Q3 2024 Fox Corp Earnings Call

May 8, 2024

Operator: - for the question and answer queue will be given at that time. If you should require assistance during the call, please press Star then 0. 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.

Lachlan Murdoch: As we look to our annual upfront presentation next week, our focus on live content and must-watch events, such as the coming presidential election cycle and next year's Super Bowl, combined with Tubi's position as the most-watched free TV and movie streaming service, will favor our enviable position with advertisers across the Fox portfolio. Operationally, Fox News again ended Q3 as the most-watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the category, gaining share to now again command 50% of total day viewing. These gains are underpinned by a dedicated team of journalists and staff who are focused on delivering coverage and insights on current events most relevant to our viewers.

As we look to our annual upfront presentation next week, our focus on live content and must-watch events, such as the coming presidential election cycle and next year's Super Bowl, combined with Tubi's position as the most-watched free TV and movie streaming service, will favor our enviable position with advertisers across the Fox portfolio. Operationally, Fox News again ended Q3 as the most-watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the category, gaining share to now again command 50% of total day viewing. These gains are underpinned by a dedicated team of journalists and staff who are focused on delivering coverage and insights on current events most relevant to our viewers.

If you should require assistance during the call, please press Star-Bin-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, operator. Good morning, and welcome to our fiscal 2024 3rd 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. 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.

First, Lockland 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 FI. Additionally, this call will include certain non- GAAP financial measures, including adjusted EBITDA, or EBITDA, as we refer to it on this call. Reconciliation 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.

Okay.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation third quarter fiscal year 2024 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would like to emphasize that functionality for the question-and-answer queue will be given at that time. If you should require assistance during the call, please press star then zero.

Speaker Change: Ladies and gentlemen, thank you for standing by welcome to the Fox Corporation third quarter fiscal year 2024 earnings Conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session I would like to emphasize that functionality for the question and answer queue will be given at that time, if you should.

Lachlan Murdoch: Building from our strength in prime time, we are expanding our leadership across day parts, whether that be mornings with Fox & Friends, afternoons with The Five, or late nights with Gutfeld. We expect this momentum to continue as we ramp our election coverage heading into the fall. Tubi ended the third quarter with 22% revenue growth, driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAUs. Our expansive content library and our differentiated user base have solidified Tubi's position as the most-watched free TV and movie streaming service in the US, with 1.6% of total TV viewing, ahead of Peacock, Max, The Roku Channel, Paramount+, and Pluto TV, and only marginally behind Disney+.

Building from our strength in prime time, we are expanding our leadership across day parts, whether that be mornings with Fox & Friends, afternoons with The Five, or late nights with Gutfeld. We expect this momentum to continue as we ramp our election coverage heading into the fall. Tubi ended the third quarter with 22% revenue growth, driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAUs. Our expansive content library and our differentiated user base have solidified Tubi's position as the most-watched free TV and movie streaming service in the US, with 1.6% of total TV viewing, ahead of Peacock, Max, The Roku Channel, Paramount+, and Pluto TV, and only marginally behind Disney+.

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

Gabrielle Brown: 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. Scab. Your old Brown. Please go ahead Ms Brown.

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

Operator: 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, operator. Good morning, and welcome to our fiscal 2024 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.

Reconciliation 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.

Gabrielle Brown: Thank you operator, good morning, and welcome to our fiscal 2024 third quarter earnings call. Joining me on the call today are Lachlan Murdoch Executive Chair and Chief Executive Officer, John <unk>, Chief operating Officer, and Steve Tomsic, Our Chief Financial Officer.

Gabrielle Brown: And with that, I'm pleased to turn the call over to Lachlan. Thank you, Gabby, and thanks everyone for joining us this morning.

Gabrielle Brown: And with that, I'm pleased to turn the call over to Lachlan.

Lachlan Keith Murdoch: Thank you, Gabby, and thanks, everyone, for joining us this morning. This quarter, FOX continued to distinguish itself from its peers delivering 7% EBITDA growth and demonstrating again the strength of our brands and the advantages of our strategy. This result is even more impressive when considering we are comping to last year's third quarter, which enjoyed a significant tailwind from Super Bowl 57. In the fiscal third quarter, total affiliate revenue fees grew 4% with positive growth at both our Television and Cable segments, driven by pricing benefits from our recent renewals. Headline advertising revenues were down during the quarter as expected, due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year. If not for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall, advertising trends at FOX are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at FOX News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted FOX News PR revenues.

Gabrielle Brown: First Lachlan and Steve will give some prepared remarks on the most recent quarter and then we'll take questions from the investment community.

This quarter, Fox continued to distinguish itself from its peers, delivering 7% EBITDAG growth and demonstrating again the strength of our brands and the advantages of our strategy. This result is even more impressive when considering we are comping to last year's third quarter, which enjoyed a significant tailwind from Super Bowl 57. In the fiscal third quarter, total affiliate revenue fees grew 4% with positive growth at both our television and cable segments, driven by pricing benefits from our recent renewals. Headline advertising revenues were down during the quarter, as expected, due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year. If not, for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

Gabrielle Brown: 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 filing.

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 filing. 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.

Gabrielle Brown: Note that this call may include forward looking statements regarding Fox Corporation's financial performance and operating results.

Lachlan Murdoch: From its debut on the Nielsen Gauge in February 2023 to the most recent Gauge in March 2024, Tubi's share of total US TV view time grew 60%, which is faster than any other streaming service over that same period of time. Apart from just its growing scale, Tubi is also unique and uniquely valuable to advertisers through its reach and through its engagement. Over 60% of Tubi users are classified as cord cutters or cord nevers, and 90% of those users' time watching is proactively on demand as opposed to passively watching a FAST channel. This positions Tubi very well as an important part of the growing digital streaming advertising marketplace. We are looking forward to showcasing Tubi's strengths at next week's upfront. Fox Sports had an impressive quarter with strengths across all areas of our portfolio.

From its debut on the Nielsen Gauge in February 2023 to the most recent Gauge in March 2024, Tubi's share of total US TV view time grew 60%, which is faster than any other streaming service over that same period of time. Apart from just its growing scale, Tubi is also unique and uniquely valuable to advertisers through its reach and through its engagement. Over 60% of Tubi users are classified as cord cutters or cord nevers, and 90% of those users' time watching is proactively on demand as opposed to passively watching a FAST channel. This positions Tubi very well as an important part of the growing digital streaming advertising marketplace. We are looking forward to showcasing Tubi's strengths at next week's upfront. Fox Sports had an impressive quarter with strengths across all areas of our portfolio.

This result is even more impressive when considering we are comping to last year's third quarter, which enjoyed a significant tailwind from Super Bowl 57. In the fiscal third quarter, total affiliate revenue fees grew 4% with positive growth at both our television and cable segments, driven by pricing benefits from our recent renewals. Headline advertising revenues were down during the quarter, as expected, due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year. If not, for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

Gabrielle Brown: 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. 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.

In the fiscal third quarter, total affiliate revenue fees grew 4% with positive growth at both our television and cable segments, driven by pricing benefits from our recent renewals. Headline advertising revenues were down during the quarter, as expected, due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year. If not, for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

Gabrielle Brown: 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.

Headline advertising revenues were down during the quarter, as expected, due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year. If not, for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

If not, for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

Gabrielle Brown: And with that I'm pleased to turn the call over to Lachlan.

Lachlan Keith Murdoch: Thank you, Gabby, and thanks everyone for joining us this morning. This quarter, Fox continued to distinguish itself from its peers, delivering 7% EBITDA growth and demonstrating again the strength of our brands and the advantages of our strategy. This result is even more impressive when considering we are comping to last year's third quarter, which enjoyed a significant tailwind from Super Bowl 57. In the fiscal third quarter, total affiliate revenue fees grew 4%, with positive growth at both our television and cable segments, driven by pricing benefits from our recent renewal.

Lachlan Keith Murdoch: Thank you Gabby and thanks, everyone for joining us this morning.

Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

Lachlan Keith Murdoch: This quarter Fox continued to distinguish itself from its peers.

Lachlan Keith Murdoch: Delivering 7% EBITDA growth and demonstrating again the strength of our brands.

Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenues.

Lachlan Keith Murdoch: And the advantages of our strategy.

Speaker Change: This result is even more impressive when considering we are comping to last year's third quarter, which enjoyed a significant tailwind from Super Bowl 57.

Lachlan Murdoch: We finished the 30th anniversary of the NFL and Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game drawing over 56 million viewers, which is 19% higher than last year's NFC Championship game and the most-watched in over a decade. This season also reinforced Fox's solid position in college sports with strong viewership in both college football and college basketball. In fact, in the current academic year, Fox has aired the most-watched college football, men's college basketball, and women's college basketball games across the regular season. College sports has grown to become the second biggest source of Fox viewership behind only the NFL. Total consumption of college sports on Fox has grown by over 40% through the last five years.

We finished the 30th anniversary of the NFL and Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game drawing over 56 million viewers, which is 19% higher than last year's NFC Championship game and the most-watched in over a decade. This season also reinforced Fox's solid position in college sports with strong viewership in both college football and college basketball. In fact, in the current academic year, Fox has aired the most-watched college football, men's college basketball, and women's college basketball games across the regular season. College sports has grown to become the second biggest source of Fox viewership behind only the NFL. Total consumption of college sports on Fox has grown by over 40% through the last five years.

Lachlan Keith Murdoch: And while there wasn't much of a primary season this year, we do expect strong political advertising for national and local races as well as local ballot issues in the first half of our fiscal '25 which would largely benefit our station group. As we look to our annual upfront presentation next week, our focus on live content and must-watch events, such as the coming presidential election cycle and next year's Super Bowl combined with Tobi's position as the most watched free TV and movie streaming service will favor our enviable position with advertisers across the FOX portfolio. Operationally, FOX News again ended the third quarter as the most watched cable network in total day and primetime. FOX News also strengthened its leadership position inside the category gaining share again, commands 50% of total debuting.

Speaker Change: In the fiscal third quarter total affiliate revenue fees grew 4% with positive growth in both our television and cable segments driven by pricing benefits from our recent renewals.

Lachlan Keith Murdoch: Headline advertising revenues were down during the quarter, as expected, due to the absence of the Super Bowl and fewer NFL broadcasts than in the prior year. If not for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent. Overall, advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenue.

Headline advertising revenues were down during the quarter, as expected, due to the absence of the Super Bowl and fewer NFL broadcasts than in the prior year. If not for the difference in our NFL postseason schedule, our total advertising revenues would have increased a few percent.

Speaker Change: Headline advertising revenues were down during the quarter as expected due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year.

As we look to our annual upfront presentation next week, our focus on live content and must watch events. such as the coming presidential election cycle and next year Super Bowl, combined with Tubi's position as the most watched free TV and movie streaming service will favor our enviable position with advertisers across the Fox portfolio. Operationally, Fox News again ended the third quarter as the most watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the categories, gaining share to now again command 50% of total debut.

such as the coming presidential election cycle and next year Super Bowl, combined with Tubi's position as the most watched free TV and movie streaming service will favor our enviable position with advertisers across the Fox portfolio. Operationally, Fox News again ended the third quarter as the most watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the categories, gaining share to now again command 50% of total debut.

Speaker Change: If not for the difference in our NFL post season schedule. Our total advertising revenues would have increased a few percent.

as the most watched free TV and movie streaming service will favor our enviable position with advertisers across the Fox portfolio. Operationally, Fox News again ended the third quarter as the most watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the categories, gaining share to now again command 50% of total debut.

Overall, advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions. Demand for sports remains robust, while trends at Fox News are improving across the board, including the fact that we have now fully lapped the direct response market issue that had adversely impacted Fox News DR revenue.

Speaker Change: Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and an early upfront discussions.

Operationally, Fox News again ended the third quarter as the most watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the categories, gaining share to now again command 50% of total debut.

Speaker Change: Demand for sports remains robust while transit Fox news are improving across the board, including the fact that we have now fully lapped. The direct response market issue that had adversely impacted Fox news Dr revenues.

Fox News also strengthened its leadership position inside the categories, gaining share to now again command 50% of total debut.

Lachlan Murdoch: In the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased with the results through the midpoint of the season. While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter, Fox Sports is excited to present its Summer of Soccer, featuring over 200 hours of live soccer coverage across our platform, starting with the UEFA European Football Championship on June 14th and Copa America on June 20th. This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramsay's Food Stars and exciting new shows like The 1% Club.

In the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased with the results through the midpoint of the season. While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter, Fox Sports is excited to present its Summer of Soccer, featuring over 200 hours of live soccer coverage across our platform, starting with the UEFA European Football Championship on June 14th and Copa America on June 20th. This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramsay's Food Stars and exciting new shows like The 1% Club.

Lachlan Keith Murdoch: These gains are underpinned by a dedicated team of journalists and staff who are focused on delivering coverage and insights on current events most relevant to our viewers. Building from our strength in primetime, we are expanding our leadership across day parts, whether that be mornings with FOX & Friends, afternoons with The Five or late nights with Gutfeld. And we expect this momentum to continue as we ramp action coverage heading into the fall. Tubi ended the third quarter with 22% revenue growth driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAUs. Our expansive content library and our differentiated user base have solidified Tubi's position as the most watched free TV and movie streaming service in the U.S. with 1.6% of total TV viewing, ahead of Peacock, MAX, The Roku Channel, Paramount+ and Pluto TV and only marginally behind Disney+. Paramount's debut on the Nielsen Gauge in February of '23 to the most recent gauge in March of '24 to be share of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Lachlan Keith Murdoch: And while there wasn't much of a primary season this year, we do expect strong political advertising for national and local races, as well as local ballot issues, in the first half of our fiscal '25, which would largely benefit our station.

Speaker Change: And while there wasn't much of a primary season. This year, we do expect strong political advertising for national and local races, as well as local ballot issues in the first half of our fiscal 'twenty, five which had largely benefit our station group.

Building from our strength in primetime, we are expanding our leadership across day parts, whether that be mornings with Fox and Friends, afternoons with the five, or late nights with Gutfeld. And we expect this momentum to continue as we ramp our election coverage heading into the fall. Tubi ended the third quarter with 22% revenue growth, driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAUs. Our expansive content library and our differentiated user base have solidified to be's position as the most watch-free TV and movie streaming service in the US. with 1.6% of total TV viewing. ahead of Peacock, Max, the Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Lachlan Keith Murdoch: As we look to our annual upfront presentation next week, our focus on live content and must-watch events, such as the coming presidential election cycle and next year's Super Bowl, combined with Tubi's position as the most-watched free TV and movie streaming service, will favor our enviable position with advertisers across the Fox portfolio. Operationally, Fox News again ended the third quarter as the most-watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the category, gaining share to now again command 50% of total day viewers.

Speaker Change: As we look to our annual upfront presentation next week, our focus on live content and must watch events, such as the coming presidential election cycle and next year's Super Bowl combined with <unk> position as the most watched free TV and movie streaming service will favor our enviable position with advertisers across the Fox.

And we expect this momentum to continue as we ramp our election coverage heading into the fall. Tubi ended the third quarter with 22% revenue growth, driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAUs. Our expansive content library and our differentiated user base have solidified to be's position as the most watch-free TV and movie streaming service in the US. with 1.6% of total TV viewing. ahead of Peacock, Max, the Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Tubi ended the third quarter with 22% revenue growth, driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAUs. Our expansive content library and our differentiated user base have solidified to be's position as the most watch-free TV and movie streaming service in the US. with 1.6% of total TV viewing. ahead of Peacock, Max, the Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Speaker Change: Portfolio.

Operationally, Fox News again ended the third quarter as the most-watched cable network in total day and prime time. Fox News also strengthened its leadership position inside the category, gaining share to now again command 50% of total day viewers.

Speaker Change: Operationally Fox News again ended the third quarter as the most watched cable network in total day and prime time.

Lachlan Murdoch: This follows a successful spring slate that featured two of the top five new prime-time series in Krapopoulos and The Floor, with Krapopoulos ranking as the number one new prime-time entertainment show and The Floor as the number one game show season to date. Last quarter, we announced the formation of a new sports-focused digital distribution platform with our partners, Disney and Warner Bros. Discovery. We are happy to have hired a truly world-class CEO in Pete Distad, and he is off to a flying start. In just several weeks, the JV now has over 150 engineers and executives dedicated to building a unique, innovative product which focuses on sports fans outside of the traditional TV bundle.

This follows a successful spring slate that featured two of the top five new prime-time series in Krapopoulos and The Floor, with Krapopoulos ranking as the number one new prime-time entertainment show and The Floor as the number one game show season to date. Last quarter, we announced the formation of a new sports-focused digital distribution platform with our partners, Disney and Warner Bros. Discovery. We are happy to have hired a truly world-class CEO in Pete Distad, and he is off to a flying start. In just several weeks, the JV now has over 150 engineers and executives dedicated to building a unique, innovative product which focuses on sports fans outside of the traditional TV bundle.

Our expansive content library and our differentiated user base have solidified to be's position as the most watch-free TV and movie streaming service in the US. with 1.6% of total TV viewing. ahead of Peacock, Max, the Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Speaker Change: Fox News also strengthened its leadership position inside the category gaining share to now again command, 50% of total debut on <unk>.

with 1.6% of total TV viewing. ahead of Peacock, Max, the Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

These gains are underpinned by a dedicated team of journalists and staff who are focused on delivering coverage and insights on current events most relevant to our viewers. Building from our strength in primetime, we are expanding our leadership across dayparts, whether that be mornings with Fox and Friends, afternoons with The Five, or late nights with Gutfeld. And we expect this momentum to continue as we ramp up our election coverage heading into the fall.

Speaker Change: These gains are underpinned by a dedicated team of journalists and staff, who are focused on delivering coverage and insights on current events most relevant to our viewers.

ahead of Peacock, Max, the Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Speaker Change: Building from our strength in Prime time, we are expanding our leadership across day parts, whether that be mornings with Fox and friends afternoons with the five or late nights with gutfeld.

From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24, to be shared of total U.S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Speaker Change: And we expect this momentum to continue as we ramp our election coverage heading into the fall.

Lachlan Keith Murdoch: Apart from just its growing scale Tubi's also unique and uniquely valuable to advertisers through its reach and through its engagement. Over 60% of Tubi users are classified as cord cutters or cord nevers and 90% of those user time watching is proactively on demand, as opposed to passively watching a fast channel. This positions to be very well as an important part of the growing digital streaming advertising marketplace. We look forward to showcasing Tubi's strengths at next week's upfront. FOX Sports had an impressive quarter with strength across all areas of our portfolio. We finished the 30th anniversary of the NFL on FOX on a high note with 3 NFC playoff games on FOX averaging an incredible 45 million viewers. This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC Championship game and the most watched in over a decade.

Speaker Change: <unk> ended the third quarter with 22% revenue growth driven by a 36% increase in total view time and 20% growth in monthly active users to just under $80 million.

Tubi ended the third quarter with 22% revenue growth, driven by a 36% increase in total view time and 20% growth in monthly active users to just under 80 million MAU.

Lachlan Murdoch: We have already launched an internal beta service, which I have been trialing this past week, and I have to say it's an incredibly exciting product, and we can't wait to launch it this fall. Today's media market is certainly dynamic, but the strength and leadership of our brands and their capacity to convert those strengths financially underscores our considered strategy. Underpinned by our best-in-class balance sheet, we ended the quarter with $3.8 billion in cash and just one times net leverage. We remain committed to driving long-term shareholder value creation through the thoughtful balance of managing our existing businesses, pursuing new adjacencies, and returning capital to our shareholders. And with that, I'll hand it over to Steve.

We have already launched an internal beta service, which I have been trialing this past week, and I have to say it's an incredibly exciting product, and we can't wait to launch it this fall. Today's media market is certainly dynamic, but the strength and leadership of our brands and their capacity to convert those strengths financially underscores our considered strategy. Underpinned by our best-in-class balance sheet, we ended the quarter with $3.8 billion in cash and just one times net leverage. We remain committed to driving long-term shareholder value creation through the thoughtful balance of managing our existing businesses, pursuing new adjacencies, and returning capital to our shareholders. And with that, I'll hand it over to Steve.

Over 60% of Tuba users are classified as cord cutters or cord nevers. And 90% of those users' time watching is proactively on demand as opposed to passively watching a fast channel. This positions to be very well as an important part of the growing digital streaming advertising marketplace. We are looking forward to showcasing to be strengths at next week's upfront. Fox Sports had an impressive quarter with strength across all areas of our portfolio. We finished the 30th anniversary of the NFL on Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC championship game, and the most watched in over a decade.

Lachlan Keith Murdoch: Our expansive content library and our differentiated user base have solidified Tubi's position as the most watched free TV and movie streaming service in the U.S., with 1.6% of total TV viewing ahead of Peacock, Max, The Roku Channel, Paramount Plus, and Pluto TV, and only marginally behind Disney Plus. From its debut on the Nielsen Gauge in February of '23 to the most recent gauge in March of '24, Tubi's share of total U.S. TV view time grew 60 percent, which is faster than any other streaming service over that same period of time.

Speaker Change: Our expansive content library, and our differentiated user base have solidified <unk> position as the most watched free TV and movie streaming service in the U S. With one 6% of total TV viewing ahead of Peacock Max the Roku channel, Paramount plus and Pluto TV and only me.

This positions to be very well as an important part of the growing digital streaming advertising marketplace. We are looking forward to showcasing to be strengths at next week's upfront. Fox Sports had an impressive quarter with strength across all areas of our portfolio. We finished the 30th anniversary of the NFL on Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC championship game, and the most watched in over a decade.

We are looking forward to showcasing to be strengths at next week's upfront. Fox Sports had an impressive quarter with strength across all areas of our portfolio. We finished the 30th anniversary of the NFL on Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC championship game, and the most watched in over a decade.

Speaker Change: Marginally behind Disney plus.

Fox Sports had an impressive quarter with strength across all areas of our portfolio. We finished the 30th anniversary of the NFL on Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC championship game, and the most watched in over a decade.

Speaker Change: From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 24 to be share of total U S. TB view time grew 60%, which is faster than any other streaming service over that same period of time.

We finished the 30th anniversary of the NFL on Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC championship game, and the most watched in over a decade.

This was capped with the NFC Championship game growing over 56 million viewers, which is 19% higher than last year's NFC championship game, and the most watched in over a decade.

Lachlan Keith Murdoch: Apart from just its growing scale, Tubi is also unique and uniquely valuable to advertisers through its reach and through its engagement. Over 60% of Tubi users are classified as cord cutters, or Cordenever, and 90% of those users' time-watching is proactively on-demand as opposed to passively watching a [inaudible] channel.

Speaker Change: Apart from just its growing scale to be is also unique and uniquely valuable to advertisers through which to reach and through its engagement.

Steven Tomsic: Thanks, Lachlan, and good morning, everyone. Fox's strategy continues to deliver solid results. Even with a comparison to our blockbuster NFL schedule of the prior year, we posted total revenues of $3.45 billion and grew adjusted EBITDA by 7% to $891 million. Total company affiliate fee revenues grew 4% over the prior year, with growth at both our television and cable segments supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits.

Steve Tomsic: Thanks, Lachlan, and good morning, everyone. Fox's strategy continues to deliver solid results. Even with a comparison to our blockbuster NFL schedule of the prior year, we posted total revenues of $3.45 billion and grew adjusted EBITDA by 7% to $891 million. Total company affiliate fee revenues grew 4% over the prior year, with growth at both our television and cable segments supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits.

Speaker Change: Over 60% of to be users are classified as cord cutters or cord nevers.

Lachlan Keith Murdoch: This season also reinforced FOX solid position in collar sports with strong viewers from both college football and college basketball. In fact, in the current academic year, FOX has aired the most watched college football, men's College Basketball and women's college basketball games across the regular season. College Sports has grown to become the second biggest source of FOX viewership behind only the NFL. Total consumption of college sports on FOX has grown by over 40% through the last five years. And in the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased with the results through the midpoint of the season.

Speaker Change: And 90% of those users time watching is proactive proactively on demand as opposed to passively watching a fast channel.

In fact, in the current academic year, Fox has aired the most watched college football, men's college basketball, and women's college basketball games across the regular season. College sports has grown to become the second biggest source of Fox viewership behind only the NFL. Total consumption of college sports on Fox has grown by over 40% through the last five years. And in the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased for the results through the midpoint of the season.

Lachlan Keith Murdoch: This positions Tubi very well as an important part of the growing digital streaming advertising market. We are looking forward to showcasing Tubi's strengths at next week's [inaudible]. Fox Sports had an impressive quarter with strengths across all areas of our portfolio. We finished the 30th anniversary of the NFL on Fox on a high note, with three NFC playoff games on Fox averaging an incredible 45 million viewers. This was capped with the NFC championship game drawing over 56 million viewers, which is 19% higher than last year's NFC championship game and the most watched in over a decade.

Speaker Change: Dispositions to be very well as an important part of the growing digital streaming advertising marketplace.

College sports has grown to become the second biggest source of Fox viewership behind only the NFL. Total consumption of college sports on Fox has grown by over 40% through the last five years. And in the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased for the results through the midpoint of the season.

Speaker Change: We are looking forward to showcasing to be strengths at next week's upfront.

Total consumption of college sports on Fox has grown by over 40% through the last five years. And in the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased for the results through the midpoint of the season.

Lachlan Keith Murdoch: This season also reinforced Fox's solid position in college sports with strong viewership in both college football and college basketball. In fact, in the current academic year, Fox has aired the most-watched college football, men's college basketball, and women's college basketball games across the regular season. College sports has grown to become the second biggest source of Fox viewership behind only the NFL. Total consumption of college sports on Fox has grown by over 40 percent in the last five years. And in the March quarter, we launched the UFL, the United Football League, the result of the merger between the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased with the results through the midpoint of the season.

Speaker Change: Fox Sports had an impressive quarter with strength across all areas of our portfolio with.

And in the March quarter, we launched the UFL, United Football League, the result of the merger of the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased for the results through the midpoint of the season.

Speaker Change: We finished the 30 <unk> anniversary of the NFL on Fox on a high note with three NFC playoff games on Fox, averaging an incredible 45 million viewers.

With this merger, the outlook for spring football is promising, and we are pleased for the results through the midpoint of the season.

Speaker Change: This was capped with the NFC championship game, drawing over 56 million viewers, which is 19% higher than last year's NFC Championship game and the most watched in over a decade.

Steven Tomsic: Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. Net income attributable to stockholders of $666 million or $1.40 per share compares to the net loss of $54 million or negative $0.10 per share reported in the prior year period. This year-over-year variance reflects the growth in EBITDA, as well as the absence of last year's Fox News Media litigation charge, and a current quarter book gain on the merger transaction of the USFL, which has now been deconsolidated in connection with the formation of the United Football League. Excluding these and other non-core items, Adjusted EPS was $1.09, up 16% against last year's $0.94.

Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. Net income attributable to stockholders of $666 million or $1.40 per share compares to the net loss of $54 million or negative $0.10 per share reported in the prior year period. This year-over-year variance reflects the growth in EBITDA, as well as the absence of last year's Fox News Media litigation charge, and a current quarter book gain on the merger transaction of the USFL, which has now been deconsolidated in connection with the formation of the United Football League. Excluding these and other non-core items, Adjusted EPS was $1.09, up 16% against last year's $0.94.

Lachlan Keith Murdoch: While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter, FOX Sports is excited to present its summer of soccer, featuring over 200 hours of live soccer coverage across our platform starting with the UEFA European Football Championship on June 14th and Copa America on June 20th. This summer will also feature a new schedule from FOX Entertainment, with returning favorites like Gordon Ramsay's Food Stars and exciting new shows like the 1% Club. This follows a successful spring slate that featured two of the top five new primetime series in Krapopolis and The Floor. With Krapopolis, ranking as the number one new Primetime Entertainment Show and The Floor as the number one game show season to date.

Speaker Change: This season also reinforced Fox solid position in college sports with strong viewership in both college football and college basketball.

starting with the UEFA European Football Championship on June 14th and Copa America on June 20th. This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramsey's food stars and exciting new shows like the 1% Club. This follows a successful spring slate that featured two of the top five new primetime series in Crappopolis and the floor. With Crappopoulos, ranking as the number one new primetime entertainment show and the floor as the number one game show season to date.

Speaker Change: In fact in the current academic year boxes are the most watched college football men's college basketball and Womens College basketball games across the regular season.

This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramsey's food stars and exciting new shows like the 1% Club. This follows a successful spring slate that featured two of the top five new primetime series in Crappopolis and the floor. With Crappopoulos, ranking as the number one new primetime entertainment show and the floor as the number one game show season to date.

Speaker Change: College sports has grown to become the second biggest source of Fox viewership behind only the NFL.

This follows a successful spring slate that featured two of the top five new primetime series in Crappopolis and the floor. With Crappopoulos, ranking as the number one new primetime entertainment show and the floor as the number one game show season to date.

Speaker Change: Total consumption of college sports on Fox has grown by over 40% through the last five years.

Lachlan Keith Murdoch: And in the March quarter, we launched the UFL, the United Football League, the result of the merger between the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased with the results through the midpoint of the season. While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter, Fox Sports is excited to present its Summer of Soccer, featuring over 200 hours of live soccer coverage across our platform, starting with the UEFA European Football Championship on June 14th and Copa America on June 20th.

And in the March quarter, we launched the UFL, the United Football League, the result of the merger between the USFL and XFL. With this merger, the outlook for spring football is promising, and we are pleased with the results through the midpoint of the season.

Speaker Change: And in the March quarter, we launched the U F L. United Football League. The result of the merger of the Usfl and XFL.

Speaker Change: With this merger the outlook for spring football is promising and we are pleased with the results through the midpoint of the season.

Lachlan Keith Murdoch: Last quarter, we announced the formation of a new sports-focused digital distribution platform with our partners Disney and Warner Brotherss Discovery. We are happy to have hired truly a world-class CEO in Pete Distad and he is off to a flying start. In just several weeks, the JV now has over 150 engineers and executives dedicated to building a unique, innovative product which focuses on sports fans outside of the traditional TV bundle. We've already launched an internal data service, which I have been trialing this past week, and I have to say it's an incredibly exciting product and we can't wait to launch it this fall.

Speaker Change: While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter Fox sports is excited to present its summer soccer featuring over 200 hours of live soccer coverage across our platform starting with the UEFA European Football Championship on June 14th and Copa America on June 20th.

While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter, Fox Sports is excited to present its Summer of Soccer, featuring over 200 hours of live soccer coverage across our platform, starting with the UEFA European Football Championship on June 14th and Copa America on June 20th.

We are happy to have hired a truly world-class CEO in Pete Distad, and he is off to a flying start. In just several weeks, the J.B. Now has over 150 engineers and executives dedicated to building a unique, innovative product, which focuses on sports fans outside of the traditional TV bundle. We've already launched an internal beta service, which I have been trialing this past week, and I have to say it's an incredibly exciting product, and we can't wait to launch it this fall.

Steven Tomsic: Now let's turn to our segment results. At cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1%, with growth in pricing from our distribution renewals outpacing the impact from industry subscriber declines running in the mid 8% range. Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable other revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter.

Now let's turn to our segment results. At cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1%, with growth in pricing from our distribution renewals outpacing the impact from industry subscriber declines running in the mid 8% range. Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable other revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter.

In just several weeks, the J.B. Now has over 150 engineers and executives dedicated to building a unique, innovative product, which focuses on sports fans outside of the traditional TV bundle. We've already launched an internal beta service, which I have been trialing this past week, and I have to say it's an incredibly exciting product, and we can't wait to launch it this fall.

Lachlan Keith Murdoch: This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramsay's Food Stars and exciting new shows like the 1% Club. This follows a successful spring slate that featured two of the top five new primetime series in Krapopolis and The Floor, with Krapopolis ranking as the number one new primetime entertainment show and The Floor as the number one game show season to date.

This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramsay's Food Stars and exciting new shows like the 1% Club. This follows a successful spring slate that featured two of the top five new primetime series in Krapopolis and The Floor, with Krapopolis ranking as the number one new primetime entertainment show and The Floor as the number one game show season to date.

Speaker Change: This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramseys food stars and exciting new shows like the 1% club.

We've already launched an internal beta service, which I have been trialing this past week, and I have to say it's an incredibly exciting product, and we can't wait to launch it this fall.

Speaker Change: This follows a successful spring slight that featured two of the top five new primetime series in crop populous and the floor with scrap populous ranking as the number one new Primetime Entertainment show and the floor as the number one game show season to date.

Lachlan Keith Murdoch: Today's media market is certainly dynamic, but the strength and leadership of our brands and their capacity to convert those strengths financially underscores our considered strategy. Underpinned by our best-in-class balance sheet, we ended the quarter with $3.8 billion in cash and just 1 time net leverage. We remain committed to driving long-term shareholder value creation through the thoughtful balance of managing our existing businesses, pursuing new adjacencies and returning capital to our shareholders. And with that, I'll hand it over to Steve.

Lachlan Keith Murdoch: Last quarter, we announced the formation of a new sports-focused digital distribution platform with our partners Disney and Warner Bros. Discovery. We are happy to have hired a truly world-class CEO in Pete Distad, and he is off to a flying start. In just several weeks, the JV now has over 150 engineers and executives dedicated to building a unique, innovative product that focuses on sports fans outside of the traditional TV bundle. We've already launched an internal beta service, which I have been trialing this past week. And I have to say, it's an incredibly exciting product, and we can't wait to launch it this fall.

Speaker Change: Last quarter, we announced the formation of a new sports focused digital distribution platform with our partners Disney and Warner Brothers Discovery.

Underpinned by our best in class balance sheet, we ended the quarter with $3.8 billion in cash and just one times net leverage. We remain committed to driving long-term shareholder value creation through the thoughtful balance of managing our existing businesses, pursuing new adjacencies, and returning capital to our shareholders. And with that, I'll hand it over to Steve.

Speaker Change: We are happy to have hired a truly world class CEO and Pete just add and he is off to a flying start.

We remain committed to driving long-term shareholder value creation through the thoughtful balance of managing our existing businesses, pursuing new adjacencies, and returning capital to our shareholders. And with that, I'll hand it over to Steve.

Steven Tomsic: Cable expenses were 16% lower than the prior year, primarily due to the timing of the associated sports sub-licensing expenses, lower costs at Fox News, and the deconsolidation of the USFL. All in, and despite segment revenues being down 6%, quarterly adjusted EBITDA at cable grew 3% over the prior year quarter to reach $819 million. Turning to our television segment, where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%. TV affiliate fee revenues grew 9% over the prior year as price increases across our owned and operated, as well as third-party Fox-affiliated stations, more than offset the impact from subscriber declines. As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games.

Cable expenses were 16% lower than the prior year, primarily due to the timing of the associated sports sub-licensing expenses, lower costs at Fox News, and the deconsolidation of the USFL. All in, and despite segment revenues being down 6%, quarterly adjusted EBITDA at cable grew 3% over the prior year quarter to reach $819 million. Turning to our television segment, where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%. TV affiliate fee revenues grew 9% over the prior year as price increases across our owned and operated, as well as third-party Fox-affiliated stations, more than offset the impact from subscriber declines. As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games.

Speaker Change: And just several weeks the JV now has over 150 engineers and executives dedicated to building a unique innovative product, which focuses on sports fans outside of the traditional TV bundle.

And with that, I'll hand it over to Steve.

Steven Silvester Tomsic: Thanks, Lachlan, and good morning, everyone. FOX's strategy continues to deliver solid results. Even with the comparison to our blockbuster NFL schedule of the prior year, we posted total revenues of $3.45 billion and grew adjusted EBITDA by 7% to $891 million. Total company affiliate fee revenues grew 4% over the prior year with growth at both our Television and Cable segments, supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compare against last year's broadcast of the Super Bowl, along with 2 less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year primarily the result of the timing of sports of licensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year-over-year primarily a result of the NFL postseason schedule differences I just mentioned. Net income attributable to stockholders of $666 million or $1.40 per share compared to the net loss of $54 million or negative $0.10 per share reported in the prior year period.

Fox's strategy continues to deliver solid results. Even with the comparison to our blockbuster NFL schedule as a prior year, we posted total revenues of $3.45 billion and grew adjusted EBITDAB by 7% to $891 million. Total company affiliate fee revenues grew 4% over the prior year, with growth at both our television and cable segments supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Speaker Change: We've already launched an internal beta service, which I have been Trialing. This past week and I have to say, it's an incredibly exciting product and we can't wait to launch it this fall.

Even with the comparison to our blockbuster NFL schedule as a prior year, we posted total revenues of $3.45 billion and grew adjusted EBITDAB by 7% to $891 million. Total company affiliate fee revenues grew 4% over the prior year, with growth at both our television and cable segments supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Lachlan Keith Murdoch: Today's media market is certainly dynamic, but the strength and leadership of our brands and their capacity to convert those strengths financially, underscores our considered strategy. Underpinned by our best-in-class balance sheet, we ended the quarter with $3.8 billion in cash and just one times net leverage. We remain committed to driving long-term shareholder value creation through the thoughtful balance of managing our existing businesses, pursuing new adjacencies, and returning capital to our shareholders. And with that, I'll hand it over to Steve.

Speaker Change: Today's media market is certainly dynamic, but the strength and leadership of our brands and their capacity to convert those strengths financially.

Total company affiliate fee revenues grew 4% over the prior year, with growth at both our television and cable segments supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Speaker Change: Your scores are considered strategy.

Speaker Change: Underpinned by our best in class balance sheet, we ended the quarter with $3 8 billion in cash and just one times net leverage.

Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current year quarter. As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Speaker Change: We remain committed to driving long term shareholder value creation through the thoughtful balance of managing our existing businesses pursuing new adjacencies and returning capital to our shareholders.

As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Steven Tomsic: As a result, on a headline basis, TV advertising revenues were down 40%. TV other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. While total TV revenues were down versus the prior year, this was more than offset by a 24% decrease in TV expenses. Expenses were lower in the quarter, primarily due to the impact of the NFL schedule, along with fewer hours of original scripted prime-time content, including the impact of the industry labor disputes. All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million, up 24% over the prior year quarter.

As a result, on a headline basis, TV advertising revenues were down 40%. TV other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. While total TV revenues were down versus the prior year, this was more than offset by a 24% decrease in TV expenses. Expenses were lower in the quarter, primarily due to the impact of the NFL schedule, along with fewer hours of original scripted prime-time content, including the impact of the industry labor disputes. All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million, up 24% over the prior year quarter.

Speaker Change: And with that I'll hand, it over to Steve.

Steven Silvester Tomsic: Thanks Lachlan, and good morning everyone. Fox's strategy continues to deliver solid results. Even with the comparison to our blockbuster NFL schedule of the prior year, we posted total revenues of $3.45 billion and grew adjusted EBITDA by 7% to $891 million. Total company affiliate fee revenues grew 4% over the prior year, with growth at both our television and cable segments, supported by a recent cycle of affiliate renewals. Reflecting the event-driven nature of our business, advertising revenues on a headline basis were down 34%, as we compared against last year's broadcast of the Super Bowl, along with two less NFL playoff broadcasts in the current quarter.

Steven Silvester Tomsic: Thanks, Lachlan and good morning, everyone.

Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Steven Silvester Tomsic: <unk> strategy continues to deliver solid results.

Steven Silvester Tomsic: As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year-over-year, primarily as a result of the NFL postseason schedule differences I just mentioned. Net income attributable to stockholders of $666 million, or $1.40 per share, compares to the net loss of $54 million or negative 10 cents per share, reported in the prior year period.

As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits. Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter this year. Total company expenses fell 21% year-over-year, primarily as a result of the NFL postseason schedule differences I just mentioned.

As Lachlan just mentioned, if not for the impact of these NFL schedule items, total company advertising revenues would have grown low single digits.

Steven Silvester Tomsic: Even with the comparison to a blockbuster NFL schedule as the prior year, we posted total revenues of $3 534 $5 billion.

Total company expenses fell 21% year-over-year, primarily as a result of the NFL postseason schedule differences I just mentioned.

Net income attributable to stockholders of $666 million, or $1.40 per share, compares to the net loss of $54 million or negative 10 cents per share, reported in the prior year period.

Steven Silvester Tomsic: This year-over-year variance reflects the growth in EBITDA, as well as the absence of last year's Fox News media litigation charge and a current quarter gain on the merger transaction of the USFL, which has now been deconsolidated in connection with the formation of the United Football League. Excluding these and other non-core items, adjusted EPS was $1.09, up 16% against last year's 94 cents. Now, let's turn to our segment of results.

Total company expenses fell 21% year over year, primarily a result of the NFL postseason schedule differences I just mentioned. net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Steven Silvester Tomsic: And grew adjusted EBITDA by 7% to $891 million.

Steven Silvester Tomsic: Total company affiliate fee revenues grew 4% over the prior year with growth with growth at both on television and cable segments supported by our recent cycle of affiliate renewals.

net income attributable to stockholders of $6666 million or $1.40 per share compared to the net loss of $54 million or negative 10 cents per share reported in the prior year period.

Steven Silvester Tomsic: Reflecting the event driven nature of our business advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl along with two less NFL playoff broadcasts in the current year quarter.

Steven Silvester Tomsic: This year-over-year variance reflects the growth in EBITDA as well as the absence of last year's FOX News Media litigation charge and a current quarter book gain on the merger transaction of the USFL which is now being deconsolidated in connection with the formation of the United Football League. Excluding these and other non-core items, adjusted EPS was $1.09, up 16% against last year's $0.94. Now let's turn to our segment results. At Cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1%, with growth in pricing from our distribution renewals outpacing the impact of - from industry subscriber declines running in the mid-8% range. Cable advertising revenues fell by 6% or $20 million at the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming, and the world baseball classic. At FOX News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable other revenues decreased $89 million, primarily a result of the timing of sports sublicensing revenues, which were more weighted towards our fiscal second quarter.

Steven Tomsic: Turning to cash flow, where we generated strong free cash flow of $1.39 billion in the quarter, reflecting our normal seasonal cycle of collecting advertising revenues from our full programming, coupled with our major sports rights payments being concentrated in H1 of our fiscal year. From a capital return perspective, from the commencement of Q3 through today, we've repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semi-annual dividend payment. Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion, or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash and $7.2 billion in gross debt.

Turning to cash flow, where we generated strong free cash flow of $1.39 billion in the quarter, reflecting our normal seasonal cycle of collecting advertising revenues from our full programming, coupled with our major sports rights payments being concentrated in H1 of our fiscal year. From a capital return perspective, from the commencement of Q3 through today, we've repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semi-annual dividend payment. Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion, or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash and $7.2 billion in gross debt.

Steven Silvester Tomsic: As Lachlan just mentioned if not for the impact of these NFL schedule items total company advertising revenues would have grown low single digits.

Excluding these and other non-core items, adjusted DPS was $1.9, up 16% against last year's 94 cents. Now let's turn to our segment results. At Cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1% with growth in pricing from our distribution renewals, outpacing the impact from industry subscriber declines running in the mid 8% range. Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

Steven Silvester Tomsic: Total company other revenues were down 22% versus the prior year, primarily the result of the timing of sports of licensing revenues, which were more weighted towards our fiscal second quarter. This year.

Now let's turn to our segment results. At Cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1% with growth in pricing from our distribution renewals, outpacing the impact from industry subscriber declines running in the mid 8% range. Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

At Cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1% with growth in pricing from our distribution renewals, outpacing the impact from industry subscriber declines running in the mid 8% range. Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

Steven Silvester Tomsic: Total company expenses fell 2021% year over year, primarily primarily a result of the NFL post season scheduled differences I just mentioned.

Cable affiliate fee revenues were up 1% with growth in pricing from our distribution renewals, outpacing the impact from industry subscriber declines running in the mid 8% range. Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

Steven Silvester Tomsic: Net income attributable to stockholders of $666 million or $1 40 per share compares to the net loss of $54 million or negative <unk> 10 per share reported in the prior year period.

Cable advertising revenues fell by 6% or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic. At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

Steven Silvester Tomsic: This year over year variance reflects the growth in EBITDA as well as the absence of last year's Fox News Media litigation charge in the current quarter gain on the merger transaction in the U S. F L, which is now being deconsolidation in connection with the formation of the United Football League.

At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing. Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

Steven Tomsic: And with that, I'll turn the call back over to Gabby to open the Q&A.

And with that, I'll turn the call back over to Gabby to open the Q&A.

Steven Silvester Tomsic: Excluding these and other noncore items adjusted EPS was $1 nine up 16% against last year's <unk> 94 things.

Gabrielle Brown: Great. Thanks, Steve. Now we'll be happy to take questions from the investment community.

Cable Other Revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues which were more weighted towards our fiscal second quarter.

Operator: Ladies and gentlemen, I'd like to emphasize the functionality for the question and answer queue. If you wish to ask a question, please press 1, then 0 on your touch-tone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from queue at any time by once again pressing 1, then 0. If you're 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 1, then 0 at this time. And one moment, please, for your first question. Your first question comes from the line of John Hodulik from UBS. Please go ahead.

Speaker Change: Now, let's turn to our segment results.

Steven Silvester Tomsic: At Cable, revenues were $1.47 billion, down 6% from the prior year quarter, while EBITDA grew 3%. Cable affiliate fee revenues were up 1%, with growth in pricing from our distribution renewals outpacing the impact from industry subscriber declines running in the mid-8% range. Cable advertising revenues fell by 6%, or $20 million. At the national sports networks, advertising revenues were down due to the absence of last year's Super Bowl-related programming and the World Baseball Classic.

Steven Silvester Tomsic: Cable expenses were 16% lower than the prior year, primarily due to the timing of the associated sports sublicensing expenses, lower costs at FOX News and the deconsolidation of the USFL. All in and despite segment revenues being down 6%, quarterly adjusted EBITDA at Cable grew 3% over the prior year quarter to reach $819 million. Turning to our Television segment, where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%. TV affiliate fee revenues grew 9% over the prior year as price increases across our owned and operated as well as 30 FOX-affiliated stations more than offset the impact from subscriber declines. As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our post-season NFL schedule, namely the absence of last year's Super Bowl and 2 less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. TV Other revenues increased $30 million, primarily the result of the timing of deliveries from our entertainment production companies. While total TV revenues were down versus the prior year, this was more than offset by a 24% decrease in TV expenses.

Speaker Change: At cable revenues were $1 47 billion down 6% from the prior year quarter, while EBITDA grew 3%.

Speaker Change: Affiliate fee revenues were up 1% with growth in pricing from our distribution reuse outpacing the impact of from industry subscriber declines running in the mid 8% range.

All in and despite segment revenues being down 6% quarterly adjusted EBITDA at cable grew 3% over the prior year quarter to reach $819 million. Turning to our television segment where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%. TV affiliate fee revenues grew 9% over the prior year, as price increases across our owned and operated, as well as third-party Fox affiliated stations, more than offset the impact from subscribers and clients. As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. To the other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. Well, total TV revenues were down versus the prior year. This was more than offset by a 24% decrease in TV expenses.

Speaker Change: Yes.

Speaker Change: Cable advertising revenues fell by 6% or $20 million.

Turning to our television segment where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%. TV affiliate fee revenues grew 9% over the prior year, as price increases across our owned and operated, as well as third-party Fox affiliated stations, more than offset the impact from subscribers and clients. As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. To the other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. Well, total TV revenues were down versus the prior year. This was more than offset by a 24% decrease in TV expenses.

Speaker Change: At the National Sports networks advertising revenues were down due to the absence of last year's Super Bowl related programming and the World Baseball Classic at Fox News AD revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national pricing.

Steven Silvester Tomsic: At Fox News, ad revenues were impacted by moderating direct response pricing declines and lower digital traffic, partially offset by higher national prices. Cable other revenues decreased $89 million, primarily a result of the timing of sports sub-licensing revenues, which were more weighted towards our fiscal second quarter. Cable expenses were 16% lower than the prior year, primarily due to the timing of the associated sports sub-licensing expenses, lower costs at Fox News, and the deconsolidation of the USFL. All in, and despite segment revenues being down 6%, quarterly adjusted EBITDA at Cable grew 3% over the prior year quarter to reach $819 million.

John Hodulik: Great. Thank you. And good morning, everyone. Strong growth again at Tubi. I guess a couple of questions on that. I mean, first, what's driving the growth in TVT? Any color you guys can provide on CPMs? Disney yesterday gave a little color on some weakness in connected TV CPMs. And then three, any color you can provide on dilution at Tubi and maybe how you guys view future profitability of that business. Thanks.

TV affiliate fee revenues grew 9% over the prior year, as price increases across our owned and operated, as well as third-party Fox affiliated stations, more than offset the impact from subscribers and clients. As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. To the other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. Well, total TV revenues were down versus the prior year. This was more than offset by a 24% decrease in TV expenses.

Speaker Change: Cable other revenues decreased $89 million.

Speaker Change: Primarily a result of the timing of sports sub licensing revenues, which were more weighted towards our fiscal second quarter.

As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. To the other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. Well, total TV revenues were down versus the prior year. This was more than offset by a 24% decrease in TV expenses.

Speaker Change: Cable expenses was 16% lower than the prior year, primarily due to the timing of the associated sports sub licensing expenses lower costs at Fox News and the deconsolidation of the U F L.

Lachlan Murdoch: Thanks very much, John. So let me, I'll start. I'm not quite sure I understand what you mean by dilution at Tubi, but let me start with the other two. The growth at Tubi continues to be incredibly strong. I think TVT growth comes from both new subscribers or new viewers finding the platform. As you'd be aware, we've very efficiently been marketing the platform to bring more people to it, and it's becoming a wider and wider known and loved brand in the marketplace. And the reason for that is we've talked about it on calls before, with 250,000 movies and television series on the platform, and now over 250, in fact, I think around 270 live FAST channels on the platform. It really does offer a tremendous product for everyone who's utilizing it.

Steven Silvester Tomsic: All in, and despite segment revenues being down 6%, quarterly adjusted EBITDA at Cable grew 3% over the prior year quarter to reach $819 million. Turning to our television segment, where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%, TV affiliate fee revenues grew 9% over the prior year, as price increases across our owned and operated, as well as third-party Fox-affiliated stations, more than offset the impact of subscriber decline.

All in, and despite segment revenues being down 6%, quarterly adjusted EBITDA at Cable grew 3% over the prior year quarter to reach $819 million.

To the other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production companies. Well, total TV revenues were down versus the prior year. This was more than offset by a 24% decrease in TV expenses.

Speaker Change: All in and despite segment revenues being down 6% quarterly adjusted EBITDA at cable grew 3% over the prior year quarter to reach $819 million.

Well, total TV revenues were down versus the prior year. This was more than offset by a 24% decrease in TV expenses.

Turning to our television segment, where revenues were $1.94 billion, down 22% from the prior year, while EBITDA increased 24%, TV affiliate fee revenues grew 9% over the prior year, as price increases across our owned and operated, as well as third-party Fox-affiliated stations, more than offset the impact of subscriber decline.

Speaker Change: Turning to our television segment, where revenues were $1 94 billion down.

Steven Silvester Tomsic: Expenses were lower in the quarter, primarily due to the impact of the NFL schedule along with fewer hours of original drifted prime time content, including the impact of the industry labor disputes. All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million up 24% over the prior year quarter. Turning to cash flow, where we generated strong free cash flow of $1.39 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 capital return perspective, from the commencement of the third quarter through today, we have repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semiannual dividend payment. Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion or 26% of our total shares outstanding and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Speaker Change: <unk> down 22% from the prior year, while EBITDA increased 24%.

Speaker Change: Television affiliate fee revenues grew 9% over the prior year as price increases across our owned and operated as well as third party folks affiliated stations more than offset the impact from subscriber declines.

All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million, up 24% over the prior year quarter. Turning to cash flow, where we generated strong free cash flow of $1.39 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 capital return perspective, from the commencement of the third quarter through today, we've repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semi-annual dividend payment. Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion. or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash, and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Steven Silvester Tomsic: As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. TV Other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production company. Total TV revenues were down versus the prior year. This was more than offset by a 24 percent decrease in TV expenses. Expenses were lower in the quarter, primarily due to the impact of the NFL schedule, along with fewer hours of original scripted primetime content, including the impact of the industry labor dispute.

As mentioned previously, TV advertising revenues were impacted this quarter by the composition of our postseason NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games. As a result, on a headline basis, TV advertising revenues were down 40%. TV Other revenues increased $13 million, primarily the result of the timing of deliveries from our entertainment production company.

Speaker Change: As mentioned previously television advertising revenues were impacted this quarter by the composition of that post season, NFL schedule, namely the absence of last year's Super Bowl and two less NFL playoff games as a result on a headline basis TV advertising revenues were down 40%.

Turning to cash flow, where we generated strong free cash flow of $1.39 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 capital return perspective, from the commencement of the third quarter through today, we've repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semi-annual dividend payment. Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion. or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash, and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Speaker Change: TD other revenues increased $38 million, primarily the result of the timing of deliveries from our entertainment production companies.

From a capital return perspective, from the commencement of the third quarter through today, we've repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semi-annual dividend payment. Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion. or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash, and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Total TV revenues were down versus the prior year. This was more than offset by a 24 percent decrease in TV expenses. Expenses were lower in the quarter, primarily due to the impact of the NFL schedule, along with fewer hours of original scripted primetime content, including the impact of the industry labor dispute. All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million, up 24% over the prior year quarter.

Lachlan Murdoch: But it's very interesting because of all those fast channels and all those 250,000 movies and TV series, 90% of the viewing comes on demand. And this is very important because when that viewing comes on demand and it's proactively on demand as opposed to passively sort of sitting back and watching a fast channel, that's much more valuable to advertisers. And it's certainly something that we're going to make a big deal about at our upfront presentations next week. So because of that, we are very confident we can hold our CPMs at Tubi. We're already very efficient with our CPMs. I think some of our competitors priced themselves when they entered the AVOD market over the past 12 and 18 months very high, and we're seeing the marketplace, them having to drop CPMs as new entrants add supply to the market. So that's affecting the market overall.

But it's very interesting because of all those fast channels and all those 250,000 movies and TV series, 90% of the viewing comes on demand. And this is very important because when that viewing comes on demand and it's proactively on demand as opposed to passively sort of sitting back and watching a fast channel, that's much more valuable to advertisers. And it's certainly something that we're going to make a big deal about at our upfront presentations next week. So because of that, we are very confident we can hold our CPMs at Tubi. We're already very efficient with our CPMs. I think some of our competitors priced themselves when they entered the AVOD market over the past 12 and 18 months very high, and we're seeing the marketplace, them having to drop CPMs as new entrants add supply to the market. So that's affecting the market overall.

Speaker Change: While total television revenues were down versus the prior year. This was more than offset by 24% decrease in TV expenses.

Speaker Change: Fences were lower in the quarter, primarily due to the impact of the NFL schedule, along with fewer hours of original scripted prime time content, including the impact of the industry labor disputes.

Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion. or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash, and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Steven Silvester Tomsic: All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million, up 24% over the prior year quarter. Turning to cash flow, where we generated strong free cash flow of $1.39 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 capital return perspective, from the commencement of the third quarter through today, we've repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via our semi-annual dividend payment.

All in, we delivered quarterly adjusted EBITDA at the TV segment of $145 million, up 24% over the prior year quarter.

or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash, and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Speaker Change: All in we delivered quarterly adjusted EBITDA at the TV segment of $145 million.

Speaker Change: Up 24% over the prior year quarter.

These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash, and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Speaker Change: Turning to cash flow, where we generated strong free cash flow of $1 three 9 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.

and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A. Great. Thanks, Steve. And now we'll be happy to take questions from the investment community.

and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Gabrielle Brown: Great. Thanks, Steve. And now we will be happy to take questions from the investment community.

Speaker Change: From a capital return perspective from the commencement of the third quarter through today, we have reported we have repurchased $300 million under our share buyback program, along with returning nearly $125 million to our shareholders via a semiannual dividend payment.

Operator: Ladies and gentlemen, I'd like to emphasize the functionality for the question and answer queue. If you wish to ask a question, please press 1 and 0 on your touchtone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from queue at any time by once again pressing 1 and 0. If you are using a speaker phone, 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 1 and 0 at this time. And one moment, please, for your first question. Your first question comes from the line of John Hodulick from UBS. Please go ahead.

Lachlan Murdoch: It certainly has an impact on the market for advertising for Tubi, but from a CPM point of view, it's not really going to be a big impact to us. I should just say, though, that next quarter, we are going to be facing difficult comps in the fourth quarter. I think if you remember this time last year, Tubi was up 47% in revenue, and that's going to be a very difficult comp for us next quarter. So there will be some headwinds for the whole marketplace, but from a comp point of view for Tubi as well in the next quarter. So that's just a slight word of caution.

It certainly has an impact on the market for advertising for Tubi, but from a CPM point of view, it's not really going to be a big impact to us. I should just say, though, that next quarter, we are going to be facing difficult comps in the fourth quarter. I think if you remember this time last year, Tubi was up 47% in revenue, and that's going to be a very difficult comp for us next quarter. So there will be some headwinds for the whole marketplace, but from a comp point of view for Tubi as well in the next quarter. So that's just a slight word of caution.

You will hear a tone indicating you have been placed in Q. You may remove yourself from Q at any time by once again pressing 1 and 0. If you are using a speaker phone, 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 and zero at this time. And one moment, please, for your first question. Your first question comes from the line of John Hudlick from UBS. Please go ahead.

Steven Silvester Tomsic: Our total cumulative buyback activity since the launch of the program in 2019 now amounts to $5.4 billion, or 26% of our total shares outstanding, and we remain committed to fully utilizing our current $7 billion authorization. These capital return measures are supported by our robust balance sheet, where we ended the quarter with $3.8 billion in cash and $7.2 billion in gross debt. And with that, I'll turn the call back over to Gabby to open the Q&A.

Speaker Change: Our total cumulative buyback activity since the launch of the program in 2019 now amounts to five 4 billion.

It has been requested that you limit yourself to one question. Once again, if you have a question, please press one and zero at this time. And one moment, please, for your first question. Your first question comes from the line of John Hudlick from UBS. Please go ahead.

Speaker Change: Or 26% of our total shares outstanding and we remain committed to fully utilizing our current 7 billion reals origination.

Speaker Change: These capital return measures are supported by a robust balance sheet. We ended the quarter with $3 8 billion in cash and $7 2 billion in gross debt and with that I'll turn the call back over to Gabby to open the Q&A great. Thanks, Steve.

Your first question comes from the line of John Hudlick from UBS. Please go ahead.

John C. Hodulik: Great. Thank you, and good morning everyone. Strong growth again at Tubi. I guess a couple of questions on that. I mean, first, what's driving the growth in TVT? Any color you guys can provide on CPMs? Disney yesterday gave you a little color on some weakness in connected TV CPMs. And then three, any color you can provide on dilution at Tubi and maybe how you guys view future profitability of that business? Thanks.

Strong growth again at 2B. I guess a couple questions on that. I mean, first, what's driving the growth in TVT? Any color you guys can provide on CPMs. Disney yesterday gave a little color on some weakness in connected TV, CPMs. And then three, any color you can provide on dilution at 2B and maybe how you guys view future profitability of that business. Okay.

Gabrielle Brown: Great, thank you. And now, we'll be happy to take questions from the investment community.

Gabby: And now we'll be happy to take.

Operator: Your next question comes from the line of Robert Fishman from MoffettNathanson. Please go ahead.

Gabby: Questions from the investment community.

Operator: Ladies and gentlemen, I'd like to emphasize the functionality of the question and answer queue. If you wish to ask a question, please press 1 then 0 on your touchtone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from the queue at any time by once again pressing 1 then 0. If you are using a speakerphone, please pick up the handset before pressing the numbers.

Gabby: 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 a tone, indicating you have been placed in Q U may Russo remove yourself from queue at any time by once again pressing one zero if youre using a speakerphone please pick up the handset before.

Robert Fishman: Hi. Good morning, everyone. Given all the press about the NBA negotiations underway, I'm just curious if you can think a little bit as far as your broader sports rights go. And how do you think about the value of Fox Broadcast Network as you negotiate those future sports rights? And then the flip side of that is, do you feel like you're at a competitive disadvantage without your own SVOD service to compete for future rights? And then if I can just separately, given all the M&A discussion in the industry, what are your latest thoughts on monetizing some of your strategic non-core assets like your FanDuel option and StudioLot? Thank you.

Lachlan Keith Murdoch: Thanks very much, John. So, let me - I'll start. I'm not quite sure what I understand what you mean by dilution at Tubi, but let me start with the other two. The growth of Tubi continues to be incredibly strong. I think TVT growth comes from both new subscribers or new viewers finding the platform. As you'd be aware, we've very efficiently be marketing the platform to bring more people to it, and it's becoming a wider and wider known and loved brand in the marketplace. And the reason for that is we have - we've talked about it on calls before, with 250,000 movies and television series, on the platform. And now over 250 in fact, I think, around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

Operator: It has been requested that you limit yourself to one question. Once again, if you have a question, please press 1 then 0 at this time. And one moment, please for your first question. Your first question comes from the line of John Hodulik from UBS. Please go ahead.

Gabby: The numbers. It has been requested that you limit yourself to one question. Once again, if you have a question. Please press <unk> zero at this time and one moment. Please for your first question.

understand what you mean by dilution to me, but let me start with the other two. The growth of Tube continues to be incredibly strong. I think TBT growth comes from both new subscribers or new viewers finding the platform. As you'd be aware, we've very efficiently been marketing the platform to bring more people to it, and it's becoming a wider and wider known and loved brand in the marketplace. And the reason for that is, you know, we've talked about it on calls before, you know, with 250,000 movies and television series on the platform, and now over 250, in fact, I think around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

The growth of Tube continues to be incredibly strong. I think TBT growth comes from both new subscribers or new viewers finding the platform. As you'd be aware, we've very efficiently been marketing the platform to bring more people to it, and it's becoming a wider and wider known and loved brand in the marketplace. And the reason for that is, you know, we've talked about it on calls before, you know, with 250,000 movies and television series on the platform, and now over 250, in fact, I think around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

Gabby: Your first question comes from the line of John Hodulik from UBS. Please go ahead.

John C. Hodulik: Great, thank you, and good morning everyone. Strong growth again at Tubi, I guess a couple questions on that. First, what's driving the growth in TVT? Any color you guys can provide on CPMs? Disney yesterday gave it a little color on some weakness in connected TV CPMs. And then three, any color you can provide on dilution at Tubi and maybe how you guys view future profitability of that business? Thanks.

As you'd be aware, we've very efficiently been marketing the platform to bring more people to it, and it's becoming a wider and wider known and loved brand in the marketplace. And the reason for that is, you know, we've talked about it on calls before, you know, with 250,000 movies and television series on the platform, and now over 250, in fact, I think around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

John Christopher Hodulik: Great. Thank you and good morning, everyone.

Lachlan Murdoch: Thanks, Roger. So with the NBA, obviously, I can't sort of comment on other people's sort of negotiations and where that may or may end up. But in terms of how we think about it affecting the value of the Fox Network and our sports portfolio, we're very happy with our sports portfolio. We obviously look at rights packages as they come up, but we see them as a portfolio or a bouquet of sports rights that we have, and we feel very strong with the current portfolio that we have, which is one of the reasons why we didn't pursue the NBA in this round of negotiations. But I think it does go to the value of broadcast television because sports leagues still need reach.

John Christopher Hodulik: Strong growth again at <unk> I guess couple of questions on that I mean, first what's driving the growth and TVT.

John Christopher Hodulik: Any color you guys can provide on CPM Disney yesterday.

John Christopher Hodulik: Give you a little color answer some weakness in connected TV CPM and then three any color you can provide on dilution at <unk> and maybe how you guys view future profitability of that business.

And the reason for that is, you know, we've talked about it on calls before, you know, with 250,000 movies and television series on the platform, and now over 250, in fact, I think around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

Lachlan Keith Murdoch: Thanks very much, John. So, I'll start. I'm not quite sure I understand what you mean by dilution at Tubi, but let me start with the other two. The growth at Tubi continues to be incredibly strong. I think TBT growth comes from both new subscribers and new viewers finding the platform. As you know, we've very efficiently been marketing the platform to bring more people to it, and it's becoming a wider and wider known and loved brand in the marketplace. And the reason for that is we've talked about it on calls before, with 250,000 movies and television series on the platform and now over 250, in fact, I think around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

Speaker Change: Thanks, very much John.

Speaker Change: So let me ill start im not quite sure why.

Lachlan Keith Murdoch: The growth at Tubi continues to be incredibly strong. I think TBT growth comes from both new subscribers and new viewers finding the platform. As you know, we've, you know, very efficiently been marketing the platform to bring more people to it, and it's becoming, you know, a wider and wider known and loved brand in the marketplace. And the reason for that is, you know, we've talked about it on calls before, you know, with 250,000 movies and television series on the platform and now over 250, in fact, I think around 270 live fast channels on the platform, it really does offer a tremendous product for everyone who's utilizing it.

Speaker Change: I understand we mean by dilution of <unk>, but let me let me start with the other two.

John Christopher Hodulik: The <unk> growth.

John Christopher Hodulik: The growth to be continues to.

Lachlan Keith Murdoch: But it's very interesting because of all those fast channels and all those 2,000 movies and TV series, 90% of the viewing comes on demand. And this is very important because when the viewing comes on demand and it's proactively on demand, as opposed to passively sort of sitting back and watching our fast channel, that's much more valuable to advertisers. And it certainly is something that we're going to make a big deal about at our upfront presentations next week. So, because of that, we are very confident we can hold our CPMs at Tubi. We're already very efficient with our CPMs. I think some of our competitors priced themselves when they entered the AVOD market over the past 12-18 months are very high, and we're seeing the marketplace then having to drop CPMs as new entrants add supply to the market.

John Christopher Hodulik: Two to be incredibly strong.

Of all those fast channels and all those 205,000 movies and a TV series, 90% of the viewing comes on demand. And this is very important because when the viewing comes on demand and it's proactively on demand as opposed to passively sort of sitting back and watching a fast channel, that's much more valuable to advertisers. And it's certainly something that we're going to make a big deal about at our upfront presentations next week. So because of that, we are very confident we can hold our CPMs at Tube. We're already very efficient with our CPMs. I think some of our competitors priced... themselves when they entered the Avod market over the past, you know, 12 and 18 months, very high, and we're seeing the marketplace them having to drop CPMs as new entrants, add supply to the market.

John Christopher Hodulik: I think TVT growth comes from both new subscribers.

John Christopher Hodulik: New viewers are finding the platform.

John Christopher Hodulik: As you'd be aware.

John Christopher Hodulik: <unk>.

Speaker Change: Very good.

Lachlan Murdoch: Reach is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership to their games and matches. And so the value of the Fox Network and, frankly, our strategically kind of positioned station group to any sports league only increases over time is what we're seeing. And therefore, I don't think coming off the second part of your question, I don't think we are strategically disadvantaged with not having a subscription video on-demand service because we found in the past we can partner with others. Well, frankly, the leagues tend to partner with others. We can take the rights where we can broadcast to the most amount of Americans possible, and they can allocate rights to SVODs as needed. But they're never going to be able to live entirely without a broadcast network and broadcast distribution. M&A?

Reach is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership to their games and matches. And so the value of the Fox Network and, frankly, our strategically kind of positioned station group to any sports league only increases over time is what we're seeing. And therefore, I don't think coming off the second part of your question, I don't think we are strategically disadvantaged with not having a subscription video on-demand service because we found in the past we can partner with others. Well, frankly, the leagues tend to partner with others. We can take the rights where we can broadcast to the most amount of Americans possible, and they can allocate rights to SVODs as needed. But they're never going to be able to live entirely without a broadcast network and broadcast distribution. M&A?

John Christopher Hodulik: Efficiently being been marketing the platform to bring more people onto it and it's becoming.

John Christopher Hodulik: Wider and wider known and loved brand in the marketplace.

So because of that, we are very confident we can hold our CPMs at Tube. We're already very efficient with our CPMs. I think some of our competitors priced... themselves when they entered the Avod market over the past, you know, 12 and 18 months, very high, and we're seeing the marketplace them having to drop CPMs as new entrants, add supply to the market.

Lachlan Keith Murdoch: But it's very interesting because, of all those fast channels and all those 250,000 movies and TV series, 90% of the viewing comes on demand. And this is very important because when that viewing comes on demand, and it's proactively on demand as opposed to passively sort of sitting back and watching a fast channel, that's much more valuable to advertisers, and it certainly is something that we're going to make a big deal about at our upfront presentations next week.

John Christopher Hodulik: And the reason for that is we have we've talked about on calls before with 250000.

John Christopher Hodulik: Movies and television.

John Christopher Hodulik: Series on the platform and now over 250 in fact, I think around 270, a live fast channels on the platform. It really does offer a tremendous sum product.

themselves when they entered the Avod market over the past, you know, 12 and 18 months, very high, and we're seeing the marketplace them having to drop CPMs as new entrants, add supply to the market. So that's affecting the market overall. It certainly, you know, has an impact on the market for advertising for Tooby, but from a CPM point of view, it's not really going to be a big impact to us. I should just say, though, that next quarter, we are going to be facing difficult comps in the fourth quarter. I think if you remember this time last year, Tubey was up 47 percent in revenue, and that's going to be a very difficult comp for us now.

themselves when they entered the Avod market over the past, you know, 12 and 18 months, very high, and we're seeing the marketplace them having to drop CPMs as new entrants, add supply to the market.

John Christopher Hodulik: For everyone Who's who is utilizing it but it's very interesting because.

Lachlan Keith Murdoch: So, that's affecting the market overall. It certainly has an impact on the market for advertising for Tubi. But from a CPM point of view, it's not really going to be a big impact to us. I should just say, though, that next quarter, we are going to be facing difficult comps in the fourth quarter. I think if you remember, this time last year, Tubi was up 47%, in revenue, and that's going to be a very difficult comp for us next quarter. So, there will be some headwinds for the whole marketplace, but from a comp point of view for Tubi as well in the next quarter. So, that's just a slight word of caution.

John Christopher Hodulik: Although all of those fast channels on all of those those two into 2000 movies and <unk>.

John Christopher Hodulik: <unk>.

John Christopher Hodulik: Tvs years, 90% of the viewing comes on demand and this is very important because when the viewing comes on demand and its proactively on demand as opposed to passively sort of sitting back and watching your fast channel that's much more valuable to advertisers and it certainly is something that we're going to make a big deal about at our upfront presentations.

Gabrielle Brown: Yeah. So Robert, just in terms of the M&A picture, our posture on sort of what you term non-core assets, we're strong believers in the sports betting market in this country. We read with interest your note that put a $1 billion value on it. And so now our intention is to see that through and eventually exercise. And then the StudioLot, we think, is a long-term asset for us. We have development plans for that. And so we don't have any change in posture around early monetization of those assets. We think they're incredibly valuable for the long term.

Steve Tomsic: Yeah. So Robert, just in terms of the M&A picture, our posture on sort of what you term non-core assets, we're strong believers in the sports betting market in this country. We read with interest your note that put a $1 billion value on it. And so now our intention is to see that through and eventually exercise. And then the StudioLot, we think, is a long-term asset for us. We have development plans for that. And so we don't have any change in posture around early monetization of those assets. We think they're incredibly valuable for the long term.

John Christopher Hodulik: Next week.

Lachlan Keith Murdoch: So because of that, we are very confident we can hold our CPMs at Tubi. We're already very efficient with our CPMs. I think some of our competitors priced themselves when they entered the AVOD market over the past 12 and 18 months very high, and we're seeing in the marketplace them having to drop CPMs as new entrants add supply to the market. So that's affecting the market overall. It certainly has an impact on the market for advertising for Tubi but from a CPM point of view, it's not really going to be a big impact to us.

John Christopher Hodulik: So because of that we are very confident we can hold our cpm's <unk>, we're already very efficient with our Cps.

next quarter. So there will be some headwinds for the whole marketplace, but from a comp point of view for TB as well in the next quarter. So that's just a slight word of caution.

John Christopher Hodulik: I think some of our competitors priced themselves when they entered the <unk> market over the past 12 to 18 months are very high.

Operator: Your next question comes from the line of Robert Fishman from Moffett. Please go ahead.

John Christopher Hodulik: We're seeing in the marketplace them, having a drop cpm's as new entrants.

John Christopher Hodulik: Add supply to the market so that's affecting the market overall.

Robert S. Fishman: Hi. Good morning, everyone. Given all the press about the NBA negotiations underway, just curious if you can think a little bit as far as your broader sports rights go? And how do you think about the value of FOX Broadcast Network as you negotiate those future sports, right? And then, the flip side of that is you feel like you're at a competitive disadvantage without your own SVOD service to compete for future rights? And then if I can, just separately, given all the M&A discussion in the industry, what are your latest thoughts on monetizing some of your strategic, noncore assets like your FanDuel option and Studio Lot? Thank you.

John Christopher Hodulik: It certainly has an impact on the on the market for advertising for <unk>.

Lachlan Murdoch: I just remind you, it's not only the value of the option, but also the equity that we have in Flutter, which is today worth over $900 million.

Lachlan Keith Murdoch: I should just say though that next quarter, we are going to be facing difficult comps in the fourth quarter. I think if you remember this time last year, Tubi was up 47% in revenue and that's going to be a very difficult comp for us next quarter, so there will be some headwinds for the whole marketplace but from a comp point of view for Tubi as well in the next quarter so that's a slight word of caution.

Lachlan Murdoch: I just remind you, it's not only the value of the option, but also the equity that we have in Flutter, which is today worth over $900 million.

John Christopher Hodulik: But from a CPM point of view, it's not really going to be a big impact to us I should just say, though that next quarter, we are going to be.

And then the flip side of that is, do you feel like you're at a competitive disadvantage without your own S-Fod service to compete for future rights? And then if I can just separately, given all the M&A discussion in the industry, what are your latest thoughts on monetizing some of your strategic non-core assets like your Fandual option in Studio lot? Thank you.

Gabrielle Brown: Right. Next question, please, operator.

John Christopher Hodulik: Facing difficult comps in the fourth quarter I think if you remember this time last year <unk> was up 47%.

Operator: Your next question comes from the line of Ben Swinburne from Morgan Stanley. Please go ahead.

And then if I can just separately, given all the M&A discussion in the industry, what are your latest thoughts on monetizing some of your strategic non-core assets like your Fandual option in Studio lot? Thank you.

John Christopher Hodulik: In revenue and that's going be a very difficult comp.

Robert Fishman: Thanks. Good morning. Lachlan, just sort of a question around kind of your products coming to market, the streaming JV, and also maybe how Tubi might fit in. Any more you can share with us on sort of what you think is really differentiated about the product? We haven't seen it yet. You have. And I noticed in the Disney deck yesterday that it says that a definitive agreement hadn't been signed yet. So I didn't know if there was something holding it up or if that meant anything or any update on sort of the go-forward plan. And then I'm wondering, Tubi, with its reach as an app-based service, is that an opportunity for maybe bundling the JV product or merchandising it in some way? You have a pretty interesting direct customer relationship with Tubi.

Benjamin Swinburne: Thanks. Good morning. Lachlan, just sort of a question around kind of your products coming to market, the streaming JV, and also maybe how Tubi might fit in. Any more you can share with us on sort of what you think is really differentiated about the product? We haven't seen it yet. You have. And I noticed in the Disney deck yesterday that it says that a definitive agreement hadn't been signed yet. So I didn't know if there was something holding it up or if that meant anything or any update on sort of the go-forward plan. And then I'm wondering, Tubi, with its reach as an app-based service, is that an opportunity for maybe bundling the JV product or merchandising it in some way? You have a pretty interesting direct customer relationship with Tubi.

John Christopher Hodulik: For us on next quarter, so there will be.

John Christopher Hodulik: Sure.

John Christopher Hodulik: Some headwinds are.

John Christopher Hodulik: But for the whole market by spot, but from a comp point of view for <unk> as well and in the next quarter. So that's just our.

Lachlan Keith Murdoch: Thanks, Roger. So, with the MBI, obviously, I can't sort of comment on other people's sort of negotiations and where that may or may end up. And in terms of how we think about it affecting the value of the FOX Network and our sports portfolio. We're very happy with our sports portfolio. We obviously look at - but packages as they come up but we see them as a portfolio or a bouquet of sports rights that we have, and we feel very strong with the current portfolio that we have, which is one of the reasons why we didn't pursue the MBA in this round of negotiations. But I think it does go to the value of broadcast television because sports leagues still need reaches the - is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership to their games and matches.

John Christopher Hodulik: Slight a word of caution.

Operator: Your next question comes from the line of Robert Fishman from Moffitt. Please go ahead.

John Christopher Hodulik: Your next question comes from the line of Robert Fishman from Moffett. Please go ahead.

it affecting the value of the Fox network and our sports portfolio. We're very happy with our sports portfolio. We obviously look at... you know, rights packages as they come up, but we see them as a portfolio or a bouquet of sports rights that we have, and we feel very, strong with the current portfolio that we have, which is one of the reasons why we didn't pursue the NBA in this round of negotiations. But I think it does go to the value of broadcast television because, you know, sports leagues still need reach, reaches that, you know, is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership to their games and matches.

Robert S. Fishman: Hi, good morning everyone. Given all the press about the NBA negotiations underway, I'm just curious if you could think a little bit as far as your broader sports rights go, and how do you think about the value of the Fox Broadcast Network as you negotiate those future sports rights? And then the flip side of that is, do you feel like you're at a competitive disadvantage without your own SVOD service to compete for future rights? And then, if I can just separately, given all the M&A discussions in the industry, what are your latest thoughts on monetizing some of your strategic non-core assets like your FanDuel option and StudioLot? Thank you.

Robert S. Fishman: Hi, good morning, everyone.

Robert S. Fishman: Given all the press about the NBA negotiations underway I'm just curious if you can think of.

Robert S. Fishman: <unk>.

you know, rights packages as they come up, but we see them as a portfolio or a bouquet of sports rights that we have, and we feel very, strong with the current portfolio that we have, which is one of the reasons why we didn't pursue the NBA in this round of negotiations. But I think it does go to the value of broadcast television because, you know, sports leagues still need reach, reaches that, you know, is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership to their games and matches.

Robert S. Fishman: As far as your broader sports rights go and how do you think about the value of Fox broadcast network as you negotiate those future sports right and then the flip side of that is do you feel like youre at a competitive disadvantage without your own outside service to compete for future right.

strong with the current portfolio that we have, which is one of the reasons why we didn't pursue the NBA in this round of negotiations. But I think it does go to the value of broadcast television because, you know, sports leagues still need reach, reaches that, you know, is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership to their games and matches. And so the value of the Fox network and frankly, our, our,

Robert Fishman: I know it's a different kind of product offering, but I was curious if you'd thought about leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

I know it's a different kind of product offering, but I was curious if you'd thought about leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Speaker Change: And then if I can just separately.

Robert S. Fishman: Given all of the M&A discussion in the industry. What are your latest thoughts on monetizing some of your strategic non core assets like your fan to option and studio a lot. Thank you.

Lachlan Murdoch: Thanks very much, Ben. So first of all, as I said, I've got actually in the room behind me, I've got the beta version of the streaming app. And I don't think we've announced the name yet, so I won't inadvertently do it on this call, I hope, not yet anyway. But look, it's something that we've been able to engage with, and it is really looking tremendously exciting, as I said in my comments. It's very innovative. It's designed to be entirely focused on the cord nevers, cord cutters, people who are not in the cable bundle, and who, frankly, won't be able to compare it to a tier of live channels. It's a very different digital-first product, which when you eventually get it and get to enjoy it, you'll understand how groundbreaking, certainly in this country, it really is.

Lachlan Keith Murdoch: Thanks, Roger. So with the NBA, obviously, I can't sort of comment on other people's negotiations and where that may or may not end up. But in terms of how we think about it affecting the value of the Fox Network and our sports portfolio, we're very happy with our sports portfolio. We obviously look at rights packages as they come up, but we see them as a portfolio or a bouquet of sports rights that we have, and we feel very strong with the current portfolio that we have, which is one of the reasons why we didn't pursue the NBA in this round of negotiations.

Speaker Change: Thanks, Roger So so with the <unk> I would say I can't sort of comment on other people's sort of negotiations and where that may or may end up in terms of how we think about it affecting the value of the Fox network and our sports portfolio, we're very happy.

Lachlan Keith Murdoch: And so, the value of the FOX Network and frankly, our strategically kind of our position station group to any sports league only increases over time is what we're seeing. And therefore, I don't think coming of second part of your question, I don't think we are strategically disadvantaged with not having a subscription video-on-demand service because we found in the past, we can partner with others. Well, frankly, the leagues to tend to partner with others, we can take the rights where we can broadcast to the most amount of Americans possible and they can allocate rights to SVODs as needed. But they're never going to be able to live entirely without a broadcast network and the broadcast distribution.

strategically kind of a position station group to any sports league, you know, only increases over time as what we're seeing. And therefore, I don't think I'm going to the second-party question, you know, I don't think we are strategically disadvantaged with not having a subscription video on-demand service because we found in the past, we can partner with others. Well, frankly, the leagues tend to partner with others. We can take the rights where we can broadcast to the most amount of Americans, you know, possible, and they can allocate rights to S-Vods as needed. But they're never going to be able to live... entirely without a broadcast network and broadcast distribution.

Speaker Change: With our sport sports portfolio.

Speaker Change: We look at them.

Speaker Change: Sure.

Speaker Change: Rights packages as they come up but on but we see them.

And therefore, I don't think I'm going to the second-party question, you know, I don't think we are strategically disadvantaged with not having a subscription video on-demand service because we found in the past, we can partner with others. Well, frankly, the leagues tend to partner with others. We can take the rights where we can broadcast to the most amount of Americans, you know, possible, and they can allocate rights to S-Vods as needed. But they're never going to be able to live... entirely without a broadcast network and broadcast distribution.

Speaker Change: As a as a portfolio or a bouquet of sports rights that we have and we feel very.

second-party question, you know, I don't think we are strategically disadvantaged with not having a subscription video on-demand service because we found in the past, we can partner with others. Well, frankly, the leagues tend to partner with others. We can take the rights where we can broadcast to the most amount of Americans, you know, possible, and they can allocate rights to S-Vods as needed. But they're never going to be able to live... entirely without a broadcast network and broadcast distribution.

Speaker Change:

Speaker Change: Strong.

Speaker Change: Current portfolio portfolio that we have which is one of the reasons why we.

Speaker Change: We didnt pursue.

Speaker Change: And this.

Speaker Change: In this round of negotiations, but I think it does go to the value of broadcast television.

Lachlan Keith Murdoch: But I think it does go to the value of broadcast television, because sports leagues still need reach; reach is still incredibly important for them, for them to drive their fan bases, for them to get the maximum amount of viewership for their games and matches. And so the value of the Fox Network and, frankly, our strategically kind of positioned station group to any sports league only increases over time is what we're seeing.

Speaker Change: Because sports leagues still need reach reaches that is still incredibly important for them for them to drive their fan bases for them.

entirely without a broadcast network and broadcast distribution.

Speaker Change: The maximum amount of viewership to their games and matches and so the value of the Fox network and frankly, our strategically positioned our station group.

Steven Silvester Tomsic: Yes. So, Robert, just in terms of the M&A picture, our posture on sort of what near-term noncore assets, like we're strong believers in the sports betting market in this country. We read with interest you all not to put $1 billion-dollar value on it. And so, it is now our intention is to see through and eventually exercise. And then the Studio Lot, we think is a long-term asset for us. We have development plans for that. And so, we don't any change in posture around early monetization of those assets. We think they are incredibly valuable for the long term.

You term non-core assets. Like we're strong believers in the sports betting market in this country. We read with interest your note that put a billion dollar value on it. And so it's now our intention is to see that through and eventually exercise. And then the studio lot we think is a long-term asset for us. We have development plans for that, and so we don't have any change in posture around. early monetization of those assets. We think they're incredibly valuable for the long term.

Lachlan Murdoch: In terms of the speed, everyone is running at a sort of full pace to get the product finished and delivered. Obviously, there's the fun side of it, which is like the user interface and how you use it, which has been great to use, but there's a ton of work, obviously, and engineering behind that in ingesting content from multiple partners and being able to combine that into one sort of seamless platform. So there's a tremendous amount of work that's being done to get us over the line this autumn, but we're incredibly excited. And so there's no, I wouldn't read anything into final deal terms being signed. It's just a matter of everyone running on all cylinders to get this finished, so. Oh, and Tubi? Sorry, the Tubi. We don't see, Tubi is a very different product.

In terms of the speed, everyone is running at a sort of full pace to get the product finished and delivered. Obviously, there's the fun side of it, which is like the user interface and how you use it, which has been great to use, but there's a ton of work, obviously, and engineering behind that in ingesting content from multiple partners and being able to combine that into one sort of seamless platform. So there's a tremendous amount of work that's being done to get us over the line this autumn, but we're incredibly excited. And so there's no, I wouldn't read anything into final deal terms being signed. It's just a matter of everyone running on all cylinders to get this finished, so. Oh, and Tubi? Sorry, the Tubi. We don't see, Tubi is a very different product.

Speaker Change: Two.

Speaker Change: Any sports League.

Speaker Change: Only only increases over time is what we're seeing.

Lachlan Keith Murdoch: Therefore, coming to the second part of your question, I don't think we are strategically disadvantaged with not having a subscription video on demand service because, as we have found in the past, we can partner with others, well, frankly, the leagues tend to partner with others, and we can take the rights where we can broadcast to the most number of Americans possible, and they can allocate rights to SVODs as needed, but they're never going to be able to live entirely without a broadcast network and broadcast distribution. M&A?

Speaker Change: And therefore, I don't think coming off the <unk>.

Speaker Change: Second part of your question I don't think we are strategically disadvantaged with not having a subscription video on demand service because we've found in the past, we can partner with others, well frankly, the leagues tend to partner with others.

And then the studio lot we think is a long-term asset for us. We have development plans for that, and so we don't have any change in posture around. early monetization of those assets. We think they're incredibly valuable for the long term.

early monetization of those assets. We think they're incredibly valuable for the long term. And I just remind you, it's not only the value of the option, but also the equity that we have in Flatter, which is today worth over $900 million. Right.

early monetization of those assets. We think they're incredibly valuable for the long term.

Speaker Change: We can take.

Speaker Change: The rights, where we can we can broadcast to the most amount of Americans possible.

Lachlan Keith Murdoch: And I'd just remind you, it's not only the value of the option, but also the equity that we have in Flutter, which is today worth over $900 million.

Speaker Change: And.

Speaker Change: They can they can allocate.

Speaker Change: <unk> rights to a to asphalt as needed, but they're never going to be able to live entirely without a broadcast network and broadcast distribution.

Gabrielle Brown: Next question, please, operator?

Operator: Your next question comes from the line of Ben Swinburne from Morgan Stanley . Please go ahead.

Steven Silvester Tomsic: Yeah, so, Robert, just in terms of the M&A picture, like our stance on sort of what you term non-core assets, like we're strong believers in the sports betting market in this country. We read with interest your note that put a billion dollar value on it, and so now our intention is to see that through and eventually exercise it. And then the studio lot, we think, is a long-term asset for us. We have development plans for that, and so we don't have any change in posture around early monetization of those assets; we think they're incredibly valuable for the long term.

Speaker Change: M&A, yes, Robert just in terms of the M&A picture lab posture.

Benjamin Daniel Swinburne: Thanks. Good morning. Lachlan, just sort of a question around kind of your products coming to market, the streaming JV and also maybe how Tubi might fit in, any more you can share with us on sort of what you think is really differentiated about the product? We haven't seen it yet, you have. And I noticed in the Disney deck yesterday that it says that a definitive agreement hasn't been signed yet. So, I didn't know if there was something holding it up or if that meant anything or any update on sort of the go-forward plan. And then, I'm wondering Tubi with its reach as an app-based service, is that an opportunity for maybe bundling the JV product or merchandising and in some way, you have a pretty interesting direct customer relationship with Tubi. I know it's a different kind of product offering. But I was curious if you thought about leveraging that asset or those two assets together to create more value for the company.

Speaker Change: What.

Speaker Change: He term noncore assets like <unk> with strong believers in the sports betting market.

Lachlan Murdoch: We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubi. I think it makes potentially more sense to bundle sports with other SVOD services, which you'll likely see as we go forward.

We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubi. I think it makes potentially more sense to bundle sports with other SVOD services, which you'll likely see as we go forward.

Any more you can share with us on sort of what you think is really differentiated about the product. We haven't seen it yet. You have. And I noticed in the Disney deck yesterday that it says that a definitive agreement hasn't been signed yet. I didn't know. if there was something holding it up or if that meant anything or any update on sort of the go forward plan and And then, you know, I'm wondering, you know, Tooby with its reach as an app-based service, is that an opportunity? for maybe bundling the JV product or merchandising it in some way. You have a pretty interesting direct customer relationship with Tuvi. I know it's a different kind of product offering, but I was curious if you'd thought about you know, leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Speaker Change: In this country.

Speaker Change: We read with interest you will note that would've been in dollar value on it.

Speaker Change: It is now our intention is to say that through and eventually exercise.

Speaker Change: And then the studio look we think is a long term asset for US we have development.

Speaker Change: Plans for that.

Speaker Change: We don't have any change in posture around.

if there was something holding it up or if that meant anything or any update on sort of the go forward plan and And then, you know, I'm wondering, you know, Tooby with its reach as an app-based service, is that an opportunity? for maybe bundling the JV product or merchandising it in some way. You have a pretty interesting direct customer relationship with Tuvi. I know it's a different kind of product offering, but I was curious if you'd thought about you know, leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Gabrielle Brown: Next question, please.

Lachlan Keith Murdoch: Early monetization of those assets, we think they are incredibly valuable for the long term.

Operator: Your next question comes from the line of Jessica Erlich from Bank of America. Please go ahead.

Lachlan Keith Murdoch: And I just remind you, it's not only the value of the option but also the equity that we have in Flutter, which is today worth over $900 million.

And then, you know, I'm wondering, you know, Tooby with its reach as an app-based service, is that an opportunity? for maybe bundling the JV product or merchandising it in some way. You have a pretty interesting direct customer relationship with Tuvi. I know it's a different kind of product offering, but I was curious if you'd thought about you know, leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Remind you it's not only the value of the of the option, but also the equity that we have and flatter which is today worth over $900 million.

Lachlan Murdoch: Thank you. A couple of questions. First, on political advertising. Lachlan, you seem pretty confident that it will come back, but I guess the question is really, will it come back to linear the way it has in the past, and what's your overall outlook? Second, on M&A, you may have the strongest balance sheet in the industry. So I was just wondering if you could explore what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on Tubi, which has, I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big SVOD channels or network platforms. What does it look like over the next three years or so?

Jessica Reif Ehrlich: Thank you. A couple of questions. First, on political advertising. Lachlan, you seem pretty confident that it will come back, but I guess the question is really, will it come back to linear the way it has in the past, and what's your overall outlook? Second, on M&A, you may have the strongest balance sheet in the industry. So I was just wondering if you could explore what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on Tubi, which has, I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big SVOD channels or network platforms. What does it look like over the next three years or so?

for maybe bundling the JV product or merchandising it in some way. You have a pretty interesting direct customer relationship with Tuvi. I know it's a different kind of product offering, but I was curious if you'd thought about you know, leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Gabrielle Brown: Next question, please, operator.

Speaker Change: Next question please operator.

Operator: Your next question comes from the line of Ben Swinburne from Morgan Stanley. Please go ahead.

Lachlan Keith Murdoch: Next question comes from the line of Ben Swinburne from Morgan Stanley. Please go ahead.

Benjamin Daniel Swinburne: Thanks, good morning. Lachlan, just sort of a question around kind of your products coming to market, the streaming JV, and also maybe how Tubi might fit in. Any more you can share with us on sort of what you think is really differentiated about the product? We haven't seen it yet, you have.

Benjamin Daniel Swinburne: Thanks, Good morning.

you know, leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Benjamin Daniel Swinburne: Lachlan I, just sort of a question around kind of your products coming to market. The screaming JV and also maybe how <unk> might fit in.

Thanks a lot.

Lachlan Keith Murdoch: Thanks very much, Ben. So first of all, as I said, I've got actually in the room behind me, I've got the beta version of the streaming app and I don't think we've announced the name yet, so I won't inadvertently do it on this call. I hope not yet anyway. But look, it's something that we've been able to engage with, and it is really looking tremendously exciting, as I said in my comments. It's very innovative. It's designed to be entirely focused on the cord nevers, cord cutters, people who are not in the cable bundle. And we frankly can't - won't be able to compare it to a tier of live channels. It's a very different digital-first product which I'm - when you eventually get it and get to enjoy it, you'll understand how groundbreaking certainly in this country, it really is. In terms of the speed, everyone is running at a sort of full pace to get the product finished and delivered.

Lachlan Keith Murdoch: Any more you can share with us on sort of what your what do you think is really differentiated about the product we haven't seen it yet you have.

In the room behind me, I've got the beta version of the streaming app. I don't think we've announced the name yet, so I won't inadvertently do it on this call, I hope, not yet anyway. But it's something that we've been able to... engage with and it is really looking tremendously exciting, as I said in my comments. It's very innovative. designed to be entirely focused on, you know, the cord nevers, core cutters, people who are not in the cable bundle, and who frankly can't, won't be able to compare it to, you know, groundbreaking certainly in this country it really is in terms of the speed you know we everyone is you know running at a sort of full pace to get the product finished and and delivered

Lachlan Keith Murdoch: And I noticed in the Disney deck yesterday that it says that a definitive agreement hasn't been signed yet. I didn't know if there was something holding it up or if that meant anything or any update on sort of the go-forward plan. And then I'm wondering, Tubi, with its reach as an app-based service, is that an opportunity for maybe bundling the JV product or merchandising it in some way? You have a pretty interesting direct customer relationship with Tubi. I know it's a different kind of product offering, but I was curious if you'd thought about leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Benjamin Daniel Swinburne: And I noticed in the Disney deck yesterday that it says that.

Lachlan Keith Murdoch: Definitive agreement hasn't been signed yet so I didn't know.

Lachlan Keith Murdoch: If there was something holding it up or was that meant anything or any update on sort of the go forward plan.

Lachlan Murdoch: Great. Thanks, Jessica. So let me start with political. We are confident. Obviously, we're disappointed for multiple reasons that there wasn't a more competitive primary season. But we certainly know this is an election which both sides of politics, or all sides of politics, are very focused on, have raised a tremendous amount of money, and that money will flow ultimately to local television. And we are extremely confident of that. One of the reasons we're confident, in addition to the amount of money that we know has been raised, are just the position of our stations, specific stations within the group, and how that aligns with the political map.

engage with and it is really looking tremendously exciting, as I said in my comments. It's very innovative. designed to be entirely focused on, you know, the cord nevers, core cutters, people who are not in the cable bundle, and who frankly can't, won't be able to compare it to, you know, groundbreaking certainly in this country it really is in terms of the speed you know we everyone is you know running at a sort of full pace to get the product finished and and delivered

Lachlan Keith Murdoch: And then I'm wondering <unk> with its reach as an App based service is that an opportunity for maybe bundling the JV product or merchandising and in some way you have a pretty interesting direct customer relationship with <unk> I know, it's a different kind of product offering, but I was curious if you've thought about.

designed to be entirely focused on, you know, the cord nevers, core cutters, people who are not in the cable bundle, and who frankly can't, won't be able to compare it to, you know, groundbreaking certainly in this country it really is in terms of the speed you know we everyone is you know running at a sort of full pace to get the product finished and and delivered

Lachlan Keith Murdoch: Leveraging that asset or those two assets together to create more value for the company. Thanks a lot.

Lachlan Keith Murdoch: Thanks very much, Ben. So, first of all, as I said, I've got the beta version of the streaming app in the room behind me, and I don't think we've announced the name yet, so I won't inadvertently do it on this call, I hope, not yet anyway. But look, it's something that we've been able to engage with, and it is really looking tremendously exciting, as I said in my comments.

Speaker Change: Thanks very much so.

Lachlan Keith Murdoch: First of all as I said I've got actually.

Lachlan Keith Murdoch: In the room behind me I've got.

Lachlan Keith Murdoch: The beta version.

Lachlan Keith Murdoch: Of the <unk>.

Lachlan Keith Murdoch: Dreaming happen I don't think we've announced the name yet so I won't and importantly, do it on this call I hope not yet anyway and.

groundbreaking certainly in this country it really is in terms of the speed you know we everyone is you know running at a sort of full pace to get the product finished and and delivered obviously there's the the

groundbreaking certainly in this country it really is in terms of the speed you know we everyone is you know running at a sort of full pace to get the product finished and and delivered

Lachlan Keith Murdoch: But look it's something that we've been able to.

Lachlan Murdoch: If you look at the tight, so putting aside presidential election, everyone's focus is on. It's easy on a call to talk about sort of national trends, and people focus on presidential, but you have to look below presidential and look at sort of Senate races. So we have tight Senate races in key markets where we have big stations. And you have to remember, Jessica, these are big news stations, right? And political money tends to run alongside news, local news. And so there's tight races in Arizona, in Michigan (these are for Senate), in Michigan, tight races Senate race in Pennsylvania, and in Wisconsin. And also, of course, our DC station will benefit from a tight race in Maryland. In addition to that, you've got a lot of issues on the ballot in different markets.

If you look at the tight, so putting aside presidential election, everyone's focus is on. It's easy on a call to talk about sort of national trends, and people focus on presidential, but you have to look below presidential and look at sort of Senate races. So we have tight Senate races in key markets where we have big stations. And you have to remember, Jessica, these are big news stations, right? And political money tends to run alongside news, local news. And so there's tight races in Arizona, in Michigan (these are for Senate), in Michigan, tight races Senate race in Pennsylvania, and in Wisconsin. And also, of course, our DC station will benefit from a tight race in Maryland. In addition to that, you've got a lot of issues on the ballot in different markets.

Lachlan Keith Murdoch: <unk> engaged with and it is really looking.

Lachlan Keith Murdoch: Tremendously exciting as I said in my comments.

Lachlan Keith Murdoch: It's very innovative, it's designed to be entirely focused on core cutters, people who are not in the cable bundle and who frankly won't be able to compare it to a tier of live channels. It's a very different digital first product, which when you eventually get it and get to [inaudible] you'll understand how groundbreaking, certainly in this country, it really is. In terms of the speed, everyone is running at a full pace to get the product finished and delivered.

It's very innovative, it's designed to be entirely focused on core cutters, people who are not in the cable bundle and who frankly won't be able to compare it to a tier of live channels. It's a very different digital first product, which when you eventually get it and get to [inaudible] you'll understand how groundbreaking, certainly in this country, it really is.

Lachlan Keith Murdoch: Obviously, there's the fun side of it, which is like the user interface and how you use it, which has been great to use, but there's a ton of work, obviously, in engineering behind that in ingesting content from multiple partners and being able to combine that into one sort of seamless platform. So, there's a tremendous amount of work that's being done to get them - to get us over the line this autumn but we're incredibly excited. And so, there's no - I wouldn't read anything into a final deal terms being signed. It's just a matter of everyone running on all cylinders to get this finished. So, on Tubi, sorry, the Tubi. We don't see Tubi is a very different product. We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubi. I think it makes potentially more sense to bundle sports with other SVOD services, which you'll likely see as we go forward.

Lachlan Keith Murdoch: It's a it's very innovative.

The fun side of it, which is like the user interface and how you use it, which has been great to use, but there's a ton of work, obviously, in engineering behind that, in ingesting content from, you know, multiple partners and being able to combine that into one sort of seamless platform. So there's a tremendous amount of work that's being done to get us over the line this autumn. But we're incredibly excited. And so there's no, I wouldn't read anything into, you know, final deal terms being signed. It's just a matter of everyone running on all cylinders to get the finished. Oh, and Tubi, sorry, the TB. We don't see, Tube is a very different product. We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubby. I think it makes... potentially more sense to bundle sports with other S-FOD services, you know, which you'll likely see as we go forward.

Lachlan Keith Murdoch: Designed to be into.

Lachlan Keith Murdoch: Entirely focused on the.

Lachlan Keith Murdoch: Ah.

Lachlan Keith Murdoch: Cord Nevers cord cutters people, who are not in the in the in the cable bundle and you frankly can't won't be able to compare it to.

Lachlan Keith Murdoch: A.

Lachlan Keith Murdoch: Tier of live channels, it's a very different digital first product.

Lachlan Keith Murdoch: Which when you eventually.

Lachlan Keith Murdoch: Get it and get to get get to enjoy it.

Speaker Change: I understand.

Lachlan Keith Murdoch: How.

Lachlan Keith Murdoch: Ah.

Lachlan Keith Murdoch: Groundbreaking certainly in this country it really is.

In terms of the speed, everyone is running at a full pace to get the product finished and delivered. Obviously, there's the fun side of it, which is like the user interface and how you use it, which has been great to use but there's a ton of work, obviously, in engineering behind that in ingesting content from multiple partners and being able to combine that into one sort of seamless platform. So there's a tremendous amount of work that's being done to get us over the line this autumn but we're very excited and so I wouldn't read anything into final deal terms being signed; it's just a matter of everyone running on all cylinders to get to the finish line.

Oh, and Tubi, sorry, the TB. We don't see, Tube is a very different product. We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubby. I think it makes... potentially more sense to bundle sports with other S-FOD services, you know, which you'll likely see as we go forward.

Lachlan Murdoch: So, Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those, onto the ballot. So we think it's going to be an incredibly strong political season. It's just starting later than we had first expected, than you traditionally have when you have a primary, more contested primaries. So you'll start to see the benefit of that in the first half of our next fiscal, Fiscal 2025 for us. The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. I think that's the math. That's just a fact. So we continue to look for accretive opportunities that would align with our kind of strategic goals and initiatives, and we'll continue to do that.

So, Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those, onto the ballot. So we think it's going to be an incredibly strong political season. It's just starting later than we had first expected, than you traditionally have when you have a primary, more contested primaries. So you'll start to see the benefit of that in the first half of our next fiscal, Fiscal 2025 for us. The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. I think that's the math. That's just a fact. So we continue to look for accretive opportunities that would align with our kind of strategic goals and initiatives, and we'll continue to do that.

Lachlan Keith Murdoch: In terms of the speed.

Lachlan Keith Murdoch: Everyone is running at a sort of full pace to get the product.

Lachlan Keith Murdoch: Our finished and.

Lachlan Keith Murdoch: And delivered obviously there is the.

Lachlan Keith Murdoch: Obviously, there's the fun side of it, which is like the user interface and how you use it, which has been great to use but there's a ton of work, obviously, in engineering behind that in ingesting content from multiple partners and being able to combine that into one sort of seamless platform. So there's a tremendous amount of work that's being done to get us over the line this autumn

Lachlan Keith Murdoch: Oh, and Tubi. Sorry about Tubi. Tubi as a very different product. We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubi. I think it potentially makes more sense to bundle sports with other SVOD services, which you'll likely see as we go forward. Next question please.

Oh, and Tubi. Sorry about Tubi. Tubi as a very different product. We don't see an opportunity at this stage, or we haven't contemplated an opportunity at this stage to bundle the sports service with Tubi. I think it potentially makes more sense to bundle sports with other SVOD services, which you'll likely see as we go forward.

Lachlan Keith Murdoch: The fund side of it which is like the user interface and how you use it which has been great to us, but there's a ton of work, obviously and engineering behind that ingesting.

potentially more sense to bundle sports with other S-FOD services, you know, which you'll likely see as we go forward.

Gabrielle Brown: Next question, please.

Lachlan Keith Murdoch: Content from multiple multiple partners.

Operator: Your next question comes from the line of Jessica Ehrlich from Bank of America. Please go ahead.

Lachlan Keith Murdoch: And being able to combine that into one sort of seamless platform. So theres a tremendous amount of work that's being done.

Jessica Reif Ehrlich: Thank you. A couple of questions. First, on political advertising. Lachlan, you seem pretty confident that it will come back. But I guess the question is really - will it come back to linear the way it has in the past and what's your overall outlook. Second, on M&A, you may have the strongest balance sheet in the industry. So, I was just wondering if you could explore what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on Tubi, which has I mean such incredible momentum you've really pulled away from certainly all the other fast channels and competing with the big SVOD channels or network platforms. What does it look like over the next three years or so?

Lachlan Keith Murdoch: To get them.

Lock, on you seem pretty confident that it will come back, but I guess the question is really, will it come back to linear the way it has in the past and what's your overall outlook? Second, on M&A, you may have the strongest balance sheet in the industry, so I was just wondering if you could explore. what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on TB, which has I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big S-Fod company, new channels or network platforms. What does it look like over the next three years or so?

Lachlan Keith Murdoch: Get us over the line in other this autumn.

I guess the question is really, will it come back to linear the way it has in the past and what's your overall outlook? Second, on M&A, you may have the strongest balance sheet in the industry, so I was just wondering if you could explore. what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on TB, which has I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big S-Fod company, new channels or network platforms. What does it look like over the next three years or so?

Lachlan Keith Murdoch: We're incredibly excited and so theres no I wouldn't read anything into them.

Lachlan Keith Murdoch: Final.

Lachlan Keith Murdoch: Deal terms being them being signed.

Second, on M&A, you may have the strongest balance sheet in the industry, so I was just wondering if you could explore. what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on TB, which has I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big S-Fod company, new channels or network platforms. What does it look like over the next three years or so?

Lachlan Keith Murdoch: Ed.

Lachlan Keith Murdoch: Everyone running on all cylinders to get finished.

Lachlan Keith Murdoch: Our <unk> and the <unk>, we don't see tube is a very different product we don't see.

what opportunities you see out there. There seems to be a lot of things going on in the industry. And then finally, just a follow-up on TB, which has I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big S-Fod company, new channels or network platforms. What does it look like over the next three years or so?

Lachlan Murdoch: We obviously don't want our balance sheet to go to waste, but we haven't found anything yet that we're imminently going to do or follow. But it is something we are keeping a close eye on. And then on Tubi, how does Tubi look over the next three years? Look, Tubi continues to grow. Obviously, as you get the scale, the growth trajectory, which is just harder to comp with the growth that we've had over the last couple of years, but Tubi continues to grow. Money will continue to flow from linear entertainment, television, particularly cable entertainment networks, into streaming AVOD and SVOD with advertising-supported SVOD services. That trend will not slow, and Tubi will be one of the main beneficiaries of that money flow. So we're confident in the continued growth of Tubi, and under the leadership of Anjali, it just goes from strength to strength.

Lachlan Keith Murdoch: Sure.

Lachlan Keith Murdoch: An opportunity at this stage, we haven't contemplated opportunity at this stage to bundle the.

I mean, such incredible momentum. You've really pulled away from certainly all the other fast channels and competing with the big S-Fod company, new channels or network platforms. What does it look like over the next three years or so?

Lachlan Keith Murdoch: The sports service with <unk>.

Lachlan Keith Murdoch: I think it makes potentially more sense to bundle sports with other <unk> services.

Lachlan Keith Murdoch: What you will likely see as we go forward.

Gabrielle Brown: Next question please.

Lachlan Keith Murdoch: Great. Thanks, Jessica. So on - let me start with political. We are confident - obviously we're disappointed for multiple reasons that there wasn't a more competitive primary season. But we certainly know this is an election which both sides of politics or all sides of politics are very focused on, have raised a tremendous amount of money, and that money will flow ultimately to local television. And we are extremely confident of that. One of the reasons we're confident in addition to the amount of money that we know has been raised are just a position of our stations - specific stations within the group and how that aligns with the political map.

Speaker Change: Next question please.

Operator: Your next question comes from the line of Jessica Ehrlich from Bank of America. Please go ahead.

Lachlan Keith Murdoch: Your next question comes from the line of Jessica Ehrlich from Bank of America. Please go ahead.

Jessica Reif Ehrlich: Thank you. I have a couple of questions. First, on political advertising, Lachlan, you seem pretty confident that it will come back, but I guess the question is really, will it come back linear the way it has in the past, and what's your overall outlook? Second, on M&A, you may have the strongest balance sheet in the industry, so I was just wondering if you could explore what opportunities you see out there. There seems to be a lot of things going on in the industry.

Jessica Reif Cohen: Thank you a couple of questions first on political advertising.

Lachlan Keith Murdoch: Look when you seem pretty confident that it will come back but.

competitive primary season. But we certainly know this is an election which both sides of politics or all sides of politics are very focused on have raised a tremendous amount of money and that money will will flow ultimately to to local television and we are extremely confident of that. One of the reasons we're confident in addition to the amount of money that we know has been raised are just the position of our stations, specific stations, within the group, and how that aligns with the political map.

Lachlan Keith Murdoch: I guess the question is related to but we'll come back to linear or the way. It has in the past and what's your overall outlook.

Jessica Reif Ehrlich: Second, on M&A, you may have the strongest balance sheet in the industry, so I was just wondering if you could explore what opportunities you see out there. There seems to be a lot of things going on in the industry.

Lachlan Keith Murdoch: Second on M&A.

both sides of politics or all sides of politics are very focused on have raised a tremendous amount of money and that money will will flow ultimately to to local television and we are extremely confident of that. One of the reasons we're confident in addition to the amount of money that we know has been raised are just the position of our stations, specific stations, within the group, and how that aligns with the political map.

Lachlan Keith Murdoch: You may have the strongest balance sheet in the industry. So I was just wondering if you could explore.

Lachlan Keith Murdoch: What opportunities you see out there.

Lachlan Keith Murdoch: Seems to be a lot of things going on in the industry and then finally, just a follow up on <unk>, which has set.

Lachlan Keith Murdoch: And then finally, just a follow-up on Tubi, which has, I mean, such incredible momentum. You've really pulled away from all the other fast channels and are competing with the big SVOD channels or network platforms. What does it look like over the next three years or so?

Lachlan Keith Murdoch: Such incredible momentum, you've really pulled away from certainly all the other sales channels and competing with the big gas companies.

extremely confident of that. One of the reasons we're confident in addition to the amount of money that we know has been raised are just the position of our stations, specific stations, within the group, and how that aligns with the political map. If you look at the tight, so putting aside,

Lachlan Keith Murdoch: The channels are now.

Lachlan Keith Murdoch: That forms.

Lachlan Keith Murdoch: Does it look like over the next three years.

Lachlan Keith Murdoch: Years or so.

Lachlan Keith Murdoch: Great, thanks Jessica. So let me start with political. We are confident, and we obviously were disappointed for multiple reasons that there wasn't a more competitive primary season. But we certainly know this is an election that both sides of politics, or all sides of politics, are very focused on, have raised a tremendous amount of money, and that money will flow ultimately to local television. We are extremely confident of that. One of the reasons we're confident, in addition to the amount of money that we know has been raised, is just the position of our stations, specific stations within the group, and how that aligns with the political map.

Speaker Change: Great. Thanks, Jessica.

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

Lachlan Keith Murdoch: If you look at the tight - so putting aside presidential election [inaudible] call to talk about sort of national trends and people focus on presidential. But you have to look below presidential and look at sort of Senate races. So, we have tight center races in key markets where we have big stations. And you have to remember, Jessica, these are big new stations, right? And political money tends to run alongside news on local news. And so, there's tight races in Arizona, these are presented in Michigan, certain races in Pennsylvania and in Wisconsin. And also, of course, our DC station will benefit from tight race in Maryland. In addition, you've got a lot of issues on the ballot in different markets. So, Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those onto the ballot.

Lachlan Keith Murdoch: So on let me start with them.

Operator: Okay. That question comes from the line of Michael Morris from Guggenheim. Please go ahead.

Lachlan Keith Murdoch: Political.

presidential election. Everyone's focused for focuses on a call to talk about sort of national trends and people focus on presidential. But you have to look below presidential and look at sort of Senate races. So we have tight Senate races in key markets where we have big stations. And you have to remember, Jessica, these are big news stations, right? And political money tends to run alongside news, local news. And so there's Thai races in Arizona, in Michigan, these are for Senate, in Michigan, Thai races, Senate race in Pennsylvania, and in Wisconsin. And also, of course, our DC station will benefit from tight race in Maryland. In addition, you've got a lot of issues on the ballot in different markets. So Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those on the ballot.

Lachlan Keith Murdoch: We are confident we can obviously we're disappointed.

John Hodulik: Thank you. Good morning, guys. Two questions, if I could. The first one is on the JV, and some of your existing distribution partners have brought up concerns that it's in some way unfair to them for you to have a sports-only JV. It seems that you would disagree by virtue of the fact that you're moving forward. So I'd love if you could address those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded. And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable.

Michael Morris: Thank you. Good morning, guys. Two questions, if I could. The first one is on the JV, and some of your existing distribution partners have brought up concerns that it's in some way unfair to them for you to have a sports-only JV. It seems that you would disagree by virtue of the fact that you're moving forward. So I'd love if you could address those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded. And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable.

Lachlan Keith Murdoch: Multiple reasons that there wasn't a moron.

Lachlan Keith Murdoch: Competitive primary season.

Lachlan Keith Murdoch: But.

Lachlan Keith Murdoch: We certainly know this is an.

Lachlan Keith Murdoch: On election, which.

Lachlan Keith Murdoch: Both sides of politics are all sides of politics are very focused on it.

Lachlan Keith Murdoch: Raised a tremendous amount of money and that money.

And so there's Thai races in Arizona, in Michigan, these are for Senate, in Michigan, Thai races, Senate race in Pennsylvania, and in Wisconsin. And also, of course, our DC station will benefit from tight race in Maryland. In addition, you've got a lot of issues on the ballot in different markets. So Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those on the ballot.

Lachlan Keith Murdoch: Will will flow ultimately to them to local local television.

Lachlan Keith Murdoch: Sure.

Speaker Change: And we are.

Lachlan Keith Murdoch: Extremely confident of that.

And also, of course, our DC station will benefit from tight race in Maryland. In addition, you've got a lot of issues on the ballot in different markets. So Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those on the ballot.

Lachlan Keith Murdoch: One of the reasons. We're confident in addition to the amount of money that we know has been raised or are just the position of our of our station specific stations within the group and how that aligns with the political map. If you look at the tight so putting aside presidential election, everyone talks for focuses on Athena.

In addition, you've got a lot of issues on the ballot in different markets. So Arizona, Florida, I think Maryland, again, all have a lot of issue money flowing into those on the ballot.

Lachlan Keith Murdoch: If you look at the tight, so putting aside the presidential election, everyone focuses on a call to talk about national trends, and people focus on the presidential election, but you have to look below the presidential election and look at sort of Senate races. So we have tight Senate races in key markets where we have big stations. And you have to remember, Jessica, these are big news stations, right? And political money tends to run alongside local news. And so there are tight races in Arizona, these are for the Senate, in Michigan, tight Senate races in Pennsylvania, and in Wisconsin. And also, of course, our DC station will benefit from a tight race in Maryland. In addition, you've got a lot of issues on the ballot in different markets, so Arizona, Florida, and Maryland, again, all have a lot of issue money flowing into those on the ballot. So we think it's going to be an incredibly strong political season. It's just starting later than we had initially expected than you traditionally have when you have a primary, more contested primaries. So you'll start to see the benefit of that in the first half of our next fiscal year, which is fiscal '25 for us.

Lachlan Keith Murdoch: So, we think it's going to be an incredibly strong political season. We're just starting later than we had first expected. And then you traditionally have - when you have a primary - more contested primers. So, we'll start to see the benefit of that in the first half of our next fiscal '25 for us. The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. So, I think that's the math. That's just a fact. And so, we continue to look for accretive opportunities that would align with our kind of strategic goals and initiatives and we'll continue to do that. We obviously don't want our balance sheet to go to waste but we haven't found anything yet that we're going to do or follow. But it is something we are keeping a close eye on.

Lachlan Keith Murdoch: Call to talk about sort of national trends and people focus on presidential but you have to look below presidential.

John Hodulik: So to show profit growth as you comp those challenges, I'd be curious if you could talk about sort of the sustainability and whether maybe we're overestimating how profitable those games are. Thank you.

So to show profit growth as you comp those challenges, I'd be curious if you could talk about sort of the sustainability and whether maybe we're overestimating how profitable those games are. Thank you.

Lachlan Keith Murdoch: And look at sort of Senate races. So we have tight Senate Senate races.

Lachlan Keith Murdoch: In key markets, where we have a big stations and you have to remember Jessica These are big new stations, right and political money tends to run.

Lachlan Murdoch: Thanks, Mike. Well, let me start. So on the sports joint venture and how we certainly view it and how we discuss it with our distribution partners, I think the first thing, and this is incredibly important to us, is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be, for a very long time, our number one revenue stream, and we are all in to support our distributors in every way we can in that bundle and in supporting their subscribers and their business. So that is absolutely a fundamental fact for us. Having said that, we've always said it's important for us to put our brands where viewers are, right? And in the universe of sports fans that don't currently take a cable bundle, that is the universe that the sports joint venture will be entirely focused on.

So you'll start to see the benefit of that in the first half of our next fiscal, fiscal 25 for us. The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. I think that's... the math, that's just a fact. And so, you know, we continue to look for creative opportunities that would align with our kind of strategic goals and initiatives. And we'll continue to do that. We obviously don't want... are balance sheet to go to waste, but we haven't found anything yet that we're Emily going to do or follow. So but it is something we are keeping a close eye on.

Lachlan Keith Murdoch: And political money tends to run alongside local news. And so there are tight races in Arizona, these are for the Senate, in Michigan, tight Senate races in Pennsylvania, and in Wisconsin. And also, of course, our DC station will benefit from a tight race in Maryland. In addition, you've got a lot of issues on the ballot in different markets, so Arizona, Florida, and Maryland, again, all have a lot of issue money flowing into those on the ballot. So we think it's going to be an incredibly strong political season. It's just starting later than we had initially expected than you traditionally have when you have a primary, more contested primaries.

Lachlan Keith Murdoch: Long side news on local news and so there's tight races in Arizona.

Lachlan Keith Murdoch: In Michigan. These are for Senate in Michigan tie ratios.

Lachlan Keith Murdoch: And in Pennsylvania, and Wisconsin.

the math, that's just a fact. And so, you know, we continue to look for creative opportunities that would align with our kind of strategic goals and initiatives. And we'll continue to do that. We obviously don't want... are balance sheet to go to waste, but we haven't found anything yet that we're Emily going to do or follow. So but it is something we are keeping a close eye on.

Lachlan Keith Murdoch: And also of course, our D C station.

Lachlan Keith Murdoch: We'll benefit from tight race in Maryland.

Lachlan Keith Murdoch: And Additionally, you've got a lot of issues on the ballot in different markets, So Arizona, Florida.

Lachlan Keith Murdoch: I think Maryland again, all have a lot of issue money flowing into those into those onto onto the ballot. So we think it's going to be an incredibly strong.

are balance sheet to go to waste, but we haven't found anything yet that we're Emily going to do or follow. So but it is something we are keeping a close eye on.

Lachlan Keith Murdoch: Political season.

Lachlan Keith Murdoch: It's just starting later than we had we had first expected than you traditionally have when you have a.

Lachlan Keith Murdoch: Our primary.

Lachlan Keith Murdoch: More contested primaries.

Lachlan Keith Murdoch: And then on Tubi, what is - how does Tubi look over the next three years? Well, Tubi continues to grow. Obviously, as you get to scale, the growth trajectory, which is just harder to comp with the growth that we've had over the last couple of years. But Tubi continues to grow. Money will continue to flow from linear entertainment television, particularly cable entertainment networks into streaming AVOD and SVOD with advertising supported SVOD services. That trend will not slow, and Tubi will be one of the main beneficiaries of that money flow. So, we're confident in the continued growth of Tubi. And under the leadership of Angele, it just goes from strength to strength.

Lachlan Keith Murdoch: <unk>.

Lachlan Keith Murdoch: So you'll start to see the benefit of that in the first half of our next fiscal year, which is fiscal '25 for us. The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. That's just a fact. We continue to look for creative opportunities that align with our strategic goals and initiatives, and we'll continue to do that. We obviously don't want our balance sheet to go to waste, but we haven't found anything yet that we're going to do or follow, but it is something we are keeping a close eye on.

So you'll start to see the benefit of that in the first half of our next fiscal year, which is fiscal '25 for us.

Lachlan Keith Murdoch: So you'll start to see the benefit of that in the first half of our next fiscal fiscal 'twenty five.

Lachlan Keith Murdoch: For us.

Lachlan Keith Murdoch: The next question on M&A and the balance sheet I agree wholeheartedly I think we have the best balance sheet.

The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. That's just a fact. We continue to look for creative opportunities that align with our strategic goals and initiatives, and we'll continue to do that. We obviously don't want our balance sheet to go to waste, but we haven't found anything yet that we're going to do or follow, but it is something we are keeping a close eye on.

Lachlan Keith Murdoch: In the industry. So I think thats the math just that's just a fact.

Lachlan Keith Murdoch: And so we continue to look for accretive opportunities.

Lachlan Murdoch: It's frankly important to us that because we are so invested in the cable bundle, that the sports joint venture will be very targeted and very focused on the non-traditional pay-TV viewer universe. We think we can very cleverly and in a very targeted way market to those subscribers so that we minimize any cannibalization of traditional subscribers. We're very open with our distributors. We're very open with how important they are to us and also how, because of that importance, how we can focus the sports joint venture in the areas it needs to be focused on.

It's frankly important to us that because we are so invested in the cable bundle, that the sports joint venture will be very targeted and very focused on the non-traditional pay-TV viewer universe. We think we can very cleverly and in a very targeted way market to those subscribers so that we minimize any cannibalization of traditional subscribers. We're very open with our distributors. We're very open with how important they are to us and also how, because of that importance, how we can focus the sports joint venture in the areas it needs to be focused on.

Lachlan Keith Murdoch: That would align with our strategic goals and initiatives.

streaming, A-Vod, and S-Vod with advertising supported S-Vod services. That trend will not slow, and Tube will be one of the main beneficiaries of that money flow. So we're confident in the continued growth of Tubby, and under the leadership of Anjali, it just goes from strength to strength.

Lachlan Keith Murdoch: And we'll continue to do that we obviously don't want our balance sheet to go to waste but.

That trend will not slow, and Tube will be one of the main beneficiaries of that money flow. So we're confident in the continued growth of Tubby, and under the leadership of Anjali, it just goes from strength to strength.

Lachlan Keith Murdoch: But we havent, we havent found anything yet that we are.

Lachlan Keith Murdoch: Emily going to kind of our.

Lachlan Keith Murdoch: Do follow so, but but it is something we are we are keeping a close eye on.

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

Lachlan Keith Murdoch: And then on Tubi, how does Tubi look over the next three years? Well, Tubi continues to grow. Obviously, as you get the scale, the growth trajectory, which is just harder to compare with the growth that we've had over the last couple of years, but Tubi continues to grow. Money will continue to flow from linear entertainment, television, particularly cable entertainment networks, into streaming AVOD and SVOD services with advertising-supported SVOD services. That trend will not slow, and Tubi will be one of the main beneficiaries of that money flow. So we're confident in the continued growth of Tubi, and under the leadership of Anjali, it just goes from strength to strength.

Lachlan Keith Murdoch: And then on <unk>, what is how does tubular over over the next three years to be continues to grow obviously as we get to scale.

Operator: Okay, that question comes from the line of Michael Morris from Guggenheim. Please go ahead.

Lachlan Keith Murdoch: The growth trajectory, which is harder to comp with the growth that we've had over the last couple of years, but to be continues to grow.

Michael C. Morris: Thank you. Good morning, guys. Two questions, if I could. The first one is on the JV and some of your existing distribution partners have brought up concerns. It's in some way unfair to them for you to have a sports-only JV. It seems that you would disagree by virtue of the fact that you're moving forward. So, I'd love if you could address those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded. And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So, can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable so to show profit growth as you comp those challenges. I'd be curious if you could talk about sort of the sustainability and whether maybe we're overestimating how profitable those games are. Thank you.

Robert Fishman: Mark, ask Steve, just in terms of television profitability. So quarter to quarter, we were up close to $30 million. The way to think about it is that the single biggest event was Super Bowl, which was a high tens of millions of dollars EBITDA contribution last year versus this year. But then you look at it this year to offset that, we grew affiliate fee in the segment by about $70 million. And so one for the other, basically, is a push. Tubi was a push quarter on quarter in terms of EBITDA deficit there.

Steve Tomsic: Mark, ask Steve, just in terms of television profitability. So quarter to quarter, we were up close to $30 million. The way to think about it is that the single biggest event was Super Bowl, which was a high tens of millions of dollars EBITDA contribution last year versus this year. But then you look at it this year to offset that, we grew affiliate fee in the segment by about $70 million. And so one for the other, basically, is a push. Tubi was a push quarter on quarter in terms of EBITDA deficit there.

Lachlan Keith Murdoch: Money will continue to flow from linear entertainment.

in some way unfair to them for you to have a sports-only JV. Seems that you would disagree by virtue of the fact that you're moving forward. So I'd love if you could address... those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded, And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable. So to show profit growth as you comp those challenges, I'd be curious if you talk about sort of the sustainability and whether maybe we're over-estimating how profitable those. games are. Thank you.

Lachlan Keith Murdoch: TV, particularly.

Lachlan Keith Murdoch: Particularly cable.

Lachlan Keith Murdoch: Entertainment networks or into streaming.

those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded, And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable. So to show profit growth as you comp those challenges, I'd be curious if you talk about sort of the sustainability and whether maybe we're over-estimating how profitable those. games are. Thank you.

Lachlan Keith Murdoch: Dreaming, a bourdon and asphalt.

Lachlan Keith Murdoch: Advertising supported asphalt services that trend.

Lachlan Keith Murdoch: It will not.

And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable. So to show profit growth as you comp those challenges, I'd be curious if you talk about sort of the sustainability and whether maybe we're over-estimating how profitable those. games are. Thank you.

Lachlan Keith Murdoch: We will not slow and <unk> will be one of the main beneficiaries of that money flow. So so we're confident in the continued growth of <unk> and under the leadership of honestly. It just goes from strength to strength.

perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable. So to show profit growth as you comp those challenges, I'd be curious if you talk about sort of the sustainability and whether maybe we're over-estimating how profitable those. games are. Thank you.

Robert Fishman: What's left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push from scripted towards unscripted to get dollar cost per hour down without harming viewership, as well as the impact of the strikes. There's a lot of other puts and takes in there, but they're sort of the big three things that drive it.

What's left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push from scripted towards unscripted to get dollar cost per hour down without harming viewership, as well as the impact of the strikes. There's a lot of other puts and takes in there, but they're sort of the big three things that drive it.

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

Speaker Change: Operator, we have time for one more question.

Operator: Okay, that question comes from the line of Michael Morris from Guggenheim. Please go ahead.

Lachlan Keith Murdoch: Okay that question comes from the line of Michael Morris from Guggenheim. Please go ahead.

Michael C. Morris: Thank you. Good morning, guys. Two questions, if I could. The first one is on the JV and some of your existing distribution partners have brought up concerns that it's in some way unfair to them for you to have a sports-only JV. It seems that you would disagree by virtue of the fact that you're moving forward, so I'd love if you could address those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded. And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that, on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit? We would think that those types of events would be uniquely profitable. So to show profit growth as you compare those challenges, I'd be curious if you could talk about sort of the sustainability and whether maybe we're overestimating how profitable those games are. Thank you.

Michael C. Morris: Thank you good morning, guys two questions if I could the first one is on the JV.

Michael C. Morris: <unk>.

Michael C. Morris: Some of your existing distribution partners have product concerns that it's in.

Lachlan Keith Murdoch: Thanks, Mike. Well, let me start. So, on the sports joint venture and how we certainly view it and how we discuss it with our distribution partners. I think the first thing, and this is incredibly important to us is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be, for a very long time, our number one revenue stream. And we are all in to support our distributors in every way we can in that bundle and supporting their subscribers and their business. So that's absolutely a fundamental fact for us. Having said that, we've always said it's important for us to put our brands where viewers are, right?

Michael C. Morris: Somewhat unfair to them for you to have a sports only JV.

Gabrielle Brown: Okay. At this point, we are out of time, but if you have any further questions, please give me or Charlie Costanzo a call. Thanks so much for joining us today.

Michael C. Morris: It seems that you would disagree by virtue of the fact that you are moving forward. So I'd love if you could address that.

Michael C. Morris: Those concerns and whether you think there will be changes in the marketplace or whether you think those concerns were unfounded.

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

discuss it with our distribution partners. I think the first thing, and this is, incredibly important to us is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be for a very long time our number one revenue stream, and we are all in to support our distributors in every way we can in that bundle and supporting their subscribers and their business. That is absolutely a fundamental fact for us. Having said that, we've always said it's important for us to put our brands where viewers are, right?

Michael C. Morris: And the second question a bit more on the model.

incredibly important to us is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be for a very long time our number one revenue stream, and we are all in to support our distributors in every way we can in that bundle and supporting their subscribers and their business. That is absolutely a fundamental fact for us. Having said that, we've always said it's important for us to put our brands where viewers are, right?

Michael C. Morris: Perhaps for Steve TV profit was I think notably strong in the quarter given that on a year over year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit we would think that those types of events would be.

Michael C. Morris: Uniquely profitable so to show profit growth as you comp those challenges I'd be curious if you could talk about sort of the sustainability and whether maybe where over estimating how profitable those games are thank you.

Lachlan Keith Murdoch: Two questions, if I could. The first one is on the JV. And, you know, some of your existing distribution partners have brought up concerns that it's in some way unfair to them for you to have a sports-only JV. Seems that you would disagree by virtue of the fact that you're moving forward.

Michael C. Morris: Thanks, Mike ill, let me let me start.

Having said that, we've always said it's important for us to put our brands where viewers are, right? And in the universe of sports fans that don't currently take a cable bundle, that is the universe.

Having said that, we've always said it's important for us to put our brands where viewers are, right?

Michael C. Morris: So on the.

Lachlan Keith Murdoch: Sports joint venture and how we certainly view it and how we.

Lachlan Keith Murdoch: And in the universe of sports fans that don't currently take a cable bundle, that is the universe that the sports joint venture will be entirely focused on. And it's frankly important to us that because we are so invested in the Cable bundle, that the sports joint venture will be very targeted and very focused on the nontraditional Pay TV viewer universe. And we think we can very cleverly and very - in a very targeted way market to those subscribers so that we minimize any cannibalization of the traditional subscribers. And so, we're very open with our distributors. We're very open with how important they are to us and also how - because of that importance, how we can focus the sports joint venture and the errors that needs to be focused on.

Lachlan Keith Murdoch: Discuss it.

Lachlan Keith Murdoch: With our distribution partners I think.

that the sports joint venture will be entirely focused on. And it's frankly important to us that because we are so invested in the cable bundle, that the sports joint venture will be very targeted and very focused on the non-traditional pay TV viewer universe. And we think we can very cleverly and in a very targeted way market to those subscribers so that we minimize any cannibalization of the traditional subscribers. So we're very open with our distributors. We're very open with how important they are to us, and also how because of that importance, how we can focus a sports joint venture and the areas it needs to be focused on.

Lachlan Keith Murdoch: The first thing and this is.

Lachlan Keith Murdoch: Sure.

Lachlan Keith Murdoch: Incredibly important to us is that we are.

And it's frankly important to us that because we are so invested in the cable bundle, that the sports joint venture will be very targeted and very focused on the non-traditional pay TV viewer universe. And we think we can very cleverly and in a very targeted way market to those subscribers so that we minimize any cannibalization of the traditional subscribers. So we're very open with our distributors. We're very open with how important they are to us, and also how because of that importance, how we can focus a sports joint venture and the areas it needs to be focused on.

Lachlan Keith Murdoch: Holy.

Lachlan Keith Murdoch: And fundamentally supportive of the traditional cable TV bundle. It will continue to be for a very long time, our number one.

Lachlan Keith Murdoch: Our revenue stream.

Lachlan Keith Murdoch: And we are we are all in to support our distributors in every way we can.

Lachlan Keith Murdoch: In that.

Lachlan Keith Murdoch: In that bundle and supporting their subscribers and their business. So that's that is absolutely a fundamental fact.

Lachlan Keith Murdoch: <unk> for us.

Lachlan Keith Murdoch: Having said that we've always said, it's important for us to put our brands where.

So we're very open with our distributors. We're very open with how important they are to us, and also how because of that importance, how we can focus a sports joint venture and the areas it needs to be focused on.

Lachlan Keith Murdoch: Where viewers are right.

Lachlan Keith Murdoch: And in the universe of.

Lachlan Keith Murdoch: Sports fans that don't currently take.

Lachlan Keith Murdoch: Cable bundle that is the universe that.

Steven Silvester Tomsic: Mike, it's Steve. Just in terms of television profitability. So, quarter-to-quarter, we were up close to $30 million. The way to think about it is the single biggest event was Super Bowl, which was a high tens of million dollars EBITDA contribution last year versus this year. But then you look at it this year to offset that, we grew affiliate fee in the segment by about $70 million. And so, one for the other basically is a push, TV was a push quarter-on-quarter in terms of EBITDA deficit there. And so, then what's left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter-on-quarter perspective, is the change in entertainment programming costs, which was an ongoing push towards from scripted towards unscripted to get dollar cost per hour down without harming dealership, as well as the impact of the strikes. And so, that's - there's a lot of other puts and takes in there, but there are sort of the big three things that drive it.

Lachlan Keith Murdoch: The sports joint venture will be entirely focused on and Thats frankly important to us.

Quarter to quarter we were up close to $30 million. The way to think about it is the single biggest event was Super Bowl, which was a high tens of million dollars EBITDA contribution last year versus this year. But then you look at it this year to offset that we grew affiliate fee in the segment by about $70 million. And so one for the other basically is a push. Tubi was a push quarter on quarter in terms of the Ibertar deficit there. And so then what's left is the biggest Iberda sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push towards from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes and so that's there's a lot of other puts and takes in there but they're the sort of the big three things that drive it

Lachlan Keith Murdoch: Because we are so invested in the in the.

Lachlan Keith Murdoch: In the cable bundle that the sports joint venture will be very targeted and very focused on.

But then you look at it this year to offset that we grew affiliate fee in the segment by about $70 million. And so one for the other basically is a push. Tubi was a push quarter on quarter in terms of the Ibertar deficit there. And so then what's left is the biggest Iberda sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push towards from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes and so that's there's a lot of other puts and takes in there but they're the sort of the big three things that drive it

Lachlan Keith Murdoch: The non traditional pay TV.

Lachlan Keith Murdoch: Viewer.

Lachlan Keith Murdoch: Viewer universe, and we think we can.

Tubi was a push quarter on quarter in terms of the Ibertar deficit there. And so then what's left is the biggest Iberda sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push towards from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes and so that's there's a lot of other puts and takes in there but they're the sort of the big three things that drive it

Lachlan Keith Murdoch: Very cleverly in very in a very targeted way market to those subscribers. So that we minimize any cannibalization of the traditional of traditional.

Lachlan Keith Murdoch: Subscribers.

Lachlan Keith Murdoch: So.

Lachlan Keith Murdoch: So we're very open with our distributors were very open with how important they are to us and also how because of that importance. How we can focus on sports joint venture and the areas that needs to be focused on.

an ongoing push towards from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes and so that's there's a lot of other puts and takes in there but they're the sort of the big three things that drive it

Lachlan Keith Murdoch: so I'd love if you could address those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded. And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that, on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So can you maybe unpack a little bit?

Michael C. Morris: We would think that those types of events would be uniquely profitable. So to show profit growth as you compare those challenges, I'd be curious if you could talk about sort of the sustainability and whether maybe we're overestimating how profitable those games are. Thank you.

Lachlan Keith Murdoch: Market state just in terms of TV profitability.

Lachlan Keith Murdoch: Thanks, Mike. Well, let me start. So on the sports joint venture and how we certainly view it and how we discuss it with our distribution partners, I think that the first thing, and this is incredibly important to us, is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be for a very long time our number one revenue stream, and we are all in to supporting our distributors in every way we can in that bundle and supporting their subscribers and their business, so that is absolutely a fundamental fact for us.

Lachlan Keith Murdoch: Quarter to quarter, we were up.

Lachlan Keith Murdoch: So on the sports joint venture and how, you know, we certainly view it and how we discuss it with our distribution partners, I think that the first thing, and this is, um, incredibly important to us, is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be for a very long time our number one revenue stream, and we are all in to supporting our distributors in every way we can in that bundle and supporting their subscribers and their business. So that is absolutely a fundamental fact for us.

Gabrielle Brown: At this point, we are out of time, but if you have any further questions, please give me or Charlie Costanza a call. Thanks so much for joining us today.

Lachlan Keith Murdoch: Having said that, we've always said it's important for us to put our brands where viewers are, right? And in the universe of sports fans that don't currently take a cable bundle, that is the universe that the sports joint venture will be entirely focused on. And it's frankly important to us that, because we are so invested in the cable bundle, that the sports joint venture will be very targeted and very focused on the non-traditional pay TV viewer universe. And we think we can very cleverly and in a very targeted way market to those subscribers so that we minimize any cannibalization of traditional subscribers. So we're very open with our distributors, we're very open with how important they are to us, and also, because of that importance, how we can focus a sports joint venture in the areas it needs to be focused on.

Lachlan Keith Murdoch: And we think we can very cleverly and in a very targeted way market to those subscribers so that we minimize any cannibalization of traditional subscribers. So we're very open with our distributors, we're very open with how important they are to us, and also, because of that importance, how we can focus a sports joint venture in the areas it needs to be focused on.

Michael C. Morris: Close to $30 million is the way to think about it is the single biggest event with Super Bowl, which was a high tens of million dollars EBITDA contribution last year versus this year.

Steven Silvester Tomsic: Mike, it's Steve. Just in terms of television profitability, so quarter to quarter, we were up close to $30 million. The way to think about it is that the single biggest event was the Super Bowl, which was a high tens of millions of dollars in EBITDA contribution last year versus this year. But then you look at it this year, to offset that, we grew affiliate fees in the segment by about $70 million. And so one for the other basically is a push, Tubi was a push quarter on quarter in terms of EBITDA deficit there and so then what's left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes and so there's a lot of other puts and takes in there but they're the sort of the big three things of drivers.

Operator: Ladies gentlemen, that does conclude your conference call for today. Thank you for using AT&T Executive Teleconference. You may now disconnect.

Steven Silvester Tomsic: But then you look at it this year to offset that we grew affiliate fee in this segment by about $70 million.

Steven Silvester Tomsic: One for the other basically is a push to be was it a push quarter on quarter in terms of EBITDA deficit.

Steven Silvester Tomsic: and so then what's left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was an ongoing push from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes and so there's a lot of other puts and takes in there but they're the sort of the big three things of drivers.

Steven Silvester Tomsic: And so then what's left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter on quarter perspective is the change in entertainment programming costs, which was.

Steven Silvester Tomsic: An ongoing push towards.

Steven Silvester Tomsic: From scripted towards unscripted to get dollars cost per hour down without.

Steven Silvester Tomsic: Humming dealership as well as the impact of the strikes.

Steven Silvester Tomsic: There's a lot of other puts and takes in there, but they are the sort of the three things that drive it.

Gabrielle Brown: At this point, we are out of time, but if you have any further questions, please give me or Charlie Costanzo a call. Thanks so much for joining us today.

Speaker Change: At this point, we are at a time, but if you have any further questions. Please give me or Charlie can handle the call.

Speaker Change: And last for joining us today.

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

Speaker Change: Ladies and gentlemen that does conclude your conference call for today. Thank you for using AT&T executive teleconference. You may now disconnect.

Speaker Change: We're sorry your conferences ending now please.

Operator: Yeah.

Operator: [music].

Speaker Change: Ladies and gentlemen, thank you for standing.

Speaker Change: Welcome to the Fox Corporation third quarter fiscal year 2024 earnings conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session I would like to emphasize that functionality for the question and answer queue will be given at that time. If you should require assistance during the call. Please press Star then zero.

Operator: As a reminder, this conference is being recorded I'll now turn the conference over to Chief Investor Relations Officer, Ms. Scabby old Brown. Please go ahead Ms Brown.

Speaker Change: Thank you operator, good morning, and welcome to our fiscal 2024 third 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, first Lachlan and Steve will give.

Operator: Some prepared remarks on the most recent quarter and then we'll take questions from the investment community.

Operator: Note that this call may include forward looking statements regarding Fox Corporation's financial performance and operating results.

Operator: 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.

Operator: 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.

Operator: And with that I'm pleased to turn the call over to Lachlan.

Speaker Change: Thank you Gabby and thanks, everyone for joining us this morning.

Operator: This quarter Fox continued to distinguish itself from its peers Dilip.

Operator: Delivering 7% EBITDA growth and demonstrating again, the strength of our brands and the advantages of our strategy.

Operator: This result is even more impressive when considering we are comping to last year's third quarter, which enjoyed a significant tailwind from Super Bowl 57.

Operator: In the fiscal third quarter total affiliate revenue fees grew 4% with positive growth in both our television and cable segments driven by pricing benefits from our recent renewals.

Operator: Headline advertising revenues were down during the quarter as expected due to the absence of the Super Bowl and fewer NFL broadcast than in the prior year.

Operator: If not for the difference in our NFL postseason schedule. Our total advertising revenues would have increased a few percent.

Operator: Overall advertising trends at Fox are clearly moving in the right direction, both in the scatter market and in early upfront discussions.

Speaker Change: Demand for sports remains robust while trends at Fox news are improving across the board, including the fact that we have now fully lapped. The direct response market issue that had adversely impacted Fox news Dr revenues.

Operator: And while there wasn't much of a primary season. This year, we do expect strong political advertising for national and local races, as well as local ballot issues in the first half of our fiscal 'twenty, five which had largely benefit our station group.

Operator: As we look to our annual upfront presentation next week, our focus on live content and must watch events, such as the coming presidential election cycle and next year's Super Bowl combined with <unk> position as the most watched free TV and movie streaming service will favor our enviable position with advertisers across the Fox Port.

Operator: Folio.

Operator: Operationally Fox News again ended the third quarter as the most watched cable network in total day and prime time.

Operator: Fox News also strengthened its leadership position inside the category gaining share to now again command, 50% of total debut on.

Operator: These gains are underpinned by a dedicated team of journalists and staff, who are focused on delivering coverage and insights on current events most relevant to our viewers.

Operator: Building from our strengthened in Prime time, we are expanding our leadership across day parts, whether that be mornings with Fox and friends afternoons with the five or late nights with gutfeld.

Speaker Change: And we expect this momentum to continue as we ramp our election coverage heading into the fall.

Operator: <unk> ended the third quarter with 22% revenue growth driven by 36% increase in total view time and 20% growth in monthly active users to just under $80 million.

Operator: <unk>.

Operator: Our expansive content library, and our differentiated user base have solidified <unk> position as the most watched free TV and movie streaming service in the U S. With one 6% of total TV viewing ahead of Peacock Max the Roku channel, Paramount, plus and Pluto TV and only marginally behind.

Operator: Heine Disney plus.

Operator: From its debut on the Nielsen gauge in February of 23 to the most recent gauge in March of 'twenty for <unk> share of total U S. TV view time grew 60%, which is faster than any other streaming service over that same period of time.

Operator: Apart from just its growing scale to be is also unique and uniquely valuable to advertisers they want to reach and through its engagement.

Operator: Over 60% of to be users are classified as cord cutters or cord nevers and 90% of those users time watching is proactive proactively on demand as opposed to passively watching a fast channel.

Operator: Dispositions to be very well as an important part of the growing digital streaming advertising marketplace.

Speaker Change: We are looking forward to showcasing to be strengths at next week's upfront.

Operator: Fox Sports had an impressive quarter with strength across all areas of our portfolio.

Operator: We finished the 30th anniversary of the NFL on Fox on a high note with three NFC playoff games on Fox, averaging an incredible 45 million viewers.

Operator: This was capped with the NFC championship game, drawing over 56 million viewers, which is 19% higher than last year's NFC Championship game and the most watched in over a decade.

Operator: This season also reinforced Fox solid position in college sports with strong viewership in both college football and college basketball.

Operator: In fact in the current academic year boxes are the most watched college football men's college basketball and Womens College basketball games across the regular season.

Operator: College sports has grown to become the second biggest source of Fox viewership behind only the NFL.

Operator: Total consumption of college sports on Fox has grown by over 40% through the last five years.

Operator: And in the March quarter, we launched the U F Hal United Football League. The result of the merger of the Usfl and ex FL.

Operator: With this merger the outlook for spring football is promising and we are pleased with the results through the midpoint of the season.

Operator: While the sports calendar in our upcoming fiscal fourth quarter tends to be quieter Fox sports is excited to present its summer soccer featuring over 200 hours of live soccer coverage across our platform starting with the UEFA European Football Championship on June 14th and Copa America on June 20th.

Operator: This summer will also feature a new schedule from Fox Entertainment with returning favorites like Gordon Ramseys food stars and exciting new shows like the 1% club.

Operator: This follows a successful spring slight that featured two of the top five new primetime series and crap populous and the floor with scrap populous ranking as the number one new Primetime Entertainment show and the floor as the number one game show season today.

Operator: Last quarter, we announced the formation of a new sports focused digital distribution platform with our partners Disney and Warner Brothers Discovery.

Operator: We are happy to have hired a truly world class CEO and Pete just add and he is off to a flying start.

Operator: And just several weeks the JV now has over 150 engineers and executives dedicated to building a unique innovative product, which focuses on sports fans outside of the traditional TV bundle.

Operator: Today's media market is certainly dynamic, but the strength and leadership of our brands and their capacity to convert those strengths financially underscores our considered strategy.

Speaker Change: Underpinning by our best in class balance sheet, we ended the quarter with $3 8 billion in cash and just one times net leverage.

Operator: And with that I'll hand, it over to Steve.

Charlie Costanzo: Thanks, a lot Glenn and good morning, everyone.

Operator: <unk> strategy continues to deliver solid results.

Operator: Even with the comparison to a blockbuster NFL schedule as the prior year, we posted total revenues of 3534 5 billion.

Operator: And grew adjusted EBITDA by 7% to $891 million.

Operator: Total company affiliate fee revenues grew 4% over the prior year with growth with growth at both our television and cable segments supported by our recent cycle of affiliate renewals.

Operator: Reflecting the event driven nature of our business advertising revenues on a headline basis were down 34% as we compared against last year's broadcast of the Super Bowl along with two less NFL playoff broadcasts in the current year quarter.

Speaker Change: As Lachlan just mentioned if not for the impact of these NFL schedule items total company advertising revenues would have grown low single digits.

Operator: Total company other revenues were down 22% versus the prior year, primarily the result of the timing.

Q3 2024 Fox Corp Earnings Call

Request a DemoDemo

FOXA

Fox

Earnings