that's going to have a notable financial impact as you guys go into the season as the Big 10, because I think the big 16 now thank you.
Hey, Thanks Pam.
First one on <unk>.
The.
Obviously, our <unk>.
<unk> you start September one and we're looking forward to her.
Adding her her expertise in.
Experience to.
To the business and obviously.
With any.
Incoming CEO Im sure Youll see it with fresh eyes and find fresh opportunities.
If you look at the <unk> business today.
<unk> growth has really been everything its grown tremendously.
Rapidly and strongly.
And then what then what that's done is and that some that's obviously driven advertising opportunities.
And revenue TVT growth continues to grow at a faster pace than revenue so.
So you see fill rates not actually keeping up to two.
But the pace with TVT growth, which is a good thing.
You see more opportunities.
To place our clients advertising.
We can fill at the moment and that's really driven by the strong viewership growth.
Over time.
I should also.
With the viewership growth I think one of the key Differentiators for <unk>. If you look across the Avon market is that it is primarily built on a on a on demand.
Platform.
So our viewers are.
Actively proactively click.
Clicking on content to watch.
And so we know they are engaged and we know they are in front of their screens wash watching that content. This is very different from them.
Fast channel, where some of my tune in the channel and then leave it on an auto players.
In the.
In the background.
There is a absolute.
Room, and a place for fast channels to be has a fast channel service within it but I think 90% of its viewing is actually from video on demand people proactively clicking on that content coming up to us to watch that that movie or that or that TV show.
In the library of those movies and TV shows continues to grow I think.
This time last quarter, we had 55000.
Titles, we now have 60000 titles, which equates to roughly 200000 hours.
Of individual.
Our movies and TV shows for our consumers.
To enjoy.
So that will that will continue I think one of the areas that we that we will be looking at is expanding the categories that were strong and there are certain sort of content categories and verticals that we are super serving and other ones that we can continue to.
There are so low hanging fruit to continue to monetize.
Steve do you want talk to the EBITDA investment show have been I'm not sure. If you caught it in the opening remarks.
In terms of <unk> the investment for the full year was sort of in the low to mid negative $200 range.
Which is similar to where we had it in fiscal 'twenty to the quarter, we were actually better we'd better by nearly $30 million as we look to 'twenty four Tvs in absolute shining light from our growth portfolio in digital portfolio and given the momentum we're seeing in the business whether it be what we just saw in Q4, what we're seeing already.
And in July it sort of disease is to continue to invest in that business and so you should expect to see the same investment level or even a bit more going into fiscal 'twenty, four but that will be offset as we look at the broader growth portfolio by things like nation with USA Val.
Sort of coming back a bit in terms of investments.
We're pretty excited in and sort of very convinced at <unk>. So we're going to continue to maintain our leadership position.
And just finally on the Big 10 as regards to the University of Oregon, and University of Washington are coming into the.
Big Fan conference. If we just think these these additions will only strengthen our college football franchise across Fox sports, but particularly our partnership and it is a partnership in the Big 10 network. So we think it is.
Very positive for us across the board.
Operator, we have time for one more question.
That question comes from the line of Robert Fishman from Moffett Nathan. Please go ahead.
Good morning, everyone.
After seeing some of the news earlier this year with CBS and its affiliates negotiating with the VA MVP. It is can you just help us think about how Fox is relationship is with affiliates today and with this backdrop. If you can talk about your confidence about continuing to grow affiliate fees. Despite the elevated levels of cord cutting.
Yeah.
Thank you very much Robert so.
Our relation with the with Philips is very strong.
We catch up with them regularly.
Regularly and.
We understand.
The headwinds facing broadcast TV and we're in our station group.
We have all the same issues that they have so we are aware simpatico.
With them.
And both the both the opportunities and the risk of the headwinds.
In that business.
We.
Our.
Pretty.
What's the word vocal or proud of the fact that we protected our key.
Sports franchises.
For pay TV <unk>, but also the for our affiliates our distribution of our most important distribution partners.
We don't take our NFL games and put them anywhere else, we keep them exclusive for our distribution partners and I think that's some.
That's understood and very well received and because of that I think we will be able to continue to drive.
The sort of industry leading pricing.
Both in our pay universe and are free.
Our free universe, and that pricing will certainly continue to ameliorate or.
Our balance any reduction.
And subscriber erosion in subscribers across the universe. So that's where we feel we are with that.
With our affiliates.
We're in a pretty good place for them.
Great 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.
Ladies and gentlemen that does conclude your conference 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.
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