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 Gabrielle 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 and Steve will give some prepared remarks on the most recent quarter. And then we'll take questions from the investment community.
Please note that this call may include forward-looking statements regarding Fox corporation's financial performance and operating results.
These statements are based on Management's, current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filing.
Additionally.
Call will include certain non-gaap Financial measures including adjusted EPs and adjusted Eva or yvanna. 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 Lackland
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 that, uh, in a in a Savvy 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 309% 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.
Advertising Revenue.
And engagement at Fox News led to record audience, share, reaching over 70% of the cable news audience at times during the year.
Our noteworthy fiscal 20125 results were underpinned by a 26% lift. In total advertising Revenue to 7 billion dollars.
The momentum we have reported over the first 3 quarters of our fiscal year continued unabated during the fourth quarter with 7% growth over the last year, despite tougher comparisons from last year's, UEFA euros and Copa America. Soccer tournaments.
As we looked at the fiscal 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 Prime in all of Television surpassing 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 must watch 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. Foxes first presentation of the Indianapolis 500 was an unqualified success. Averaging over 7 million viewers. A 41% gain over last year and the most watched running of the race in 17 years.
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 Fox is Big noon. Saturday kicks off on August 30th for the 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. 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 are 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 stream 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.
The sustained momentum, we have seen at Tubi, throughout this fiscal year continued to the fourth quarter with 17% growth in total view time, along with favorable progress in our direct response and partner channels combining to drive Revenue growth of 32% 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 rates stable in a competitive connected TV Market,
This fall 2025 was 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.
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 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 and, 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 $0 billion increase to our share repurchase authorization with our balance sheet. We have never been stronger. We expect to continue repurchasing our shares while still accommodating our continued program of organic investment and preserving flexibility to 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. This is 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 either de of 3.6 billion dollars growing in impressive. 26% year-over-year converting to record free cash flow of 3 billion.
Advertising revenues across the company 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 advertisers 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 of the television segment.
Total company other revenues were up 47% year-over-year, driven by High Sports sub-licensing revenues and our cable network segments.
As we have previously mentioned, this growth in revenue was largely offset by a corresponding increase in price and cost, with no material impact on a year-over-year basis in the data.
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 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.
Is delivered another quarter of impressive results. Highlighted by 6% increase in total revenues and 21% growth in adjusted e to D.
Our advertising revenues increased 7%, led by continued growth at two weeks and strong engagement and pricing at News.
Total companies affiliated with your revenues, grew 3% over the prior year 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 717 million or a157 for 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 a127 up 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 programming segment, which delivered 7% revenue growth and 6% either drove.
Cable advertising revenues group 15%. Over the prior year, driven by the strength in Fox News engagement and supported by healthy National and direct response pricing.
Cable affiliate fee revenues grew 2% over the prior year order, as pricing, gains from our affiliate renewals outpace, the impact from net subscriber to clients, 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 convo of America in the prior year.
Television affiliate fee revenues increased 4% in the quarter as 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 304% year-over-year, primarily due to higher content, revenues, tied to our entertainment Production Studios,
Expenses at the television, segment, decreased 5% primarily reflecting the absence of the prior year broadcast of the UA for euros.
All in ebata TV. Segment was 38 million and increase of over 100% as compared to the prior year 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 where 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 it to the reinforces our confidence in 2 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.
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.
And finally, as we look at free cash flow, the strong working capital Tailwind from the Super Bowl. In fiscal, 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 early in 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 dollars 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 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 in cash and 6.6 billion. 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 Lachlan question. I'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 I think a 10% Decline and even but, 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 ibida from Investments. If you sort of put it all together, all the puts and takes you know, that that digital drag in 26 versus 25 or anything else. You can tell us to help us, think about your expectations for ibaad in the, in the year ahead. Thank you. Sure. I think Ben and thank you for sparing Lockland. Um oh yeah, there's a ton of quick 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.
IES. Um particularly with respect to audience and advertising demand for for exports 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 subscribers land over the course of the year.
In the first half of the year in fiscal, 25 did 270 within a political Revenue. So, we'll, we'll be sort of swimming against that. We've obviously got Super Bowl in Q3 which will be an ad Revenue negative for us, but from an EA 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 is MLB with a massive MLB in q1 and Q2 of physical 205, we hope for a blockbuster postseason again, but but who knows?
Um, and then to sort of address your digital growth, um, you'll remember, I think at the start of fiscal 24, we called out an envelope of about 350 million dollars of either Dart 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 decrease in 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
2 Pizza 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 in left hand. Thanks.
Uh, thanks John on the um, uh, cable advertising Trends. And, um, I would probably talk more later if someone asks about the sort of overall advertising Market. But if you're speaking specifically about, as well as the, um, the incredibly positive, uh, momentum at at Fox News, um, uh, advertising is uh, uh, uh, very strong, um, both from a um,
Upfront perspective uh, from a 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, uh, in both Total day and Prime 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 base, 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 I you know, I think as you as you go forward and think about sort of the, the, the, the, the quarters ahead. You know, obviously this time last year when there was the um, uh, kind of order 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 comps do get harder. Having said that, if you think about our our share in July, so as we've started this first quarter, our share is actually marginally increased against our
Incredibly strong both in Mexico and Latin America and 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.
Steve, you want to yes? John in the in the quarter. So latan is kind of being 2 things for us. We've organically assembled some sports rights there which um impacted the p&l in this fiscal year and in this quarter and that's in the sort of the the low to mid 10s of in terms of
Um, expenses on those. And then very recently, you would have noticed we acquired Kelly into TV, which gives us a running start or a, a 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 spent over the course of this current fiscal year. But then once we get monetization 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 googleheim.
Thank you. Um, good morning to, to if I could please, uh, first, I just wanted to ask on Tubi, 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 to be 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 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 clearly 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 its, uh, users, our our, uh, 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
Uh, and, uh, coveted 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 uh relatively uh sustainable and 32% are Revenue growth, uh, in the quarter and uh um, you know, which which is um our highest uh our growth or any of our of 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, the cordless Market, we reach more cordless viewers than sort of any of our competitors set. 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,
Broadcast or s s, uh, earlier in the year.
Uh, 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, uh, we have a tremendous relationship, uh, with, with the NF NFL, um, uh, you know, we, we appreciate that they, uh, uh, they're fans of the, uh, of the, uh, broadcast and and, and cable, uh, networks. And we look forward to work 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 a hundred to maybe 150 million dollars of additional investments in in latam 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, latam or Fox 1 subscribers, uh, to just give a little bit more transparency there. Thank you very much.
So,
For your math. 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, where the across the portfolio, we're a Touch under 300 across those for fiscal 25. And what I'm basically saying is that 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 million 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 million is probably the best benchmark that we have, right, which is worth investing in that. And as we've continued to see growth in that business and opportunity to continue to.
With continued to invest in it and now we're seeing 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. 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 just on on Fox 1 because Fox 1, uh, is is the larger piece of the, the new, uh, investment. And it's important just to remember that, um, none of the investment in Fox 1 is original programming or exclusive programming, uh, to that platform, uh, Fox 1, uh, will Encompass all of our existing, uh, Fox content, um, with the addition, as well as, as, as of, of, of the Fox Nation content, on a, on a, uh, on a tier, um, but none of that will will will include any incremental. Uh, and, um,
Uh, you know, sort of a sticky, uh, sort of uh, additional uh, spent so the, the the new spend in in in Fox 1 other than some overhead and some uh uh relatively modest Tech costs is really the marketing of uh and launch costs of Fox 1. And it's important to remember that our our uh subscriber uh expectations or aspirations for Fox 1 are modest and therefore our marketing spend we can
Is is, is, is relatively modest compared to our peers as well. And it's something that we can toggle up and down, uh, depending on how Fox 1 is going and and if we're, we're meeting our, um, our, our relatively modest goal. So I think that's, that's an important context when we think about, uh, both the initial upfront cost of launching Fox 1. Uh, but the sustainability of that business and the um and the uh the return profile of that business. Uh, going forward.
Next question, please operator.
From Jessica arrived Elvis with Bank of America securities.
Still have flexibility. And clearly the industry is going to Lemonade in in the current year, or the coming year.
How will Fox participate or not? Your investment needs as you guys just outlined very specifically, very modest at 350 million. So just curious, you know, it's, it's seems like it's finally going to happen, um, maybe as soon as next week. So, um, so that's 1 and then La, maybe just to go back to something you mentioned on Advertising, just kind of bigger picture. You guys are like, clearly outpacing the market. Um, and so you, you, you gave some color on to be in Fox News just overall television. Would you guys sing? Yeah.
Um, so so I was I sorry Jessica the beginning of your question, I called, for you, your your first question is on m&a overall and whether or not we how we participate uh uh in in any m&a activity, but the the short answer is. Um, we don't have anything throughout, we we look, uh, we look at all sorts of opportunities. We have a very high, uh, internal, uh, Benchmark, uh, for the use of our Capital. Uh, and so, uh, uh, obviously, we reject out of hand, anything that that we think, uh, would not be a prudent use of, of, of, of that. And, and uh, uh, you know,
Our shareholders Capital as well. So, but, but we we, we, we, we are, um, we are always looking at at opportunities, um, but we haven't found anything yet. That's sort of, um, uh, surpasses our, um, our sort of, uh, uh, benchmarks in terms of what we feel, we would need to do to. Um, all right, uh, inorganically kind of grow the business. So we're pretty focused on our organic uh, growth at the moment. Um, in terms of the overall, uh, add Market
um, the uh
Ad sales are, are, you know, across across the business. Um, you know, very strong again, again, we've talked before about, you know, the ad Market that we see versus the ad Market. Maybe that the, the rest of the market sees is, is, is a little bit different because of the, um, uh, the fortune of being, uh, uh. So, um, I focused on, on the segments, uh, that were in particularly live news, uh, uh, live sports and obviously, um, a successful free streaming strategy, uh, platform such as Tubi. Uh, at sales nationally, uh, Jessica, you know are, are, are very strong, really led by, uh, Pharma category, uh, Financial Services category, uh, consumer packets, good, uh, category. And this this really played out, uh, in The Upfront where we saw, double digit volume, uh, increases and strong, uh, pricing growth. Um,
Across, um, all of our, our businesses. Um, you know, I think we, we want to call that earlier that, you know, Fox uh, Sports, this had the, uh, record, um, uh, breaking up front. Uh, if you exclude, uh, the impact of the Super Bowl, I think it, uh, over 2 billion, uh, dollars committed in The Upfront. Uh, Tubi, uh, saw 35% volume, uh, uh, increase with stable pricing. I think the stable pricing on Tubi is important to call out because the CTV Market is, I know other other people have have mentioned this on their earliest calls the CTV Market is, uh, incredibly, uh, competitive. Uh, but to these being competing and, and, and, and winning, uh, you know, very strongly, uh, in that that market. Um, I think while that market this, as a as an industry, common while that market is competitive, it will remain the beneficiary of advertising Revenue shifting from
Linear cable entertainment programming into digital and frankly also in, in the news in the sports. But the CTP Market is, the people you're fighting for that advertising Revenue where the beneficiary of that, uh, but we see the, um, uh, the volume of advertising dollars continue, uh, to stream, uh, either that market, uh, a pretty, uh, pretty heavily.
Uh, news, uh, we talked about before, Dr. Pricing is up, by 30% scatter pricing, in news, is Up 54% Above The Upfront. Um, so all very good. Um, the local market is the 1 that remains mixed uh, with gains from again, like National strong pharmaceutical, uh, segment. But that's offset by, um, Telecom. And, um, I believe restaurants are offsetting those games in pharmaceutical and then just finally, um, uh, uh, uh, and, and we talk about Tubi. But on entertainment, you know, very, uh, uh, healthy with double digits. Uh, uh, uh, uh, increases in Scatter pricing. So, uh, the, the advertised Market, uh, is, uh, is robust for us and strong and really is propelling US forward.
Operator. We have time for 1 more question.
We have a question from Stephen KO with Wells, Fargo.
Thanks, um, so first, uh, Lachlan, sorry to make you speak, but, uh, you did mention that there could be some bundles coming for Fox 1. I was just wondering how you think about different partners there. You know, one partner has probably the most sports rights; there are some others that could be kind of complementary to your afternoon NFL package. Also, how do you think about sort of integrating apps versus just having them be sort of more pricing bundles for consumers? Uh, and then.
Over on the TV side of things. The FCC has been much more vocal around. I think what it's kind of expecting in terms of reverse comp and splits between networks and, and Affiliates, do you think things have changed in this outlook for your network business and your relationship with Affiliates? Um, and, is there any meaningful Financial impact we need to think about for the next couple years from that? Thank you.
Uh, thanks Steve. Let me uh, start with the um,
I was with, in the order of your questions with with, with Fox 1 and, and bundling, uh, on what we, we will, uh uh bundle, um uh, Fox 1 uh, with um, other services. Uh, uh that that's that's absolutely in our uh, uh, marketing and and and, and sort of uh, launched, uh plans, but it'll also be obviously, um, available the 1999, uh, as a standalone, uh, as a standalone, uh, Service, uh, 1 of the things with the bundles that we're, um,
Cognizant of, uh, well, there's 2 factors 1 is uh, to offer the consumer, uh, the most convenient, um, package of, of our content and channels. Uh, and and, and and others, uh, that that they um, you know, they desire to subscribe to. And so, the most convenient, the most, uh, uh,
Uh, you know, you sort of valuable bundles, that, that you could put together, uh, you know, we'll be in a position to help them, uh, do that. But we're also, you know, very focused at keeping Fox 1 as a very targeted, uh, Service, uh, that's targeted on on a, on a, the court. Um, uh, cordless audience and and sometimes those 2 things can conflict, uh, with each other. So, we, we want to stay very targeted, but we also want to make it easy for, for our consumers and our viewers to gain our content, whether it's in conjunction, with, with, with, uh, other services, uh, or or not. Um,
Uh, we don't really see. Uh, and you'll, you'll understand this on on, on the 21st. When you see Fox 1, we we don't really see this as a as a service that is, um, that you can compare to our, uh, a separate, uh, a bundle of channels, uh, only, uh, the Fox 1, uh, user interface is is incredibly, uh, Innovative Innovative. Uh, it can be, you know, very highly, uh personalized. Um, and uh, and relies on, um, some really very sort of clever, technology to offer something that's truly, uh, unique, uh, in the, uh, in in the marketplace. So, so we see Fox 1, as, you know, uh, all of our Brands all of our content, but in, in a, in a truly kind of unique. And I think important, uh, user interface that I'm, uh, that we be very Cutting Edge uh, on, um, FCC. Uh, and affiliate like we are
It, uh, uh, focused, uh, uh company, uh, sort of certainly Broadcasting Company, uh, uh, in in this country, um, and we don't really see it an impacting, uh, in any way, with, on our affiliate, our relationships, uh, if anything, it could improve them, I should mention that joins the 2 questions together, you know? Fox 1 will uniquely, um, uh,
Uh, combined, both our Fox and content. But our local affiliates uh uh, content. Uh, if you're a fox 1, our aspiration is, if you're a fox 1, uh, subscriber you will be getting your local sports and local news. Uh, uh, not just our through our own and own stations, but our affiliate stations as well Avail available to you, uh, on that app. So you know, we're we're excited and we're very happy to be, uh, you know, uh Pro um, our our local affiliate uh, groups and and and, and local independent stations. Uh, and I think that's, that's an important place for us to be in the marketplace.
Great. At this point, we're out of time, but if you have any further questions, please give me or Charlie Cassandra a call. Thanks again for joining us today. Thank you. Thanks everyone. Thank you.
Ladies and gentlemen, that does conclude the fox Corporation fourth quarter fiscal year 2025 earnings conference call. Thank you.