Q4 2025 Fox Corp Earnings Call
Ladies and gentlemen, thank you for standing by. Welcome to the fox Corporation, fourth quarter, fiscal year 2025 earnings conference call.
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I'll now turn the conference over to Chief investor relations officer. Miss Gabriel Brown, please go ahead Miss Brown.
Thank you, Carly. Good morning and Welcome to our fiscal 2025 fourth quarter earnings call joining me on the call today, are Lachlan Murdoch, executive chair and chief executive officer, John Allen Chief Operating Officer and Steve Tomac our Chief Financial Officer.
First, Lachlan received 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 corporations financial performance and operating results.
These statements are based on Management's, current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filing.
Additionally.
The call will include certain non-gaap Financial measures including adjusted EPs and adjusted Eva de or IBA 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.
We also refer to free cash flow, which we Define as net cash, provided by operating activities plus Capital expenditures. And with that, I'm pleased to turn the call over to Lachlan.
thank you very much Gabby, uh, before we start
A preemptively apologize for my coughing from the end of a a cold, which Gabby and Steve are thrilled to be, uh, locked in a, uh, in a, in a, a closet, uh, with me. But, um, you guys should all be, uh, thankful that you're, uh, this is telephonic, uh, well Gabby. Uh, thank you very much and thank you all for joining us this morning. As we discuss our fourth quarter and full year earnings results.
Fiscal 2025 was another outstanding year for Fox demonstrating, the strength, operationally and financially across all of our businesses and delivering our best year yet.
The year was highlighted by our strong financial performance with Revenue growth of 17% to 16 billion dollars. Eva dark growth of 26% to 3.6 billion dollars, adjusted EPS growth of 39% to 4.78 cents per share and free cash flow. Growth of 100% to 3 billion dollars, all records for Fox.
We also generated record political advertising revenue of well over 400 million dollars across the fox platforms.
Fox's broadcast of Superbowl, 59 broke, viewership and advertising records. As the most watched telecast in US history, generating over 800 million dollars of gross advertising Revenue.
And engagement at Fox News led to record audience, share. We reaching over 70% of the cable news audience at times during the year.
Our noteworthy fiscal, 2025 results were underpinned by a 26% lift in, total advertising Revenue to 7 billion dollars.
Soccer tournaments.
As we look at the physical 26, the overall advertising market for Fox continues to be healthy and robust as evidenced by our recently concluded upfront, where we achieved record setting double-digit, volume growth and strong pricing growth across our portfolio.
The power of Our Brands and our ability to deliver engaged audiences at scale. Across our platforms is exceptionally strong.
Nowhere. Is that scale and engagement more evident than
At Fox News.
Fox News ended the fiscal year as it began as the most watched cable network in total day. And in prime time
In the fourth quarter. Total de audience was up 25% in total viewers and 31% in the demo while maintaining over 60% share of the cable news audience.
And now, for the second quarter in a row, Fox News was the second most watched Network in Monday through Friday crime in all of Television, your passing all, but 1 Broadcast Network.
But it's not only linear news driving that performance. Fox News digital achieved new records for engagement during the quarter with over 1.5 Billion YouTube views and over 3.7 billion, social media video views, our highest totals ever
Engage, our Trends are off to a good start in the first quarter of this new year with Fox News, finishing at the highest rated television network in America for the month of July. No doubt. Aided by musk programming Like Jesse Watters Prime Time and Gutfeld the leading late night program on television.
Fox Sports once again, submitted its position finishing the year first among all networks in live sports.
That engagement was driven by an impressive portfolio of sporting events, including a riveting Major League Baseball postseason, the launch of fox college football Fridays, the NFL and fox and of course the record-breaking, Super Bowl 59.
And while our fourth quarter, has a lighter sports, calendar boxes, first presentation of the Indianapolis 500 was an unqualified success. Averaging over 7 million viewers a 41% gain over the last year and the most watched running of the race in 17 years.
The power of live sports remains unmatched and our Sports portfolio is an increasing Demand by advertisers and viewers alike.
We expect that to continue as we charge ahead to autumn when we welcome back postseason baseball, the NFL, and college football on Fox.
Fox's. Big noon, Saturday kicks off on August 30th with a highly anticipated. Rematch of last season's college football. Playoffs semi-final, Texas versus Ohio State.
by then you will be able to watch our entire Sports portfolio, along with our news and entertainment programming on Fox 1, our direct to Consumer streaming platform
Fox 1 is a truly Innovative, digital offering launching across the US on August 21st for $19.99 per month.
While Fox 1 will be marketed to the cordless Market current pay. TV SC subscribers, will also have access to Fox 1 on an authenticated basis.
And yes, we will be offering bundling opportunities that make sense to achieve our targeted objectives. We have said before that, our aspirations for Fox 1. Subscribers are modest and our measured investment towards this initiative will match these long range goals.
speaking of the cordless Market to be knocked multiple achievements in fiscal 2025, including delivering the most extreme Super Bowl in history, exceeding, 100 million monthly, active users,
Generating over 1.1 billion in revenue and reaching an all-time high of 2.2%, share of total us television viewers.
2% in the quarter.
To these hard to reach audience, resonates with advertisers looking to tap into the cordless Market as evidenced by this year's upfront results that saw to be volume grow over 35% year on year while holding rate stable in a competitive connected TV Market.
This fall 2025 with a decent year for Fox.
And a clear demonstration of the efficacy of our differentiated Strat differentiated strategy.
And there's more to come.
On these calls, we have long said that we aspire to engage with our viewers wherever suits them best.
The traditional Cable Bundle remains our favorite distribution Channel as we believe it continues to provide exceptional, value to Consumers.
To be with 2/3 of its users cordless and outside of the bundle, serve as a massive Market hungry for free premium content.
And soon. Fox 1 will additionally service? Another important audience segment those wanting a paid targeted offering encompassing all Fox brands.
These pillars of our distribution strategy, provide us access to the largest audience possible and will underpin our growth in the years ahead.
We enter a fiscal 2026 with solid operational, and financial momentum across our company. And we look forward to another exciting year that will, that will see the launch of Fox 1. In just a few weeks, the renewal of 1 quarter of our distribution Revenue, a healthy advertising, uh, environment. And of course, Fox broadcast of the FIFA men's World Cup beginning. Later, this fiscal year,
Underscoring our confidence in the trajectory of the business. This morning we are announcing a 5 billion dollar increase to our share repurchase authorization with our balance sheet. Has never been stronger. We expect to continue. Repurchasing repurchasing, our shares while still accommodating, our continued program of organic investment and preserving flexibility. The thoughtfully invest in new businesses.
And with that, let me turn over to Steve.
Thanks a lot and good morning everyone.
With a strong fourth quarter. Capping off, has already shaping up to be a strong year. Fox delivered record Financial results in fiscal 25.
With record total company revenues of over 16 billion growing 17% year-over-year and record adjusted eita of 3.6 billion. Growing an impressive. 26% year-over-year converting to record free cash flow of 3 billion.
Advertising revenues across the country, were up, 26%, with strong. Growth of both our television and cable network programming segments.
This growth was driven by both our Banner years of events including record-breaking advertising revenues for both Super Bowl, 59 and the presidential election cycle, as well as strength in our underlying core highlighted by accelerating 2D growth, robust news, pricing and engagement growth and very healthy advertising demand for our Sports Programming.
We successfully completed renewals with Distributors representing approximately 1 quarter of our overall affiliate revenues, this year. With the financial benefits of these renewals driving 5% growth in total company affiliate fee revenues.
Led by 7% growth at the television segment.
total company other revenues were up, 47% year-over-year driven by High Sport sub licensing revenues and our cable network segments, segments
as we have previously mentioned this growth in Revenue was largely offset by a corresponding increase, in rice cost with no material impact on a year-over-year overall, in the data
Total company expenses, increased 14% largely due to high Sports rights amortization. And production costs, including costs associated with Super Bowl, 59 and the sub licensing revenues. I just mentioned
Net income attributable to stockholders was 2.3 billion or $4.91 per share up versus the 1.5 billion dollars or $3.13 per share reported in fiscal 24.
Excluding non-core items full year. Adjusted net income was 2.2 billion and adjusted. EPS was $4.78 per share up 39% year-over-year.
To our fiscal fourth quarter.
in adjusted e to
the our advertising revenues increased 7% led by continued growth of 2B and strong engagement and pricing at news.
Total company affiliate fee revenues grew 3% over the prior quarter. Once again, demonstrating the strength of Our Brands and focused portfolio of channels.
Other revenues grew, 33% driven by higher content revenues.
Net income attributable. To Fox stockholders, was 777 million or dollars 507 per share as compared to the 319 million or 68 cents per share reported in the prior year period.
Excluding non-core items.
Adjusted net income was 581 million and adjusted EPS was a 1.27 up to 41% compared to the 90 cents per share recorded in the prior year.
Now, let's turn to the Q4 performance of our operating segments, starting with the cable network program program programming segment, which delivered 7% Revenue growth and 6% either Dar growth.
Cable advertising revenues, grew 15% over the prior year, driven by the strength in Fox News engagement and supported by healthy National and direct response pricing.
Kayla affiliate for your revenues, grew 2% over the prior quarter, as pricing, gains from our affiliate renewals outpace the impact from net subscriber declines, which were consistent with the prior quarter at under 7%.
Cable other revenues grew 39% led by higher approximation subscribers.
Revenue growth at cable segment was partially offset by 7%. Increase in expenses, primarily attributable to an increase in sports rights amortization and production costs.
Turning to our television segments, which delivered 6% Revenue growth.
Advertising revenues at television grew 3% over the prior year led by continued growth at TV, which more than offset. The tough comparison against the UAE for European championships and Kahn mobile copper America in the prior year.
Television affiliate fee revenues increased 4% in the quarter. There's Healthy Growth in fees, across both Fox owned and Affiliated stations more than offset the impact from industry subscriber declines.
television and other revenues were up, 34% year-over-year primarily due to higher content revenues, tied to our entertainment Production Studios,
Expenses that the television segment, decreased 5% primarily reflecting the absence of the prior broadcast of the UA for euros.
All in EBA TV, segment was 308 million, and increase of over 100% as compared to the prior quarter.
Turning to cash flow where we generated, robust quarterly, free cash flow of nearly 1.4 billion.
This strong quarterly, free cash flow delivery is consistent with the seasonality of our working capital cycle. We're the first half of our fiscal year, reflects the concentration of payments for sports, right?
And build up of advertising related receivables, both of which reverse in the second half of our fiscal year.
before we get to,
Capital allocation and balance sheet, it is worth noting some key items for this coming fiscal year.
From an affiliate Revenue perspective in fiscal 2026. We have another relatively light year of renewals with approximately 1 quarter of our total company distribution revenues up for renewal.
In fiscal 26, we expect to continue to invest in our digital lead growth initiatives.
The excellent progress we've made reinforces our confidence in these past profitability.
And it's obvious asset value. Underscores the opportunity to drive Roi from our digital Investments more. Broadly,
To be delivered, moderate Improvement in profitability, in fiscal 25. In line with the expectations, we laid out at the start of the year and we anticipate a more substantial Improvement in 2v profitability, in fiscal 26, which will be weighted toward the second half of the year.
This total Improvement will support. Our initial incremental investment, in new opportunities, including Latin Sports and More notably, the launch of Fox 1, which will be more concentrated in the first half of our fiscal year as we launch this offering this month.
From a cyclical event perspective. We look forward to our broadcast of the 2026 FIFA men's World Cup, which will span our fiscal fourth quarter of 26 and first quarter of 27.
We are encouraged by the momentum momentum. We are already generating and expect this North American World Cup to drive strong results for Fox.
25 will give way to a working capital timing headwind from the World Cup where rights payments for the tournament will land in fiscal 26. While advertising receivables will be collected for early and fiscal 27.
In terms of capital, allocation, in fiscal 25. We were purchased an additional 1 billion through our share buyback program and made approximately 245 million in dividend payments.
As llin mentioned, underscoring our commitment to return Capital to shareholders. Today, we announced both an incremental buyback, authorization of 5 billion and an increase in our semiannual dividends to 28 cents per share.
With the payment of this dividend and taking into account share repurchase activity. Since year end we will have cumulatively returned 8.5 billion dollars of capital to our shareholders since the spin.
This includes 6.65 billion dollars of share repurchases. Representing 31% of our total shares outstanding since the launch of the buyback program. In November 2019,
This is all supported by the strength of our balance sheet where we ended the quarter with approximately 5.4 billion dollars in cash and 6.6 billion dollars in debt with that. I'll turn the call back over to Gabby.
Thank you, Steve. And now we will be happy to take questions from the investment community.
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1 moment, please for the first question.
We have a question from Ben swinburne with Morgan Stanley.
Good morning. I'm gonna ask uh Steve a question because I can't pass lock with a question. That'd be cruel. Thank you man. Thank you. Hope you feel better. Um Steve you gave us a lot of good color thinking about fiscal 26.
Um, I know you're not going to guide. Um, I'm sure you also know that consensus is expecting, like, a 10% decline and even, uh, obviously you lap political and the Super Bowl.
But I don't, I don't know if your Revenue Trends have been this strong.
In a long time. So I just wonder if there's any way you can help us, think about fiscal 26 maybe a little more specifically, 1 way might be just to talk about the sort of net drag on ebita from Investments that you sort of put it all together, all the puts and takes you know, that that digital drag in 2016 versus 25 or anything else. You can tell us to help us. Think about your expectations for EBA in the in the year ahead. Thank you sure. I think Ben thank you for sparing Loveland. Um so yeah there's a ton of puts and takes for the 26th um and you're right. Listen when we're when we assemble our plan for 26. It starts with the really strong Foundation of what the underlying momentum in the business is uh particularly with respect to audience and advertising demand for Press sports and use verticals. Um so that that's the starting point from an affiliate Revenue perspective. As I called out, it's relatively light in in this coming fiscal year. So only a quarter of the book is up for Renewal so we'll be more driven by where Subs.
Described as land over the course of the year.
And if you look at sort of the next thing that um, that sort of drives the results into next year, we've got a lot of moving parts from a cyclical event perspective. So we'll obviously have the political headwinds and particularly, we'll see that in the TD segment from the stations. And that's a real sort of first quarter second quarter phenomenon for us. And so to give you some de dimensioning of that, like I think the stations in the first half of the year in fiscal, 25 did 270 million in a political Revenue. So we'll, we'll be sort of swimming against that, but obviously got Super Bowl in Q3 which will be an ad Revenue negative for us. But from an EV that perspective, it's a bit of a push and then we complete the year from a cyclical event perspective. We got FIFA, which we have high hopes for in Q4 if the coming fiscal year in q1 of the next fiscal year, the other put and take his MLB with a massive, MLB in q1 and Q2 of fiscal 25, we hope for a blockbuster postseason again but but who knows?
Start a physical 24. We called out an envelope of about 350 million dollars of either D deficit, that would be used towards funding our digital growth initiatives, and you'll remember that we, we had expected that, um, investment envelope to decreasing, fiscal, 25. And it has largely on the back of things like to the improving profitability. And so, I think, when you look at fiscal 26 from that digital investment suspected, you should expect
to be a to, to improve quite a lot. But then we and that will happen in the back half of our fiscal year and then, q1 and Q2, we will be looking to invest in things, like Latin, America, and Fox 1. And when you put that all together, I think we'll on a conservative sort of forecasting basis. I'd imagine that sort of collective Investment Portfolio, moves, back towards that 350 million. Mark,
Operator next question, please.
We have a question from John holik with UBS.
Great. Thank you.
Um, I don't know if this is for Locklin or maybe Steve can handle it, but um, just an update on on the cable advertising Trends and and, and the average are sort of expand the advertising base and the receptivity you're getting from from, from from advertisers there and then maybe Steve can. Can you just, uh, follow up on the, the left hand comments, just just what's the strategy there? And, um, I don't know if you can give us a sense of how much spending but just just um, you know what, what the what the plan is and and and potential.
Growth opportunities in the left hand. Thanks.
Uh, thanks, John, on the um, uh, cable advertising trends. And, um, I would probably talk more later if someone asked about these sort of overall advertising market, but if you're speaking specifically about really the, the, um, the incredibly positive, uh, momentum at Fox News, um, uh, advertising is uh, uh, uh, very strong, um, both from a um, uh, upfront perspective, uh, from a CPM, uh, perspective, and direct response.
So, and this is all obviously driven off, you know, uh, uh, tremendous, uh, ratings, I think in the fourth quarter, you know, our P2 plus, uh, ratings were up, uh, in both Total day and prime of about 25%, uh, and even better in the kind of all important, uh, demo 25 to 54, which we obviously, uh, sell to where in total day we were up 31%. And in prime time we were up, uh, I think 34%. Um, so, uh, you know, these, these, uh, this rating strength is really flown directly through, um, to, um, to the, uh, uh, 25% of their advertising, uh, Revenue, uh, increase.
Um, you know, I think as you as you go forward and think about sort of the, the, the, the quarters ahead. You know, obviously this time last year there was the um, uh, kind of Aura of the butler assassination attempt on July 13th, uh, against um, um, then Canada Trump and then Biden dropping out of the race, uh, I think in a couple weeks later, July 21st. And so, there was a big uplift in in ratings then, uh, which we've been able to sustain, um, since then but, uh, you know, the, the comps do get harder. Having said that, if you think about our share in July, so as we've started this first quarter, our share is actually marginally increased against our competitors. So uh, in P2 plus um, uh, in total day I think we're up to 64%, um, of cable news audience, share versus, uh, MSNBC at 21%. CNN at uh, 15%, uh, and also in um, in Prime
Uh the numbers are are, are, are roughly the same? So so we feel very good about maintaining our share and our elevated ratings to be frank. Uh, and and obviously, that will flow through to the advertising, um, uh, Revenue line, uh, on Lifetime and Stephen talked to the numbers. But we're very excited about um our purchase of kelontae TV, a streaming service, uh in Mexico. Um the fox brand uh remains uh incredibly strong, both in Mexico and Latin America.
We see see it as a an opportunity uh for us to sort of further grow with a relatively modest uh investment spend in those markets.
Really fast. Start in terms of its already got an S5 platform there and already has distribution arrangements. And so we would expect some Investments spend over the course of this current fiscal year. But then once we get money causation into
Sort of Full Force then we'll start to see that that come back to us.
Operator, we're ready for the next question.
We have a question from Michael Morris with Guggenheim.
Thank you. Um, good morning to you, if I could please, uh, first, I just wanted to ask on 2B, appreciate the caller, uh, and and the strength you're seeing there you're outpacing. You know, the broader CTV Market pretty meaningfully. So I'd love to hear any detail on on, why you think you've been able to do that and, and how you feel about uh the ability to continue to to to beat the market in the coming year.
And then just bigger picture. There's been some press reports that that ESPN and the NFL might enter an agreement that would give the NFL a an ownership stake in ESPN. And I'm curious if you could comment at all on what that might mean for Fox Sports and and your relationship with the NFL or or Sports League's more broadly, thank you.
Uh, thanks Mike. So first on to the um uh you're you're correct, you know? Tubby is um uh
Uh, competing, uh, very well, uh, in, in the CTV Market, uh, I, this is obviously for, for a number of reasons. Um, um,
uh,
That we've I think we we've spoken about before, you know, the, the core technology, the ad tech technology, I think we've now, you know, grown, um, the library to over 300,000, uh, movies and and television, uh, uh, titles. So, it's clear clearly, um, uh, by by a wide margin of the largest, um, television and, and, and movie, uh, Library, uh, uh, in the country. Um, uh, it reaches 2/3 of its, uh, of of its, uh, users our, our outside of the traditional Cable Bundle. They're they're cordless. This is a very, um, difficult, uh, Market, uh, for our advertisers, uh, uh, to reach. And so it makes uh, 2 B's um, engagement with, with our, our users on, you know, incredibly valuable, uh, and, uh, covered it by by our clients. Um, so, uh, you know, all of these things, um, you know, come together to, you know, to really make it a, a tremendous, uh, and and exciting.
Product that we are, um, um, uh, we were enjoying, uh, the growth of and, and the growth of that, that we see continuing, uh, into the future. Obviously, in the quarter, we've announced 17%, uh, total viewing time, uh, growth, uh, in in the fourth quarter. Um, you know, we believe that this sort of growth is is our relatively uh sustainable and 32%, our Revenue growth uh in the quarter and uh um you know, which which is um our highest uh our growth or any of our our, our segments um uh to be. Now I think achieves in the upfront about 25% of our upfront, uh committed uh Revenue, so it's it's really become a significant. Um uh part of the business.
Um, uh, and and, uh, you know, if you look at our, our competitors, I think that that stat on, uh, ZIP cordless Market, we reach more cordless viewers than sort of any of our competitive sets. So it's not something that's actually, um, simply, uh, applicable to, uh, the CTB Market. The the 2B audience, really does SKU a cordless and, and, uh, and younger. Uh, and we saw that very much in in the, uh, in our Super Bowl uh, uh, uh, uh, uh, broadcast or Salma cast uh, earlier in the year.
We are at our median age, watching the Super Bowl with 38 years old. Uh, it was younger and more female, a significantly than the broadcast audience. I think 40% of the audience was, uh, between 18. Uh, and 34 and really it was with the help of tubby, um, that uh, really pushed, uh, uh, the audience for the Super Bowl to the record highs of 128 million viewers uh, that the Super Bowl achieved, I don't think broadcast would have achieved that, um, with statistically broadcast wouldn't have have achieved that, uh, alone, uh, with without to me simal casting the streaming. So so we're incredibly, uh, excited about, uh, and to be, uh, as we go forward, uh, on the, on the NFL and, uh, you know, the, the rumored. I don't know if they'll announce something tomorrow, but the, the rumored, uh, investment into ESPN. We have a tremendous relationship, uh, with, with the NFL NFL, um, uh, you know, we we appreciate that they, uh, uh, the the, their fans of the, uh, of the, uh, broadcast and, and, and cable.
With them and deepening our relationship.
With them, uh, as we move forward. So,
Next question, please operator.
We have a question from Michael Inc with Goldman Sachs.
Hey, good morning, thank you for the question. Um I just wanted to follow up um with Steve on the comments around the uh Collective Investments for fiscal 26.
Um I I I think that implies at least 100 to maybe 150 million dollars of additional investments in in Latin and Fox 1. Uh next year just given the 50 to 75 million Improvement this year and the comments you made about to be profits further improving next year.
Um, I I just wanted to ask is, is that kind of like the ballpark of the incremental investment levels that we're talking about and maybe you can just help frame some of the expected Returns on those Investments. Whether that be for, um, lat M or Fox 1 subscribers, uh, to just give a little bit more transparency there. Thank you very much. Thanks Mike. Um, so, how do I treat you in that? But in terms of
The investment, I think where we were for this fiscal. When you look at a collectively across the pnl, um, if I look at our digital growth Investments with which is not, just to be its to be plus things like Nation, whether across the portfolio, we're a Touch under 300 across those for fiscal 25. And what I'm basically saying is as we get Improvement in those kind of businesses, those growth businesses have become more mature, will give some of that back towards
These uh, new initiatives and in particular um, Fox 1 and Latin America, where the collective goes back towards that 350 Mark, now how we break that up and how we see that going through? I think we'll look at over the course of the year but that's kind of the envelope we're looking at. Um, and then when you look at, I think return profile, I think you should expect like 2 is probably the best Benchmark that we have, right, which is worth been investing in that. And as we've continued to see growth in that business and opportunity to continue to build in it with continued to invest in it. And now we're seeing it at a point where we can, we can continue to drive the growth and start to see sort of real meaningful profitability improvement over and that's been over 3 to 4 years. And I imagine for both of those 2 new Investments, whether it be Latin America or Fox 1, you should be thinking around that same sort of profile. Yeah. Can I just answer that in a non-math part of your question and a non-math answer to some on Fox 1 because Fox 1.
But none of that will will will include any incremental.
And.
Sort of are sticky.
Additional spend so the the new spend and Fox one of ours.
Other than some overhead and some.
Relatively modest a tech costs is really the marketing.
Launch costs of Fox, one and it's important to remember that our our.
Subscriber experts.
Expectations or aspirations for Fox, one are modest and therefore, our marketing spend we can.
Is relatively modest compared to our peers as well and it's something that we can toggle up and down depending on how Fox one is growing and we're meeting all of them are relatively modest call. So I think that's an important context, when we think about.
Both the initial upfront cost of Washington Pox one.
The sustainability of that business in them.
The return profile of that business are going forward.
Next question please operator.
We have a question from Jessica Wright with Bank of America Securities.
Thank you.
I guess the first question is on <unk>.
Even if you did your newly announced buyback you still have flexibility.
And clearly the industry has gone through M&A.
Current year, what the coming year.
Fox participate or not your investment needs as you guys just outlined.
Specifically, sorry modest 50 million. So just curious you know it's it's.
It seems like it's finally going to happen.
Next week so.
So that's one and then maybe just to go back to something you mentioned on advertising just kind of bigger picture you guys are clearly outpacing the market.
And so you you gave some color on QB and Fox News just overall TV you guys soon.
Yeah.
I'm so sorry.
Sorry, just.
At the beginning of your question on coffee. After your first question is on M&A, overall, and whether or not how we participate.
And any M&A activity.
The short answer is.
We don't have anything to announce we look.
Look at all sorts of opportunities we have a very high.
Internal benchmark for the use of our capital.
And so.
Obviously, we reject out of hand anything that we think are would not be a prudent use of that in.
Our shareholders' capital as well so we are we're always looking at opportunities.
But we haven't found anything yet that sort of.
Mr passes are are sort of.
Benchmarks in terms of what we feel we need to do to alright.
Inorganically and kind of grow the business. So we're pretty focused on our organic growth at the moment.
In terms of the overall ad market.
The.
Uh huh.
AD sales are across across the business.
Very strong again again, we've talked before about the.
The AD market that we see versus the AD market and maybe the rest of the market sees it.
As a little bit different because of the.
<unk> are being.
So I'll focus on the segments that we're in particularly live news.
Live sports and obviously.
Successful free streaming strategy.
Platforms, such as <unk>.
Sales nationally Jessica.
Our very strong really led by pharma category financial services category consumer package good.
Category and this really played out in the upfront, where we saw double digit volume increases and strong pricing growth across all of our businesses.
I think we called out earlier, the Fox Sports this had the record.
Breaking upfront if you exclude the impact of the Super Bowl I think over $2 billion committed in the upfront.
<unk> saw a 35% volume.
Increase with stable pricing I think the stable pricing activity is important to call out because the CTV market is I know other other people have mentioned this on their earnings calls the CTV market.
Is incredibly competitive.
But <unk> been competing and winning.
Strongly.
In that market.
I think while that market is.
<unk>.
Industry comment while that market is competitive it will remain the beneficiary of advertising revenue shifting from linear cable entertainment programming Interdigital and frankly, we're also introducing into sports from the CDP market.
People are fighting for that advertising revenue, we're the beneficiary of that but we see the.
The volume of advertising dollars continue to stream you.
He did that market are pretty are pretty heavily.
Our sports upfront as I mentioned was very strong and remains healthy.
Single data point, but we had record revenue for the major League all Star game.
The demand far outstripped supply.
Spots in that game.
<unk> cost football all are pacing very.
Well and we're incredibly encouraged by the demand that kind of incredible demand for the FIFA World Cup.
Later on in the in the year.
News, we've talked about before Dr pricing is up by 30% scatter pricing in news is up 54% above the upfront.
So all very good.
The local market is the one that remains mixed.
With gains from again like National a strong pharmaceutical segment, but that's offset by telecom.
I believe restaurants are offsetting those gains and pharmaceutical and then just finally.
Sure.
And we've talked about to be bought on entertainment.
Healthy with double digit.
Sure.
Increases in scatter pricing so.
The advertising market.
As robust for us and strong and it really is propelling us forward.
Operator, we have time for one more question.
We have a question from Steven Cahall with Wells Fargo.
Yeah.
Yeah.
Thanks.
First Lachlan sorry to make you speak but you did mention that there could be some bundles coming for Fox. One I was just wondering how you think about different partners. There no. One partner has probably the most sports rights. There is some others that could be complementary to your afternoon NFL package and also how you think about sort of integrating <unk>.
<unk> versus just having them be sort of more of a pricing bundles for consumers.
And then over on the TV side of things. The FCC has been much more vocal around I think what it is kind of expecting in terms of reverse comp and splits between networks and affiliates do you think things have changed in this outlook for your network business and your relationship with affiliates.
Is there any meaningful financial impact we need to think about for the next couple of years from that thank you.
Thanks, Steve Let me.
Start with the <unk>.
Obviously within the order of your question with the Fox, one and bundling.
On what we will.
Bundle.
Fox one with <unk>.
Other services.
That's absolutely in our.
Our marketing and sort of launch.
Plans, but it will also be obviously I'm available with a 1999 as a standalone as a standalone service one of the things with the bundles that we are.
Cognizant.
Theres two factors one is to offer the consumer the most convenient.
Package of all of our content and channels.
And others.
Their desire to subscribe to and so the most convenient and most.
Uh huh.
Alibaba bundles that you could put together.
We'll be in a position to help them do that but we're also very focused on keeping Fox one is a very targeted service.
Targeted on.
On the court.
Cordless audience, sometimes those two things can conflict.
With each other so we want to stay very targeted but we also want to make it easy for our consumers and our viewers to gain our content, whether it's in conjunction with our other services.
Or not.
We don't really see.
And you'll you'll understand this.
On the 20 <unk> when you see Fox one we don't really see us as a service that is.
But you can compare to.
Separate.
A bundle of channels only the Fox one.
User interface is incredibly innovative innovative.
It can be very highly personalized.
And.
Relies on some really very sort of clever technology to offer something that's truly unique.
In the in the marketplace. So we see Fox one as.
All of our brands all of our content, but in the interim.
Truly kind of unique and I think important user interface.
We.
Cutting edge.
On FCC and affiliate look we are well first of all I should say on the FCC, we were very pleased.
The new leadership of the FCC.
The FCC has.
His pro.
Locations.
Is pro competitive they are bringing a lot of them are fresh ideas too.
The regulatory environment, and we're very pleased to see that.
As regards to how it effects.
Our affiliates.
We remain I think the.
The most.
Affiliate.
<unk> focused.
Our company.
Certainly broadcasting company.
In this country.
And we don't really see it impacting.
In any way with our affiliate relationships.
Anything that could improve them I should mentioned that joins the two questions together Fox one will uniquely.
Combined both our foxconn content, but our local affiliates.
Our content.
Fox one our aspiration is if youre a fox one.
Subscriber you will be getting your local sports and local news.
It's not just arps through our owned and owned stations, but our affiliate stations as well available available to you on that App. So.
Well, we're excited and we're very happy to be.
Our pro our local affiliate groups and local independent stations.
I think that's an important place for us to be in the marketplace.
At this point, we're out of time, but if you have any further questions. Please give me or Charlie can Angela call. Thanks again for joining us today. Thank you. Thanks, everyone. Thank you.
Okay.
Ladies and gentlemen that does conclude the Fox Corporation fourth quarter fiscal year 2025 earnings conference call. Thank you.
Yeah.
Yeah.
Yeah.