Q2 2026 Fox Corp Earnings Call

February 4, 2026

Conference call at this time. All participants are in a listen-only mode. Later, we will conduct a question and answer session. I would like to emphasize the functionality for the question and answer Q 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. Miss Gabriel Brown, please go ahead Miss Brown.

Thank you, Krista. Good morning and Welcome to our fiscal 2026 second quarter earnings call.

Joining me on the call today, are Lachlan Murdoch, executive chair and chief, executive officer John nalen, president and Chief Operating Officer.

Steve, Tomac our Chief Financial Officer.

First Lachlan, and Steve will get some prepared remarks on the, 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 payments are based on Management's, current expectations, and actual results to 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 Eva do or evaa as we refer to it on this call.

Reconciliations of non-gaap financial measures are included in our earnings release, and our SEC filings, which are available in the investor relations section of our website.

We also refer to free cash flow, which we Define as net cash provided by operating activities.

Let's Capital expenditures.

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

Uh, thank you Gabby, and thank you all for joining us this morning.

As you can see, from our release the operating and financial momentum, that we have delivered over the last several years, has continued to build over the first half of fiscal 2026.

It is the product of both the highly differentiated strategy and high-quality execution, that reflect the power of our leadership Brands across News, sports streaming and entertainment.

our favorable results were broad-based, including notable strengths in advertising Revenue where despite High political advertising a year ago, we still a Droid League grew total company advertising Revenue,

I made the comment last quarter that we were experiencing the most robust advertising Market. We have seen for some time.

That remained true during the second quarter and it continues to be true today where we are seeing unabated healthy Trends and positive metrics across our portfolio.

Q2 2026 Fox Corp Earnings Call

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Q2 2026 Fox Corp Earnings Call

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Wednesday, February 4th, 2026 at 1:30 PM

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In sports, we achieved record-breaking ad revenue for the Major League. Baseball postseason capped off by a 7 Game World Series. While we also generated records for both the National Football League and college football regular seasons.

Looking forward. We've had a strong NFL postseason, and we're now gearing up for our Marquee Motorsports events, the Daytona 500, and Indy 500. And of course, the highly anticipated FIFA men's World Cup, which starts in June,

At news despite comparisons to a heavy political news cycle in the prior year, we not only grew advertising Revenue in the second quarter but also achieved a highest second quarter advertising Revenue ever.

News business, further demographic expansion and pricing growth in both direct response and National advertising. All contributed to this strong result.

Distribution Revenue, grew 4% during the quarter, with subscriber declines, notably, improving sequentially. Even when excluding the contribution from Fox 1, which continues to exceed our expectations driven by both direct signups as well as Partnerships.

At this point, we have not observed, any noticeable, cannibalization of traditional subscribers, a result of our targeted marketing to cord cutters and cord Nevers.

Although Fox 1 launched just 5 months ago, we are encouraged by consumer reception to the product and we have already gained meaningful insights into the audience engagement trends.

While live sporting events, continue to drive the majority of of Engagement news accounts to approximately 1/3 of total minutes viewed on Fox 1.

Times as many minutes per week on average.

These patterns reinforce our view that Fox 1 is not only the premier destination for live sports but also the leading platform for timely relevant live news streaming.

Whether streaming linear social or digital Fox news media continues to meet our audiences where they are.

Over the past 12 months, a fast-moving and consequential news cycle has reinforced Fox News, media's leadership position with audiences, turning to the network for a live coverage and in-depth analysis.

Fox News. Again, finished the quarter as the most watched cable network in total day while maintaining its lead, as the most watched Cable News Network and producing the top 11 cable news programs.

Again, according to recent Nielsen data, Fox News is the number 1 Cable News Network among all 3 political parties which bodes well for the upcoming political election cycle.

On the digital side, social media views for Fox News digital, we're up and astounding 170% over the prior year and both Fox News and Fox Business. Ranked number 1 in YouTube video views amongst their peers during the quarter.

There's no question that Fox news media remains front and center with today's audiences while actively engaging with the next generation of news consumers.

We are focused on expanding our podcast, content and talent across Fox News, and the broader Fox platform, supporting our strategy to meet our audiences wherever they are.

Underscoring fan engagement across the prox brands. Fox Sports ended 2025 as the leader in live sports Event Viewer. A title is held for 6 of The Last 7 years.

From the World Series that Drew over 27 million viewers for game 7 to a 10 year high in NFL regular season viewership.

And the Big 10 Championship setting, the record for any Conference Championship Game on any network, the strength of the Fox Sports portfolio is unmatched.

We capped the season with the Seattle Seahawks and if the NFC Championship victory over the LA Rams drawing 46 million viewers and providing a powerful lead in to Fox entertainment's memory of a killer. The most watched series premiere on any network this season with over 11 million viewers across multiple platforms.

Lachlan Murdoch: Fox News and the broader Fox platform, supporting our strategy to meet our audiences wherever they are. Underscoring fan engagement across the Fox brands, Fox Sports ended 2025 as the leader in live sports event viewing, a title it has held for six of the last seven years. From the World Series that drew over 27 million viewers for Game Seven, to a 10-year high in NFL regular season viewership, and the Big Ten Championship setting the record from any conference championship game on any network, the strength of the Fox Sports portfolio is unmatched. We capped the season with the Seattle Seahawks NFC Championship victory over the LA Rams, drawing 46 million viewers and providing a powerful lead-in to Fox Entertainment's Memory of a Killer, the most-watched series premiere on any network this season, with over 11 million viewers across multiple platforms.

The trend of strong engagement was further extended at Tubi.

Tubi delivered. Its most streamed quarter of all time and grew total viewer top view, time 27% year-over-year supported by an expanding content slate including the NFL Thanksgiving game, SEMO cast and the premiere of sideline 2. A 2B original that has become a fan favorite.

Underscoring fan engagement across the prox brands. Fox Sports ended 2025 as the leader in live sports event viewing a title. It is held for 6 of The Last 7 years.

From the World Series that Drew over 27 million viewers for game 7.

This engagement growth was the strongest in 7 quarters and powered by an OnDemand viewer, which is over 95% of consumption on Tubi.

To attend your high in NFL regular season viewership.

And the Big 10 Championship setting, the record for any Conference Championship Game on any network, the strength of the Fox Sports portfolio is unmatched.

Tub's most streamed quarter translated into record quarterly Revenue which grew 19% in the quarter on an absolute basis and this Revenue growth once again translated to the bottom line with Tubi achieving eva. Profitability for the second quarter in a row.

Meaningful audience engagement is a consistent and enduring theme across our results. Highlighting. Fox's unique cultural position.

Lachlan Murdoch: The trend of strong engagement was further extended at Tubi. Tubi delivered its most streamed quarter of all time and grew total view time 27% year-over-year, supported by an expanding content slate, including the NFL Thanksgiving game simulcast and the premiere of Sidelined 2, a Tubi original that has become a fan favorite. This engagement growth was the strongest in 7 quarters and powered by an on-demand viewer, which is over 95% of consumption on Tubi. Tubi's most streamed quarter translated into record quarterly revenue, which grew 19% in the quarter on an absolute basis, and this revenue growth once again translated to the bottom line, with Tubi achieving EBITDA profitability for the second quarter in a row. Meaningful audience engagement is a consistent and enduring theme across our results, highlighting Fox's unique cultural position.

Ensuring that we constantly and deeply connect. With fans across Our Brands is that the Forefront of our strategy.

We cap the season with the Seattle Seahawks and with the NFC Championship victory over the LA Rams, drawing 46 million viewers and providing a powerful lead-in to Fox Entertainment's Memory of a Killer. The most-watched series premiere on any network this season, with over 11 million viewers across multiple platforms.

The trend of strong engagement was further extended at 2B.

As an example of this strategy in action, total minutes viewed across sports news entertainment and Tobe increased. 15% year-over-year in calendar year 2025

I made strong competition, Fox stands out through compelling storytelling and deliberate investment in fan-driven, content that delivers, unmatched real-time reach,

To be delivered as most streamed quarter of all time and grew total viewer time 27% year-over-year supported by an expanding content slate, including the NFL, Thanksgiving game, SEMO cast and the premiere of sideline 2, A to B original that has become a fan favorite.

Together these elements reinforced Fox's position as a trusted destination for audiences today while building lasting connection with future fans.

Disengagement growth was the strongest in 7 quarters and powered by an on-demand viewer, which is over 95% of consumption on Tubi.

We enter the second half of our fiscal year with strong momentum, and with confidence in our strategic Direction, our emphasis on live, sports and news together with the strength of Tubi and increasingly Fox, 1 has driven exceptional performance and reinforced our leadership position across the portfolio.

Most stream quarter translated into record quarterly Revenue which grew 19% in the quarter on an absolute basis and this Revenue growth once again translated to the bottom line with 2 be achieving, eva. Profitability for the second quarter in a row.

Lachlan Murdoch: Ensuring that we constantly and deeply connect with fans across our brands is at the forefront of our strategy. As an example of this strategy in action, total minutes viewed across sports, news, entertainment, and Tubi increased 15% year-over-year in calendar year 2025. Amidst strong competition, Fox stands out through compelling storytelling and deliberate investment in fan-driven content that delivers unmatched real-time reach. Together, these elements reinforce Fox's position as a trusted destination for audiences today while building lasting connection with future fans. We enter the second half of our fiscal year with strong momentum and with confidence in our strategic direction. Our emphasis on live sports and news, together with the strength of Tubi and increasingly FOX One, has driven exceptional performance and reinforced our leadership position across the portfolio.

Meaningful audience engagement is a consistent and enduring theme across our results. Highlighting. Fox's unique cultural positions.

This Focus together with our strong financial position and best-in-class balance sheet underpin, our ability to deliver sustained growth and shareholder value.

And with that, I will turn the call over to Steve to take you through the details of the quarter.

Ensuring that we constantly and deeply connect with fans across our brands is at the forefront of our strategy.

As an example of this strategy in action, total minutes viewed across sports news entertainment on Tubi. Increased 15% year-over-year in calendar year 2025

Fox delivered, yet another strong quarter with our fiscal, second quarter total revenues reaching 5.18 billion at 2% increase from the prior year quarter.

Distribution revenues grew a healthy 4% reflecting the strength of Our Brands and must have nature of our channels.

Amid strong competition, Fox stands out through compelling storytelling and deliberate investment in fan-driven, content that delivers unmatched real-time reach.

Together these elements reinforced Box's position as a trusted destination for audiences today, while building lasting connection with future fans.

Advertising revenues grew 1%, despite facing a difficult comparison to last year's record, political cycle, driven by strong, linear pricing across our portfolio continued. Robust Revenue growth at 2, the and a 7 Game World Series at sports.

Content and other revenues were flat. Compared to the prior quarter, as high as Sports sub licensing, revenues were offset by lower entertainment content revenues.

Lachlan Murdoch: This focus, together with our strong financial position and best-in-class balance sheet, underpin our ability to deliver sustained growth and shareholder value. With that, I will turn the call over to Steve to take you through the details of the quarter.

Quarterly adjusted ibida was 692 million as compared to the 781 million reported in the prior quarter. As the increase in revenues was offset by higher expenses.

This Focus together with our strong financial position and best-in-class balance sheet underpin, our ability to deliver sustained growth and shareholder value.

This included growth-driven spend at our digital Le growth initiatives and higher Sports, Programming and production costs.

Steven Tomsic: Thanks, Lachlan, and good morning, everyone. Fox delivered yet another strong quarter with our fiscal second quarter total revenues reaching $5.18 billion, a 2% increase from the prior year quarter. Distribution revenues grew a healthy 4%, reflecting the strength of our brands and must-have nature of our channels. Advertising revenues grew 1%, despite facing a difficult comparison to last year's record political cycle, driven by strong linear pricing across our portfolio, continued robust revenue growth at Tubi, and a 7-game World Series at sports. Content and other revenues were flat compared to the prior year quarter, as higher sports sub-licensing revenues were offset by lower entertainment content revenues.

And with that, I will turn the call over to Steve to take you through the details of the quarter.

Partially offset by lower entertainment programming and production costs.

Thanks, Luck, and good morning, everyone.

Fox delivered yet another strong quarter, with our fiscal second quarter total revenues reaching $5.18 billion, a 2% increase from the prior year quarter.

Net income attributable to stockholders was 229 million or 52 cents per share compared to the 373 million or 81 cents per share reported in the prior year period.

Distribution revenues grew a healthy 4% reflecting the strength of Our Brands and must have nature of our channels.

Excluding non-core items adjusted. Net income was 36060 million and adjusted EPS was 82 cents.

Turning to our segments, starting with cable.

Advertising revenues grew 1%, despite facing a difficult comparison to last year's record political cycle, driven by strong linear pricing at Cross. Our portfolio continued robust revenue growth at 2Brothers.

Which delivered revenues of 2.28 billion and adjusted Eva of 687 million. Both representing growth of 5% versus the prior year quarter.

Cable advertising revenues, grew a robust 7% driven by higher pricing at news and sports.

Steven Tomsic: Quarterly adjusted EBITDA was $692 million, as compared to the $781 million reported in the prior year quarter, as the increase in revenues was offset by higher expenses. This included growth-driven spend at our digital-led growth initiatives and higher sports programming and production costs, partially offset by lower entertainment programming and production costs. Net income attributable to stockholders was $229 million or $0.52 per share, compared to the $373 million or $0.81 per share reported in the prior year period. Excluding non-core items, adjusted net income was $360 million, and adjusted EPS was $0.82.

Content and other revenues were flat. Compared to the prior quarter, as high as Sports sub licensing, revenues were offset by lower entertainment content revenues.

Cable distribution revenues, increased 5% as pricing, gains from our affiliate, renewals outpace, the impact from net subscriber declines, which continue to improve both inclusive, and excluding the contribution from Fox 1.

Quarterly adjusted IBA was 692 million as compared to the 7 8, 1. 0, 0 0.

Partially offset by lower entertainment programming and production costs.

Cable content and other revenues grew 4% predominantly due to high Sports sub-licensing revenues which are offset by a corresponding level of sports rights expenses.

Net income attributable to stockholders was 229 million or 52 cents per share compared to the 373 million or 81 cents per share reported in the prior year period.

Reported expense growth at cable was 5% with highest Sports Programming, and production costs partially offset by lower news Gathering costs relating to our coverage of the last year's presidential election.

Steven Tomsic: Turning to our segments, starting with Cable, which delivered revenues of $2.28 billion, an adjusted EBITDA of $687 million, both representing growth of 5% versus the prior year quarter. Cable advertising revenues grew a robust 7%, driven by higher pricing at news and sports. Cable distribution revenues increased 5% as pricing gains from our affiliate renewals outpaced the impact from net subscriber declines, which continued to improve, both inclusive and excluding the contribution from Fox One. Cable content and other revenues grew 4%, predominantly due to higher sports sub-licensing revenues, which were offset by a corresponding level of sports rights expenses. Reported expense growth at Cable was 5%, with higher sports programming and production costs partially offset by lower news gathering costs relating to our coverage of last year's presidential election.

Excluding non-core items adjusted. Net income was 36060 million and adjusted, ETFs was 82 cents.

Now, turning to our television segments, which reported 2.94 billion dollars in quarterly revenues,

87 million. Both representing growth of 5% versus the prior year quarter.

Advertising revenues at television were unchanged as continued growth. At Tubi, the impact of additional MLB postseason games and pricing strength across our sports schedule or offset primarily by the absence of last year's political advertising revenues.

Cable advertising revenues grew a robust 7%, driven by higher pricing at news and sports.

Television distribution revenues increased 1% in the quarter as Healthy Growth in fees across Fox owned and Affiliated stations, more than offset the impact from industry subscriber declines.

Television content and other evidence with our 19% year-over-year primarily due to lower revenues tied, to our entertainment Production Studios, which were impacted by the timing of deliveries.

Cable content and other revenues grew 4%, predominantly due to high sports sub-licensing revenues, which are offset by a corresponding level of sports rights expenses.

Expense growth at our television segment was held to a modest 1% driven by higher Sports Programming rights and production costs and continued investment at Tubi. Partially offset by lower entertainment programming and production costs.

Steven Tomsic: Now, turning to our television segment, which reported $2.94 billion in quarterly revenues. Advertising revenues at television were unchanged, as continued growth at Tubi, the impact of additional MLB postseason games, and pricing strength across our sports schedule were offset primarily by the absence of last year's political advertising revenues. Television distribution revenues increased 1% in the quarter, as healthy growth in fees across Fox-owned and affiliated stations more than offset the impact from industry subscriber declines. Television content and other revenues were down 19% year-over-year, primarily due to lower revenues tied to our entertainment production studios, which were impacted by the timing of deliveries. Expense growth at our television segment was held to a modest 1%, driven by higher sports programming rights and production costs, and continued investment at Tubi, partially offset by lower entertainment programming and production costs.

Reported expense growth at cable was 5% with higher, Sports Programming, and production costs partially offset, by lower news Gathering costs relating to our coverage of the last year's presidential election.

All in Evita at our television, segment was 143 million compared to the 205 million in the prior quarter.

Now, turning to our television segments, which reported 2.94 billion dollars in quarterly revenues,

3033 cash flow where we recorded a deficit of 790 with 791 million this quarter.

Advertising revenues at television were unchanged. As continued growth. At 2, me the impact of additional MLB postseason games and pricing strengths or offset primarily by the absence of last year's political advertising revenues.

This is consistent with the seasonality of our working capital cycle, with the first half of our fiscal year. Reflects the concentration of payments for sports rights and build up of advertising related receivables, both of which reverse in the second half of our fiscal year.

Television distribution revenues increased 1% in the quarter as Healthy Growth in fees across Fox owned and Affiliated stations, more than offset the impact from industry subscriber declines.

In terms of capital allocation demonstrating our commitment to utilizing our full buyback authorization fiscal year to date. We have repurchased an additional 1.8 billion through our share buyback program.

Television content and other revenues were down 19% year-over-year, primarily due to lower revenues tied to our entertainment production studios, which were impacted by the timing of deliveries.

This brings the total cumulative amount repurchased to 8.4 billion or approximately 35% of our total shares outstanding since the launch of the buyback program in 2019.

Steven Tomsic: All in, EBITDA at our television segment was $143 million, compared to $205 million in the prior year quarter. Turning to free cash flow, where we recorded a deficit of $791 million this quarter. This is consistent with the seasonality of our working capital cycle, where the first half of our fiscal year reflects the concentration of payments for sports rights and buildup of advertising-related receivables, both of which reverse in the second half of our fiscal year. In terms of capital allocation, demonstrating our commitment to utilizing our full buyback authorization, fiscal year to date, we have repurchased an additional $1.8 billion through our share buyback program.

Expense growth of our television. Segment was held to a modest 1% driven by higher Sports, Programming rights and production costs and continued investment at 2B partially offset by lower entertainment programming and production costs.

All in, in Q2, our television segment was $143 million compared to the $205 million in the prior quarter.

Turning to free cash flow, where we recorded a deficit of $790 million, compared with $791 million this quarter.

Second half of this fiscal year.

Steven Tomsic: This brings the total cumulative amount repurchased to $8.4 billion or approximately 35% of our total shares outstanding since the launch of the buyback program in 2019. This includes $1.5 billion of the accelerated share repurchase transaction we announced last quarter, for which the initial tranche of approximately 8.5 million Class A and 10.9 million Class B shares have been retired, with the remainder to be settled during the second half of this fiscal year. In addition, today, we announced a $0.28 per share semiannual dividend. With this dividend distribution, our total cumulative cash return to shareholders in the form of both dividends and share buybacks will have reached approximately $10.4 billion since the establishment of Fox Corp.

These Capital return measures are supported by the strength of our balance sheet, where we ended the quarter with approximately 2 billion dollars in cash and 6.66 billion dollars in debt. And with that, I'll turn the call back over to Gabby. Hey, thanks Steve. And now we will be happy to take questions from the investment community.

This brings the total cumulative amount repurchased to 8.4 billion or approximately 35% of our total shares outstanding since the launch of the buyback program in 2019.

This includes 1.5 billion dollars of accelerated of the accelerated share. Repurchase transaction. We announced last quarter for which the initial tranche of approximately 8.5 million Class A and 10.9 million Class B. Shares have been retired with the remainder to be settled during the second half of this fiscal year.

And gentlemen, I would like to emphasize the functionality for the question and answer Q. If you wish to ask a question, please press star then 1 on your touchtone phone, you will hear a tone indicating you have been placed in queue. You may remove yourself from Queue at any time by pressing the star, then 1. If you are using a speaker-phone, please pick up the handset before pressing the numbers, it has been requested that you limit yourself to 1 question. Once again, if you have a question, please press star. Then 1 at this time, 1 moment for the first question,

Our first question comes from John huddle with UBS. Please go ahead.

Steven Tomsic: These capital return measures are supported by the strength of our balance sheet, where we ended the quarter with approximately $2 billion in cash and $6.6 billion in debt. With that, I'll turn the call back over to Gabby.

In addition today we announced a 28 Cent per share semiannual dividend with this dividend distribution. Our total cumulative cash return to shareholders in the form of both dividends. And share BuyBacks will have reached approximately 10.4 billion dollars since the establishment of fox Corp.

Gabrielle Brown: Great. Thanks, Steve. Now we will be happy to take questions from the investment community.

Great. Thanks. Good morning everyone. Uh, it looks like uh cable advertising is really the standout. Uh, can we talk a little bit about that first on the new side, are you guys closing the Gap with in terms of cpms with uh broadcasting? And how should we expect that to to uh

Operator: Ladies and gentlemen, I would like to emphasize the functionality for the question and answer queue. If you wish to ask a question, please press star then one on your touchtone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from queue at any time by pressing the star, 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. Once again, if you have a question, please press star then one at this time. One moment for the first question. Our first question comes from John Hodulik with UBS. Please go ahead.

These capital return measures are supported by the strength of our balance sheet, where we ended the quarter with approximately $2 billion in cash and $6.6 billion in debt. And with that, I'll turn the call back over to Gabby. Great, thanks Steve. And now we will be happy to take questions from the investment community.

Sort of move forward as the comps get easier as we move into the uh to the midterm elections, that's on the new side for sports. Uh any color there in terms of pricing. And how should we think of the, the how you guys look at profitability of the World Cup this year versus what you've had in the past, given its in the US, thanks.

Uh, first on on cable advertise.

Ladies and gentlemen, I would like to emphasize the functionality for the question and answer queue. If you wish to ask a question, please press star, then 1 on your touchtone phone, you will hear a tone indicating you have been placed in queue. You may remove yourself from Queue at any time by pressing the star, then 1. If you are using a speaker-phone, please pick up the handset before pressing the numbers, it has been requested that you limit yourself to 1 question. Once again, if you have a question, please press star. Then 1 at this time, 1 moment for the first question,

[Analyst] (UBS Securities LLC): Great, thanks. Good morning, everyone. It looks like cable advertising is really the standout. Can we talk a little bit about that? First, on the news side, are you guys closing the gap with, in terms of CPMs with broadcasting? And how should we expect that to sort of move forward as the comps get easier, as we move into the midterm elections? That's on the news side. For sports, any color there in terms of pricing, and how should we think of how you guys look at profitability of the World Cup this year versus what you've had in the past, given it's in the US? Thanks.

Operator: Great, thanks. Good morning, everyone. It looks like cable advertising is really the standout. Can we talk a little bit about that? First, on the news side, are you guys closing the gap with, in terms of CPMs with broadcasting? And how should we expect that to sort of move forward as the comps get easier, as we move into the midterm elections? That's on the news side. For sports, any color there in terms of pricing, and how should we think of how you guys look at profitability of the World Cup this year versus what you've had in the past, given it's in the US? Thanks.

our first question comes from John huddle with UBS. Please go ahead.

Uh, the new the news, uh, I wouldn't say the news advertising Market, but certainly the advertising market for Fox News has been, uh, incredibly robust. Uh, this half. We've added about 200, new, uh, advertisers and you have to remember that's on top of the 350, new advertisers, uh, that we added, uh, last year. So the demand for for, for the, the product, and the demand for for the audience, uh, remains, uh, incredibly strong. That's also, you know, reflected in, in our in our scatter pricing, uh, for news uh uh, which is, you know, which is up sort of

Steven Tomsic: Hey, good morning, John. Thank you. Good to hear your voice. First, on cable advertising, the news, I wouldn't say the news advertising market, but certainly the advertising market for Fox News has been incredibly robust. This half, we've added about 200 new advertisers. And you have to remember, that's on top of the 350 new advertisers that we added last year. So the demand for the product and the demand for the audience remains incredibly strong. That's also, you know, reflected in our scatter pricing for news, which is, you know, up sort of an embarrassing 46% or 47%, year-over-year.

In terms of cpms with, uh, broadcasting and how should we expect that to to uh sort of move forward as the comps get easier as we move into the uh to the midterm elections? That's on the new side for sports? Uh any color there in terms of pricing and how should we think of the, the how you guys look at profitability of the World Cup this year versus what you've had in the past, given its in the US? Thanks.

And embarrassing, uh, 46 or 47%, uh, year on year. We don't compare scatter pricing and news to The Upfront, because news doesn't have traditionally large upfront. So, we compare it sort of, on a year-on-year pricing, so scattered pricing is very strong, uh, direct response. Uh, pricing, uh, is strong. Uh, and we, you know, we couldn't be more pleased with the performance of of advertising sales, uh, at Fox News, moving forward into the political cycle. Uh, we expect that. That's, that's only a positive, uh, for us. We, we expect a robust political advertising cycle, of course, we benefit, uh, from that primarily at our local station group. But if you remember from the last political cycle, uh, you know, uh, news has started to see a growing, um, appetite for National political advertising and we would expect to be the primary, uh, beneficiary of that Fox News. And why do we expect to be the primary beneficiary? Because Fox News is not only the number 1, uh,

Steven Tomsic: We don't compare scatter pricing in news to the upfront, because news doesn't have traditionally large upfront, so we compare it sort of on year-on-year pricing. So scatter pricing is very strong. Direct response pricing is strong. And we, you know, we couldn't be more pleased with the performance of advertising sales at Fox News. Moving forward into the political cycle, we expect that's only a positive for us. We expect a robust political advertising cycle. Of course, we benefit from that primarily at our local station group. But if you'll remember from the last political cycle, you know, news has started to see a growing appetite for national political advertising, and we would expect to be the primary beneficiary of that at Fox News.

Hey, good morning John, uh, thank you, uh, good to hear your voice, uh, first on on cable advertising. Uh, the new the news, uh, I wouldn't say the news advertising Market, but certainly the advertising market for Fox News has been, uh, incredibly robust. Uh, this half. We've added about 200, new, uh, advertisers and you have to remember that's on top of the 350 new advertisers, that we added last year. So the demand for for, for the, the product and the demand for for the audience remains, uh, incredibly strong. That's also, you know, reflected in, in our in our scatter pricing, uh, for news, uh, uh, which is, you know, which is up sort of an embarrassing, uh, 406 or 47%, uh, year on year. We don't compare scatter pricing and news to The Upfront, because news doesn't have traditionally large upfront. So we compare it. So on year-on-year pricing. So scattered pricing is very strong, uh, direct response.

Uh, news source for uh, Republicans and conservatives. But it's also the number 1 has has more uh, Democrats and more Independents watching Fox News than watching our, our competitors. So we feel uh that we're in a, a very good position going forward into this political cycle. Uh, as for the, uh, I think your second question was on, on the World Cup? Uh, will it be profitable? Uh, yes. Uh, it will there's a tremendous, um, excitement. Uh,

Around the World Cup by, uh, you know, the sponsors and and other traditional advertisers, uh, we're we're looking forward, um, to a, to a great competition and to a sort of robust advertising Market, uh, on our on our, uh, Sports platform. Great next question, please.

Your next question comes from the line of Jessica Reed earlick with Bank of America Securities. Please go ahead.

Steven Tomsic: Why do we expect to be the primary beneficiary? Because Fox News is not only the number one news source for Republicans or conservatives, but it's also the number one, has more Democrats and more independents watching Fox News than watching our competitors. So we feel that we're in a very good position going forward into this political cycle. As for the, I think your second question was on the World Cup.

You can address that or not, but how do you think about offsetting increased costs? Um, you're thinking there are there any new ways to monetize like how are you thinking just about the NFL? Like

Uh, pricing, uh, is strong. Uh, and you know, we couldn't be more pleased with the performance of of advertising sales, uh, at Fox News. I'm moving forward into the political cycle. Uh, we expect that. That's only a positive, uh, for us. We, we expect a robust, uh, political advertising cycle. Of course, we benefit from that primarily at our local station group. But if you remember from the last political cycle, uh, you know, uh, news has started to see a growing, um, appetite for National political advertising and we would expect to be the primary, uh, beneficiary of that Fox News. And why do we expect to be the primary beneficiary? Because Fox News is not only the number 1, uh, uh, news source for uh, Republicans or conservatives. But it's also the number 1 has has more uh, Democrats and more Independents watching Fox News than watching our our competitors. So we feel uh that we're in a a very good position.

Lachlan Murdoch: ... will it be profitable? Yes, it will. There's a tremendous excitement around the World Cup by, you know, the sponsors and other traditional advertisers. We're looking forward to a great competition and to a sort of robust advertising market on our sports platforms. Great. Next question, please.

New contracts and then separately, this is a little bit weird, but it's I mean unusual for me, but it's we we never talked about entertainment on this call, but it seems like you've, you've been making a lot of talent deals on the last few months. Um, and it just seems notable. So, how are you thinking about the entertainment business overall, are there any changes that you're contemplating? Thank you.

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

Going forward into this political cycle. Uh, as for the, uh, I think your second question was on, on the World Cup. Uh, will it be profitable? Uh, yes. Uh, it will there's a tremendous, um, excitement, uh, around around the World Cup by, uh, you know, the sponsors and and other traditional advertisers, uh, we're we're looking forward, um, to a, to a great competition and to a sort of robust advertising Market, uh, on our on our Sports platforms. Okay. Next question,

Hey Jessica, uh I hope you're well. Um, so starting with the uh the NFL look, we don't want to speculate in terms of what the uh uh you know, how the NFL will will choose to move forward in terms of their option. Uh, to

[Analyst] (Bank of America Securities): Thank you. Good morning, everybody. I have two questions. On the NFL, like, step up, we all know that's coming, and obviously, the positive is it will give you certainty. But do you-- we're also expecting, like, a big step up in cost. I don't know if you can address that or not, but how do you think about offsetting increased costs? Are you thinking, are there any new ways to monetize? Like, how are you thinking just about the NFL, like, new contract? And then separately, this is a little bit weird, but it-- I mean, unusual for me, but it's, we never talk about entertainment on this call. But it seems like you've been making a lot of talent deals in the last few months, and it just seems notable.

Jessica Reif Ehrlich: Thank you. Good morning, everybody. I have two questions. On the NFL, like, step up, we all know that's coming, and obviously, the positive is it will give you certainty. But do you-- we're also expecting, like, a big step up in cost. I don't know if you can address that or not, but how do you think about offsetting increased costs? Are you thinking, are there any new ways to monetize? Like, how are you thinking just about the NFL, like, new contract? And then separately, this is a little bit weird, but it-- I mean, unusual for me, but it's, we never talk about entertainment on this call. But it seems like you've been making a lot of talent deals in the last few months, and it just seems notable.

Your next question comes from the line of Jessica Reif Ehrlich with Bank of America Securities. Please go ahead.

Uh, thank you. Good morning, everybody. Um, it's two questions on the NFL, like the step up. We all know that's coming, and obviously the positive is it will give you certainty, but, you know, we're also expecting, like, a big step up in cost. I don't know if you can address that or not. But how do you think about offsetting increased costs? Um, are you thinking there are any new ways to monetize? Like, how are you thinking just about the NFL? Like,

Uh, uh, uh, renegotiate their, their, their rights. Uh, we, I would agree with you that, uh, obviously, the great benefit of that is, is giving us certainty, uh, as we move forward, it's obviously, you know, tremendous, um, tremendous content, uh, for us and, and they've been a, a really fantastic, uh, partner. Uh, and although, uh, this year Super Bowl is not is not ours, you know? We, we are certainly looking forward to it as we're all all fans. Um, so, uh, again, without speculating, you know, we have the, uh, ability to offset, uh, uh, portion of any kind of cost increases because we look at our Sports portfolio as a whole. Um, so

[Analyst] (Bank of America Securities): So how are you thinking about the entertainment business overall? Are there any changes that you're contemplating? Thank you.

Jessica Reif Ehrlich: So how are you thinking about the entertainment business overall? Are there any changes that you're contemplating? Thank you.

Lachlan Murdoch: Hey, Jessica, I hope you're well. So starting with the NFL, look, we don't wanna speculate in terms of what, you know, how the NFL will choose to move forward in terms of their option to renegotiate their rights. I would agree with you that obviously the great benefit of that is giving us certainty as we move forward. It's obviously, you know, tremendous content for us, and they've been a really fantastic partner. And although this year's Super Bowl is not ours, you know, we're certainly looking forward to it as we're all fans.

New contracts, and then separately, just a little bit weird. But it, I mean unusual for me, but it, we, we never talked about entertainment on this call, but it seems like you've, you've been making a lot of talent deals in the last few months. Um, and it just seems notable. So, how are you thinking about the entertainment business overall, are there any changes that you're contemplating? Thank you.

So, you know, we were certainly, um, you know, consider uh, you know, balancing or rebalancing our portfolio uh as, as we move forward, uh, you know, when those, when those opportunities uh become available. So so we feel, we feel pretty comfortable about sort of the um uh the sports business uh as as we as we move forward, uh, on entertainment.

Hey Jessica, uh, I hope you're well. Um, so starting with the, uh, the NFL, look, we—we don't want to speculate in terms of what the, uh, uh, you know, how the NFL will—will choose to move forward in terms of their option. Uh, to

Lachlan Murdoch: So, again, without speculating, you know, we have the ability to offset a portion of any kind of cost increases because we look at our sports portfolio as a whole. So, you know, we would certainly, you know, consider balancing or rebalancing our portfolio, as we move forward, you know, when those opportunities become available. So, we feel, we feel pretty comfortable about sort of the sports business, as we move forward. On entertainment, you know, we continue with our existing strategy on the entertainment network.

Um, you know, we we there we continued with our, our existing strategy on the Entertainment Network. You know, as you know, we balance, uh, scripted and non-scripted, uh, programming efficiently, uh, to maintain, sort of, uh, an efficient and, and, you know, sort of, uh, ultimately sort of profitable, uh, cost uh base uh, in that business. Uh, but we will always, uh, sign. Um, First Look deals and and, and their creative deals, you know, with the best, uh, uh, content, uh, creators and producers and, and writers, uh, in the in the industry. And, you know, the proof uh, is in the pudding. Um, because you know, this past season, uh, with the launches of, uh, uh, good medicine with the launch of uh, Fear Factor with the launch of, uh, memory of a killer all these launches, uh, achieved over 10 million, uh, viewers uh, in in their first week of cross multiple platforms. This is the best season launch.

Uh, as as we move forward. Uh, you know, when those, when those opportunities uh become available. So so we feel we feel pretty comfortable about sort of the um uh the sports business uh as as we as we move forward, uh, on entertainment.

Lachlan Murdoch: You know, as you know, we balance scripted and non-scripted programming efficiently to maintain sort of an efficient and, you know, sort of ultimately sort of profitable cost base in that business. But we will always sign first look deals and creative deals, you know, with the best content creators and producers and writers in the industry. And, you know, the proof is in the pudding, because, you know, this past season with the launches of Good Medicine, with the launch of Fear Factor, with the launch of Memory of a Killer, all these launches achieved over 10 million viewers in their first week across multiple platforms.

We've had an approximately 13 years. Uh, so, and, and that's, that's also, um, reflected, uh, in Revenue at at, at the Entertainment Network, which was up, uh, in this, uh, quarter of this half for the first time in, in, uh, in in many years. So, we're, we're, we're pleased with that strategy. It's not a, a signing. First up deals or signing. A creative deals is, is something that we we, we've always done and will continue to do so right, next question, please operator.

Your next question comes from Michael engh with Goldman Sachs. Please go ahead.

Lachlan Murdoch: This is the best season launch we've had in approximately 13 years. So, and that's also reflected in revenue at the entertainment network, which was up in this quarter or this half for the first time in many years. So we're pleased with that strategy. It's not a signing first look deals or signing creative deals, is something that we've always done and will continue to do so. Great. Next question, please, operator.

Um, you know, we we there we continue with our our existing strategy on the Entertainment Network. You know, as you know, we balance, uh, scripted and non-scripted, uh, programming efficiently, uh, to maintain sort of a, an efficient and, and, you know, sort of, uh, ultimately sort of profitable, uh, cost uh base uh, in that business. Uh, but we will always, uh, sign um, First Look deals and and, and their creative deals, you know, with the best, uh, uh content, uh, creators and producers and, and writers uh, in the in the industry. And, you know, the proof uh, is in the pudding. Um, because you know, this past season, uh, with the launches of uh uh good medicine with the launch of uh Fear Factor with the launch of uh, memory of a killer. All these launches, uh, achieved over 10 million, uh, viewers in, in their first, week of cross multiple platforms. This is the best season launch

Hey, good morning. Thank you for the question. I just have to, um, first, um, Lockland. I was just wondering if you could, uh, talk a little bit more about, um, the performance of Fox 1. Um, you know, what's been driving, the the upside relative to your expectations and uh, as we go into the rest of the year and think about things like sports seasonality. Um, do you expect any of the, um, subscriber momentum to be impacted by that? And then, uh, second for Steve. Um, relatedly could could you just um,

Explain where we're Fox, 1, sit in the p&l. Um, you know, is it in distribution revenue? Is it in uh corporate and other uh or or or both perhaps um but I I think there have been some disclosure changes so I just wanted to make sure we understood how Fox 1 was flowing through the p&l. Thank you very much.

Operator: Your next question comes from Michael Ng with Goldman Sachs. Please go ahead.

We've had an approximately 13 years. Uh, so, and, and that's, that's also, um, reflected, uh, in Revenue at at, at the Entertainment Network, which was up, uh, in this, uh, quarter or this half for the first time in, in, uh, in in many years. So, we're, we're pleased with that strategy. It's not a, a signing, first of deals or signing. A creative deals is, is something that we, we, we've always done and will continue to do, so right, next question, please operator.

[Analyst] (Goldman Sachs & Company): Hey, good morning, thank you for the question. I just have two. First, Lachlan, I was just wondering if you could talk a little bit more about the performance of Fox One. You know, what's been driving the upside relative to your expectations? And as we go into the rest of the year and think about things like sports seasonality, do you expect any of the subscriber momentum to be impacted by that? And then second for Steve, relatedly, could you just explain where Fox One sits in the P&L? You know, is it in distribution revenue? Is it in corporate and other, or both, perhaps?

Michael Ng: Hey, good morning, thank you for the question. I just have two. First, Lachlan, I was just wondering if you could talk a little bit more about the performance of Fox One. You know, what's been driving the upside relative to your expectations? And as we go into the rest of the year and think about things like sports seasonality, do you expect any of the subscriber momentum to be impacted by that? And then second for Steve, relatedly, could you just explain where Fox One sits in the P&L? You know, is it in distribution revenue? Is it in corporate and other, or both, perhaps?

Your next question comes from Michael Engh with Goldman Sachs. Please, go ahead.

Hey, good morning, thank you for the question. I just have to, um, first, um, Lachlan, I was just wondering if you could, uh, talk a little bit more about, um, the performance of Fox 1. Um, you know, what's been driving the upside relative to your expectations and, uh, as we go into the rest of the year and think about things like sports seasonality, um, do you expect any of the, um, subscriber momentum to be impacted by that? And then, uh, second for Steve. Um, relatedly, could you just, um,

Explain where we're Fox. 1, sit in the p&l. Um,

[Analyst] (Goldman Sachs & Company): But I think there have been some disclosure changes, so just wanted to make sure we understood how FOX One was flowing through the P&L. Thank you very much.

Michael Ng: But I think there have been some disclosure changes, so just wanted to make sure we understood how FOX One was flowing through the P&L. Thank you very much.

Lachlan Murdoch: Thanks, Mike. All right, I'll start with the first question. So, you know, we are incredibly pleased with the performance of Fox One. It has exceeded our expectations in terms of its enthusiastic take-up by consumers. I think as I might have mentioned in my comments, and you would know, about two-thirds of the audience are sports fans and come to the platform first for sports. And about a third are news fans and regular news viewers. You know, we would maintain our. I will say we'd maintain our expectations of having sort of low to mid single digit millions of subscribers over the next three or four years.

You know, is it in distribution revenue? Is it in, uh, corporate and other, uh, or—or both, perhaps? Um, but I—I think there have been some disclosure changes, so just wanted to make sure we understood how Fox 1 was flowing through the P&L. Thank you very much.

Our, our our news fans and and, and, and regular news our viewers, um, the uh, you know, we would, um, maintain our I'll say, we maintain our expectations of having sort of low to mid single-digit, millions of subscribers over the next, uh, 3 or 4 years, uh, um, we're well on track, uh, to hit those. Um, um, uh, those, uh, benchmarks for us, uh, and we'll see as we move forward. But Sports seasonality, um, what we're actively doing. Uh, very proactively doing, uh, is is, is, you know, promoting the sports? Now that the football season is over promoting, you know, the tremendous, uh, Sports site that, that we have on the, um, on on Fox 1 on the platform. Whether it's Daytona 500 or Indy 500, uh, the start of the um uh baseball season and obviously moving forward into the World Cup. So it's too early to to tell, uh, what sort of uh,

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