Q1 2026 Fox Corp Earnings Call

October 30, 2025

Speaker #1: Ladies and gentlemen , thank you for standing by . Welcome to the Fox Corporation . First quarter fiscal Year 2020 earnings conference call .

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation First Quarter Fiscal Year 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. I would like to emphasize that functionality for the question and answer queue will be given at that time. If you require assistance during the call, please press star then zero on your touchtone keypad. As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer Ms. Gabrielle Brown. Please go ahead, Ms. Brown.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation's first quarter fiscal year 2026 earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. I would like to emphasize that functionality for the question-and-answer queue will be given at that time. If you require assistance during the call, please press star, then zero on your touch-tone keypad. As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown.

Speaker #1: At this time , all participants are in listen only mode . Later , we will conduct a question and answer session . I would like to emphasize that functionality for the question and answer Q will be given at that time .

Speaker #1: If you require assistance during the call , please press star . Then zero on your touch tone keypad . As a reminder , this conference is being recorded .

Speaker #1: I'll now turn the conference over to Chief Investor Relations Officer Miss Gabrielle Brown . Please go ahead . Miss Brown .

Speaker #2: Thank you . Polly . Good morning and welcome to our fiscal 2026 first quarter earnings call . Joining me on the call today are Lachlan Murdoch Executive Chair and Chief Executive Officer John Neylon President and chief operating officer .

Gabrielle Brown: Thank you, Polly. Good morning and welcome to our fiscal 2026 first quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer, John Nallen, President and Chief Operating Officer, and Steve Tomczyk, 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, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA, or EBITDA as we refer to it on this call.

Gabrielle Brown: Thank you, Paulie. Good morning, and welcome to our fiscal 2026 first quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer; John Nallen, President and Chief Operating Officer; and Steve Tomsic, our Chief Financial Officer. First, Lachlan and Steve will give some prepared remarks on the most recent quarter, and then we'll take questions from the investment community. Please note that this call may include forward-looking statements regarding Fox Corporation's financial performance and operating results. These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filing. Additionally, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA, or EBITDA as we refer to it on this call.

Speaker #2: And Steve Tomsic , our chief financial officer . First , Lofland and Steve will give some prepared remarks on the most recent quarter , and then we'll take questions from the investment community .

Speaker #2: Please note that this call may include forward looking statements regarding Fox Corporation's financial performance and operating results . These statements are based on management's current expectations and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings .

These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filing. Additionally, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA, or EBITDA as we refer to it on this call.

Speaker #2: Additionally , this call will include certain non-GAAP financial measures , including adjusted EPs and adjusted EBITDA . Or EBITDA . As we refer to it on this call .

Speaker #2: Reconciliations of non-GAAP financial measures are included in our earnings release and our filings , which are available in the Investor Relations section of our website .

Gabrielle Brown: 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 less capital expenditures, and with that, I'm pleased to turn the call over to Lachlan.

Gabrielle Brown: 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 less capital expenditures. With that, I'm pleased to turn the call over to Lachlan.

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 less capital expenditures. With that, I'm pleased to turn the call over to Lachlan.

Speaker #2: We also refer to free cash flow , which we define as net cash , provided by operating activities . Less capital expenditures . And with that , I'm pleased to turn the call over to Lachlan .

Speaker #3: Thank you . Gabby . And thank you all for joining us this morning to discuss our fiscal first quarter earnings , fiscal 2026 started strong across our businesses with revenue growth of 5% and EBITDA growth of 2% .

Lachlan Murdoch: Thank you, Gabrielle, and thank you all for joining us this morning to discuss.

Lachlan Murdoch: Thank you, Gabby, and thank you all for joining us this morning to discuss our fiscal first quarter earnings. Fiscal 2026 started strong across our businesses, with revenue growth of 5% and EBITDA growth of 2%. Advertising revenue grew 6% during the quarter, despite not having last year's political revenue, with robust trends at news, sports, entertainment, and Tubi. This was supported by a gain in engagement across the portfolio, which distinguishes us from our peers and again underscores the strength of our brands and of the leading positions they hold in our ecosystem. Distribution revenue grew by 3%, with subscriber declines remaining below 7% for the third consecutive quarter. The momentum in Q1 is continuing into Q2, led by a very healthy advertising market for us, stemming from both the upfront and from a strong scatter market.

John Nallen: Our fiscal first quarter earnings.

Lachlan Murdoch: Fiscal 2026 started strong across our businesses with revenue growth of 5% and EBITDA growth of 2%. Advertising revenue grew 6% during the quarter despite not having last year's political revenue, with robust trends at news, sports, entertainment, and Tubi. This was supported by a gain in engagement across the portfolio, which distinguishes us from our peers and again underscores the strength of our brands and of the leading positions they hold in our ecosystem. Distribution revenue grew by 3% with subscriber declines remaining below 7% for the third consecutive quarter. The momentum in Q1 is continuing into Q2 led by a very healthy advertising market for us, stemming from both the upfront and from a strong scatter market. In fact, we are enjoying the most robust advertising market we have seen for some time. Also in this quarter we launched FoxOne.

Speaker #3: Advertising revenue grew 6% during the quarter , despite not having last year's political revenue , with robust trends at news , sports , entertainment and Tubi , this was supported by a gain in engagement across the portfolio , which is which distinguishes us from our peers .

Speaker #3: And again underscores the strength of our brands and of the leading positions they hold in our ecosystem .

Distribution revenue grew by 3%, with subscriber declines remaining below 7% for the third consecutive quarter. The momentum in Q1 is continuing into Q2, led by a very healthy advertising market for us, stemming from both the upfront and from a strong scatter market.

Speaker #3: grew by 3% , with subscriber declines remaining below 7% for the third consecutive quarter . The momentum in Q1 is continuing into Q2 , led by a very healthy advertising market for us , stemming from both the upfront and from a strong scatter market .

Speaker #3: In fact , we are enjoying the most robust advertising market we have seen for some time . Also , in this quarter , we launched Fox one .

Lachlan Murdoch: In fact, we are enjoying the most robust advertising market we have seen for some time. Also, in this quarter, we launched Fox One. Though it's only been two months, we are encouraged by the enthusiastic response to the product. Subscriber trends have exceeded our expectations, with those subscribers coming to direct acquisition and partnerships. We continue to believe that our content is best served as part of a bundle, whether it's in the Pay TV bundle or a direct-to-consumer bundle, as it provides value and choice to the consumer. At Fox, we are distribution agnostic. We are committed to ensuring our networks and content reach as many households as possible. With that in mind, we launched two Fox One bundle partners earlier this month: ESPN and Verizon. These will build upon the strong momentum we have achieved with our groundbreaking Amazon Prime Channels partnership.

In fact, we are enjoying the most robust advertising market we have seen for some time. Also, in this quarter, we launched Fox One. Though it's only been two months, we are encouraged by the enthusiastic response to the product. Subscriber trends have exceeded our expectations, with those subscribers coming to direct acquisition and partnerships. We continue to believe that our content is best served as part of a bundle, whether it's in the Pay TV bundle or a direct-to-consumer bundle, as it provides value and choice to the consumer. At Fox, we are distribution agnostic.

Speaker #3: Though it's only been two SEC months , we are encouraged by the enthusiastic response to the product . Subscriber trends have exceeded our expectations with those subscribers coming through direct acquisition and partnerships .

Lachlan Murdoch: Though it's only been two months, we are encouraged by the enthusiastic response to the product. Subscriber trends have exceeded our expectations with those subscribers coming through direct acquisition and partnerships. We continue to believe that our content is best served as part of a bundle, whether it's in the pay TV bundle or direct-to-consumer bundle as it provides value and choice to the consumer. At Fox Corporation, we are distribution agnostic. We are committed to ensuring our networks and content reach as many households as possible. With that in mind, we launched two FoxOne bundled partners earlier this month, ESPN and Verizon. These will build upon the strong momentum we have achieved with our groundbreaking Amazon Prime Channels partnership. Kudos to everyone at Amazon from Andrew Jassy down for their tremendous and brilliant support of the service. You all have done just a tremendous job.

Speaker #3: We continue to believe that our content is best served as part of a bundle , whether it's in the pay-TV bundle or direct to consumer bundle , as it provides value and choice to the consumer .

Speaker #3: At Fox , we are distribution agnostic . We are committed to ensuring our networks and content reach as many households as possible . With that in mind , we launched two Fox one bundle partners earlier this month ESPN and risen .

We are committed to ensuring our networks and content reach as many households as possible. With that in mind, we launched two Fox One bundle partners earlier this month: ESPN and Verizon. These will build upon the strong momentum we have achieved with our groundbreaking Amazon Prime Channels partnership.

Speaker #3: These will build upon the strong momentum we have achieved with our groundbreaking Amazon Prime Channels partnership. Kudos to everyone at Amazon, from Andrew Jassy down, for their tremendous and brilliant support of the service.

Lachlan Murdoch: Kudos to everyone at Amazon, from Andy Jassy down, for their tremendous and brilliant support of the service. You all have done just a tremendous job. Unsurprisingly, in terms of engagement, we have a balanced mix on Fox One, with news driving audience and reach during the week, and sports events doing the same over the weekend. Across all forms of distribution, interest and engagement in Fox's portfolio of live sports is increasing. Fox Sports kicked off the fall season with solid momentum. The NFL on FOX is off to a great start, averaging almost 22 million viewers in September, a 12% increase over last season, and Fox's best start to an NFL season ever. Fox's America's Game of the Week ranked as TV's number one show through the end of September, with an average of 30 million viewers.

Kudos to everyone at Amazon, from Andy Jassy down, for their tremendous and brilliant support of the service. You all have done just a tremendous job. Unsurprisingly, in terms of engagement, we have a balanced mix on Fox One, with news driving audience and reach during the week, and sports events doing the same over the weekend. Across all forms of distribution, interest and engagement in Fox's portfolio of live sports is increasing.

Speaker #3: You all have done just a tremendous job . Unsurprisingly , in terms of engagement , we have . We have a balanced mix of Fox one with news , driving , audience and reach during the week .

Lachlan Murdoch: Unsurprisingly, in terms of engagement, we have a balanced mix on FoxOne with news driving audience and reach during the week and sports events doing the same over the weekend across all forms of distribution. Interest and engagement in Fox's portfolio of.

Speaker #3: And sports events doing the same over the weekend across all forms of distribution , interest and engagement . In Fox's portfolio of live sports is increasing .

John Nallen: Live sports is increasing.

Fox Sports kicked off the fall season with solid momentum. The NFL on FOX is off to a great start, averaging almost 22 million viewers in September, a 12% increase over last season, and Fox's best start to an NFL season ever. Fox's America's Game of the Week ranked as TV's number one show through the end of September, with an average of 30 million viewers.

Speaker #3: Fox sports kicked off the fall season with solid momentum . The NFL on Fox is off to a great start , averaging almost 22 million viewers in September .

Lachlan Murdoch: Fox Sports kicked off the fall season with solid momentum. The NFL on Fox is off to a great start, averaging almost 22 million viewers in September, a 12% increase over last season and Fox's best start to an NFL season ever. Fox's America's Game of the Week ranked as TV's number one show through the end of September with an average of 30 million viewers. Our schedule only looks better from here right through to the NFC Championship at the end of the season. Interest in college football continues to reach new heights as well. Through the end of September, Fox's Big Noon Saturday window averaged over 6 million viewers, up 22% over last season. The strong start was punctuated by nearly 17 million viewers tuning in to watch Ohio State versus Texas, the most watched week one college football game ever on any network.

Speaker #3: A 12% increase over last season , and Fox's best start to an NFL season ever . And Fox's America's Game of the week ranked as TV's number one show through the end of September , with an average of 30 million viewers .

Speaker #3: And our schedule only looks better from here , right through to the NFC Championship at the end of the season . Interest in college football continues to reach new heights as well through the end of September .

Lachlan Murdoch: Our schedule only looks better from here, right through to the NFC Championship at the end of the season. Interest in college football continues to reach new heights as well. Through the end of September, Fox's Big Noon Saturday window averaged over 6 million viewers, up 22% over last season. The strong start was punctuated by nearly 17 million viewers tuning in to watch Ohio State versus Texas, the most-watched Week One college football game ever on any network. Like with the NFL, we head into the back half of the college season with a strong roster of Big 10 and Big 12 matchups, highlighted by the Michigan-Ohio State game and capped off by both the Big 10 and Mountain West Conference Championship games.

Our schedule only looks better from here, right through to the NFC Championship at the end of the season. Interest in college football continues to reach new heights as well. Through the end of September, Fox's Big Noon Saturday window averaged over 6 million viewers, up 22% over last season. The strong start was punctuated by nearly 17 million viewers tuning in to watch Ohio State versus Texas, the most-watched Week One college football game ever on any network.

Speaker #3: Fox's Big Noon Saturday window averaged over 6 million viewers, up 22% over last season. The strong start was punctuated by nearly 17 million viewers tuning in to watch Ohio State versus Texas.

Speaker #3: The most watched week one college football game ever on any network . Like with the NFL , we had back , we head into the back half of the college season with a strong roster of Big Ten and Big 12 matchups , highlighted by the Michigan , Ohio State game , and capped off by both the Big Ten and Mountain West Conference championship games .

Like with the NFL, we head into the back half of the college season with a strong roster of Big 10 and Big 12 matchups, highlighted by the Michigan-Ohio State game and capped off by both the Big 10 and Mountain West Conference Championship games.

Lachlan Murdoch: Like with the NFL, we head into the back half of the college season with a strong roster of Big Ten and Big 12 matchups, highlighted by the Michigan Ohio State game and capped off by both the Big Ten and Mountain West Conference championship games. While we thought last year's Dodgers Yankees World Series would be a tough act to follow, MLB has once again performed well for us. Regular season ratings were up 3%, and as we go into Game 6 of a spectacular World Series, our total postseason advertising revenues will likely surpass last year's. Speaking of revenue, Tubi achieved 27% revenue growth in the first quarter, driven by an 18% increase in total view time. This overall engagement trend has continued into Q2. Our expansive content library and our differentiated user base have solidified Tubi's position as the top premium AVOD platform in the U.S.

Speaker #3: And while we thought last year's Dodgers , Yankees World Series would be a tough act to follow , Major League Baseball has once again performed well for us regular season ratings were up 3% , and as we go into game six of a spectacular World Series , our total postseason advertising revenues will likely surpass last year's .

Lachlan Murdoch: And while we thought last year's Dodgers-Yankees World Series would be a tough act to follow, Major League Baseball has once again performed well for us. Regular season ratings were up 3%, and as we go into Game 6 of a spectacular World Series, our total postseason advertising revenues will likely surpass last year's. Speaking of revenue, Tubi achieved: 27% revenue growth in the first quarter, driven by an 18% increase in total view time. This overall engagement trend has continued into Q2. Our expansive content library and our differentiated user base have solidified Tubi's position as the top premium AVOD platform in the US. And I'm happy to say Tubi reached profitability this past quarter. It's a great milestone, a credit to the Tubi brand, to our viewer experience, and to the revenue momentum we are seeing.

And while we thought last year's Dodgers-Yankees World Series would be a tough act to follow, Major League Baseball has once again performed well for us. Regular season ratings were up 3%, and as we go into Game 6 of a spectacular World Series, our total postseason advertising revenues will likely surpass last year's. Speaking of revenue, Tubi achieved: 27% revenue growth in the first quarter, driven by an 18% increase in total view time.

Speaker #3: Speaking of revenue to be achieved , 27% revenue growth in the first quarter , driven by an 18% increase in total view time .

This overall engagement trend has continued into Q2. Our expansive content library and our differentiated user base have solidified Tubi's position as the top premium AVOD platform in the US. And I'm happy to say Tubi reached profitability this past quarter. It's a great milestone, a credit to the Tubi brand, to our viewer experience, and to the revenue momentum we are seeing.

Speaker #3: This overall engagement trend has continued into Q2 hour . Expansive content library and our differentiated user base have solidified Tubi's position as the top premium Avod platform in the US , and I'm happy to say , to be reached profitability .

Lachlan Murdoch: I'm happy to say Tubi reached profitability this past quarter. It's a great milestone, a credit to the Tubi brand, to our viewer experience and to the revenue momentum we are seeing. This will likely lead to a partial moderation in the overall net investment we.

Speaker #3: This past quarter . It's a great milestone , a credit to the to brand , to our viewer experience and to the revenue momentum we are seeing .

Speaker #3: This will likely lead to a partial moderation in the overall net investment we expected to deploy across our digital initiatives this year. Fox News sustained its strong ratings and audience momentum throughout the quarter.

Lachlan Murdoch: This will likely lead to a partial moderation in the overall net investment we expected to deploy across our digital initiatives this year. Fox News sustained a strong ratings and audience momentum throughout the quarter. Fox News once again cemented its status as the most-watched cable network in total day and in prime time. Even more impressive, Fox News is the most-viewed network in all television in weekday prime calendar year to date. This engagement and share led to the highest Q1 ad revenue in Fox News Media history, with higher pricing across both direct response and national advertising during the quarter. Breaking news coverage throughout the quarter also drove strong engagement at Fox News Digital, fueling growth in page views and minutes versus last year. Fox News Digital closed the quarter with over 6.5 billion social media video views, its highest total ever.

This will likely lead to a partial moderation in the overall net investment we expected to deploy across our digital initiatives this year. Fox News sustained a strong ratings and audience momentum throughout the quarter. Fox News once again cemented its status as the most-watched cable network in total day and in prime time. Even more impressive, Fox News is the most-viewed network in all television in weekday prime calendar year to date.

John Nallen: Expected to deploy across our digital initiatives this year.

Lachlan Murdoch: Fox News sustained a strong ratings and audience momentum throughout the quarter. Fox News once again cemented its status as the most watched cable network in total day and in primetime. Even more impressive, Fox News is the most viewed network in all television in weekday prime calendar year to date. This engagement and share led to the highest first quarter ad revenue in Fox News Media history with higher pricing across both direct response and national advertising during the quarter. Breaking news coverage throughout the quarter also drove strong engagement at Fox News Digital, fueling growth in page views and minutes versus last year. Fox News Digital closed the quarter with over 6.5 billion social media video views, its highest total ever.

Speaker #3: Fox News once again cemented its status as the most watched cable network in total day and in prime time . Even more impressive , Fox News is the most viewed network in all television in weekday prime calendar year to date .

This engagement and share led to the highest Q1 ad revenue in Fox News Media history, with higher pricing across both direct response and national advertising during the quarter. Breaking news coverage throughout the quarter also drove strong engagement at Fox News Digital, fueling growth in page views and minutes versus last year. Fox News Digital closed the quarter with over 6.5 billion social media video views, its highest total ever.

Speaker #3: This engagement and share led to the highest first quarter ad revenue in Fox News Media history , with higher pricing across both direct response and national advertising .

Speaker #3: During the quarter , breaking news coverage throughout the quarter also drove strong engagement of Fox News Digital , fueling growth in page views and minutes versus last year .

Speaker #3: Fox News Digital closed the quarter with over 6.5 billion social media video views . Its highest total ever . The strong Q1 results we have just reported , coupled with the ongoing trends we are seeing across the company , give me great confidence in the positive outlook for Fox .

Lachlan Murdoch: The strong Q1 results we have just reported, coupled with the ongoing trends we are seeing across the company, give me great confidence in the positive outlook for Fox Corporation. This is particularly underpinned by the strength of the advertising market, our leadership position across news and sports, and by Tubi reaching quarterly profitability earlier than expected coming off a record fiscal 2025. Fiscal 2026 will again highlight the uniqueness of our strategy, the quality of our assets, our ability to deliver on screen and financially, and the overall strength of our financial position. This confidence is clearly demonstrated by this morning's announcement of a $1.5 billion accelerated share repurchase transaction. Consistent with our track record, we remain committed to delivering value for our shareholders in a thoughtful and disciplined manner and now let me turn over to Steve.

Lachlan Murdoch: The strong Q1 results we have just reported, coupled with the ongoing trends we are seeing across the company, give me great confidence in the positive outlook for Fox. This is particularly underpinned by the strength of the advertising market, our leadership position across news and sports, and by Tubi reaching quarterly profitability earlier than expected. Coming off a record fiscal 2025, fiscal 2026 will again highlight the uniqueness of our strategy, the quality of our assets, our ability to deliver on screen and financially, and the overall strength of our financial position. This confidence is clearly demonstrated by this morning's announcement of a $1.5 billion accelerated share repurchase transaction. Consistent with our track record, we remain committed to delivering value for our shareholders in a thoughtful and disciplined manner. And now, let me turn over to Steve for more on the results.

The strong Q1 results we have just reported, coupled with the ongoing trends we are seeing across the company, give me great confidence in the positive outlook for Fox. This is particularly underpinned by the strength of the advertising market, our leadership position across news and sports, and by Tubi reaching quarterly profitability earlier than expected. Coming off a record fiscal 2025, fiscal 2026 will again highlight the uniqueness of our strategy, the quality of our assets, our ability to deliver on screen and financially, and the overall strength of our financial position.

Speaker #3: This is particularly underpinned by the strength of the advertising market . Our leadership position across news and sports and by Tubi reaching quarterly profitability earlier than expected .

Speaker #3: Coming off a record fiscal 2025 , fiscal 2026 will again highlight the uniqueness of our strategy . The quality of our assets , our ability to deliver on screen and financially , and the overall strength of our financial position .

This confidence is clearly demonstrated by this morning's announcement of a $1.5 billion accelerated share repurchase transaction. Consistent with our track record, we remain committed to delivering value for our shareholders in a thoughtful and disciplined manner. And now, let me turn over to Steve for more on the results.

Speaker #3: This conference is clearly demonstrated by this morning's announcement of a $1.5 billion accelerated share repurchase transaction , consistent with our track record , we remain committed to delivering value for our shareholders in a thoughtful and disciplined manner .

Speaker #3: And now , let me turn over to Steve for more on the results .

John Nallen: For more on the results.

Speaker #4: Thanks and good morning , everyone . Fox has made a strong start to fiscal 2026 , highlighted by robust total company revenue growth of 5% , advertising revenues were up 6% over the prior year .

Steve Tomczak: Thanks Lachlan and good morning everyone. Fox has made a strong start to fiscal 2026, highlighted by robust total company revenue growth of 5%. Advertising revenues were up 6% over the prior year, even with the tough comparison to the start of last year's record political cycle. Driven by continued momentum at Tubi, strength in pricing at news and pricing and ratings growth at sports, distribution revenues, which now include both affiliate fees for our linear channels as well as subscription fees for our direct to consumer streaming services, grew 3% over the prior year. Content and other revenues grew 12%, primarily due to higher entertainment content deliveries in the quarter. Total company expenses were up 6% year over year, largely due to investments in our digital-led growth initiatives and higher entertainment programming costs. This was partially offset by lower sports programming costs.

Steven Tomsic: Thanks, Lachlan, and good morning, everyone. Fox has made a strong start to fiscal 2026, highlighted by robust total company revenue growth of 5%. Advertising revenues were up 6% over the prior year, even with the tough comparison to the start of last year's record political cycle, driven by continued momentum at Tubi, strength in pricing at news, and pricing and ratings growth at sports. Distribution revenues, which now include both affiliate fees for our linear channels as well as subscription fees for our direct-to-consumer streaming services, grew 3% over the prior year. Content and other revenues grew 12%, primarily due to higher entertainment content deliveries in the quarter. Total company expenses were up 6% year over year, largely due to investments in our digital-led growth initiatives and higher entertainment programming costs. This was partially offset by lower sports programming costs.

Speaker #4: Even with the tough comparison to the start of last year's record , political cycle , driven by continued momentum at Tubi , strength in pricing at news and pricing and ratings growth at sports distribution revenues , which now include both affiliate fees for our linear channels as well as subscription fees for our direct to consumer streaming services , grew 3% over the prior year .

Content and other revenues grew 12%, primarily due to higher entertainment content deliveries in the quarter. Total company expenses were up 6% year over year, largely due to investments in our digital-led growth initiatives and higher entertainment programming costs. This was partially offset by lower sports programming costs.

Speaker #4: Content and other revenues grew 12% , primarily due to higher entertainment content deliveries in the quarter . Total company expenses were up 6% year over year , largely due to investments in our digital led growth initiatives and higher entertainment programming costs .

Speaker #4: This was partially offset by lower sports programming costs . As a result , quarterly EBITDA grew 2% to $1.7 billion . Net income attributable to stockholders of $599 million , or $1.32 per share .

Steve Tomczak: As a result, quarterly EBITDA grew 2% to $1.07 billion. Net income attributable to stockholders was $599 million or $1.32 per share compared to the $827 million or $1.78 per share reported in the prior year period. Excluding non-core items, adjusted net income was $686 million and adjusted EPS was $1.51, equating to a year over year increase of 4%. Now turning to our operating segments, for our Cable Networks, revenue grew 4% over the prior year. Cable advertising revenues were up 7%, driven by robust pricing at Fox News, which more than offset the advertising impact from the absence of Copa America at our cable sports networks. Cable distribution revenues grew 3% in the quarter as pricing growth from our affiliate renewals outpaced the impact from industry subscriber declines, which continue to run at under 7%.

Steven Tomsic: As a result, quarterly EBITDA grew 2% to $1.07 billion. Net income attributable to stockholders of $599 million, or $1.32 per share, compares to the $827 million or $1.78 per share reported in the prior year period. Excluding non-core items, adjusted net income was $686 million, and adjusted EPS was $1.51, equating to a year-over-year increase of 4%. Now, turning to our operating segments, where at our cable networks, revenue grew 4% over the prior year. Cable advertising revenues were up 7%, driven by robust pricing at Fox News, which more than offset the advertising impact from the absence of Copa América at our cable sports networks. Cable distribution revenues grew 3% in the quarter, as pricing growth from our affiliate renewals outpaced the impact from industry subscriber declines, which continued to run at under 7%. Cable content and other revenues increased $13 million, led by higher sports sublicensing revenues.

As a result, quarterly EBITDA grew 2% to $1.07 billion. Net income attributable to stockholders of $599 million, or $1.32 per share, compares to the $827 million or $1.78 per share reported in the prior year period. Excluding non-core items, adjusted net income was $686 million, and adjusted EPS was $1.51, equating to a year-over-year increase of 4%. Now, turning to our operating segments, where at our cable networks, revenue grew 4% over the prior year.

Speaker #4: Compared to the $827 million , or $1.78 per share reported in the prior year period . Excluding non-core items , adjusted net income was $686 million and adjusted EPs was $1.51 , equating to a year over year increase of 4% .

Speaker #4: Now , turning to our operating segments for our cable networks , revenue grew 4% over the prior year . Cable advertising revenues were up 7% , driven by robust pricing at Fox News , which more than offset the advertising impact from the absence of copper America .

Cable advertising revenues were up 7%, driven by robust pricing at Fox News, which more than offset the advertising impact from the absence of Copa América at our cable sports networks. Cable distribution revenues grew 3% in the quarter, as pricing growth from our affiliate renewals outpaced the impact from industry subscriber declines, which continued to run at under 7%. Cable content and other revenues increased $13 million, led by higher sports sublicensing revenues.

Speaker #4: At our cable sports networks . Cable distribution revenues grew 3% in the quarter as pricing growth from our affiliate renewals outpaced the impact from industry subscriber declines , which continue to run at under 7% .

Speaker #4: Cable content and other revenues increased $13 million , led by higher sports Sublicensing revenues . Cable expenses grew 2% , primarily due to higher sports programming rights and production costs led by International soccer rights .

Steve Tomczak: Cable content and other revenues increased $13 million, led by higher sports sublicensing revenues. Cable expenses grew 2%, primarily due to higher sports programming rights and production costs led by international soccer rights. This was partially offset by lower news gathering costs relating to our coverage of last year's presidential election cycle. All in, EBITDA at our Cable segment was $800 million, an increase of 7% over the prior year quarter. Turning to our Television segment, where we delivered 5% growth in revenues, television advertising revenues were up 6%, driven by continued growth at Tubi and strong sports pricing and engagement led by the NFL. This was partially offset by the absence of last year's political advertising revenues. Television distribution revenues grew 2% over the prior year quarter as healthy growth in fees across Fox owned and affiliated stations more than offset the impact from industry subscriber declines.

Steven Tomsic: Cable expenses grew 2%, primarily due to high sports programming rights and production costs led by international soccer rights. This was partially offset by lower news gathering costs relating to our coverage of last year's presidential election cycle. All in, EBITDA at our cable segment was $800 million, an increase of 7% over the prior year quarter. Turning to our television segment, where we delivered 5% growth in revenues. Television advertising revenues were up 6%, driven by continued growth at Tubi and strong sports pricing and engagement led by the NFL. This was partially offset by the absence of last year's political advertising revenues. Television distribution revenues grew 2% over the prior year quarter, as healthy growth in fees across Fox-owned and affiliated stations more than offset the impact from industry subscriber declines. Looking forward, we're stable to improving subscriber erosion trends.

Cable expenses grew 2%, primarily due to high sports programming rights and production costs led by international soccer rights. This was partially offset by lower news gathering costs relating to our coverage of last year's presidential election cycle. All in, EBITDA at our cable segment was $800 million, an increase of 7% over the prior year quarter. Turning to our television segment, where we delivered 5% growth in revenues. Television advertising revenues were up 6%, driven by continued growth at Tubi and strong sports pricing and engagement led by the NFL.

Speaker #4: This was partially offset by lower newsgathering costs relating to our coverage of last year's presidential election cycle , all in EBITDA at our cable segment was $800 million , an increase of 7% over the prior year quarter .

Speaker #4: to our television segment , where we delivered 5% growth in revenues , television advertising revenues were up 6% , driven by continued growth at Tubi and Strong sports pricing and engagement led by the NFL Turning .

This was partially offset by the absence of last year's political advertising revenues. Television distribution revenues grew 2% over the prior year quarter, as healthy growth in fees across Fox-owned and affiliated stations more than offset the impact from industry subscriber declines. Looking forward, we're stable to improving subscriber erosion trends.

Speaker #4: This was partially offset by the absence of last year's political advertising revenues . Television distribution revenues grew 2% over the prior year quarter , as healthy growth in fees across Fox owned and affiliated stations more than offset the impact from industry subscriber declines .

Speaker #4: Looking forward , we stable to improving subscriber erosion trends . We expect continued total company distribution revenue growth for the full year , reflecting the flow of our commercial terms with distributors in fiscal 2026 , we would expect this growth to be driven by a cable segment , television content and other revenues increased 17% , primarily a result of higher content revenues tied to our entertainment production studios .

Steve Tomczak: Looking forward, with stable to improving subscriber erosion trends, we expect continued total company distribution revenue growth for the full year reflecting the flow of our commercial terms with distributors. In fiscal 2026, we would expect this growth to be driven by our cable segments. Television content and other revenues increased 17%, primarily a result of high content revenues tied to our entertainment production studios. Expenses at the television segment grew 4% year over year, driven by higher entertainment programming costs and higher content costs at Tubi. This growth was partially offset by lower sports programming costs, primarily from the absence of WWE and last year's broadcast of the UEFA Euros. All in, quarterly EBITDA at our television segment grew 7% to $399 million. Now, turning to cash flow, free cash flow was negative $234 million in the quarter.

Steven Tomsic: We expect continued total company distribution revenue growth for the full year. Reflecting the flow of our commercial terms with distributors in fiscal 2026, we would expect this growth to be driven by our cable segment. Television content and other revenues increased 17%, primarily a result of high content revenues tied to our entertainment production studios. Expenses at the television segment grew 4% year over year, driven by higher entertainment programming costs and higher content costs at Tubi. This growth was partially offset by lower sports programming costs, primarily from the absence of WWE, and last year's broadcast of the UEFA Euros. All in, quarterly EBITDA at our television segment grew 7% to $399 million. Now, turning to cash flow. Free cash flow was negative $234 million in the quarter.

We expect continued total company distribution revenue growth for the full year. Reflecting the flow of our commercial terms with distributors in fiscal 2026, we would expect this growth to be driven by our cable segment. Television content and other revenues increased 17%, primarily a result of high content revenues tied to our entertainment production studios. Expenses at the television segment grew 4% year over year, driven by higher entertainment programming costs and higher content costs at Tubi.

Speaker #4: Expenses at the television segment grew 4% year over year , driven by higher entertainment programming costs and higher content costs . At Tubi , this growth was partially offset by lower sports programming costs , primarily from the absence of WWE and last year's broadcast of the UEFA euros , all in quarterly EBITDA .

This growth was partially offset by lower sports programming costs, primarily from the absence of WWE, and last year's broadcast of the UEFA Euros. All in, quarterly EBITDA at our television segment grew 7% to $399 million. Now, turning to cash flow. Free cash flow was negative $234 million in the quarter.

Speaker #4: At our television segment grew 7% to $399 million . Now , turning to cash flow . Free cash flow was -$234 million in the quarter .

Speaker #4: This is consistent with the seasonality of our working capital cycle , where the first half of our fiscal year is characterized by a concentration of payments for sports rights and the build up of advertising related receivables , both of which reverse in the second half of our fiscal year .

Steve Tomczak: This is consistent with the seasonality of our working capital cycle, where the first half of our fiscal year is characterized by a concentration of payments for sports rights and the buildup of advertising related receivables, both of which reverse in the second half of our fiscal year. We remain active with our share buyback program, where we have repurchased a further $300 million so far this fiscal year. In addition, as you will have seen in this morning's release, underscoring our confidence in the outlook for the business and our commitment to create value for shareholders, we will enter into a $1.5 billion accelerated share repurchase transaction consisting of $700 million of Class A common stock and $800 million of Class B common stock. This transaction will commence tomorrow and we anticipate it being completed during the second half of fiscal 2026.

Steven Tomsic: This is consistent with the seasonality of our working capital cycle, where the first half of our fiscal year is characterized by a concentration of payments for sports rights and the build-up of advertising-related receivables, both of which reverse in the second half of our fiscal year. We remain active with our share buyback program, where we have repurchased a further $300 million so far this fiscal year. In addition, as you'll have seen in this morning's release, underscoring our confidence in the outlook for the business and our commitment to create value for shareholders, we will enter into a $1.5 billion accelerated share repurchase transaction, consisting of $700 million of Class A common stock and $800 million of Class B common stock. This transaction will commence tomorrow, and we anticipate it being completed during the second half of fiscal 2026.

This is consistent with the seasonality of our working capital cycle, where the first half of our fiscal year is characterized by a concentration of payments for sports rights and the build-up of advertising-related receivables, both of which reverse in the second half of our fiscal year. We remain active with our share buyback program, where we have repurchased a further $300 million so far this fiscal year.

Speaker #4: We remain active with our share buyback program , where we have repurchased a further $300 million so far this fiscal year . In addition , as you'll have seen in this morning's release , underscoring our confidence in the outlook for the business and our commitment to create value for shareholders , shareholders , we will enter into a $1.5 billion accelerated share repurchase transaction , consisting of $700 million of class A common stock and $800 million of class B common stock .

In addition, as you'll have seen in this morning's release, underscoring our confidence in the outlook for the business and our commitment to create value for shareholders, we will enter into a $1.5 billion accelerated share repurchase transaction, consisting of $700 million of Class A common stock and $800 million of Class B common stock. This transaction will commence tomorrow, and we anticipate it being completed during the second half of fiscal 2026.

Speaker #4: This transaction will commence tomorrow , and we anticipate it being completed during the second half of fiscal 2026 . This is all supported by the strength of our balance sheet , where we ended the quarter with approximately $4.4 billion in cash and $6.6 billion in debt .

Steve Tomczak: This is all supported by the strength of our balance sheet, where we ended the quarter with approximately $4.4 billion in cash and $6.6 billion in debt. With that, I'll turn the call back over to Gabrielle Brown.

Steven Tomsic: This is all supported by the strength of our balance sheet, where we ended the quarter with approximately $4.4 billion in cash and $6.6 billion in debt. With that, I'll turn the call back over to Gabby.

This is all supported by the strength of our balance sheet, where we ended the quarter with approximately $4.4 billion in cash and $6.6 billion in debt. With that, I'll turn the call back over to Gabby.

Speaker #4: And with that , I'll turn the call back over to Gabby .

Speaker #2: Thank you . Steve . And now we will be happy to take questions from the investment community .

Gabrielle Brown: Thank you, Steve. We will be happy to take questions from the investment community.

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

Speaker #1: Thank you . Ladies and gentlemen , I would like to emphasize the new functionality for the question and answer queue . If you wish to ask a question , please press star .

Operator: Thank you, ladies and gentlemen. I would like to emphasize the new functionality for the question and answer queue. If you wish to ask a question, please press Star, then 1 on your touchscreen keypad. You will hear a tone indicating that you have been placed in queue. You may remove yourself from queue at any time by once again pressing Star, then 1. If you are using a speakerphone, please pick up the handset before pressing the numbers. It has been requested that you limit yourself to one question. Once again, if you have a question, please press Star, then 1 at this time. One moment, please, for the first question. We have a question from John Hodulik of UBS. Please go ahead.

Operator: Thank you. Ladies and gentlemen, I would like to emphasize the new functionality for the question and answer queue. If you wish to ask a question, please press star then 1 on your touchtone keypad. You will hear a tone indicating that you have been placed in queue. You may remove yourself from queue at any time by once again pressing star then 1. If you are using a speakerphone, please pick up the handset before pressing the numbers. It has been requested that you limit yourself to one question. Once again, if you have a question, please press star then 1 at this time. One moment please. For the first question, we have a question from John Hodulik of UBS Securities LLC. Please go ahead. Great.

Speaker #1: Then one on your touch tone keypad . You will hear a tone indicating that you have been placed in queue . You may remove yourself from queue at any time by once again pressing star .

Speaker #1: Then one . If you are using a speakerphone , please pick up the handset before pressing the numbers . It has been requested that you limit yourself to one question .

Speaker #1: Once again , if you have a question , please press star then one at this time and one moment please . For the first question .

Speaker #1: We have a question from John Hodulik of UBS. Please go ahead.

Speaker #5: Great . Thanks and good morning , guys . Maybe just a couple of questions on the digital efforts . First , any other color you could provide on on .

John Hodulik: Great. Thanks, and good morning, guys. Maybe just a couple of questions on the digital efforts. First, any other color you could provide on Fox One in terms of, I know you don't want to give sub numbers, but just sort of sub uptake the engagement you're seeing. What are people watching on the platform? And did you guys see an acceleration in growth when you launched the ESPN bundle? And then on Tubi, yeah, congrats on turning positive there from a margin standpoint. How should we think of the long-term margin trajectory on that platform? Thanks.

[Analyst 1]: Thanks and good morning, guys. Maybe just a couple questions on the digital efforts. First, any other color you could provide on Fox One in terms of, I know you don't want to give sub numbers, but just sort of sub uptake, the engagement you're seeing. What are people watching on the platform? Did you guys see an acceleration in growth when you launched the ESPN bundle? On Tubi, congrats on turning positive there. From a margin standpoint, how should we think of the long term margin trajectory on that platform?

Speaker #5: Fox one in terms of . I know you don't want to give some numbers , but just sort of sub uptake . The engagement you're seeing .

Speaker #5: What are what are people watching on the platform . And did you guys see an acceleration in growth when you launched the ESPN bundle .

Speaker #5: And then on TV . Yeah congrats on turning positive there . And from a margin standpoint , how should we think of the long term margin trajectory at on that platform ?

Speaker #5: Thanks .

Operator: Thanks.

Speaker #3: Hey , thanks , John . So starting on Fox one , it's early days , right ? The launch was , you know , on a couple of months ago .

Lachlan Murdoch: Hey, thanks, John. Starting on FoxOne, it's early days.

Lachlan Murdoch: Hey, thanks, John. Starting on Fox One, it's early days, right? The launch was only a couple of months ago. The uptake has, as I mentioned before, absolutely exceeded expectations. Perhaps it shouldn't have exceeded expectations because it's a great platform. The team's done a brilliant job in developing a tremendous service, and obviously, the content and the brands are absolutely premium. But having said that, we are incredibly pleased with the early days and its progress from a subscriber and from an engagement point of view. You see a healthy mix between sports and news viewing, also obviously some entertainment viewing, but really the engagement's driven by sports over the weekend and news viewing during the week. We have seen no deceleration of that as we go through the busy autumn sports season.

John Nallen: The launch was only a couple months ago, but the uptake has, as I mentioned before, absolutely exceeded expectations. Perhaps it shouldn't have exceeded expectations because it's a great platform. The team's done a brilliant job in developing a tremendous service, and obviously the content and the brands are absolutely premium. Having said that, we are incredibly pleased with the early days and its progress from a subscriber and from an engagement.

Speaker #3: But you know , the uptake has , as I mentioned before , absolutely exceeded expectations . Perhaps it shouldn't have exceeded expectations because it's a it's a great platform .

Speaker #3: The team has done a brilliant job in in developing a tremendous service . And obviously the content and the brands are absolutely a premium .

Speaker #3: So but having said that , you know , we are we are , you know , incredibly pleased with its with the early days and its progress .

Speaker #3: From a subscriber and from a engagement point of view . You know , you see a healthy mix between sports and news viewing .

Lachlan Murdoch: Point of view, you see a healthy mix between sports and news viewing.

You see a healthy mix between sports and news viewing, also obviously some entertainment viewing, but really the engagement's driven by sports over the weekend and news viewing during the week. We have seen no deceleration of that as we go through the busy autumn sports season.

Speaker #3: Also obviously some some entertainment viewing . But really the the engagement driven by by sports over the weekend and news viewing during the week .

John Nallen: Also obviously some entertainment viewing, but really the engagement is driven by sports over the weekend and news viewing during the week, and we see no deceleration of that. As we go through the busy autumn sports season, we're seeing subscriber acquisitions flowing very effectively and efficiently through both football, be it NFL or college football, and also with postseason baseball. It's very pleasing, and it's pleasing to see those subscribers and viewers also engaging with our other content on the platform, primarily news.

Speaker #3: And we we we would see no deceleration of that as we go through the busy autumn sports season . We're seeing , you know , subscriber acquisitions flowing , you know , very effectively and efficiently through both football , be it NFL or college football and also with postseason baseball .

Lachlan Murdoch: We're seeing subscriber acquisitions flowing very effectively and efficiently through both football, be it NFL or college football, and also with post-season baseball. So it's very pleasing, and then it's pleasing to see those subscribers and viewers also engaging with our other content on the platform, primarily news. As for, I think the other question was on Tubi. We've said it before. We expect margins to. We're pleased with hitting profitability in this past quarter. I think you've got to expect some seasonality with that, but certainly growing profitability where we expect Tubi to be a meaningful contributor to EBITDA in the medium term. And we would expect those margins to be in the 20% to 25% range, ultimately.

We're seeing subscriber acquisitions flowing very effectively and efficiently through both football, be it NFL or college football, and also with post-season baseball. So it's very pleasing, and then it's pleasing to see those subscribers and viewers also engaging with our other content on the platform, primarily news. As for, I think the other question was on Tubi. We've said it before. We expect margins to. We're pleased with hitting profitability in this past quarter.

Speaker #3: So it's very pleasing . And pleasing to see those subscribers and viewers also engaging with our other content on the platform , primarily news .

Speaker #3: As for . I think the other question was on Tubi . Look , we've said it before , we expect margins to , you know , please , with with hitting profitability in this past quarter .

Lachlan Murdoch: As for.

John Nallen: I think the other question was on Tubi. Look, we've said it before, we expect margins to, we're pleased with hitting profitability.

Lachlan Murdoch: In this past quarter, you've got to expect some seasonality with.

Speaker #3: And you've got to expect some seasonality with that . But certainly , you know , growing profitability where we expect to be to be a , you know , meaningful contributor to EBITDA in the medium term , and we would expect those margins to be in the 20 to 25% range .

I think you've got to expect some seasonality with that, but certainly growing profitability where we expect Tubi to be a meaningful contributor to EBITDA in the medium term. And we would expect those margins to be in the 20% to 25% range, ultimately.

John Nallen: Certainly growing profitability where we expect Tubi to be a meaningful contributor to EBITDA in the medium term. We would expect those margins to be in the 20% to 25% range ultimately.

Speaker #3: Ultimately .

Speaker #2: Operator next question , please .

Gabrielle Brown: Operator, next question, please.

Speaker #1: We have a question from Michael Morris of Guggenheim . Please go ahead .

Operator: We have a question from Michael Morris of Guggenheim Securities LLC. Please go ahead.

Operator: We have a question from Michael Morris of Guggenheim. Please go ahead.

Speaker #6: Thank you . Good morning . I wanted to ask you first about the stronger pricing on Fox News and really trying to understand where you see this pricing relative to your potential and what's driving the strength in pricing there .

[Analyst 1]: Thank you. Good morning. I wanted to ask you first about the stronger pricing on Fox News and really trying to understand where you see this pricing relative to your potential and what's driving the strength in pricing there. I think at the end of last year you discussed a pretty large number of incremental advertisers coming in with interest and trying to understand where we are in the cycle on pricing and what you think the potential is. Second, you did mention moderation in the investment level. Given the success that you're seeing at Tubi, which is great, would you be willing to give us some parameter of where you think that may come in, perhaps relative to investment levels last year or something else that can help us size what you're thinking at this point? Thank you.

Michael Morris: Thank you. Good morning. I wanted to ask you first about the stronger pricing on Fox News and really trying to understand where you see this pricing relative to your potential and what's driving the strength in pricing there. I think at the end of last year, you discussed a pretty large number of incremental advertisers coming in with interest. And so trying to understand where we are in the cycle on pricing and what you think the potential is. And then second, you did mention a moderation in the investment level given the success that you're seeing at Tubi, which is great. Would you be willing to give us some parameter of where you think that may come in, perhaps relative to the investment levels last year or something else that can help us size what you're thinking at this point? Thank you.

Speaker #6: I think at the end of last year, you discussed some pretty large numbers of incremental advertisers coming in with interest. So, I'm trying to understand where we are in the cycle on pricing and what you think the potential is.

And then second, you did mention a moderation in the investment level given the success that you're seeing at Tubi, which is great. Would you be willing to give us some parameter of where you think that may come in, perhaps relative to the investment levels last year or something else that can help us size what you're thinking at this point? Thank you.

Speaker #6: And then second , you did mention moderation in the investment level , given the success that you're seeing at Tubi , which is great , would you be willing to give us some parameter of where you think that may come in ?

Speaker #6: Perhaps relative to the investment levels ? Last year or , or something else that can help us size what you're thinking at this point ?

Speaker #6: Thank you .

Speaker #3: Thank you very much , Michael . I'll handle both questions on on Fox News pricing . The the strength of the Fox News pricing obviously comes from from from the share there .

John Nallen: Thank you very much, Michael.

Lachlan Murdoch: Thank you very much, Michael. I'll handle both questions. On Fox News pricing, the strength of the Fox News pricing obviously comes from the share that we're achieving in the marketplace, consistent with the past quarters. I think in total day for the Q1 and sort of in Q2 plus, we're up 63% share versus our news competitors. And I think for prime time, we're at 65% share versus our news competitors. But equally important is we are the number one channel in all of television year to date. Obviously, as you go into fall and you have fall entertainment programming and football, they're tough comps coming. But number one year to date in all of television is a tremendous achievement. And you have to remember that our CPMs are effectively half of what broadcasts are. So advertising clients who are.

Lachlan Murdoch: I'll handle both questions on Fox News pricing. The strength of the Fox News pricing.

John Nallen: Really obviously comes from the share that we're achieving in the marketplace, consistent with the past quarters, I think.

Speaker #3: We're achieving in the marketplace . You know , consistent with the past quarters . I think in total day for the for the for Q1 in sort of in P2+ we're up 63% share versus our , our news competitors .

Lachlan Murdoch: In total day for Q1, in short.

John Nallen: In P2+, we're up 63% share versus our news competitors. I think for prime time we're at 65% share versus our news competitors. Equally important is we are.

Speaker #3: And I think for prime time , we're up 65% . We're we're at 65% share versus our news competitors . But equally important is , you know , we are the number one channel in all of television .

Lachlan Murdoch: The number one channel in all of television year to date. Obviously, as you go into fall.

Speaker #3: Year to date . Obviously , as you go into fall and you have fall entertainment programming and football . That's a tough comps coming .

Obviously, as you go into fall and you have fall entertainment programming and football, they're tough comps coming. But number one year to date in all of television is a tremendous achievement. And you have to remember that our CPMs are effectively half of what broadcasts are. So advertising clients who are.

John Nallen: You have fall entertainment programming and football.

Lachlan Murdoch: They're tough comps coming.

Speaker #3: But number one , year to date in all of television is is a tremendous , tremendous achievement . And you have to remember that our CPMs are effectively half of what broadcasts are .

John Nallen: Number one year to date in all of television is a tremendous achievement.

Lachlan Murdoch: You have to remember that our CPMs.

John Nallen: Are effectively half of what broadcasts are.

Speaker #3: So advertisers and clients .

Lachlan Murdoch: Are advertisers and clients, goodbye. Are we still on?

Speaker #7: Goodbye .

Gabrielle Brown: Goodbye.

[Unknown Speaker]: Goodbye.

Speaker #3: We're still on hello .

Lachlan Murdoch: Are we still on? Hello?

Steve Tomczak: Hello.

Speaker #1: You're still connected .

Operator: Yep, you're still connected.

Speaker #3: We heard our goodbye . So . I . I was , I was , I was on a roll . So look , I our advertising is about half of what you know what the networks are able to achieve from a CPM point of view .

Lachlan Murdoch: We heard our goodbye. So I was out of role. So look, our advertising is about half of what the networks are able to achieve from a CPM point of view. So it's a very efficient buy for our clients who are experimenting on the channel and are coming back and continuing to spend more. I think we've had about 350 new national clients on Fox News this year, and they continue to spend and, in most cases, increase their spend. So pricing, that's driving pricing up both from a direct perspective of partnerships, but also in direct response where we're seeing very healthy, very strong pricing. And when we don't see that, there's no reason for that to change, that momentum to change.

John Nallen: We heard a goodbye.

Lachlan Murdoch: I was on a roll. Our advertising is about half of.

John Nallen: What the networks are able to achieve from a CPM point of view, it's a very efficient buy for our clients who are experimenting on the channel and are coming back and continue to spend more. I think we've had three, we're about 350 new national clients on Fox News this year and they continue to spend and in most cases increase their spend.

Speaker #3: So it's a very , very efficient buy for , for our clients who are experimenting on the , on the channel and are coming back and continue to spend more .

Speaker #3: I think we've had three . We're about 350 new national clients on , on , on , on Fox News this year . And they continue to spend and in most cases increase their spend .

So pricing, that's driving pricing up both from a direct perspective of partnerships, but also in direct response where we're seeing very healthy, very strong pricing. And when we don't see that, there's no reason for that to change, that momentum to change.

Speaker #3: So pricing that's driving pricing up both from a direct perspective of partnerships but also in direct direct response , where we're seeing very , very healthy , very strong pricing .

Lachlan Murdoch: Pricing, that's driving pricing up both.

John Nallen: From a direct perspective of partnerships, but also in direct response where we're seeing very, very healthy, very strong pricing. We don't see that there's no reason for that to change that momentum.

Speaker #3: And when we don't see that , there's no reason for that to change that momentum to change in terms of moderation , of our investment level , in our in our new businesses .

Lachlan Murdoch: To change in terms of moderation.

Lachlan Murdoch: In terms of a moderation of our investment level in our new businesses, Tubi hitting profitability earlier in the spectrum will absolutely moderate the conservative number that Steve gave last quarter. We're very pleased by that. But we will continue to invest in these businesses as we see fit. It's a modest investment for us in our future, and we will continue to invest where we think it's important strategically to build those businesses.

In terms of a moderation of our investment level in our new businesses, Tubi hitting profitability earlier in the spectrum will absolutely moderate the conservative number that Steve gave last quarter. We're very pleased by that. But we will continue to invest in these businesses as we see fit. It's a modest investment for us in our future, and we will continue to invest where we think it's important strategically to build those businesses.

John Nallen: Our investment level in our new businesses to be hitting profitability earlier in the spectrum. We'll absolutely moderate the conservative number that Steve gave last quarter. We're very pleased by that.

Speaker #3: You know , to be hitting a profitability earlier than the will . Absolutely moderate the conservative number that Steve gave last quarter . We're very pleased by that .

Speaker #3: But we will continue to invest in these businesses as we see fit. It's a modest investment for us in our future.

Lachlan Murdoch: We will continue to invest in.

John Nallen: These businesses as we see fit. It's a modest investment for us in our future, and we'll continue to invest where we think it's important strategically to build those businesses.

Speaker #3: And , you know , we we'll continue to invest what we think is important strategically to build those businesses .

Speaker #2: Next question , please .

Gabrielle Brown: Next question, please.

Speaker #1: The next question is from the line of Michael Ng of Goldman Sachs . Please go ahead .

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

Operator: Yeah, next question is from the line of Michael Ng of Goldman Sachs. Please go ahead.

Speaker #8: Hey . Good afternoon . Good morning . I just have a one and a quick follow up just on the comment around distribution growth for the company for this year .

[Analyst 2]: Good afternoon. Good morning. I just have one and a quick follow-up just on the comment around distribution growth for the company for this year. I was wondering if you could just expand a little bit on what you think the key drivers of the stable to improving subscriber erosion trends are. How important is FoxOne to your outlook on distribution growth? As a follow-up, I was just wondering if you could explain a little bit more about the ASR, why now, and also why the composition between class A's and B's, just given the more limited float on B's. Thank you.

John Hodulik: Hey, good afternoon. Good morning. I just have one and a quick follow-up. Just on the comment around distribution growth for the company for this year, I was wondering if you could just expand a little bit on what you think the key drivers of the stable to improving subscriber erosion trends are, and how important is Fox One to your outlook on distribution growth. And then just as a follow-up, I was just wondering if you could explain a little bit more about the ASR, why now, and also why the composition between Class A's and B's, just given the more limited float on the B's. Thank you.

Michael Ng: Hey, good afternoon. Good morning. I just have one and a quick follow-up. Just on the comment around distribution growth for the company for this year, I was wondering if you could just expand a little bit on what you think the key drivers of the stable to improving subscriber erosion trends are, and how important is Fox One to your outlook on distribution growth. And then just as a follow-up, I was just wondering if you could explain a little bit more about the ASR, why now, and also why the composition between Class A's and B's, just given the more limited float on the B's. Thank you.

Speaker #8: I was wondering if you could just expand a little bit on what you think the key drivers of the stable to improving subscriber erosion trends are , and how important is is Fox one to your outlook on distribution , growth ?

Speaker #8: And then just as a follow up , I was just wondering if you could explain a little bit more about the ASR . You know , why now ?

Speaker #8: And also, why the composition between Class A's and B's, just given the more limited float on the B's? Thank you.

Speaker #3: Great . Thanks , . On distribution growth Mark . I think what we're seeing is we're seeing the early days of of a benefit flowing through from skinny bundles , which we are , you know , participate in in all of them .

Lachlan Murdoch: Great. Thanks, Mark. On distribution growth, I think what we're seeing is we're seeing the early days of a benefit flowing through from skinny bundles, which we participate in all of them. I think we're beginning to see, and this is, as we said, the third quarter now of sort of reduced subscriber erosion, which is pleasing as we see sort of subscriber erosion ameliorate to some degree. And it's a combination of the consumer having more flexibility and getting the ability to where they don't want to be in an overall bundle to participate in these skinny bundles. And again, what really drives these skinny bundles are bundles that are based around entertainment, news, and sports. So I think it's pleasing to see. And also, obviously, the digital distributors continue to do well. Fox One really won't have a material impact on that.

Lachlan Murdoch: Great. Thanks, Mark. On distribution growth, I think what we're seeing is we're seeing the early days.

John Nallen: Of a benefit flowing through from skinny bundles, which we are, you know, participating.

Lachlan Murdoch: In all of them.

Speaker #3: I think we we're beginning to see and this is , as we said , the third quarter now of of sort of reduced subscriber erosion , which is which is pleasing , as we see subscriber erosion ameliorate to some degree .

John Nallen: I think we're beginning to see, and this is the third quarter now of reduced subscriber erosion, which is pleasing as we see subscriber erosion ameliorate to some degree. It's a combination of the consumer having more flexibility and getting the ability to, where they don't want to be in an overall bundle, to participate in these skinny bundles. What really drives these skinny bundles are bundles that are based around entertainment and news. I think it's pleasing to see. Also, obviously the digital distributors continue to do well. Fox One really won't have a material impact on that. It is additive to our subscriber numbers because we are targeting subscribers that are.

Speaker #3: And it's a combination of the consumer having more flexibility and getting , you know , the ability to where they don't want to be in a , in a , in an overall bundle to participate in these skinny bundles .

Speaker #3: And again , what really drives these skinny bundles are bundles that are based around entertainment and news and and sports . So so we're I think it's pleasing pleasing to see .

And again, what really drives these skinny bundles are bundles that are based around entertainment, news, and sports. So I think it's pleasing to see. And also, obviously, the digital distributors continue to do well. Fox One really won't have a material impact on that.

Speaker #3: And also obviously the digital distributors are continue to do well . Fox one really won't have a material impact on that . It is additive to our subscriber numbers because we are targeting subscribers that are outside of the bundle , that are cord cutters or cord nevers .

Lachlan Murdoch: It is additive to our subscriber numbers because we are targeting subscribers that are outside of the bundle that are cord cutters or cord-nevers. But as we've said before, our aspirations in Fox One remain in the low to mid single-digit millions of subscribers. So overall, it's not, certainly, in the short term going to have a material impact. Steve, do you want to?

It is additive to our subscriber numbers because we are targeting subscribers that are outside of the bundle that are cord cutters or cord-nevers. But as we've said before, our aspirations in Fox One remain in the low to mid single-digit millions of subscribers. So overall, it's not, certainly, in the short term going to have a material impact. Steve, do you want to?

Lachlan Murdoch: Outside of the bundle that are cord.

John Nallen: Cord cutters or cord nevers. As we said before, our aspirations in FoxOne remain in the low to mid single-digit millions of subscribers. Overall, it's not certainly in the short term going to have a material impact. Steve, do you want to.

Speaker #3: But as we've said before , our aspirations in Fox one are , you know , remain in the , in the , the low to mid single digit millions of subscribers .

Speaker #3: So , so overall , it's not certainly in the short term we're going to have a material impact . Steve , do you want to .

Speaker #4: Yeah . And just to elaborate , Mike , in terms of that distribution growth as I just to reiterate in what I said , we absolutely given where subscriber trends are growing and to lachlan's point Fox one , we expect to be totally additive to where we're at .

Lachlan Murdoch: Yeah.

Michael Morris: Yeah. And just to elaborate, Mark, in terms of that distribution growth, just to reiterate in what I said, given where subscriber trends are growing, and to Upland's point, Fox One, we expect to be totally additive to where we're at. We're expecting total company distribution revenue to grow this year. At the TV segment, given the timing of our rate increases, we'd expect that our full-year FY26 TV affiliate revenue to be at or about where we were in 2025. But given the timing of those rate increases, we'd expect overall total company distribution revenue growth to be up in 2027 coming from both segments. So we feel pretty good about where the book is there. And then to capture your question on ASR, in terms of the splits, the way the ASR will work is we'll enter into the transaction tomorrow.

Steven Tomsic: Yeah. And just to elaborate, Mark, in terms of that distribution growth, just to reiterate in what I said, given where subscriber trends are growing, and to Upland's point, Fox One, we expect to be totally additive to where we're at. We're expecting total company distribution revenue to grow this year. At the TV segment, given the timing of our rate increases, we'd expect that our full-year FY26 TV affiliate revenue to be at or about where we were in 2025.

Steve Tomczak: To elaborate, Mike, in terms.

Lachlan Murdoch: Of that distribution growth, just to reiterate.

Steve Tomczak: Given where subscriber trends are growing and to Lachlan's point, FoxOne, we expect to be totally additive to where we're at. We're expecting total company distribution revenue to grow this year at the TV segment. Given the timing of our rate increases, we'd expect that our full year FY26 TV affiliate revenue to be at or about where we were in 2025. Given those timing of those rate increases, we'd expect overall TV, overall total company distribution revenue growth to be up in 2027 coming from both segments. We feel pretty good about where the book is there. To capture your question on ASR, in terms of the splits, the way the ASR will work is we'll enter into the transaction tomorrow, we'll get 80% of the shares back on settlement straight away. It'll take the better part of the current fiscal year to work through that.

Speaker #4: We're expecting total company distribution revenue to grow this year at the TV segment , given the timing or given the timing of our rate increases , we'd expect that our full year FY 26 TV affiliate revenue to be at or about where we were in 25 .

Speaker #4: But given those timing of those rate increases , we'd expect overall TV just overall , total company distribution , revenue growth to be up in 27 , coming from both segments .

But given the timing of those rate increases, we'd expect overall total company distribution revenue growth to be up in 2027 coming from both segments. So we feel pretty good about where the book is there. And then to capture your question on ASR, in terms of the splits, the way the ASR will work is we'll enter into the transaction tomorrow.

Speaker #4: So we feel pretty good about where the book is there . And then to capture your question on ASR , in terms of the splits , the way that the the way the Aso will work is we'll enter into the transaction tomorrow .

Speaker #4: We'll get 80% of the shares back on settlement . So straight away and then it'll take the better part of the current fiscal year to , to work through that .

Michael Morris: We'll get 80% of the shares back on settlement, so straight away. And then it'll take the better part of the current fiscal year to work through that. The split between the A's and the B's, I think it talks to the fact that the B's are currently trading at a 10% or 11% discount to the A's. So it's just an outright efficiency of buying with respect to the B's versus the A's. And then, if you look at the balance of our ASR, not our ASR, our buyback activity since spin, right now at about $6.9 billion cumulatively bought back, of which $5.9 billion has been the A's and only $1 billion has been the B's. So we think that's the appropriate mix for the balance of the fiscal year.

We'll get 80% of the shares back on settlement, so straight away. And then it'll take the better part of the current fiscal year to work through that. The split between the A's and the B's, I think it talks to the fact that the B's are currently trading at a 10% or 11% discount to the A's. So it's just an outright efficiency of buying with respect to the B's versus the A's.

Speaker #4: The split between the A's and the B's , I think it talks to the fact that the B's are currently trading at a 10 or 11% discount to the A's , so it's it's just an outright efficiency of buying with respect to the B's versus the A's .

Steve Tomczak: The split between the A's and the B's, I think it talks to the fact that the B's are currently trading at a 10% or 11% discount to the A's. It's just an outright efficiency of buying with respect to the B's versus the A's. If you look at the balance of our ASR, not our ASR, our buyback activity since spin, right now at about $6.9 billion cumulatively bought back, of which $5.9 billion has been the A's and only $1 billion has been the B's. We think that's the appropriate mix for the balance of the fiscal operator.

And then, if you look at the balance of our ASR, not our ASR, our buyback activity since spin, right now at about $6.9 billion cumulatively bought back, of which $5.9 billion has been the A's and only $1 billion has been the B's. So we think that's the appropriate mix for the balance of the fiscal year.

Speaker #4: And then if you look at the balance of our ASR , not razor , our buyback activity since bin right now at about 6.9 billion .

Speaker #4: Dollars , cumulative cumulatively bought back of which 5.9 has been the A's and only a billion has been the B's . So we think that's the appropriate mix for the balance of the fiscal year .

Speaker #2: Operator . We can go to the next question , please .

Gabrielle Brown: Operator, we can go to the next question, please.

Gabrielle Brown: We can go to the next question, please.

Speaker #1: We have a question from Jessica Reif of Bank of America . Please go ahead .

Operator: We have a question from Jessica Reif Ehrlich of Bank of America. Please go ahead.

Speaker #9: No , thank you . Good morning , everybody . So I guess the first question is , even with the accelerated share buybacks , you have tons of balance sheet flexibility .

[Analyst 3]: Thank you. Good morning, everybody. I guess the first question is, even with the accelerated share buyback, you have tons of balance sheet flexibility. Can you just talk about how you may use that? Do you think your asset mix will change in coming years? It seems pretty clear there will be M&A in the industry, whether you participate or not, just the impact on Fox and then on advertising. Lachlan, you talked about strength in both upfront and scatter. Can you give us some color? You gave some color on Fox News, just on the broader advertising, sports and entertainment. And Tubi, this would be great.

Jessica Reif Ehrlich: Thank you. Good morning, everybody. So I guess the first question is, even with the accelerated share buyback, you have tons of balance sheet flexibility. Can you just talk about how you may use that? Do you think your asset mix will change in coming years? And it seems pretty clear there will be M&A in the industry. Whether you participate or not, just the impact on Fox. And then on advertising, you, Lachlan, you talked about strength in both upfront and scatter. Can you give us some color? You gave some color on Fox on the news side, just on the broader advertising, sports, and entertainment. And Tubi, this would be great.

Speaker #9: You just talk about , you know , how you may use that . Do you think your asset mix will change in the coming years .

Speaker #9: And it seems pretty clear there will be you no M&A in the industry . How how whether you participate or not , like just the impact on Fox .

Speaker #9: And then on advertising , you Lachlan , you talked about strength in both upfront and scatter . Can you give us some color ?

Can you give us some color? You gave some color on Fox on the news side, just on the broader advertising, sports, and entertainment. And Tubi, this would be great.

Speaker #9: You gave some color on on the news side , just on the broader advertising sports and entertainment . And to me , this would be great .

Speaker #3: Sure . Good morning Jessica . You know Steve , speak specifically to the balance sheet . But but you're 1,000% correct . As usual .

Lachlan Murdoch: Sure. Good morning, Jessica. Steve, speak specifically to the.

Lachlan Murdoch: Sure. Good morning, Jessica. Steve can speak specifically to the balance sheet, but you're 1,000% correct as usual with the industry-leading balance sheet. We're very proud of it, and we work hard to maintain its strengths. But having said that, ultimately, it will have to be utilized and utilized with M&A. We continue to look at all opportunities that come to us and that we identify internally as well. And we would expect to be doing more M&A over the coming period, having said that there's nothing on the table now. And so, but we think M&A is going to be an important part of our growth going forward. We'll continue to be very disciplined with it. We are looking at areas where we believe there are tailwinds rather than headwinds.

John Nallen: Balance sheet, but you're 1000% correct as usual. It's the industry-leading balance sheet. We're very proud of it, and we work hard to maintain its strength. Having said that, ultimately it has to be utilized and utilized with M&A. We continue to look at all opportunities that come to us and that we identify internally as well, and we would expect to be doing more M&A over the coming period. Having said that, there's nothing on the table now, but we think M&A is going to be an important part of our growth going forward. We'll continue to be very disciplined with it. We're looking at areas where we believe there are tailwinds rather than headwinds. You won't see us investing in things that have high exposure, for instance, to the cable industry or certainly anything that's entertainment, sort of cable assets.

Speaker #3: It's an industry leading balance sheet . You know , we're we're you know , we're very proud of it . And we work hard to to to maintain its strength .

Speaker #3: But having said that , ultimately have to be utilized and utilized with M&A . You know , we continue to look at our all opportunities that come to us and that we we identify internally as well .

Speaker #3: And we would expect to be doing , you know , more M&A , you know , over the coming , you know , the coming period .

Speaker #3: Having said that , there's nothing on the table now . And so but but you know we think M&A is going to be an important part of our growth going forward .

And so, but we think M&A is going to be an important part of our growth going forward. We'll continue to be very disciplined with it. We are looking at areas where we believe there are tailwinds rather than headwinds.

Speaker #3: We'll continue to be very disciplined with it . We looking at areas where we believe there are tailwinds rather than headwinds . So you won't see us investing in things that have like high exposure , for instance , to , you know , the cable industry or certainly anything entertainment sort of cable assets .

Lachlan Murdoch: So you won't see us investing in things that have high exposure, for instance, to the cable industry or certainly anything entertainment, sort of cable assets. So that's broadly how we're viewing it and how we're filtering the opportunities that we assess. And from an advertising point of view, Jessica, as I mentioned, this is since 2019, since new Fox was created, this is the strongest advertising market we have seen in our kind of verticals. And the reason I make that sort of especially relate to what we're seeing is because I think our verticals in live news and live sports in particular are really the beneficiaries of sort of the broad reach that we have and money flowing from linear entertainment, particularly linear cable entertainment revenue into the broad reach of live sports and live news supplies.

So you won't see us investing in things that have high exposure, for instance, to the cable industry or certainly anything entertainment, sort of cable assets. So that's broadly how we're viewing it and how we're filtering the opportunities that we assess. And from an advertising point of view, Jessica, as I mentioned, this is since 2019, since new Fox was created, this is the strongest advertising market we have seen in our kind of verticals.

Speaker #3: So that's a that's a , you know , broadly how , how we're , we're viewing it and how we're filtering the opportunities that , that we , we assess from an advertising point of view .

John Nallen: That's broadly how we're viewing and how we're filtering the opportunities that we assess.

Lachlan Murdoch: From an advertising point of view.

Speaker #3: Jessica , as I , as I mentioned , this is the since 2019 , since New Fox , you know , was created .

John Nallen: Jessica, as I mentioned, since 2019, since New Fox was created, this is the strongest advertising market we have seen in our verticals. The reason I make that.

Speaker #3: This is the strongest advertising market we have seen in our kind of verticals . And the reason I make that . You know , sort of especially relate to what we're seeing is because I think our verticals in live news and live sports in particular , are , are the are really the beneficiaries of sort of the broad reach that we have .

And the reason I make that sort of especially relate to what we're seeing is because I think our verticals in live news and live sports in particular are really the beneficiaries of sort of the broad reach that we have and money flowing from linear entertainment, particularly linear cable entertainment revenue into the broad reach of live sports and live news supplies.

[Analyst 1]: You.

John Nallen: Especially relate to what we're seeing is because I think our verticals in live news and live sports.

Lachlan Murdoch: In particular.

John Nallen: Are really the beneficiaries of sort of the broad reach that we have, and money flowing from linear entertainment, particularly linear cable entertainment revenue, into the broad reach of live sports and live news supplies. Having said that, we also, Tubi has had incredibly strong revenue growth, and so it's really sort of across the board.

Speaker #3: And money flowing from linear entertainment , particularly linear cable entertainment revenue , into , into the broad reach of live sports and live news supplies .

Speaker #3: Having said that , we also Tubi has had incredibly strong revenue growth . And and so it's really sort of across the board .

Lachlan Murdoch: Having said that, we also, Tubi, has had incredibly strong revenue growth, and so it's really sort of across the board. If I look specifically at national advertising, very strong in pharma in the quarter, financial services, and in tech driven by AI, AI companies advertising. In sports, NFL is strong. And even this World Series, we believe, if it didn't last night, will in game six likely surpass our revenue for post-season last year. So sports and college football is also going very well. Fox News has seen strong price increases in their direct response advertising as well as for the big premium sort of branded advertising on the platform. Local stations, if anything, has improved as a trend where we said the market for local stations was mixed in the past. It's less mixed now. And that's a really positive thing we've seen.

Having said that, we also, Tubi, has had incredibly strong revenue growth, and so it's really sort of across the board. If I look specifically at national advertising, very strong in pharma in the quarter, financial services, and in tech driven by AI, AI companies advertising. In sports, NFL is strong. And even this World Series, we believe, if it didn't last night, will in game six likely surpass our revenue for post-season last year. So sports and college football is also going very well.

Speaker #3: If I look , specifically national advertising , very strong in pharma in the quarter , financial services and in tech driven by AI .

Lachlan Murdoch: If I look specifically at national advertising, very.

John Nallen: Strong in pharma in the quarter, financial services, and in tech driven by AI.

Speaker #3: The AI companies advertising in sports , NFL is strong . And even this , this World Series , you know , will we believe if it didn't last night , we will in game six likely surpass our revenue for postseason last year .

Lachlan Murdoch: AI companies.

John Nallen: Advertising in sports, NFL is strong.

Lachlan Murdoch: Even this World Series, you know, will.

John Nallen: We believe if it didn't last night, it will in Game 6, likely surpass our revenue for postseason last year. Sports and college football is also going very well.

Speaker #3: So sports and college football is also going very well . Fox news has seen strong price increases , increases in in their direct response advertising as well as for the the big premium sort of branded advertising .

Fox News has seen strong price increases in their direct response advertising as well as for the big premium sort of branded advertising on the platform. Local stations, if anything, has improved as a trend where we said the market for local stations was mixed in the past. It's less mixed now. And that's a really positive thing we've seen.

Lachlan Murdoch: Fox News has seen strong price increases.

John Nallen: In their direct response advertising as well as for the big premium sort of branded advertising on the platform.

Speaker #3: The platform local stations if anything has improved , you know from a as a trend where we you know we've said the the market for local stations was mixed in the past .

Lachlan Murdoch: Local stations, if anything, has improved.

John Nallen: As a trend where we said the market for local stations was mixed in the past, it's less mixed now and that's a really positive thing. We've seen very strong pharma advertising in the quarter for local stations, and then where the weaknesses, the stations are sort of restaurants. I think some telecom is slightly weaker and auto is sort of flattish. We're very pleased with the outlook of the stations.

Speaker #3: It's less mixed now . And that's a that's a , you know , a really positive thing . We've seen we saw very strong pharma advertising in the quarter for , for local stations .

Lachlan Murdoch: We saw very strong pharma advertising in the quarter for local stations. And then where the weakness is, the stations are sort of restaurants. I think some telecom is slightly weaker, and auto is sort of flattish. So we're very pleased with the outlook of the stations. Tubi, this time last year, Tubi had a lot of political revenue, which we called out because of its targeting and because of its audience, which is very hard to reach for advertisers. It attracted a significant amount of political advertising. But despite that, we were still seeing sort of tremendous growth in Tubi. So we're pleased with the advertising outlook and particularly where we sit within that ecosystem.

We saw very strong pharma advertising in the quarter for local stations. And then where the weakness is, the stations are sort of restaurants. I think some telecom is slightly weaker, and auto is sort of flattish. So we're very pleased with the outlook of the stations. Tubi, this time last year, Tubi had a lot of political revenue, which we called out because of its targeting and because of its audience, which is very hard to reach for advertisers. It attracted a significant amount of political advertising.

Speaker #3: And then where the weaknesses are, the stations are sort of, I think some telecom, you know, slightly weaker, and on auto, it's sort of flattish.

Speaker #3: So , so we're very pleased with with the the outlook of the , the stations to be , you know , this , this time last year to be had a lot of political revenue which we called out , you know because of its restaurants targeting and because of its audience , which is very hard to reach for advertisers .

Lachlan Murdoch: Tubi, you know this time last year Tubi had a lot of political revenue.

John Nallen: Which we called out, you know, because of its targeting and because of its audience, which is very hard to reach for advertisers. It attracted, you know, significant amount of political advertising. Despite that, we're still seeing tremendous growth in Tubi. We are pleased with the advertising outlook and particularly where we sit within that ecosystem.

Speaker #3: It attracted , you know , significant amount of political advertising . But despite that , you know , we we're still seeing sort of tremendous growth in Toby .

But despite that, we were still seeing sort of tremendous growth in Tubi. So we're pleased with the advertising outlook and particularly where we sit within that ecosystem.

Speaker #3: So we're we're pleased with the with the advertising outlook and particularly where we sit within that , that ecosystem .

Speaker #7: Okay . Operator . We have time for one more question .

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

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

Speaker #1: We have a question from Ben Swinburne of Morgan Stanley . Please go ahead .

Operator: We have a question from Ben Swinburne of Morgan Stanley. Please go ahead.

Speaker #10: Thank you . Good morning , everyone . Maybe taking another stab just at the the investment levels this year . I think Steve's conservative estimate last quarter was 350 I believe for 26 .

[Analyst 4]: Thank you. Good morning everyone. Maybe taking another stab just at the investment levels this year. I think Steve's conservative estimate last quarter was $350 million I believe for 2026. I don't know if maybe you'd give us an update based on how you guys are trending so far. Then Lachlan, back to FoxOne. You called out and thanked Prime Video for their contribution. Just anything interesting or surprising to you in how you're acquiring FoxOne customers when you look at all the different options and channels. I know it's early but we'll be interested. Thank you.

Ben Swinburne: Thank you. Good morning, everyone. Maybe taking another stab just at the investment levels this year. I think Steve's conservative estimate last quarter was 350, I believe, for 2026. I don't know if maybe you'd give us an update based on how you guys are trending so far. And then, Lachlan, kind of back to Fox One, just anything you called out and thanked Prime Video for their contribution. But is there anything interesting or surprising to you in how you're acquiring Fox One customers when you look at all the different options and channels? I know it's early, but we'd be interested. Thank you.

Speaker #10: I didn't know if maybe you'd give us an update based on how you guys are trending so far . And then Lachlan kind of back to Fox one .

Speaker #10: Just anything you called out and , you know , thanked Prime Video for their contribution . But just anything interesting or surprising to you and how you sort of you're acquiring Fox one customers when you look at all the different options and channels .

Speaker #10: I know it's early , but we'll be interested . Thank you .

Speaker #3: So let me start with Fox one . Thanks , Ben . So the I don't I don't think it's that surprising of partnerships are are very important .

Lachlan Murdoch: Let me start with FoxOne. Thanks, Ben. I don't think it's that surprising.

Lachlan Murdoch: So let me start with Fox One. Thanks, Ben. So I don't think it's that surprising. Partnerships are very important. And obviously, partnerships with ESPN and Verizon, we think, are going to be a big part of Fox One's growth. But I have to say, and I should just say, Amazon's just been a brilliant partner at the launch. They've done a tremendous job in distributing the product and acquiring subscribers. So we give them a huge amount of credit and appreciate their partnership. And from a content perspective, a broad perspective, it's probably not surprising that sports and all sports are a tremendous attraction on the product and really drive a lot of uptake over the weekends. And then that flows into sort of those people, once they're on the platform, assessing news and entertainment content during the week.

John Nallen: Partnerships are very important, and obviously partnerships will launch with ESPN and Verizon. We think they're going to be a big part of FoxOne's growth.

Speaker #3: And obviously partnerships will launch with with ESPN and Verizon . We think it's going to be you know a big part of Fox .

Speaker #3: Fox one's growth . But I have to say and I should just Amazon's just been a brilliant partner at the launch of done a tremendous job in distributing and the product and acquiring subscribers .

Lachlan Murdoch: I have to say, I.

John Nallen: Should just say Amazon Prime Channels has just been a brilliant partner at the launch, has done a tremendous job in distributing the product and acquiring subscribers. Give them a huge amount of credit and appreciate their partnership.

Speaker #3: So we'll give them a huge amount of credit and appreciate their partnership , you know , from a from a content perspective , a broad perspective , you know , it's it's probably not surprising that , you know , sports and all sports , you know , are tremendous .

And from a content perspective, a broad perspective, it's probably not surprising that sports and all sports are a tremendous attraction on the product and really drive a lot of uptake over the weekends. And then that flows into sort of those people, once they're on the platform, assessing news and entertainment content during the week.

Lachlan Murdoch: You know, from a content perspective or broad perspective, it's probably not.

John Nallen: Surprising that sports and all sports are.

Lachlan Murdoch: Tremendous attraction on the product, really.

Speaker #3: Are attraction on the product and really drive some a lot of uptake over the weekends . And then that flows into sort of those people once we're on the platform .

John Nallen: Drive a lot of uptake over the weekends, and that flows into those people once they're on the platform accessing news and entertainment content during the week.

Speaker #3: You know , assessing , assessing news and entertainment content during the week . So , so this sports season and then the busy autumn sports season for us is a really important period to to drive a subscriber acquisitions .

Lachlan Murdoch: The sports season and then the.

Lachlan Murdoch: So the sports season and then the busy autumn sports season for us is a really important period to drive subscriber acquisitions. So look, it's early days, but we couldn't be more pleased with how well Fox One is doing. That's a real credit to the team. I guess I have to hand this over to Steve with another conservative estimate on the digital investments.

So the sports season and then the busy autumn sports season for us is a really important period to drive subscriber acquisitions. So look, it's early days, but we couldn't be more pleased with how well Fox One is doing. That's a real credit to the team. I guess I have to hand this over to Steve with another conservative estimate on the digital investments.

John Nallen: busy autumn sports season for us is a really important period to drive subscriber acquisitions. It's early days, but we couldn't be more pleased with how well FoxOne is doing. That's a real credit to the team.

Speaker #3: So look it's early days but but we you know we we couldn't be more pleased with how how well Fox is doing . That's a real credit to the team .

Speaker #3: I guess I have to hand this over to Steve . Another conservative estimate on the digital investments .

Lachlan Murdoch: I guess.

John Nallen: I have to hand this over to Steve Tomczyk. Digital message, yeah.

Speaker #11: Yeah . So I've been you're you're spot on . We did call at 350 .

Michael Morris: Yeah. So Ben, you're spot on. We did call out 350 on the Q4 call for what we expected to see in fiscal 2026. I think as we sit here today, we think that as we sort of qualified, we thought that was a conservative estimate. We still think it's a conservative estimate. But I think too early in the year to sort of put you onto a different number.

Steven Tomsic: Yeah. So Ben, you're spot on. We did call out 350 on the Q4 call for what we expected to see in fiscal 2026. I think as we sit here today, we think that as we sort of qualified, we thought that was a conservative estimate. We still think it's a conservative estimate. But I think too early in the year to sort of put you onto a different number.

Lachlan Murdoch: You're spot on.

Steve Tomczak: We did call our 350 on the Q4 call for what we expected to see in fiscal 2026. I think as we sit here today, we think that as we sort of qualify, we think. We thought that was a conservative estimate. We still think it's a conservative estimate, but I think too early in the year to sort of put you onto a different number.

Speaker #4: On the Q4 call for what we expected to see in fiscal 26 . I think as we sit here today , we think that as we sort of qualified , we think we thought that was a conservative estimate .

Speaker #4: We still think it's a conservative estimate . But I think too early in the year to sort of put you onto a different number .

Speaker #7: Great . .

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

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

Speaker #2: At this point , we are out of time . But if you have any further questions , please give me or Charlie Costanzo a call .

Speaker #2: Thanks so much for joining us today .

Speaker #3: Thanks everyone .

Lachlan Murdoch: Thanks, everyone.

Operator: Ladies and gentlemen, that does conclude the Fox Corporation first quarter fiscal year 2026 earnings conference call. Thank you.

Operator: Ladies and gentlemen, that does conclude the Fox Corporation First Quarter Fiscal Year 2026 Earnings Conference Call. Thank you.

[Analyst 3]: You. Sa.

Q1 2026 Fox Corp Earnings Call

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