Q2 2025 Fox Corp Earnings Call
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Speaker Change: I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Bam. Please go ahead Ms Brown.
Speaker Change: You operator, good morning, and welcome to our fiscal 2025 second quarter earnings call. Joining me on the call today are Lachlan Murdoch Executive Chair and Chief Executive Officer, John Nolan, Chief operating Officer, and Steve Tomsic Archie.
Speaker Change: Our Chief Financial Officer.
Speaker Change: First Lachlan and Steve will give some prepared remarks on the most recent quarter and then we'll take questions from the investment community.
Please note that this call may include forward looking statements regarding Fox Corporation's financial performance and operating results.
Speaker Change: Statements are based on management's current expectation and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company S E filing. Additionally.
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.
Speaker Change: A reconciliation of non-GAAP financial measures are included in our earnings release, and our S. E T Island, which are available in the Investor Relations section of our website.
Lachlan: And with that I'm pleased to turn the call over to Lachlan.
Lachlan: Thank you Gabby and thank you all for joining us this morning.
Lachlan: Just to start I want to comment on the devastating impact of the Los Angeles wildfires over the past few weeks.
At Fox, our top priority has been to support our staff, who have been profoundly affected in many ways, including losing their homes and much if not all of their belongings.
Lachlan: We are one family and we are truly with you.
Lachlan: And as the broader community.
Lachlan: <unk> has donated and raised over $5 million across our platforms. Thanks to the generosity of our audiences and employees.
Lachlan: But sadly as we've learned from past fires the impact on the community is measured.
Lachlan: Not in days or weeks, but in years.
Lachlan: Our focus has now shifted to the longer term recovery for those most affected and to the rebuilding of the community around them.
Lachlan: I want to thank our colleagues are K T T V and Fox news, who kept viewers comprehensively informed with their coverage of the tragedy as it unfolded.
Lachlan: We are deeply grateful for their work and also for the efforts of firefighters and many other first responders.
Lachlan: Thank you.
Lachlan: Now onto our earnings.
Lachlan: As you will have seen in our release this morning, our fiscal second quarter results again demonstrates the continued operating momentum and strong financial performance our Fox.
Lachlan: Financially Fox EBITDA more than doubled year over year to a second quarter record of $781 million driven by revenue growth of 20% suggest over $5 billion.
Lachlan: Yeah.
Lachlan: These results are underpinned by industry, leading affiliate and advertising revenue growth and reflects strong onscreen delivery through our coverage of the presidential election, both at Fox news and across our local stations strong NFL College football and major League baseball post season viewership and continued audience.
Lachlan: Expansion at <unk>.
Lachlan: We are firing on all cylinders.
Lachlan: Total affiliate revenue grew by 6% on the back of higher rates with the subscriber declines improving for the second consecutive quarter.
Lachlan: Notably we have now successfully completed all of our affiliate renewals that will impact fiscal 2025.
Lachlan: Total company advertising growth of 21% in the quarter was driven in part by record political revenue led by our local stations.
Lachlan: Looked at more holistically across this year's presidential cycle, our first half fiscal 2025 political revenue of over $400 million was also a record.
Lachlan: <unk> was a strong contributor to advertising revenue growth in the quarter, achieving a 31% increase in AD revenues showing acceleration, even when excluding political revenue.
And that advertising strength has continued into our fiscal third quarter, we are seeing very healthy trends across our portfolio.
Lachlan: Sports remains remarkably robust.
Lachlan: Our NFL postseason broadcast of the wildcard divisional and NFC championship, so our highest ever unit pricing and demand for these matches. We are sold out with a record pricing for this sunday's Super Bowl 59, we can't wait for the Big game.
Lachlan: Advertising trends at Fox News are also strong across the direct response in national advertising categories, where there is increased demand from existing blue chip advertisers as well as new clients coming to the network to reach a record share of audience.
Lachlan: At Entertainment scatter pricing is currently tracking at high single digits above upfront levels and cancellation options are at historical lows with Fox delivering its best series debut in five years with the launch of the medical drama Doc.
Lachlan: And <unk> continues to monetize its hard to reach differentiated audience.
Lachlan: Now everyone on this call will know that <unk> audience is diverse and it's young.
Lachlan: And it is over 65% cordless made up of cord Nevers and cord cutters not currently in the traditional cable universe.
Lachlan: While in past years, we have always unlock the Super Bowl for viewers across our digital platform. This year, we will focus these cordless viewers on <unk> with <unk> first ever Super Bowl livestream and related shoulder programming.
Lachlan: This will provide viewers a great service broaden the reach of the game and deliver to be an opportunity to engage a large cohort of new users.
Lachlan: After the game <unk> viewers will have access to our library library of over 275000 movies and TV episodes, including the recently premiered the Z suite.
Lachlan: It hit original sidelined the QB and me and much more the.
Lachlan: The game the content and the experience on <unk> will further support its stellar growth.
The mission for all of our platforms is delivering unique content to large audiences.
Lachlan: Nowhere is that more evident than at Fox News were $4 5 billion hours of content was consumed across its platform during the second quarters quarter.
Lachlan: On election night more viewers turn to Fox news media than any other network with over $13 5 million viewers tuning in to procure in prime time.
Lachlan: Fox News channel once again ended the quarter as the most watched cable network in total day and Prime time growing total day audience by nearly 40% and primetime audience by 45% year over year.
Lachlan: Fox news meaningfully outperformed its peers more than doubling the viewing of its closest competitor and posting its highest quarterly share of primetime cable news audience in its history at over 60%, which includes a 70% share in December.
Lachlan: Momentum in share in ratings has continued through and after the inauguration.
Lachlan: On the day.
Lachlan: Fox News media coverage of the inauguration drew close to 12 million viewers, making it the most watched coverage in all of television.
Lachlan: This viewership has contributed to Fox news third quarter to date ratings up over 50% Prime time ratings up over 40% delivering Fox news, a commanding share of the primetime cable news audience at 69%.
Lachlan: And Fox news share of the audience was not limited to the cable network.
Lachlan: For example on Youtube Fox News generated nearly 410 million views in the month of January beating our closest competitor NBC by nearly two and a half times.
Lachlan: The continued growth of Fox news digital underscores that audiences are consuming their news in different ways.
Lachlan: We clearly saw this during the past election cycle, where there was an uptick in consumers, who either supplemented or solely access their news and information from non traditional media sources.
Lachlan: We view these new media markets Opportunistically and as is and are central to our growth strategy.
Lachlan: Fox News outstanding achievements underscore our unwavering commitment to outstanding journalism to our insightful coverage of politics, and break news and to our strong primetime lineup.
Lachlan: Of course, our content leadership also extends to sport.
Lachlan: Adam is traditionally the strongest time of year for Fox Sports and 2024 was no exception.
Lachlan: With a thrilling major League baseball World Series College football expanding to Friday nights and the NFL remaining the most watch content in all of television Fox was the leader in consumption of live sports events in the second quarter.
Lachlan: Our only disappointment of sports is that we will not be moving forward with venue or sports streaming joint venture with Warner Brothers Discovery and Disney.
Lachlan: While the venue team has done a tremendous amount of truly genius work preparing the digital platform for launch in the end the legal distractions around the business became increasingly difficult to bear.
Lachlan: Venue was to be another distribution outlet for our brands to access consumers in the market wherever they are.
Lachlan: And that is what we continue to be focused on maximum distribution of our content whether that be traditional digital streaming or our own DTC offering in the near future.
Encouragingly the distribution market has made some major strides recently.
Lachlan: In the 12 months since we announced venue we have seen key distributors announced the launch of smaller lower cost bundles of sports news and broadcast networks.
Lachlan: Three to strip distributors have announced new skinny packages in recent months and we expect this trend to continue.
Lachlan: We see this as a positive initiative by both our distribution partners and other content owners.
The inclusion of our suite of channels sports and news in each of these offerings is a real economic benefit to us even more so than the sports specific venue and so it gives us greater confidence for Fox over the long term.
Lachlan: We have had a very solid first half of our fiscal year and we are excited for what is to come.
Lachlan: Consistent with our track record, we remain committed to delivering value for our shareholders in a thoughtful and disciplined manner.
Lachlan: And we will continue to explore every opportunity to maximize that value over the long term.
Let me now turn it over to Steve for his comments on the quarter's financial results.
Lachlan: Thanks, a lot and good morning, everyone.
Lachlan: Underscoring the strong momentum we've seen since the start of the year folks delivered standout results in the second quarter.
Lachlan: Highlighted by a 20% increase in revenues and a 123% increase in EBITDA was $781 million.
Lachlan: Record fiscal second quarter for Sox.
Lachlan: Our overall revenue growth was led by a 21% increase in advertising revenues with broad based strength across our portfolio, including significant political AD spend collected in our local stations strong MLP ratings and robust pricing across our key sports properties.
Lachlan: Continued growth at <unk> and strong engagement use.
Lachlan: Total company affiliate fee revenues grew a healthy 6% over the prior year quarter once again, demonstrating the strength of our brands and focused portfolio of channels as.
Lachlan: As Lachlan mentioned, we've now successfully completed all affiliate renewals that impacted fiscal $2 25.
Lachlan: Other revenues grew 70% year over year, driven by higher sports sub licensing revenues at our cable segment.
Lachlan: Similar to last quarter. This growth in revenue was largely offset by a corresponding increase in rights costs with no material impact on year over year overall EBITDA growth.
Lachlan: Net income attributable to stockholders of $373 million or <unk> <unk> per share was up versus the $109 million or 23 per share reported in the prior year period.
Lachlan: Excluding noncore items.
Lachlan: Adjusted net income was $442 million and adjusted EPS was <unk> 96.
Lachlan: This represents more than 180% increase over the 34 cents per share recorded in the prior year.
Lachlan: Now, let's turn to our operating segments segments, starting with the cable network programming segment, which delivered 31% revenue growth and 16% EBITDA growth.
Lachlan: Cable advertising revenues grew 32% over the prior year driven by the strength in <unk> linear ratings and digital engagement and supported by healthy pricing in both national and direct response.
Lachlan: Additionally, our sports advertising revenues benefited from higher MLB postseason ratings.
Lachlan: Cable affiliate fee revenues grew 4% over the prior year quarter as pricing gains from our affiliate renewals outpace the impact from net subscriber declines of approximately 7% improved.
Lachlan: Improving from just under 8% last quarter.
Lachlan: Cable other revenues grew $350 million due to the highest sports sub licensing revenues I mentioned earlier.
Lachlan: Revenue growth at the cable segment was partially offset by 38% increase in expenses.
Lachlan: Primarily attributable to the increase in sports amortization that correspond to the Incrementals sports sub licensing revenues along with modest increases in used in sports production costs.
Lachlan: Now turning to our television segment, which delivered 16% revenue growth.
Lachlan: Advertising revenue revenues at our television segment grew 19% over the prior year.
Lachlan: Boosted by political advertising revenues strong MLB ratings and pricing strength across our sports schedule and continued growth at <unk>.
Lachlan: Television affiliate fee revenues increased 9% in the quarter as healthy growth in fees across Fox owned and affiliated stations more than offset the impact from industry subscriber declines.
Lachlan: TV and other revenues were up 33% year over year, primarily due to higher content revenues tied to our entertainment production Studios.
Lachlan: Partially offsetting the revenue growth at our television segment was a modest 3% increase in expenses, which were driven by our continued investment in <unk>.
Lachlan: All in EBITDA at our television segment grew by $343 million year over year to reach $205 million.
Lachlan: Turning to free cash flow, where we recorded a deficit of $436 million this quarter.
Lachlan: This is entirely consistent with the seasonality of our working capital cycle with the first half of our fiscal year reflects the concentration of payments for sports rights and buildup of advertising related receivables both of which reversed in the second half of the fiscal year.
Lachlan: In terms of capital allocation fiscal year to date, we have repurchased an additional $550 million.
Lachlan: Through our share buyback program.
Bringing the total cumulative amount repurchased 615 billion.
Lachlan: For approximately 29% of our total shares outstanding since the launch of the buyback program in 2019.
We remain committed to utilizing our full buyback authorization of $7 billion.
Lachlan: In addition, today, we announced a 27% per share semiannual dividend.
Lachlan: With this dividend payout of approximately $120 million.
Lachlan: Total cumulative cash returned to shareholders in the form of both dividends and share buybacks will have reached approximately $7 9 billion.
Lachlan: Since the establishment of focus scope.
Lachlan: These capital return measures is supported by the strength of our balance sheet, where we ended the quarter with approximately $3 3 billion in cash and $7 2 billion in debt.
Gabby: And with that I'll turn the call back over to Gabby. Thank you Steve.
Gabby: And now we will be happy to take questions from the investment community.
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Speaker Change: We have a question from John Hodulik from UBS. Please go ahead.
Gabby: Okay, great. Thanks, guys.
Speaker Change: Lachlan I got a follow up on the on the <unk> comment that you talked about launching in the near future any additional details you can provide in terms of timing what's included.
Speaker Change: And whether you need additional rights are there any costs associated with launching the DTC service and then Unaffiliate you saw some nice acceleration there.
Speaker Change: It sounds like you guys got all the renewals done.
Speaker Change: Any color in terms of pricing or what youre seeing in terms of volumes at that had been driving that acceleration. Thanks.
John Hodulik: Thanks, John and good morning, So on D C.
John Hodulik: I should just start by.
John Hodulik: Explaining the strategy and going back to make it very clear that we see the traditional cable bundle.
John Hodulik: As still the most value for our consumers.
John Hodulik: And.
John Hodulik: And then frankly, the most value for the company. So we are huge supporters of the traditional cable bundle and we will always be but having said that we do want to reach consumers wherever they are and there is a.
John Hodulik: Large population, obviously that are now outside of.
John Hodulik: The traditional cable bundle either cord cutters or cord Nevers, and we are designing and will be able to say more about it.
Shortly but.
John Hodulik: But we are designing a.
John Hodulik: Offering to really target those cord cutters and coordinators that are not traditionally in the cable bundle, we don't want and we have no intention of churning, our traditional distribution customer into our DTC customer and so our.
John Hodulik: Our subscriber expectations will be modest and we're going to price the service accordingly.
John Hodulik: <unk>.
John Hodulik: And it's also important to note with those modest modest expectations, we do not expect any.
John Hodulik: Exclusive rights costs or additional incremental rights costs.
John Hodulik: Service will be.
John Hodulik: A package of our existing <unk>.
John Hodulik: Content on our existing brands.
John Hodulik: Targeted to consumers that are not currently in the bundle. So the incremental cost will be relatively low certainly relative to what our peers are spent in this in this space.
John Hodulik: <unk>.
John Hodulik: And we're excited to be able to talk about it more in the coming weeks and months in terms of timing and launch we're certainly targeting a launch by the end of this calendar year.
John Hodulik: Our affiliates.
Steve: Hey, John its Steve here.
Steve: So in terms of affiliate I think we've seen obviously from a volume perspective, the rate of attrition ease off a little bit over the last couple of quarters, which is encouraging for us and hopefully the skinny bundles continue to.
Steve: See that trend continue in terms of pricing listen I think it's reflective of a strategy thats reflective of the fact that we've got a very focused portfolio of channels that distributors really want you're seeing them because of their inclusion in the skinny bundles.
And it's also a reflection has affected our distribution strategy prioritizes the bundling.
Steve: Obviously these are tough negotiations, but as.
Steve: As we've said for the last five years, we think that strategy is both content and distribution.
Steve: Latest to take share of wallet and I think we're starting to say that.
Operator next question please.
Michael Morris: We have a question from Michael Morris Guggenheim. Please go ahead.
Michael Morris: Thank you good morning.
I wanted to ask about the strength that youre seeing at Fox news advertising.
Michael Morris: Maybe you can expand on that a bit.
Michael Morris: It sounds like you're seeing incremental and arguably sustainable demand from some of from advertising buyers and I am curious if you think I'm interpreting that right and just.
Michael Morris: What the dynamic and what the sustainability is of the changes that you're seeing there.
Michael Morris: I also want to ask about the <unk> Super Bowl Livestream.
Michael Morris: It seems like a big deal can you talk a little bit about what you hope to achieve by doing that and then are there any incremental costs related with that are there concerns about service quality, because I know that streaming big live events can be complicated.
Michael Morris: Get it.
Mike: Thank you very much Mike and good morning, as well so on Fox news advertising.
There is two elements to your 1% right we are seeing.
Michael Morris: <unk>.
Michael Morris: Really a tremendous amount of new.
Michael Morris: Advertisers clients coming on to the platform.
Michael Morris: <unk>.
Michael Morris: And that's due to two reasons I think.
Michael Morris: The first reason is the strength in our ratings, which are really tremendous and as I mentioned in my in my prepared comments.
Michael Morris: It's very pleasing to see that that strength and momentum continue post the election and post.
Michael Morris: The inauguration.
Michael Morris: With that strength, we've seen over 100, new clients, who have not been Fox news advertisers major major national clients come onto the platform and so that's driving demand and driving pricing.
Michael Morris: As well.
Michael Morris: We see that.
Michael Morris: Continuing in fact.
Michael Morris: We see in the third quarter our.
Michael Morris: Ratings and revenue.
Michael Morris: Accelerating off of the second quarter.
Michael Morris: So the.
Michael Morris: On to <unk>.
Michael Morris: Good question.
Michael Morris: We are excited that <unk> is not a change in strategy, we have always unlocked our digital platform.
Michael Morris: For.
Michael Morris: For the Super Bowl Super Bowl.
Michael Morris: But this year with obviously, it's a unique opportunity and we're going to focus.
Michael Morris: That audience on <unk>.
Michael Morris: One of the great. There is there are some technology streaming cost, obviously, but it's tiny compared to them.
Michael Morris: <unk>.
Michael Morris: The opportunity in front of us.
Michael Morris: So very low incremental costs the benefit for <unk>, obviously, you've got a tremendous ah.
Michael Morris: Exposure sort of marketing platform, but also critically we hope to capture a lot of first party data.
Michael Morris: We will be driving people to our.
Michael Morris: To register.
Michael Morris: <unk> on many of them for the first time and that first party data obviously is.
Michael Morris: Really are critically important to our programmatic.
Michael Morris: And other advertisers and partners and will help us drive our Cpm's as we go.
Michael Morris: Into the future. So we're excited by the opportunity it's not a.
Michael Morris: Necessarily a big change in strategy, but it's a huge opportunity for <unk> and its something we are very keen to.
Michael Morris: Focus very intensely.
Michael Morris: On.
<unk>.
Michael Morris: And what was the third question was.
Michael Morris: Right. Okay. Thank you Mike Operator next question please.
Operator: We have a question from Ben Swinburne with Morgan Stanley. Please go ahead.
Michael Morris: Hi, This is Thomas on for Ben.
I wanted to double tap on the <unk> growth can.
Michael Morris: Can you Dimensionalize the investment needs that you see ahead should we think about the incremental investment is largely content related and when do we think the business kind of begin to benefit on an EBITDA front for Fox.
Michael Morris: Then as a follow up any update on the progress you've made on the various states requiring sports betting licensing.
Michael Morris: Timeline coming into shape and how.
Michael Morris: Get approval over time it would be helpful. Thank you so much.
Michael Morris: Okay.
Speaker Change: Right. Thank you very much very much Thomas and say good data Ben first of all.
Yeah.
Michael Morris: On.
Michael Morris: To be a profitability.
Michael Morris: Our investment in <unk> has reduced.
Michael Morris: This year as the business continues to scale.
Michael Morris: And really generate.
Michael Morris: Very positive advertising growth we.
Michael Morris: We see that.
Michael Morris: We will continue to invest in <unk>.
Michael Morris: Throughout this year and next before it reaches profitability, but it's on track.
Michael Morris: And on schedule to meet.
Michael Morris: Our breakeven and profitability as per R. R.
Michael Morris: Our kind of business business plans and expectations for the business. So we are.
Michael Morris: Really excited about <unk> future and its positive impact for our overall.
Michael Morris: Our revenue base.
Michael Morris: And on EBITDA going into the future on sports betting.
Michael Morris: We are talking to I think 27, 26 or 26 states.
Michael Morris: Sure for licensing that process is.
Michael Morris: Obviously.
Michael Morris: Relatively complicated one, but it's moving forward.
Michael Morris: And.
Michael Morris: We expect there to be sort of no significant hurdles with that process, but it will take time of course, we've given ourselves plenty of time, because our option.
Michael Morris: <unk> is not a.
Michael Morris: Due for another.
Michael Morris: <unk> 23, and 2030, so we've given ourselves sort of five years to get through the process, but we would expect that the license.
Michael Morris: Very significantly before that.
Michael Morris: <unk>.
Michael Morris: And we're happy about that.
Michael Morris: The option today, the 18, 6%.
Michael Morris: <unk> is in the money on current.
Michael Morris: Consensus valuations.
Michael Morris: By over $2 $8 billion and our two 5%.
Michael Morris:
Michael Morris: Holding and flutter of the parent company is worth over $1 1 billion. So our sports betting strategy has really been very positive for the company for our register.
Speaker Change: Operator next question please.
We have a question from Michael <unk> from Goldman Sachs. Please go ahead.
Michael <unk>: Hey, good morning. Thank you for the question I wanted to ask about the subscriber trends declines of 7% improving.
Speaker Change: Are you are you seeing any impact from the benefits of skinny bundle inclusion yet.
Michael <unk>: Do you expect to outperform.
Michael <unk>: The market on sub declines over time because of inclusion there and then just a quick follow up to Steve.
Michael <unk>: Yes.
Speaker Change: <unk> said that you expect digital losses to go from I think mid $300 million last year to high $200 million.
Michael <unk>: Any updates there just given the comments around.
Michael <unk>: Investing as well as the.
Michael <unk>: To be outperformance day. Thank you.
Michael <unk>: Yeah.
Michael <unk>: Thanks, Mike.
Michael <unk>: So I'll, let Steve talk to them.
Michael <unk>: Losses, I'll talk to that again.
Michael <unk>: Losses.
Michael <unk>: We see them as good investments.
Michael <unk>: On sub trends like Youre right like 7%.
Michael <unk>: Subscriber declines.
Michael <unk>: In this quarter is the second consecutive quarter, where sub trends.
Michael <unk>: The sub declines have reduced I would see that as a very.
Michael <unk>: <unk>.
Michael <unk>: Positive trend I think it's too early really for.
Michael <unk>: For these sort of.
Michael <unk>: Skinny bundles, if you want to call them skinny bundles like a call for something a little bit different but but.
Michael <unk>: It's too early real estate that Thats, having a major impact although I think there probably is some seasonality and subscriber trends with obviously.
Michael <unk>: Being in the middle of a.
Michael <unk>: Energized and exciting sports.
Michael <unk>: Sports season, so there probably is some.
Michael <unk>: Ah.
Michael <unk>: Seasonality in that but we are very.
Michael <unk>: Heartened by by the trends moving in the right direction.
Michael <unk>: With the some skinny bundles.
Michael <unk>: If you look at the bundle from a Fox perspective on Directv with my sports or on Comcast with our <unk> sports and news television.
Michael <unk>: <unk>.
Michael <unk>: Pretty much the entirety of our portfolio, our bouquet of channels with a couple of small exceptions are in.
Michael <unk>: In those bundles so.
Michael <unk>: In both of those I mentioned Fox the Fox Network Fox News Fox business Fox Sports, One Fox sports two and the Big 10 network and so from our Fox perspective. This is this is not a skinny bundle. This is ilene.
Michael <unk>: And mean bundle so it's like it's.
Michael <unk>: It's Jack.
Michael <unk>: And modest.
Michael <unk>: Our financial perspective.
Michael <unk>: We do as well in the in the <unk> bundle as we do in the.
Michael <unk>: And our normal traditional traditional bundle. So we are we're very pleased with this trend of the bundle it's financially economically a positive for US we would hope that this bundle will be attractive to the cordless customers to cord cutters and cord nevers, but to the extent that.
Michael <unk>: It does churn a traditional.
Michael <unk>: Our cable subscriber.
Michael <unk>: I hope it doesn't but if it does well.
Speaker Change: We are certainly hole and if not in some instances better off so we're pleased with the emergent bundle and we think that bodes well for our for the business going forward, Steve do want talk to the issue of the chatter. However.
Speaker Change: In terms of digital Bang on track in terms of the improvement in digital investment.
Speaker Change: You alluded to for the full fiscal year. In fact, just this quarter, we are probably close to $40 million to the good in terms of.
Speaker Change: Lower digital investment half of that comes from better EBITDA to be I would say just with two b's as you look to the outlook for the balance of the year, obviously with the Super Bowl to be it's going to take mix advantage of.
Speaker Change: The marketing and user acquisition that comes with that so you should expect them to step on the gas a little bit in terms of investing around that in Q3 then.
Speaker Change: We spud on track in terms of bringing that digital investment down but to the extent that we see more and more opportunities and we'll remain opportunistic but at the moment, we're bang on track.
Speaker Change: Great.
Speaker Change: Operator, we have time for one more question.
Speaker Change: Your final question is from Robert Fishman at Moffett Nathanson. Please go ahead.
Robert Fishman: Hi, good morning, everyone.
Robert Fishman: Just following up on the sports strategy. After Netflix won the rights for Women's World Cup can you just talk about how you feel Fox is positioned.
Robert Fishman: And then you had to compete with Netflix and the other digital betters for future sports right and then just to clarify on the DTC offer it and coming back to that with that plan include Fox News Fox nation content or is that just the sports only offering thanks so much.
Robert Fishman: Thank you very much Robert so on.
Robert Fishman: The sports strategy overall, we continue to.
Robert Fishman: To believe that our reach is.
Robert Fishman: Number one two and three and a priority for us.
Robert Fishman: For leagues, and certainly for our business and what we will continue through.
Robert Fishman: Ties into the direct to consumer strategy because to put our content.
Robert Fishman: In front of every consumer that wants it on any platform and every platform and so by really driving our engagement with the consumer viewers across traditional linear platforms across cable distribution are crossed the digital.
Robert Fishman: Mvpds and.
Robert Fishman: And across our own D to C services targeting these cord cutters and cord Nevers that will put us in absolutely the best positioned with the broadest reach to continue to serve both our viewers, but also also sports sports fans.
Robert Fishman: Sure.
Robert Fishman: That that package the DDC package.
Robert Fishman: We will announce more as we.
Robert Fishman: In the future, but we would see that package.
Robert Fishman: Our package, it's holistic of all of our content of sports.
Robert Fishman: Great.
Robert Fishman: At this point, we are out of time, but if you have any further questions. Please give me a call. Thanks, so much for joining our call today. Thank you. Thanks, everyone. Thank you.
Speaker Change: Ladies and gentlemen that does conclude the Fox Corporation second quarter fiscal year 2025 earnings conference call. Thank you.
Robert Fishman: Okay.
Robert Fishman: Yeah.
Robert Fishman: Yeah.
Robert Fishman: Yeah.