Q4 2024 Fox Corp Earnings Call

August 6, 2024

And only mode. Later, we will conduct a question and answer session I would like to emphasize that functionality for the question and answer queue will be given at that time. If you should require assistance during the call. Please press Star then zero as a reminder, this conference is being recorded I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead.

Gabrielle Brown: Reconciliation of non-GAAP financial measures are included in our earnings release and our SEC filing, which are available in the Investor Relations section of our website.

Speaker Change: MS Brown. Thank you.

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 filing, which are available in the investor relations section of our website. And with that, I'm pleased to turn the call over to Lachlan.

Lachlan Murdoch: And with that, I'm pleased to turn the call over to Lachlan. Thank you, Gabby, and thank you all for joining us this morning to celebrate our fiscal 4th quarter results. Fiscal 2024 was another successful year for Fox in which we delivered nearly $14 billion of revenue and $2.88 billion of EBITDA. The year that just ended and the momentum from the start of our new fiscal year underscored that the soundness of our strategy, the consistency of our delivery, and the strength of our financial position has never been more clear. Looking back, there were clear achievements across our businesses in fiscal 24, including delivering strong total company affiliate revenue growth each quarter from our ongoing renewals, submitting to be positioned as the most watch-free TV and movie streaming service in the United States, and generating reinvigorated ratings and share growth at Fox News.

Speaker Change: Operator.

And welcome to our fiscal <unk>.

Lachlan Murdoch: Thank you, Gabby, and thank you all for joining us this morning to celebrate our fiscal fourth-quarter results. Fiscal 2024 was another successful year for Fox, in which we delivered nearly $14 billion of revenue and $2.88 billion of EBITDA. The year that just ended and the momentum from the start of our new fiscal year underscore that the soundness of our strategy, the consistency of our delivery, and the strength of our financial position have never been more clear.

Gabrielle Brown: 24th quarter earnings call.

Joining me on the call today are Lachlan Murdoch.

Lachlan Murdoch: Chair and Chief Executive Officer, John Allen, Chief operating Officer.

Lachlan Murdoch: Heath Thompson, our Chief Financial Officer.

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

Speaker Change: Please note that this call may include forward looking statements regarding Fox Corporation's financial performance and operating results.

Speaker Change: These statements are based on management's current expectations and actual results could differ from what is stated as a result of certain factors identified on today's call and in the Companys SEC filings.

Lachlan Murdoch: Looking back, there were clear achievements across our businesses in fiscal 24, including delivering strong total company affiliate revenue growth each quarter from our ongoing renewals, cementing Tubi's position as the most watched free TV and movie streaming service in the United States, and generating reinvigorated ratings and share growth at Fox News. The power of our brands and our ability to deliver engaged audiences at scale across our platforms remains remarkably strong. Total time spent viewing all Fox brands increased in Fiscal 24, despite the absence of the Super Bowl and FIFA Men's World Cup. Tubi viewing time, as measured by Nielsen, grew 57% in fiscal 24, with absolute growth in minutes of viewing, easily surpassing the growth of leading subscription video-on-demand services.

Speaker Change: 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.

Lachlan Murdoch: The power of our brands and our ability to deliver engaged audiences at scale across our platforms remains remarkably strong. Total time spent viewing all Fox brands increased in fiscal 24, despite the absence of the Super Bowl and FIFA Men's World Cup. To be viewing time, as measured by Nielsen, grew 57% in fiscal 24, with absolute growth in minutes viewing, easily surpassing the growth of leaving subscription video on demand services. Fox Sports, Big New Saturday, was the number one ranked window in college football for third straight year, while America's Game of the Week in eight year viewers of high this fiscal year.

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

Lachlan Murdoch: Thank you Gabby and thank you all for joining US this morning to celebrate our fiscal fourth quarter results.

Lachlan Murdoch: Fiscal 2024 was another successful year for <unk> in which we delivered nearly $14 billion of revenue and $2 $88 billion of EBITDA.

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.

Lachlan Murdoch: The year that just ended and then momentum from the start of our new fiscal year underscore the soundness of our strategy the consistency of our delivery and the strength of our financial position has never been more clear.

Lachlan Murdoch: Fox Sports' Big News Saturday was the number one ranked window in college football for a third straight year, while America's Game of the Week hit an eight-year viewership high this fiscal year. And Fox News was, again, the most watched network in cable news in fiscal 24, with 52% more minutes of viewing than its closest competitor. Our foundation for this coming fiscal year is solid, as we carry the momentum from fiscal 24 into another year of major events, particularly for our news and sports businesses. The recent news cycle has been nothing short of extraordinary.

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.

Speaker Change: Looking back there were clear achievements across our businesses in fiscal 'twenty, four including delivering strong total company affiliate revenue growth each quarter from our ongoing renewals cementing <unk> position as the most watched free TV and movie streaming service in the United States and generating a re invigorated ratings.

Lachlan Murdoch: And Fox News was, again, the most watch network in cable news in fiscal 24, with 52% more minutes of viewing than its closest competitor. Our foundation for this coming fiscal year is solid, as we carry the momentum from fiscal 24 into another year of major events, particularly for our news and sports businesses. The recent news cycle has been nothing short of extraordinary, and when news breaks, people turn to the news brand they trust. The strength of our news coverage is unmatched, and Fox News remains the clear first choice for viewers during the most pivotal moments.

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

Speaker Change: Thank you Gabby and thank you all for joining US this morning to celebrate our fiscal fourth quarter results.

And share growth at Fox News.

Speaker Change: The power of our brands and our ability to deliver engaged audiences at scale across our platforms remains remarkably strong.

Lachlan: Fiscal 2024 was another successful year for box in which we delivered nearly $14 billion of revenue and $2 $88 billion of EBITDA.

Speaker Change: Total time spent viewing all Fox brands increased in fiscal 'twenty four despite the absence of the Super Bowl and FIFA Men's World Cup.

Lachlan Murdoch: And when news breaks, people turn to the news brand they trust. The strength of our news coverage is unmatched, and Fox News remains the clear first choice for viewers during the most pivotal moments. The fourth quarter saw audience levels return to growth at the Fox News Channel, driven by our political coverage and strong primetime lineup. Fox News exited its fiscal year as the most watched network in all of cable, in total day and in prime Time, and gained share amongst cable news networks in both prime and total day versus last year.

Speaker Change: The year that just ended and then momentum from the start of our new fiscal year underscore.

Speaker Change: To be viewing time as measured by Nielsen grew 57% in fiscal 'twenty four with absolute growth in minutes viewing easily surpassing the growth and leading subscription video on demand services.

Speaker Change: Soundness of our strategy the consistency of our delivery and the strength of our financial position has never been more clear.

Lachlan Murdoch: The fourth quarter saw audience levels return to growth at the Fox News Channel, driven by our political coverage and strong prime time lineup. Fox News exited the fiscal year as the most watch network in all of cable in total day and in prime time, and gained share amongst cable news networks in both prime and total day versus last year. Furthermore, the ratings story at Fox News continues to improve into this fiscal year, when in July, total viewers grew nearly 80 percent, and the 25 to 54 demo grew 120 percent over last year. Fox News had its highest rated weekend ever in prime time in July, with over 5.7 million viewers tuning in to its extended coverage of the Trump rally in Butler, Pennsylvania.

Speaker Change: Fox Sports Big New Saturday was the number one ranked window in college football for a third straight year, while Americas game of the week and an eight year viewership hi, this fiscal year.

Speaker Change: And Fox News was again, the most watched network in cable news in fiscal 'twenty, four with 52% more minutes reviewing than its closest competitor.

Lachlan Murdoch: Furthermore, the ratings story at Fox News continued to improve into this fiscal year when, in July, total viewers grew nearly 80% and the 25-54 demo grew 120% over last year. Additionally, Fox News had its highest-rated weekend ever in primetime in July, with over 5.7 million viewers tuning in to its extended coverage of the Trump rally in Butler, Pennsylvania. In fact, Fox News had its highest share of the cable news audience across the board in prime Time since August 2015, and the Fox News Channel rated number one across all linear television in July for total viewers in weekday prime, beating the nearest broadcast competitor by nearly 10%. These positive trends bode well for Fox News as we continue through this extraordinary news cycle. But news is not our only business with great momentum.

Speaker Change: Share growth at Fox News.

Speaker Change: The power of our brands and our ability to deliver engaged audiences at scale across our platforms remains remarkably strong.

Our foundation for this coming fiscal year is solid.

Speaker Change: As we carry the momentum from fiscal 'twenty four into another year of major events, particularly for our news and sports businesses.

Speaker Change: Total time spent viewing all Fox brands increased in fiscal 'twenty four despite the absence of the Super Bowl and FIFA Men's World Cup.

Speaker Change: The recent news cycle has been nothing short of extraordinary.

Lachlan Murdoch: In fact, Fox News had its highest share of the cable news audience across the board in prime time since August 2015, and the Fox News Channel rated number one across all linear television in July for total viewers in weekday prime, beating the nearest broadcast competitor by nearly 10 percent. These positive trends both well for news as we continue to this extraordinary news cycle.

Speaker Change: And when news breaks people turn to the news brand that they trust.

Speaker Change: The strength of our news coverage coverage is unmatched and Fox news remains the clear first choice for viewers during the most pivotal moments.

Speaker Change: Fox Sports Big News Saturday was the number one ranked window in college football for a third straight year, while Americas game of the week and an eight year viewership hi, this fiscal year.

Speaker Change: The fourth quarter saw audience levels returned to growth as the Fox News channel driven by our political coverage and strong primetime lineup.

Speaker Change: And Fox News was again, the most watched network in cable news in fiscal 'twenty, four with 52% more minutes reviewing than its closest competitor.

Speaker Change: Fox news exited their fiscal year as the most watched network in all of cable and total day and in Primetime and gained share amongst cable news networks in both prime and total day versus last year.

Lachlan Murdoch: But news is not our only business with great momentum. To be is also enjoying impressive viewership metrics and revenue growth. To be improved upon its status as the most watched free TV and movie streaming service in the US, finishing the fiscal year at a record high of 2 percent of total TV viewing. To be self-continent momentum in viewership during the fourth quarter, reaching an all-time high of 81 million monthly active users and growing total view time by 17 percent, driven by an expansive library that offers something for every consumer. Not only is the TV library the largest in the US, but it also has unique content that audiences can only find on TV.

Lachlan Murdoch: Tubi is also enjoying impressive viewership metrics and revenue growth. It has improved upon its status as the most watched free TV and movie streaming service in the U.S., finishing the fiscal year at a record high of 2% of total TV viewing. Tubu saw continued momentum in viewership during the fourth quarter, reaching an all-time high of 81 million monthly active users and growing total view time by 17 percent, driven by an expansive library that offers something for every consumer. Not only is the Tubi Library the largest in the U.S., but it also has unique content that audiences can only find on Tubi.

Our foundation for this coming fiscal year is solid as we carry the momentum from fiscal 'twenty four into another year of major events, particularly for our news and sports businesses.

Speaker Change: Furthermore, the rating story at Fox News has continued to improve into this fiscal year. When in July total viewers grew nearly 80% and the 25 to 54 demo grew 120% over last year.

The recent news cycle has been nothing short of extraordinary.

Speaker Change: And when news breaks people turn to the news brand They trust.

Speaker Change: <unk> had its highest rated weekend ever in primetime in July with other with over $5 7 million viewers tuning in to his extended coverage of the Trump rally in Butler, Pennsylvania.

Speaker Change: The strength of our news coverage coverage is unmatched and Fox news remains the clear first choice for viewers during the most pivotal moments.

Speaker Change: In fact, Fox news had its highest share of the cable news audience across the board in Primetime since August 2015.

Speaker Change: The fourth quarter saw audience levels returned to growth as the Fox News channel driven by our political coverage and strong primetime lineup.

Lachlan Murdoch: Notwithstanding a complex digital advertising marketplace and a tough year-on-year comparison, this viewership drove 7% revenue growth during the quarter. Importantly, however, we ended the month of June with revenue growth in the teens, and that pace has continued into this quarter with steady pricing despite increased inventory in the overall market.

Lachlan Murdoch: Notwithstanding a complex digital advertising marketplace and a tough year in your comparison, this viewership growth, 7 percent revenue growth during the quarter. Importantly, however, we ended the month of June with revenue growth in the teens. And that pace is continued into this quarter with steady pricing, despite increased inventory in the overall market. Over at Fox Sports, the fourth quarter was very active thanks to Fox's Summer of Soccer, which exceeded all expectations and set viewership records. The UA for European Championship averaged 1.7 million viewers across the Foxboro Cast Network and FS1, a 34 percent gain over the 2021 tournament.

Speaker Change: And the Fox News channel rated number one across all linear TV in July for total viewers in weekday prime beating the nearest broadcast competitor by nearly 10%.

Speaker Change: These positive trends bode well for news as we continue through this extraordinary new cycle.

Speaker Change: Furthermore, their rating story at Fox News has continued to improve into this fiscal year. When in July total viewers grew nearly 80% and the 25 54 demo grew 120% over last year.

Speaker Change: But news is not our only business with great momentum.

Lachlan Murdoch: Over at Fox Sports, the fourth quarter was very active, thanks to Fox's Summer of Soccer, which exceeded all expectations and set viewership records. The UEFA European Championship averaged 1.7 million viewers across the Fox broadcast network and FS1, a 34% gain over the 2021 tournament. Cobra America averaged 1.4 million viewers, a three-time increase over the 2021 tournament. The two finals also broke records and now rank as the most watched soccer matches ever on Fox, other than World Cup matches.

Speaker Change: <unk> is also enjoying enjoying impressive viewership metrics and revenue growth.

Speaker Change: To be improved upon our status as the most watched free TV and movies streaming service in the U S, finishing the fiscal year at a record high of 2% of total TV viewing.

Speaker Change: Fox News had its highest rated weekend ever in primetime in July with other with over $5 7 million viewers tuning in to the extended coverage of the Trump rally in Butler, Pennsylvania.

Speaker Change: Two we saw continued momentum in viewership during the fourth quarter, reaching an all time high of 81 million monthly active users and growing total view time by 17% driven by an expansive library that offer something for every consumer.

Lachlan Murdoch: and Kobe America averaged 1.4 million viewers over a three-ton increase above the 2021 tournament. The two finals also broke records, and now rank as the most watched soccer matches ever on Fox, other than World Cup matches. But it's not just soccer that our audiences are watching this summer. The regular season of Major League Baseball is also trending positively, and our special broadcasts are the Rickville game and the Major League Baseball All-Star Game each performed well above expectations. And in just a few short weeks, we welcome back the NFL and college football on Fox. Our 2024 NFL schedule will start strong.

Speaker Change: In fact, Fox news had its highest share of the cable news audience across the board in Primetime since August 2015.

Speaker Change: And the Fox News channel rated number one across all linear TV in July for total viewers in weekday prime beating the nearest broadcast competitor by nearly 10%.

Speaker Change: Not only has the tube elaborate the largest in the U S. But it also has unique content that audiences can only find on television.

Lachlan Murdoch: But it's not just soccer that our audiences are watching. The regular season of Major League Baseball is also trending positively, and our special broadcaster, the Rickwood game, and the MLB All-Star game each performed well above expectations.

Speaker Change: These positive trends bode well for news as we continue through this extraordinary new cycle.

Notwithstanding a complex digital advertising marketplace and a tough year on year comparison. This viewership drove 7% revenue growth during the quarter.

Speaker Change: But news is not our only business with great momentum.

Lachlan Murdoch: And in just a few short weeks, we welcome back the NFL and college football on Fox. Our 2024 NFL schedule will start strong. Fox's first four America's Game of the Week windows include three Dallas Cowboys games and a rematch of last year's Chiefs versus Niners Super Bowl.

Speaker Change: Importantly, however, we ended the month of June with revenue growth in the teens and that pace has continued into this quarter with steady pricing despite increased inventory in the overall market.

<unk> is also enjoying enjoying impressive viewership metrics and revenue growth.

Speaker Change: To be improved upon our status as the most watched television and movie streaming service in the U S, finishing the fiscal year at a record high of 2% of total TV viewing.

Lachlan Murdoch: Fox's first four Americas Game of the Week windows includes three Dallas Cowboys games and a rematch of last year's Chiefs versus Niners Super Bowl. And, of course, our schedule ends strong, too, culminating in Super Bowl 59 this February on Fox. Also a debut in this fall will be a new lineup from Fox Entertainment, with a return of popular shows like Hell's Kitchen and The Masked Singer, and the debut of new dramas like High Surf and Murder in a Small Town, which many of you saw a preview of at our successful upfront presentation in May. Speaking of the upfront, we see a much healthier market than the nuanced one I referred to six months ago.

Speaker Change: Over at Fox Sports the fourth quarter was very active to extra Fox is summer of soccer, which exceeded all expectations and set viewership records. The UEFA European Championship averaged $1 7 million viewers across the Fox broadcast network and <unk>, a 34% gain over 2000.

Lachlan Murdoch: And, of course, our schedule ends strong, too, culminating in Super Bowl LII this February on Fox. Also debuting this fall will be a new lineup from Fox Entertainment, with the return of popular shows like Hell's Kitchen and The Masked Singer and the debut of new dramas like High Surf and Murder in a Small Town, which many of you saw a preview of at our successful Upfront presentation in May. Speaking of the front, we see a much healthier market than the nuanced one I referred to six months ago.

Speaker Change: 'twenty one tournament.

Speaker Change: Not only has the tube elaborate a largest in the U S. But it also has unique content that audiences can only find on television.

Speaker Change: And Copa America averaged $1 4 million viewers over a three times increase above the 2021 tournament.

Speaker Change: The two final also broke records and now rank as the most of our soccer matches ever on Fox other than World Cup matches.

Speaker Change: Notwithstanding a complex digital advertising marketplace and a tough year on year comparison. This viewership drove 7% revenue growth during the quarter.

Speaker Change: But it is not just software that our audiences are watching the summer the regular season, our major League baseball is also trending positively.

Lachlan Murdoch: As evidence, our upfront commitments were strong. Our focus portfolio of market leading properties in sports, news, entertainment, and streaming delivered year-over-year growth in both linear and digital advertising commitments, as well as growth in overall portfolio pricing in this year's upfront. Notably, we saw double-digit vine growth and stable pricing at 2B, which is testament to its incredible momentum in the streaming marketplace. At the local level, we are expecting a very robust election advertising cycle that will be weighted to our second quarter. If anything, as a poll in Titans, the election map may be extended to more of the markets in which we operate.

Lachlan Murdoch: As evidence, our upfront commitments were strong. Our focused portfolio of market-leading properties in sports, news, entertainment, and streaming delivered year-over-year growth in both linear and digital advertising commitments, as well as growth in overall portfolio pricing in this year's upfront. Notably, we saw double-digit volume growth and stable pricing at Tubi, which is testament to its incredible momentum in the streaming market. At the local level, we are expecting a very robust election advertising cycle that will be weighted to our second quarter.

Speaker Change: Our special broadcasts of the Ric will game.

Speaker Change: Major League baseball all star game, each performed well above expectations.

Speaker Change: And in just a few short weeks, we welcome back the NFL and college football on Fox.

Speaker Change: Our 2024 NFL schedule will start strong Fox is first for America's game of the week Windows includes three Dallas Cowboys gains in a rematch of last year's Chief Chiefs versus nine are Super Bowl ad.

Speaker Change: 'twenty one tournament.

Speaker Change: And Copa America averaged $1 4 million viewers over a three times increase above the 2021 tournament.

Speaker Change: And of course, our schedule and strong to culminating in Super Bowl 59. This February on Fox.

Lachlan Murdoch: If anything, as the polling tightens, the election map may be extended to more of the markets in which we operate. As we enter a very exciting fiscal 2025, we will continue to focus on execution with events such as the U.S. election cycle at our local stations and on Fox News, Super Bowl 59 on Fox, the renewal of one quarter of our distribution revenue, and the launch of the venue sports streaming service in the fall. Our strong, differentiated position, coupled with the strength of our balance sheet, underpin our confidence in continuing to deliver meaningful shareholder returns. And with that, I'll hand it over to Steve. Thanks.

Speaker Change: The two final also broke records and now rank as the most of our soccer matches ever on Fox other than World Cup matches.

Speaker Change: Also debuted debuts this fall will be a new lineup from Fox Entertainment with the return of popular shows like health kitchen, and the masked singer and the debut of new dramas like high surf and murder in a small town, which many of you saw a preview of our successful upfront presentation in may.

Lachlan Murdoch: As we enter a very exciting fiscal 2025, we will continue to focus on execution, with events such as the US election cycle at our local stations, and Fox News Super Bowl 59 on Fox, the renewal of one quarter of our distribution revenue, and the launch of the venue sports streaming service in the fall. Our strong, differentiated position, coupled with the strength of our balance sheet, underpins our confidence on continuing to deliver meaningful shareholder returns.

But it is not just software that our audiences are watching the summer the regular season. Our major League baseball is also trending positively and our special broadcasts are there Rick will game.

Speaker Change: Major League baseball all star game each.

Speaker Change: Formed well above expectations.

Speaker Change: Speaking of the upfront, we see a much healthier market than the new launched one I referred to six months ago.

Speaker Change: And in just a few short weeks, we welcome back the NFL and college football on Fox.

Speaker Change: As evidence our upfront commitments were strong.

Speaker Change: Our 2024 NFL schedule will start strong Fox is first for America's game.

Speaker Change: Our focused portfolio of market, leading properties in sports news entertainment and streaming delivered year over year growth in both linear and digital advertising commitments as well as growth in overall portfolio of pricing in this year's upfront.

The weak Windows includes three Dallas Cowboys gains in a rematch of last year's Chief Chiefs versus nine are Super Bowl.

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

Steve Tomsic: Thanks, Lachlan, and good morning, everyone. Fox once again delivered financially in fiscal 2024, with total company revenues of almost $14 billion and adjusted EBITDA of $2.88 billion. We successfully completed approximately one-third of our affiliate renewals this year, with the financial benefits of these renewals driving 4% growth in total company affiliate fee revenues, led by 9% growth in the television segment. Our fiscal 2024 results compare against a prior year of marquee events, including the record-breaking Super Bowl 57, the FIFA Men's World Cup, and the midterm election cycle.

Steve Tomsic: Thanks, Auckland, and good morning, everyone. Fox once again delivered financially in fiscal 2024, with total company revenues of almost $14 billion and adjusted EBITDA of $2.88 billion. We successfully completed approximately one-third of our affiliate renewals this year, with the financial benefits of these renewals driving 4% growth in total company affiliate fee revenues, led by 9% growth at the television segment.

Speaker Change: And of course, our schedule and strong to culminating in Super Bowl 59. This February on Fox.

Speaker Change: Notably, we saw double digit volume growth and stable pricing of <unk>, which is testament to its incredible momentum in the streaming marketplace.

Speaker Change: Also debuted debuts this fall will be a new lineup from Fox Entertainment.

Speaker Change: At the local level, we're expecting a very robust election advertising cycle that will be weighted to our second quarter.

Speaker Change: And with the return of popular shows like health kitchen, and the masked singer and the debut of new drama like high surf and murder in a small town, which many of you saw our preview of at our successful upfront presentation in may.

Speaker Change: If anything as a price as the Poland tightens the election map may be extended to more of the markets in which we operate.

Steve Tomsic: Benjamin. Our fiscal 2020-24 results compare against a prior year of market events, including the record-breaking Super Bowl 57, the FIFA Men's World Cup, and the mid-term election cycle. As anticipated, the comparison to these cyclical events contributed to an 18% decline in total company advertising revenues. Total company other revenues were down 4% year-over-year, with high sports sub-licensing revenues more than offset by lower content revenues impacted by the SAG and WGA labor disputes. Total company expenses decreased like percent, largely due to the absence of costs associated with the Super Bowl and Men's World Cup in the prior year.

Steve Tomsic: As anticipated, the comparison to these cyclical events contributed to an 18% decline in total company advertising revenues. Total company other revenues were down 4% year-over-year, with higher sports sub-licensing revenues more than offset by lower content revenues impacted by the SAG and WGA labor disputes. Total company expenses decreased 5%, largely due to the absence of costs associated with the Super Bowl and Men's World Cup in the prior year. However, this was partially offset by the first year step-up under our new NFL Rights Agreement. Also contributing to this overall decrease in expenses will be lower entertainment programming costs due to the strike.

Yeah.

Speaker Change: Speaking of the upfront, we see a much healthier market than the new launched one I referred to six months ago.

Speaker Change: As we enter a very exciting fiscal 2025, we will continue to focus on execution with events such as the U S election cycle at our local stations and Fox News Super Bowl 59 on Fox the renewal of one quarter of our distribution revenue and the launch of the venue sports streaming service in the fall.

Speaker Change: As evidence our upfront commitments were strong our.

Our focused portfolio of market, leading properties in sports news entertainment and streaming delivered year over year growth in both linear and digital advertising commitments as well as growth in overall portfolio of pricing in this year's upfront.

Speaker Change: Our strong differentiated differentiated position coupled with the strength of our balance sheet underpin our confidence on continuing to deliver meaningful shareholder returns.

Speaker Change: Notably, we saw double digit volume growth and stable pricing of <unk>, which is testament to what's incredible momentum in the streaming marketplace.

And with that I'll hand over to Steve.

Steve: Thanks, a lot Glenn and good morning, everyone.

Speaker Change: At the local level, we're expecting a very robust election advertising cycle that will be weighted to our second quarter.

Speaker Change: Fox once again delivered financially in fiscal 2024.

Steve Tomsic: However, this was partially offset by the first year step up under our new NFL rights agreement. Also contributing to this overall decrease in expenses were lower entertainment programming costs due to the strikes. Net income attributable to stockholders was $1.5 billion or $3.13 per share, up versus the $1.24 billion or $2.33 per share reported in fiscal 2023. Restructuring, impairment, and other corporate matters was impacted by charges associated with the Fox News Media litigation last year, and non-operating other net was impacted by the change in the fair value of the company's investment in Flutter, partially offset by the book gained on USFL assets contributed to the United Football League Joint Venture.

Speaker Change: With total company revenues of almost $40 million and adjusted EBITDA of $2 8 billion.

Speaker Change: If anything as a price as the Poland tightens the election map may be extended to more of the markets in which we operate.

Steve: We successfully completed approximately one third of our affiliate renewals this year with the financial benefits of these renewals driving 4% growth in total company affiliate fee revenues.

Speaker Change: Yeah.

Steve Tomsic: Net income attributable to stockholders was $1.5 billion or $3.13 per share, up versus the $1.24 billion or $2.33 per share reported in fiscal 2023. Restructuring, impairment, and other corporate matters were impacted by charges associated with the Fox News media litigation last year. And non-operating other net was impacted by the change in the fair value of the company's investment in Flutter, partially offset by the book gain on USFL assets contributed to the United Football League joint venture. Excluding non-core items, 4-year adjusted net income was $1.65 billion, and adjusted EPS was $3.43 a share. Turning to our fiscal fourth quarter.

Speaker Change: By 9% growth at the television segment.

Speaker Change: Our fiscal 2024 results compare against the prior year marquee events, including the record pricing Super Bowl 57, the FIFA Women's World Cup and the midterm election cycle as.

Speaker Change: Our strong differentiated differentiated position coupled with the strength of our balance sheet underpin our confidence on continuing to deliver meaningful shareholder returns.

Speaker Change: As anticipated the comparison to these cyclical events contributed to an 18% decline in total company advertising revenues.

Speaker Change: Total company.

Speaker Change: Other revenues were down 4% year over year with highest sports sub licensing revenues more than offset by lower content revenues impacted by the by the Sag WGNA labor disputes.

Steve Tomsic: Excluding non-core items, 4-year adjusted net income was $1.65 billion, and adjusted EPS was $3.43 per share. Turning to our fiscal fourth quarter, Fox delivered total revenues of $3.09 billion, up 2% from the prior year quarter, and quarterly adjusted EBITDA of $773 million, up 5% from the prior year quarter. Total company affiliate fee revenues grew 5% over the prior year, which grows at both our television and cable segments, supported by a recent cycle of affiliate renewals. Total company advertising revenues were flat, as the revenue generated from our summer of soccer and growth at 2B was offset by lower ratings and pricing of the Fox Network.

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

Steve: Thanks, a lot Glenn and good morning, everyone.

Steve: Fox once again delivered financially in fiscal 2024.

Steve: With total company revenues of almost $40 million and adjusted EBITDA of $2 8 billion.

Speaker Change: Total company expenses decreased 5% largely due to the absence of costs associated with the Super Bowl in men's World Cup in the prior year. However, this was partially offset by the <unk> step up under a new NFL rights agreement.

Steve Tomsic: Fox delivered total revenues of $3.09 billion, up 2% from the prior year quarter, and quarterly adjusted EBITDA of $773 million, up 5% from the prior year quarter. Total company affiliate fee revenues grew 5% over the prior year, with growth at both our television and cable segments, supported by our recent cycle of affiliate renewals. Total company advertising revenues were flat, as the revenue generated from our summer of soccer and growth at Tubi was offset by lower ratings and pricing at the Fox Network.

Speaker Change: Also contributing to this overall decrease in expenses with lower entertainment programming costs due to the strikes.

Steve: Our fiscal 2024 results compare against the prior year marquee events.

Speaker Change: Net income attributable to stockholders was $1 5 billion or $3 13 per share up versus the $1 billion to $4 billion or $2 33 per share reported in fiscal 2023.

Steve: Including the record pricing Super Bowl 57, the FIFA Women's World Cup and the midterm election cycle as anticipated the comparison to these cyclical events contributed to an 18% decline in total company advertising revenues.

Speaker Change: Restructuring impairment and other corporate matters was impacted by charges associated with the Fox News media litigation last year.

Steve Tomsic: Total company other revenues with down 11%, primarily due to a lower volume of third-party content sales in the current year quarter. Growth in total company expenses was held to 1%.

Steve Tomsic: Total company other revenues were down 11%, primarily due to a lower volume of third-party content sales in the current year quarter. However, growth in total company expenses was held to 1%. Here, costs associated with the broadcasts of UAC Euros and Copper America, along with digital investments at Tubi, were partially offset by the deconsolidation of the USFL and lower programming and production costs at Fox Entertainment from the higher mix of unscripted versus scripted content.

Steve: Total company other revenues were down 4% year over year with highest sports sub licensing revenues more than offset by lower content revenues impacted by the by the Sag and WGNA labor disputes.

Speaker Change: In non operating other net was impacted by the change in the fair value of the company's investment in Florida, partially offset by the gain on Usfl assets contributed to the United Football League joint venture.

Steve Tomsic: Here, cost associated with the broadcasts of the U.A.K. Euros and corporate America, along with digital investments at 2B, were partially offset by the deconsolidation of the USFL and lower programming and production costs at Fox Entertainment from the higher mix of unscripted versus scripted content. Net income attributable to stockholders of $319 million or $6800 per share was down versus the $375 million or $7400 per share reported in the prior year quarter. Excluding non-core items, adjusted net income in the quarter increased to $423 million, while adjusted EPS grew 2% to 90 cents a share.

Steve: Total company expenses decreased 5% largely due to the absence of costs associated with the Super Bowl in men's World Cup in the prior year. However, this was partially offset by the <unk> step up under a new NFL rights agreement.

Speaker Change: Excluding noncore items full year adjusted net income was $1 65 billion and.

Speaker Change: And adjusted EPS was $3 43 a share.

Turning to our fiscal fourth quarter.

Steve Tomsic: Net income attributable to stockholders of $319 million, or $0.68 per share, was down versus the $375 million or $0.74 per share reported in the prior year quarter, although leather revenues were essentially unchanged from the prior year quarter. Before we get to capital allocation and the balance sheet, it is worth noting some key items for this coming fiscal year. We continue to expect strong political advertising in the first half of the fiscal year from the election cycle, which will particularly benefit our stations group. Returning to capital allocation.

Steve: Also contributing to this overall decrease in expenses with lower entertainment programming costs due to the strikes.

Speaker Change: Fox delivered total revenues of $3 <unk> billion up 2% from the prior year quarter and quarterly adjusted EBITDA of $773 million up 5% from the prior year quarter.

Steve: Net income attributable to stockholders was $1 5 billion or $3 13 per share up versus the $1 billion to $4 billion or $2 33 per share reported in fiscal 2023.

Speaker Change: Total company affiliate fee revenues grew 5% over the prior year with growth at both of the television and cable segments supported by our recent cycle of affiliate renewals.

Steve Tomsic: Now turning to the quarterly results of our main operating segments. At cable networks, fourth-requiter revenue grew 2% year over year. Cable Affiliate Fee Revenue's increased 2% with growth in pricing from our affiliate renewals, outpacing the impact from industry subscriber declines running in the mid-eight percent range. Cable advertising revenue's grew 3% at the National Sports Network's advertising benefit benefited from the broadcasts of Convergol Copper America and the UEFA European Championship. At Fox News, ad revenues benefited from higher pricing, improved ratings, and slightly lower pre-emptions. Cable other revenues were essentially unchanged from the prior year quarter. Cable expenses were 11% lower than the prior year quarter, primarily due to the deconsolidation of the USFL and lower programming costs of Fox News, partially offset by the grew 20% over the prior year quarter to reach $703 million.

Steve: Restructuring impairment and other corporate matters was impacted by charges associated with the Fox News media litigation last year.

Speaker Change: Total company advertising revenues were flat.

Speaker Change: As the revenue generated from our summer of soccer and growth at <unk> was offset by lower ratings and pricing of the Fox network.

Steve: In non operating other net was impacted by the change in the fair value of the company's investment in Florida, partially offset by the gain on Usfl assets contributed to the United Football League joint venture.

Speaker Change: Total company other revenues were down 11%, primarily due to a lower volume of third party content sales in the current year quarter.

Steve: Excluding noncore items full year adjusted net income was $1 65 billion and.

Speaker Change: Growth in total company expenses was held to 1%.

Steve: And adjusted EPS was $3 43 a share.

Speaker Change: Costs associated with the broadcast of the UEFA euros and Copa America, along with digital investments at <unk> were partially offset by the deconsolidation of the Usfl and lower programming and production costs at Fox Entertainment from the higher mix of unscripted versus scripted content.

Steve: Turning to our fiscal fourth quarter.

Steve: Fox delivered total revenues of $3 <unk> billion up 2% from the prior year quarter and quarterly adjusted EBITDA of $773 million up 5% from the prior year quarter.

Speaker Change: Net income attributable to stockholders of $319 million or <unk> 68 per share was down versus the $375 million or <unk> 74 per share reported in the prior year quarter.

Steve: Total company affiliate fee revenues grew 5% over the prior year with growth at both the television and cable segments supported by our recent cycle of affiliate renewals.

Steve: Total company advertising revenues were flat.

Speaker Change: Excluding noncore items adjusted net income in the quarter increased to $423 million, while adjusted EPS grew 2% to 90 a share.

Steve: As the revenue generated from our summer of soccer and growth at <unk> was offset by lower ratings and pricing of the Fox network.

Speaker Change: Now turning to the quarterly results and our main operating segments.

Steve: Total company other revenues were down 11%, primarily due to a lower volume of third party content sales in the current year quarter.

Steve Tomsic: Turning to our television segment, where we delivered 2% growth in quarterly revenues, this was led by 9% growth in television affiliate fee revenues, as price increases across Fox owned and operated and Fox affiliated stations continued to outpace the impact from subscriber declines. Television advertising revenues fell 1% as the broadcasts of the UEFA Euros and Copa America and growth at 2B were offset by lower ratings and pricing at the Fox Network. Television other revenues fell 19% in the quarter, primarily a result of a lower volume of third-party content sales. Expenses at the television segment grew 8% over the prior year quarter, primarily due to costs associated with UEFA Euros and Copa America and digital investment at 2B, partially offset by lower programming and production costs of Fox Entertainment.

Speaker Change: At cable networks fourth quarter revenue grew 2% year over year.

Steve: Growth in total company expenses was held to 1%.

Speaker Change: Cable affiliate fee revenues increased 2% with growth in pricing from our affiliate renewals outpacing the impact from industry subscriber declines running in the mid 8% range.

Steve: Costs associated with the broadcast of the UEFA euros and Copa America, along with digital investments at <unk> were partially offset by the deconsolidation of the Usfl and lower programming and production costs at Fox Entertainment from the higher mix of unscripted versus scripted content.

Speaker Change: Cable advertising revenues grew 3%.

Speaker Change: At the National Sports networks advertising benefit benefited from the broadcast of Carnival Copa America, and UEFA European Championship.

Steve: Net income attributable to stockholders of $319 million or <unk> 68 per share was down versus the $375 million or <unk> 74 per share reported in the prior year quarter <unk>.

Speaker Change: At Fox News AD revenues benefited from higher pricing improved ratings.

Speaker Change: Slightly lower preemption.

Speaker Change: Total other revenues were essentially unchanged from the prior year quarter.

Steve: Excluding noncore items adjusted net income in the quarter increased to $423 million, while adjusted EPS grew 2% to <unk> 90, a share.

Speaker Change: <unk> expenses were 11% lower than the prior year quarter, primarily due to the deconsolidation of the Usfl and lower programming costs at Fox news, partially offset by the UEFA euros in corporate America.

Steve: Now turning to the quarterly results of our main operating segments.

Steve Tomsic: Technical lease factors into account, quarterly adjusted either at the television segment declined 35% against the prior year quarter to $148 million.

Steve: At cable networks fourth quarter revenue grew 2% year over year.

Speaker Change: <unk> quarterly adjusted EBITDA at our cable segment grew 20% over the prior year quarter to reach $703 million.

Steve: Cable affiliate fee revenues increased 2% with growth in pricing from our affiliate renewals outpacing the impact from industry subscriber declines running in the mid 8% range.

Steve Tomsic: During the full year, we generated free cash flow, which we define as net cash provided by operating activities less capex, at $1.5 billion. Before we get to capital allocation and balance sheet, there's worth noting some key items for this coming fiscal year. Most notably, we return to another major event cycle in fiscal 2025, led by Super Bowl 59, which we expect will draw significant growth in both advertising revenues and free cash flow. However, this is the first Super Bowl under our new NFL contract, and accordingly, we'll have elevated right tamaltization. We continue to expect strong political advertising in the first half of the fiscal year from the election cycle, which will particularly benefit our station's group.

Speaker Change: Turning to our television segment, where we delivered 2% growth in quarterly revenues. This was led by 9% growth in TV affiliate fee revenues as price increases across Fox owned and operated and Fox affiliated stations continued to outpace the impact from subscriber declines.

Speaker Change: Cadillac Appetizing revenues grew 3%.

Speaker Change: At the National Sports networks advertising benefit benefited from the broadcast of Carnival Copa America, and the UEFA European Championship.

Speaker Change: Television advertising revenues fell 1% as the broadcast of the UEFA euros, and Copa America and growth at <unk> were offset by lower ratings and pricing at the Fox network.

Speaker Change: At Fox News AD revenues benefited from higher pricing improved ratings.

Speaker Change: Slightly lower preemption.

Speaker Change: Total other revenues were essentially unchanged from the prior year quarter.

Speaker Change: TV other revenues fell 19% in the quarter, primarily a result of the lower volume of third party content sales.

Speaker Change: Expenses at the television segment grew 8% over the prior year quarter, primarily due to costs associated with UEFA euros, and Copa America, and digital investment in <unk>, partially offset by lower programming and production costs at Fox Entertainment.

Steve Tomsic: From an affiliate revenue perspective, we have a relatively light year of renewals, with approximately one quarter of our total company distribution revenues up for a new, which are more weighted to our cable segment. We expect to continue to invest in our digital-led growth initiatives. Here, two of you will continue to be the focus of investment spend, with the collective digital portfolio expected to deliver improved EBITDA relative to 2024. We also look forward to the expected launch of venue sports this fall. As a reminder, our share of ownership results from venue will be recorded below either dark in equity earnings.

Speaker Change: All in quarterly adjusted EBITDA at our cable segment grew 20% over the prior year quarter to reach $703 million.

Speaker Change: Technical lease factors into account quarterly adjusted EBITDA at the television segment declined 35% against the prior year quarter to $148 million.

Turning to our television segment, where we delivered 2% growth in quarterly revenues. This was led by 9% growth in TV affiliate fee revenues as price increases across Fox owned and operated and Fox affiliated stations continued to outpace the impact from subscriber declines.

Speaker Change: During the full year, we generated free cash flow, which we define as net cash provided by operating activities less capex of one 5 billion.

Speaker Change: Television advertising revenues fell 1% as the broadcast of the UEFA euros, and Copa America and growth at <unk> were offset by lower ratings and pricing at the Fox network.

Speaker Change: Before we get to capital allocation and balance sheet is worth noting some key items for this coming fiscal year.

Most notably we returned to another major event cycle in fiscal 2025 led by Super Bowl 59, which we expect will drive significant growth in both advertising revenues and free cash flow. However, this is the first Super Bowl under our new NFL contract and Accordingly, we will have elevated rights amortization.

Speaker Change: TV other revenues fell 19% in the quarter, primarily a result of the lower volume of third party content sales.

Steve Tomsic: Returning to capital allocation, over the course of the fiscal year, we return $1 billion of capital through the repurchase of $40 million Class A shares and a further $250 million in dividend payments. Underlining our continued commitment to shareholder returns, today we announced an increase in our semi-annual dividend to 27 cents a share. With the payment of this dividend and taking into account share repurchase activity since year end, we will accumulatively return over $7.25 billion of capital to our shareholders since the spin in 2019. This includes $5.65 billion of share repurchases, representing over 27% of our total shares outstanding since the launch of the buyback program in November 2019.

Steve Tomsic: Over the course of the fiscal year, we returned $1 billion of capital through the repurchase of 40 million Class A shares and a further $250 million in dividend payments. This is all supported by the strength of our balance sheet, where we ended the quarter with $4.3 billion in cash and approximately $7.2 billion in debt.

Speaker Change: Expenses at the television segment grew 8% over the prior year quarter.

Speaker Change: <unk> due to costs associated with UEFA euros, and Copa America, and digitally investment in <unk>, partially offset by lower programming and production costs at Fox Entertainment.

We continue to expect strong political advertising in the first half of the fiscal year from the election cycle, which will particularly benefit stations group.

Speaker Change: Technical lace factors into account.

Speaker Change: Adjusted EBITDA at the television segment declined 35% against the prior year quarter to $148 million.

Speaker Change: From an affiliate revenue perspective, we have a relatively light year of renewals was approximately one quarter of that total company distribution revenues up for Aneel up for renew which are more weighted to our cable segment.

Speaker Change: During the full year, we generated free cash flow, which we define as net cash provided by operating activities less capex of one 5 billion.

Speaker Change: We expect to continue to invest in our digital led growth initiatives.

Speaker Change: Before we get to capital allocation and balance sheet is worth noting some key items for this coming fiscal year.

Speaker Change: <unk> will continue to be the focus of the investment spend with the collective digital portfolio expected to deliver improved EBITDA relative to 2024.

Speaker Change: Most notably we returned to another major event cycle in fiscal 2025 led by Super Bowl 59, which we expect will drive significant growth in both advertising revenues and free cash flow. However, this is the first Super Bowl under our new NFL contract and Accordingly, we will have elevated rights amortization.

Steve Tomsic: This is all supported by the strength of our balance sheet, where we enter the quarter with $4.3 billion in cash and approximately $7.2 billion in debt.

Speaker Change: We also look forward to the expected launch of venue sports. This fall as a reminder, our share of ownership results from venue will be recorded below EBITDA and equity earnings.

Gabrielle Brown: And with adults in the call back to Gabby to get started with Q&A. Great. Thank you, Steve.

Returning to capital allocation.

Operator: And now we will be happy to take questions from the investment community. Ladies and gentlemen, I'd like to emphasize the functionality for the question and answer Q. If you wish to ask a question, please press one and zero on your touchtone phone. You will hear a tone indicating you have been placed in Q. You may remove yourself from Q at any time by once again pressing one and zero. If you're using a speaker phone, please pick up the handset before pressing the numbers.

Over the course of the fiscal year, we returned $1 billion of capital through the repurchase of 40 million class a shares and a further $250 million in dividend payments.

Speaker Change: We continue to expect strong political advertising in the first half of the fiscal year from the election cycle, which will particularly benefit as stations group.

Speaker Change: From an affiliate revenue perspective, we have a relatively light year of renewals was approximately one quarter of that total company distribution revenues up for Aneel.

Speaker Change: Underlying our continued commitment to shareholder returns today, we announced an increase in our semiannual dividend of <unk> 27 per share.

Speaker Change: Up for renewal, which are more weighted to our cable segment.

Speaker Change: With the payment of this dividend and taking into account share repurchase activity since year end.

Operator: 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.

Speaker Change: We expect to continue to invest in our digital related growth initiatives.

Speaker Change: We'll accumulatively returned over 700 in a quarter billion dollars of capital to our shareholders since the spin in 2019.

Speaker Change: <unk> will continue to be the focus of the investment spend with the collective digital portfolio expected to deliver improved EBITDA relative to 2024.

Ben Swinburne: Your first question comes from the line of Ben Swinborn from Morgan Stanley. Please go ahead. Thank you. Good morning. I want to ask about Ben Yu, which is launching quite soon. You guys have announced, or they have announced the price point.

Speaker Change: This includes $5 65 billion of share repurchases, representing over 20, 27% of our total shares outstanding since the launch of the buyback program in November 2019.

Speaker Change: We also look forward to the expected launch of venue sports. This full as a reminder, our share of ownership results from venue will be recorded below EBITDA and equity earnings.

Speaker Change: This is all supported by the strength of our balance sheet, where we ended the quarter with $4 $3 billion in cash and approximately $7 2 billion in debt.

Lachlan Murdoch: I guess, Locklin, how are you thinking about this product now that it's about to launch and the pricing's out. You've given us some sense of a sort of longer term. Subscribe or potential, but I didn't know if you wanted to revisit that or just share your thoughts on how you think that product fits and who the audience is.

Speaker Change: Returning to capital allocation.

Speaker Change: Over the course of the fiscal year, we returned $1 billion of capital through the repurchase of 40 million class a shares and a further $250 million in dividend payments.

Speaker Change: And with that I'll turn the call back to get you to get started with Q&A great. Thank you, Steve and now we will be happy to take questions from the investment community.

Speaker Change: Underlining our continued commitment to shareholder returns today, we announced an increase in our semiannual dividend of <unk> 27 per share.

Steve Tomsic: And Steve, is there anything we should be thinking about in terms of the impact of the financials in fiscal 25 from venue, you know, sort of across the income statement or cash flow statement that we should be keeping our eyes on? I know you guys are obviously equity partners and also will benefit from any revenue generation from the product. Thanks so much.

Steve Tomsic: And Steve, is there anything we should be thinking about in terms of the impact of the financials in fiscal 25 from venue, you know, sort of across the income statement or casual statement that we should be keeping our eyes on. I know you guys are obviously equity partners and also will benefit from any revenue generation product. Thanks so much.

Speaker Change: Ladies and.

Steve: Gentlemen, I would like to emphasize the functionality for the question and answer queue.

Speaker Change: Yes.

Speaker Change: With the payment of this dividend and taking into account share repurchase activity since year end.

Speaker Change: 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 you may remove yourself from queue at any time by once again pressing one zero if youre using a speakerphone. Please pick up the handset before pressing the numbers. It has been requested that you limit yourself to one question. Once again, if you have a <unk>.

Accumulatively returned over seven and a quarter billion dollars of capital to our shareholders since the spin in 2019.

Lachlan Murdoch: Hey Ben, thank you very much for the question, and good morning. Obviously, a number of milestones have been achieved in the development of Ben Yu as we've gone through the beta. And as you lead towards the launch later this month, this new beta releases practically every day. And the product is looking both excellent, really good, but also quite revolutionary in the way Americans are going to view sport. So we remain incredibly excited about it. You know, the venue announced their pricing of $42.99 as an initial launch price. We think that's the right mark and the target for what we want to be as a business but also as a consumer proposition.

Speaker Change: Chen Please press one zero at this time and one moment. Please for your first question.

Speaker Change: Your first question comes from the line of Ben Swinburne from Morgan Stanley. Please go ahead.

Speaker Change: Thank you good morning.

Ben Swinburne: I wanted to ask about venue, which is launching quite soon you guys have announced or they've announced the price point.

Ben Swinburne: I guess laughlin how.

Speaker Change: How are you thinking about this product now.

Speaker Change: About to launch in pricings out you've given us some sense of sort of longer term subscriber.

Speaker Change: Subscriber potential, but I didn't know if you wanted to revisit that or to share your thoughts on how you think that product fits who the audiences.

Speaker Change: And Steve is there anything we should be thinking about in terms of the impact to the financials in fiscal 'twenty five for venue sort of across the income statement or cash flow statement that we should be keeping our eyes on I know you guys are.

Lachlan Murdoch: And there's no update really on our expectations of 5 million subscribers over over 5 years. That's what's in the business plan, and that's where we're aiming to achieve. Obviously, it's very important that those subscribers are focused on court cutters and court nevers. You know, we feel that on all of the partners in venue, you know, feel very strongly that we can target our marketing and our subscriber acquisition to sports fans that are not currently in the cable television bundle. That's important to us. And that really is what leads us to subscriber level, you know, in the mid-single-digit millions.

Speaker Change: Obviously equity partners and also will benefit from any revenue generation product. Thanks, so much.

Speaker Change: Hey, Ben Thank you very much for the question and good morning.

Speaker Change: Question comes from the line of Ben Swinburne from Morgan Stanley. Please go ahead.

Speaker Change: Hi.

Speaker Change: Obviously.

Speaker Change: A number of.

Speaker Change: Milestones have been have been achieved on the development of our venue as we've gone through the beta.

Ben Swinburne: Thank you and good morning.

Ben Swinburne: I wanted to ask about venue, which is launching quite soon you guys have announced or David announce the price point.

Julie towards them.

Speaker Change: The launch later this month.

Speaker Change: I guess laughlin how.

Speaker Change: New beta releases practically every day and the product is looking.

Ben Swinburne: How are you thinking about this product now that it's about to launch in pricings out you've given us some sense of sort of longer term subscriber.

Speaker Change: Both.

Speaker Change: Excellent really good but also in a quite revolutionary in the way Americans are going to view sport. So we remain incredibly excited about it.

Speaker Change: Subscriber potential, but I didn't know if you wanted to revisit that or just share your thoughts on how you think that product fits in who the audiences and Steve is there anything we should be thinking about in terms of the impact to the financials in fiscal 'twenty five from venue sort of.

Steve Tomsic: Steve? Yeah. Thanks, Ben. So, in terms of impact and financial statements, obviously we're at a two-sided relationship with venue sports. As a shareholder, listening to the business is going to take some time to sort of get the cash flow break even. So, from a shareholder perspective, you'll see that investment come through. We'll take the deficit through equity earnings in the PNL and investment through the cash flow. But obviously, we're a key supplier to the JV, being a content supplier of our sports networks. And so, the benefit was that you'll see come through in our affiliate fee revenues both in cable and TV.

Speaker Change: <unk>.

Speaker Change: The venue announced their pricing of $42 99, as an initial launch price we think that's the.

Steve: Across the income statement or cash flow statement that we should be keeping our eyes on I know you guys are.

Speaker Change: That.

Speaker Change: Really hits, the right Mark and the target we want to be as a business, but also as a consumer proposition and there is no no update really on our expectations of 5 million subscribers over over five years.

Speaker Change: Obviously equity partners and also will benefit from any revenue generation from product. Thanks, So much.

Speaker Change: Hey, Ben Thank you very much for the question and good morning.

Obviously.

Speaker Change: A number of.

Speaker Change: Milestones have been have been achieved on the development of a venue as we've gone through the beta.

Speaker Change: That's what's in the business plan and that's what we're aiming to achieve obviously, it's very important that those subscribers are focused on are cord cutters and cord nevers.

Steve Tomsic: So, it's a touch early. I think with some 100% lockdown in terms of launch date to give you any sort of guide on quantum in terms of fiscal 25 impact. But, as I said, I think a couple of earnings calls ago, on a net net basis, that should be accreted to us on a pretty quick basis.

Ben Swinburne: We lead towards them.

Ben Swinburne: The launch later this month.

Speaker Change: We feel it.

Ben Swinburne: New beta releases practically every day and the product is looking.

Speaker Change: The partners and venue feel very strong that we can target our marketing and our subscriber acquisition to sports fans that are not currently in the cable TV bundle that's important to us and that really is what leads us to.

Ben Swinburne: Both.

Ben Swinburne: Excellent really good but also in a quite revolutionary in the way Americans are going to view sport. So we remain incredibly excited about it.

Operator: Operator, next question, please.

John Hodulik: Your next question comes from the line of John Hodulik from UBS. Please go ahead. Thanks. Good morning.

Ben Swinburne: <unk>.

Speaker Change: Subscriber level.

John Hodulik: Maybe a couple of questions on the ad market. First of all, on the TV side, you guys mentioned lower pricing that you were seeing. Could you delineate what you're seeing on the sports side versus entertainment? And on cable, just any outlook you can provide on the cable ad, just given the strong ratings we've seen thus far in 3 to you. And then, and lastly, on political as we sort of head into this, you know, what I would call unprecedented sort of political situation. I mean, just any way to sort of size what you expect from political spending versus other or previous president of some elections would be great.

Dan: In the mid single digit millions, Steve Yeah. Thanks, Dan So.

So in terms of impact on financial statements. Obviously, we had a two sided relationship with venue sports.

As a shareholder.

The business is going to take some time to sort of get to cash flow breakeven.

From a shareholder perspective, you'll see that investment come through we'll take the deficit through equity earnings in the P&L and investment through the cash flow, but obviously, we're a key supplier to the JV being a content supplier of our sports networks.

The benefit that Youll see come through in our affiliate fee revenues, both in cable and Tvs.

Steve Tomsic: Thanks. Thanks very much, John. So overall, our pricing is very strong, and we had both pricing and volume increases coming out of our upfront. We've now closed our upfront. We've 99% of the businesses in house. So we've the upfront processes is now completed and completed. I'm happy to report very successfully. You know, going into the upfront, to be totally honest. There are, you know, there's are there was ins and answers. There were some, you know, headwinds that you could see, and then we were still remain cautiously optimistic about what could be achieved. But we actually came through the upfront above our expectations, and again, I'm pretty pleased with the momentum that we saw in our businesses.

Steve Tomsic: Uh, I still remain cautiously optimistic about what could be achieved, but we actually came through the upfront above our expectations, and again, I'm pretty pleased with the momentum that we saw in our businesses. Of course, this was led by sports, both with the sports inventory that we have and the marquee events that we have, culminating in Super Bowl 59 this year. Sport was incredibly strong, not just in football but also in Major League Baseball, so we're very pleased with that.

It's a touch earlier I think we are assuming 100% locked down in terms of launch date.

Dan: Give you any sort of guide on quantum in terms of fiscal 'twenty five impact.

Speaker Change: But as I said I think a couple of earnings calls.

Speaker Change: On a net net basis that should be accretive to us when a pretty quick basis.

Speaker Change: Operator next question please.

Speaker Change: Your next question comes from the line of John Hodulik from UBS. Please go ahead.

Alright, thanks, and good morning.

Speaker Change: Couple of quick questions on the AD market first of all on the TV side, you guys mentioned lower pricing that you are seeing could you delineate what you're seeing on the sports side versus versus entertainment.

Speaker Change: And on cable.

Speaker Change: Just any outlook you can provide on the cable.

Speaker Change: Just given the strong ratings, we've seen thus far in <unk> and then lastly on political as we sort of head into this.

Lachlan Murdoch: Of course, this was led by sport in both with the sport inventory that we have in the marquee events that we have accommodating in Super Bowl 59 this year. Sport was incredibly strong, not just in football, but also in Major League Baseball. So we're very pleased with that. In cable, Fox News also saw volume increases in the upfront, most pleasingly. I think I'll obviously, that's coupled with really remarkable ratings increases. But most importantly, we've talked about this a number of times on previous calls. The strength in the direct response marketplace in the high teens in terms of pricing is a great, you know, return to growth in pricing for direct response and really both well for that line of our of our business.

Ben Swinburne: It is both in cable and T V.

Speaker Change: What I would call unprecedented sort of a political situation I mean, just any way to sort of size, what you expect from political spending versus the other previous presidential elections.

Ben Swinburne: It's a touch earlier I think with zoom out 100% locked down in terms of launch date.

Speaker Change: Have you any sort of guide on quantum long in terms of fiscal 'twenty five impact.

Speaker Change: Thanks.

Speaker Change: But as I said I think a couple of earnings calls Gov on a net net basis it should be accretive to us on a pretty quick basis.

Speaker Change: Thanks, very much John so.

Speaker Change: <unk>.

Speaker Change: Aye.

Steve Tomsic: In cable, Fox News also saw volume increases in the upfront, most pleasingly, I think, and obviously that's coupled with... a couple of weeks. So we do expect a very robust political cycle, and we think a record political cycle, ex the Georgia runoff four years ago.

Speaker Change: Overall, our pricing is very strong and we had both pricing and volume increases coming out of our upfront. We've now closed our upfront.

Speaker Change: Our next question please.

Speaker Change: Your next question comes from the line of John Hodulik from UBS. Please go ahead.

John Hodulik: Alright, Thanks, and good morning, maybe.

99% of the business is in house so.

John Hodulik: Maybe a couple of quick questions on the AD market first of all on the TV side, you guys mentioned lower pricing that you were seeing could you delineate what you're seeing on the sports side versus versus entertainment.

Speaker Change: The upfront.

Speaker Change: <unk> is now completed and completed I'm happy to report a very successfully.

Speaker Change: Going into the upfront to be to be totally honest. There are there is a there was an announcement there was some.

Speaker Change: And on cable.

Speaker Change: Any outlook you can provide on the cable ad.

Speaker Change: The headwinds that you could see and we were are.

Just given the strong ratings, we've seen thus far in <unk> and then lastly on political as we sort of head into this.

Lachlan Murdoch: When we then look at on political, we expect probably X. The Georgia runoff, right, so if you look at the apples, the apples of political cycles, we would expect a record political cycle this year, and in particular as the race heats up, we're seeing more money flow into the marketplace, and a new marketplace is emerging, as I mentioned in my prepared comments, as the race is the Titans. For instance, Atlanta and Phoenix, where there's a significant amount of money now being placed only in the last couple of weeks, so we do expect a very robust political cycle, and we think a record political cycle X on the Georgia runoff four years ago.

Speaker Change: But we still remain cautiously optimistic about what can be achieved but we actually came through their upfront above our expectations and again I'm pretty pleased with the momentum that we saw in our businesses of course. This was led by sport.

Speaker Change: What I would call unprecedented.

Speaker Change: Unprecedented sort of political situation I mean, just any way to sort of size. What you expect from political spending versus other previous president Hans how much it would be great. Thanks.

Speaker Change: We're both with the sport inventory that we have in the marquee events that we have all culminating in Super Bowl 59. This year sport was was incredibly strong not just in football but also in.

Speaker Change: Alright, thanks, very much John so.

Speaker Change: Uh huh.

Speaker Change: Overall, our pricing is very strong and we have both pricing and volume increases coming out of our upfront. We've now closed our upfront.

Speaker Change: In major League baseball.

Speaker Change: So we're very pleased with that.

And cable Fox News also saw volume increases.

Speaker Change: In the upfront.

Speaker Change: Most pleasingly I think obviously thats coupled with.

Speaker Change: Really remarkable our ratings increases.

Speaker Change: But most most importantly, we've talked about this a number of times on previous calls the strength in the direct response, a marketplace in the high teens in terms of pricing.

Operator: Next question, please operator.

Robert Fishman: Your next question comes from the line of Robert Fishman from Moffat, Nathanson. Please go ahead. Hi, good morning, everyone. Can you share your latest expectations to keep growing affiliates fees in fiscal 25 after the pricing increases roll through from your recent renewals, and how much more room is there to drive retrans pricing given the importance of Fox's exclusive sports content in the pay TV ecosystem.

Speaker Change: Great.

Speaker Change: We returned to growth in pricing for direct response, and really bodes well for that that line of our of our business. When we then look at on political.

Speaker Change: We expect.

Speaker Change: Probably X.

Speaker Change: The Georgia run off right. So if you look at so the apples to apples political cycles, we would expect a record political cycle. This year.

Steve Tomsic: And separately, if I can, how should investors think about the level of content spend across the company? Maybe just help us with the right balance between sports and scripted entertainment, unscripted it, and even to be. Thanks so much. Thank you very much, Robert. So I think I'm on growing affiliate fees. You know, we expect to continue to modestly grow our affiliate fees in light of the declining volume of subscribers. You know, I think we've called out in the past quarter, last quarter, sort of reduction in drivers are around eight percent, mid eight percent. And you know, as that continues, we'll be able to grow our pricing above that, but it's going to be modestly above that, above that number.

Speaker Change: And in particular as the.

Speaker Change: As the race heats up we're.

Speaker Change: We're seeing more money flow into them into the marketplace and our new marketplaces emerging as I mentioned in my prepared comments as they are racist tightens for instance, Atlanta and Phoenix.

Speaker Change: There's a significant amount of money now being placed only in the last.

Speaker Change: A couple of weeks so we do.

Speaker Change: Expect a very robust political cycle, and we think a record political cycle Exxon that Georgia.

Speaker Change: Run off four years ago.

Speaker Change: Next question please operator.

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

Speaker Change: Hi, Good morning, everyone can you share your latest expectations to keep growing affiliate fees in fiscal 'twenty five after the pricing increases roll through from your recent renewals and how much more room is there to drive retrans pricing given the importance of <unk>.

Steve Tomsic: And that's really based on the, you know, the focus of our core brands, the fact that we're not carrying the baggage of any entertainment cable channels or legacy channels, which would have to use the leverage of Fox News or Fox Sports to support. We can be entirely focused on driving the appropriate value for our core cable brands and also for our television stations, every transformation. Yeah, and Robert, in terms of content standards, if I just go through the sort of the key verticals we have that sports, we got regular amortization increases. Obviously, the NFL is the single largest piece of that.

Speaker Change: <unk> has exclusive sports content in the pay TV ecosystem and then just separately if I can how should investors think about the level of content spend across the company, maybe just help us with the right balance between sports and scripted entertainment unscripted at and even <unk>. Thanks, so much.

Speaker Change: Is emerging as I mentioned in my prepared comments.

Speaker Change: <unk> tightened for instance, Atlanta, and Phoenix, where Theres a significant.

Speaker Change: Difficult amount of money now being placed only in the last Ah.

Speaker Change: Couple of weeks, so we do.

Speaker Change: Thank you very much Robert.

Speaker Change: Expect a very robust political cycle, and we think a record political cycle Exxon that Georgia.

Speaker Change: So I think.

Speaker Change: On growing affiliate fees.

Speaker Change: Run off four years ago.

Speaker Change: We expect to continue to modestly grow our affiliate fees in light of.

Speaker Change: Next question please operator.

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

Speaker Change: Obviously the declining.

Robert Fishman: Hi, Good morning, everyone can you share your latest expectations to keep growing affiliate fees in fiscal 'twenty five after the pricing increases roll through from your recent renewals and how much more room is there to drive retrans pricing given the importance of Fox as exclusive sports content in the pay TV ecosystem.

Speaker Change: Volume of subscribers I think from.

Steve Tomsic: In fiscal 25, that's partially offset by the fact that in October, we move away from WWE and program that with college sports rights. To be, I think you should expect us to continue to grow content. Some of that is active in terms of license content and originals, and some of that is passive because so much of the revenues come from revenue shared deals. And so that just grows with the amount of usership and advertising growth. News is pretty modest growth. A lot of that to do with talent and breaking news coverage, and that's sort of very predictable.

Speaker Change: We've called out.

Speaker Change: In the past quarter last quarter, I sort of reduction in subscribers or around 8% mid 8%.

Speaker Change: And.

Speaker Change: As that continues we will be able to grow our our pricing above that but it's going to be modest modestly above that above that number.

Speaker Change: And then just separately if I can how should investors think about the level of content spend across the company, maybe just help us with the right balance between sports and scripted entertainment unscripted at and even <unk>. Thanks, so much.

Speaker Change: And Thats the way based on this.

The focus of our of our core brands. The fact that we're not carrying.

Speaker Change: The baggage of our.

Speaker Change: Entertainment cable.

Speaker Change: Thank you very much Robert.

Speaker Change: Channels.

Steve Tomsic: And then the final one, I think you were alluding to with entertainment and the shift from scripted to unscripted.

Speaker Change: Our legacy channels.

Speaker Change: So I think.

Speaker Change: Which would you have to use the leverage of Fox News Fox Sports two.

Speaker Change: On growing affiliate fees.

Steve Tomsic: With that, it's probably worth noting that Fiscal 24 obviously was very impacted by the strikes, and so you had a very significant shift from scripted to unscripted programming. And that is, well, partially thematic. In Fiscal 24, that trend was particularly amplified, and it basically saved us north of $100 million in the year in terms of entertainment programming costs. Don't expect that to continue to happen; in fact, it will swing back a little bit the other way as we sort of rebalance the portfolio and the slate next year with a little bit more scripted fare.

Steve Tomsic: With that, it's probably worth noting that fiscal 24 obviously was very impacted by the strikes, and so you had a very significant shift from scripted to unscripted programming. And that is, well, that's partially somatic fiscal 24 that was that trend was particularly amplified, and it basically saved us north of $100 million in the end of entertainment programming costs. Don't expect that to continue to happen; in fact, it will swing back a little bit the other way as we sort of rebalance the portfolio this way next year with a little bit more scripted fare. I think, though, when we look at entertainment, we look at it from the perspective of how do we get our cost per hour down. When I compare what I think fiscal 25 will look like versus fiscal 23, that cost per hour is probably down 10 to 15 percent. But we obviously want to have a balanced forecast network that serves our sort of cross-promotional needs, serves our capacity to monetize from an advertising perspective, and serves that capacity to monetize our content in downstream windows and his own ships of the content. So we're going to be balanced about it. Operator, we can go to the next question. Your next question comes from the line of Jessica Raif Erlich from Bank of America. Please go ahead. Thanks. One follow-up on one question. So in the follow-up, it sounds like you're the great upfront, but I'm wondering if this is the first year of your new ad sales team. Is there anything that they're doing that's like anything different approach? You obviously had a great result, but you also have like great events. And then secondly, one of the key assets of the company is your balance sheet strength, and just wondering, you know, since you're already in like live news and sports, like the couple of areas of the traditional media industry that is still growing, where do you see your next opportunity? Like where do you expect to deploy capital? Thanks very much, Jessica. Good morning. First, on the ad sales team, you know, thank you for calling them out. They've done a tremendous job, and we're very happy with their performance. Jeff Collins accepting to the role, you know very, very well, and is leading the team effectively and obviously, I'm, you know, monetizing all of the impressions that we, um, they were able to generate. So we're very pleased with that. You know, going into the upfront, we're structured, I think, a little bit differently than some other VD companies. I'm not aware of sort of the structure of the advertising sales organizations across the entire industry, but we retain expertise across the verticals. So, you know, we have a very focused sports team, we have a very focused news team, entertainment, and, you know, importantly, more and more are our digital team, which is obviously the great part of it is to be so well. We have sort of expertise in those teams, you know, in the upfront, we're able to sell across the entire portfolio, one Fox portfolio, and that proved to be, you know, very successful and very effective in this upfront. So I'm not sure if that's very different from what everyone else is doing, but it's a structure that we think, you know, works for us and has certainly, I'm proven its value in the marketplace this year. In terms of, on, you know, what we do with our balance sheet and how we deploy capital, I think we are careful and prudent employers of capital. That's going to continue. We have the right mix of investment capital, investment in the business of organic investment in our businesses, in return to shareholders, and then increasingly, our focus on M&A.

Speaker Change: To support our we can be entirely focused on on driving the appropriate value for our core cable brands and also for our television stations retransmission.

Speaker Change: And rub it in.

Speaker Change: In terms of content.

Speaker Change: Go through the sort of the key verticals, we have at sports we have regular atmos hydration increases obviously, the NFL is the single largest piece of that.

Speaker Change: In fiscal 'twenty, five thats, partially offset by the fact that.

Speaker Change: In October we move away from WWE and program that with College sports rights.

Steve Tomsic: I think though when we look at entertainment, we look at it from the perspective of how do we get our cost per hour down and when I compare what I think fiscal 25 will look like versus fiscal 23, that cost per hour is probably down 10% to 15% but we obviously want to have a balanced broadcast network that serves our sort of cross-promotional needs, serves our capacity to monetize from an advertising perspective and serves our capacity to monetize our content in downstream windows and as ownerships of the content so we're going to be balanced.

Speaker Change: To the I think you should expect us to continue to grow our content. Some of that is active in terms of license content in the regionals and some of that is passive because so much of the.

Speaker Change: The revenues come from revenue share deals and so that just grows with humanity is user shipment advertising growth news is pretty modest growth lot of that to do with talent and breaking news coverage and that sort of a very predictable and then the final. One I think you were alluding to was the entertainment and the shift from scripted unscripted.

Operator: Operator, we can go to the next question.

Speaker Change: With that it's probably worth noting that fiscal 'twenty. Four obviously was very impacted by the strikes and so you had a very significant shift from scripted unscripted programming and that is what has partially somatic fiscal 'twenty four was.

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

Jessica Reif-Ehrlich: Thanks. One follow-up and one question. So in the follow-up, it sounds like you had a great upfront, but I'm wondering if this is the first year of your new ad sales team. Is there anything that they're doing that's anything different in their approach? You've obviously had great results, but you also have great events, a couple of areas of the traditional media industry that are still growing. Where do you see

Speaker Change: That was that trend was particularly amplified.

Speaker Change: Basically say, it's north of a $100 million.

Speaker Change: Entertainment programming costs don't expect that to continue to happen and in fact, it will swing back a little bit the other way as we sort of rebalance the portfolio. The slight next year with a little bit more scripted fare I think though when we look at entertainment. We look at it from the perspective of how do we get our cost per hour down and when I compare.

Speaker Change: I think fiscal 'twenty five we'll look that look like versus fiscal 'twenty three that cost per hour is probably down 10% to 15%, but we obviously want to have a balanced broadcast network.

Lachlan Murdoch: Thanks very much, Jessica. Good morning.

Speaker Change: That sort of cross promotional needs.

Speaker Change: Is that capacity monetize from an advertising perspective and setback capacity to.

Speaker Change: Monetize our content in downstream windows of Nozomi ships of the content. So we're going to be balanced about it.

Speaker Change: Operator, we can go to the next question.

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

Speaker Change: And it basically says it's north of a $100 million in the.

Speaker Change: One follow up on one question so on the follow up.

Speaker Change: Entertainment programming costs don't expect that to continue to happen and in fact, it will swing back a little bit the other way as we sort of rebalance the portfolio. The slight next year with a little bit more scripted fare I think when we look at entertainment. We look at it from the perspective of how do we get our cost per hour down and when I compare what I think.

Lachlan Murdoch: First, on the ad sales team, thank you for calling them out. They've done a tremendous job, and we're very happy with their performance. Jeff Collins has stepped into the role very well and is leading the team effectively and obviously monetizing all of the impressions that we're able to generate. So we're very pleased with that. Going into the upfront, we're structured, I think, a little bit differently than some other media companies. I'm not aware of the structure of the advertising.

Speaker Change: Sounds like you had a great upfront I'm wondering if this is the first year of your new <unk>.

Speaker Change: Sales team is there anything.

Speaker Change: That theyre doing it like anything different in your approach.

Speaker Change #119: You've obviously had great results, but you also have like great events.

Speaker Change: And then secondly, one of the.

Speaker Change: Fiscal 'twenty five we'll look that look like versus fiscal 'twenty three that cost per hour is probably down 10% to 15%, but we obviously want to have a balanced broadcast network that serves that sort of cross promotional needs.

Speaker Change: Key assets of the company as your balance sheet strength.

Speaker Change: And.

Speaker Change: Just wondering since you are already in like live news and sports.

Speaker Change: A couple of areas of the traditional media industry that is still growing.

Speaker Change: Does that capacity monetize from an advertising perspective and setback capacity to.

Speaker Change: Do you see your next opportunity.

Speaker Change: Or do you expect to deploy capital.

Speaker Change: To monetize our content in downstream windows and design ships of the content. So we're going to be balanced about it.

Speaker Change: Thanks, very much Jessica good morning.

Speaker Change #100: First on the AD sales team. Thank you for calling them out there have done a tremendous job and where.

Speaker Change: Operator, we can go to the next question.

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

Speaker Change #100: We're very happy with the.

Speaker Change #101: Their performance, Jeff Collins has stepped into the role.

Speaker Change: One follow up on one question. So on the follow up it sounds like you had a great upfront I'm wondering if this is the first year of your new AD sales team is there anything.

Speaker Change #100: No.

Speaker Change #100: Very well.

Speaker Change #102: Is is leading the team.

Speaker Change #102: Effectively and obviously them monetizing all of the impressions that.

Speaker Change: That theyre doing that like anything different in your approach.

Speaker Change #102: They were able to generate.

Speaker Change: You've obviously had great results, but you also have like great events.

Speaker Change #102: So we're very pleased with that going into the upfront we're structured.

And then secondly, one of the.

Speaker Change #102: I think a little bit differently than some other media companies.

Speaker Change: Key assets of the company as your balance sheet strength.

Speaker Change #102: I'm not aware of sort of the structure of the advertising.

Speaker Change #103: Our sales organizations are across the entire industry, but we retain expertise across the vertical. So we have a very focused sports team, we're very focused news team.

Speaker Change #103: Entertainment, and importantly, more and more of our digital.

Lachlan Murdoch: We have nothing to update you on in the latter category. Other than just say we're going to be prudent and careful, but we are aware that M&A remains one of the important levers that we have and how we deploy capital.

Speaker Change #103: <unk>, which is obviously a great part of us are as <unk>.

Speaker Change #104: While we have expertise in those teams in the upfront, we're able to sell across the entire portfolio or one fox portfolio and that proved to be very successful and very effective in this upfront. So I'm not sure. If that's very different from what everyone else is doing but it's it's a structure that we think works for us and.

Michael Ng: Next question, please. Your next question comes from the line of Michael Ng from Goldman Sachs. Please go ahead. Hey, good morning. Thank you very much for the question. I'll ask one on Tubi. Meet teens, revenue growth, which is great in the quarter despite some heightened competition on the connected TV side.

Operator: Your next question comes from the line of Michael Ng from Goldman Sachs. Please go ahead.

Michael Ng: Hey, good morning. Thank you very much for the question. I'll ask one on 2B. You know, mid-teens revenue growth, which is great in the quarter despite some heightened competition on the connected TV side. I was wondering if you could just talk a little bit more about that strength and then give us an update on where the digital investment losses ended up this year in fiscal 24 and your outlook for fiscal 25. Thank you.

Speaker Change #103: And has certainly.

Speaker Change #103: Proven it's it's.

Speaker Change #103: Value in the marketplace. This year in terms of.

Lachlan Murdoch: I was wondering if you could just talk a little bit more about that strength and then give us an update on where the digital investments losses ended up this year in fiscal 24 and your outlook for fiscal 25. Thank you. Great.

Speaker Change #103: We're going to do with our balance sheet.

Speaker Change #103: Yeah.

Speaker Change #103: And how we deploy our capital I think we are careful and prudent.

Speaker Change #103: Deploying our capital that's going to continue we have the right mix of.

Our investment and capital investment in the business of organic.

Lachlan Murdoch: Let me start with Tubi, then I'll hand over to Steve. Tubi continues to go from strength to strength. I think importantly, exiting the fourth quarter with revenue growth in the mid to upper teens. I think was very, very good to see that momentum as we moved into July. We've seen that momentum continue into this quarter in July. You have to put that in context of a tremendous supply of advertising entering into the streaming market with the Amazon Prime, entering the advertising supported streaming business. That caused a lot of other streamers to really fight hard for their revenue and drop pricing.

Speaker Change #103: Investment in our businesses.

Speaker Change #103: In return to shareholders and then increasingly our focus on on M&A.

Speaker Change #105: We have nothing to update you on in the latter category.

Speaker Change #105: Other than to say, we're going to be we're going to be prudent.

Hi.

Speaker Change #105: And careful but we are.

Speaker Change #105: We are aware that M&A remains.

Speaker Change #105: One of the important levers that we have and how we deploy capital.

Speaker Change #105: Next question please.

Speaker Change #106: Your next question comes from the line of Michael <unk> from Goldman Sachs. Please go ahead.

Speaker Change #107: Hey, good morning. Thank you very much for the question I'll ask one on to be mid teens revenue growth, which is great in the quarter. Despite some heightened competition on the connected TV side.

Speaker Change #108: I was wondering if you could just talk a little bit more about that strength and then give us an update on where the digital investments losses ended up this year in fiscal 'twenty four and your outlook for fiscal 'twenty five thank you.

Steve Tomsic: Tubi did not have to. Tubi has stable pricing in this market, and really growth is growth on the strength of its brand and the tremendous reach and quality of its audience. So we're very pleased with that, and we're expecting a further growth in Tubi as the year progresses.

Speaker Change #107: Great.

Speaker Change #109: Let me start with Davita and I'll hand over to Steve.

Speaker Change #107: <unk>.

Speaker Change #110: <unk> continues to go from strength to strength I think.

Lachlan Murdoch: Thanks Lachlan. Good to hear from you, Mike.

Steve Tomsic: Thanks, Auckland. Good to hear from you, Mark.

Speaker Change #111: Importantly, exiting the fourth quarter.

Steve Tomsic: So just in terms of investment, if I look at where we landed for fiscal 24, Tubi was the single largest driver of the investment across our growth portfolio. So its level of investment was at a consistent clip to where we were in fiscal 23, so the mid to order 200 range. And if I look across all the other growth businesses, whether it be nation, whether credible, the entertainment studios that we're building out, that collectively sound to about another 100 million in rough numbers.

Speaker Change #112: With revenue growth in the.

Steve Tomsic: So just in terms of investment, if I look at where we landed for Fiscal 24, Tubi was the single largest driver of investment across our growth portfolio, so its level of investment was at a consistent clip to where we were in Fiscal 23, so the mid sort of 200 range. And if I look across all the other growth businesses, whether it be Nation, Weather, Credible, or the entertainment studios that we're building out, they collectively sum to about another hundred million in rough numbers. Looking forward to fiscal 25, I think most of the improvement comes from a little less investment at 2B, which should put us in the high twos, I think, from a net investment perspective across those businesses.

Speaker Change #112: The mid to high <unk>.

Speaker Change #113: For teens.

Speaker Change #115: I think it was very very good to see to see that momentum as we moved into July and we've seen that momentum continue into this quarter or in July.

Speaker Change #113: <unk>.

Speaker Change #113: You have to put that in.

Speaker Change #113: In context of a tremendous some supply of advertising entering into the upstream market.

Steve Tomsic: Looking forward to fiscal 25, I think most of the improvement comes from a little less investment in Tubi, which should put us in the high twos. I think from a net investment perspective across those businesses.

Speaker Change #113: Amazon Prime entering the.

Speaker Change #113: The advertising supported streaming.

Speaker Change #113: Business that caused a lot of other streamers.

Speaker Change: Thank you.

Speaker Change: Great.

Speaker Change #113: To really fight hard for their revenue and dropped I've dropped pricing.

Speaker Change: Let me start with to be done I'll hand over to Steve.

Operator: At this point, we're out of time.

Operator: But if you have any further questions, please give me or Charlie could stand in a call. Thanks so much for joining us today.

Steve: A two week to week continues to go from strength to strength I think.

Speaker Change #113: <unk> did not have to be a sustainable pricing in this in this market and really drove this growth on the strength of its brand and the tremendous.

Speaker Change: Importantly, exiting the fourth quarter.

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

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

Steve: With revenue growth in the.

Speaker Change #113: Tremendous reach.

Speaker Change #113: And quality of its audience. So we're very pleased with that and we're expecting further growth in <unk> as the year progresses.

Steve: The mid to upper teens.

Steve: It was very very good to see to see that momentum as we moved into July and we've seen that momentum continue into this quarter or in July.

Speaker Change #116: Thanks Lachlan.

Lachlan Murdoch: Good to hear from you Mark So just in terms of investment.

Speaker Change #117: Look at where we landed for fiscal 2004, CV was the single largest driver of investment across our growth portfolio.

Speaker Change: <unk>.

Speaker Change: You have to put that in.

Speaker Change: In context of a tremendous some supply of advertising entering into the upstream market.

Speaker Change #118: Its level of investment was at a consistent.

Cliff to where we were in fiscal 'twenty, three southern Minnesota, 200 range and if I look across all the other growth businesses, whether it be nation, where the credible the entertainment studios that we're building out that collectively sum to about another $100 million rough in rough numbers.

Speaker Change: Amazon Prime entering the the advertising supported.

Speaker Change: Streaming.

Speaker Change: Business that caused a lot of other streamers.

Speaker Change: To really fight hard for there.

Speaker Change: Our revenue and drop drop pricing.

Speaker Change #117: Looking forward to fiscal 'twenty five I think most of the improvement comes from a little less investment to be.

Speaker Change: <unk> did not have to be a stable pricing in this in this market and really drove this growth on the strength of its brand and that tremendous reach.

Which should put us in the high twos, I think and from a net investment perspective across those businesses.

Speaker Change #117: At this point, we're out of time, but if you have any further questions. Please give me or Charlie can handle call. Thanks, so much for joining us today.

Speaker Change: And quality of its audience. So we're very pleased with that and we expect further growth and to be as the year progresses. Thanks Lachlan.

Speaker Change: Good to hear from you Mike So just in terms of investment.

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: If I look at where we landed for fiscal 2004 <unk> was the single largest driver of investment across our growth portfolio.

Speaker Change: [music].

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