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Fox Corp

FOX REPORTS THIRD QUARTER FISCAL 2025 REVENUES OF $4.37 BILLION, NET INCOME OF $354 MILLION, AND ADJUSTED EBITDA OF $856 MILLION

NEW YORK , May 12, 2025 /PRNewswire/ -- Fox Corporation (Nasdaq: FOXA, FOX; "FOX" or the "Company") today reported financial results for the three months ended March 31, 2025.

The Company reported total quarterly revenues of $4.37 billion, an increase of $924 million or 27% from the amount reported in the prior year quarter. Affiliate fee revenues increased 3%, driven by 4% growth at the Television segment and 3% growth at the Cable Network Programming segment. Advertising revenues increased 65%, primarily due to the impact of Super Bowl LIX, continued digital growth led by the Tubi AVOD service, and stronger news ratings and pricing. Other revenues increased 20%, primarily due to higher sports sublicensing revenues.

The Company reported quarterly net income of $354 million as compared to the $704 million reported in the prior year quarter. Net income attributable to Fox Corporation stockholders was $346 million ($0.75 per share) as compared to the $666 million ($1.40 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders1 was $507 million ($1.10 per share) as compared to the $520 million ($1.09 per share) reported in the prior year quarter.

Quarterly Adjusted EBITDA2 was $856 million as compared to the $891 million reported in the prior year quarter, as the revenue increase noted above was more than offset by higher expenses. The increase in expenses was primarily due to higher sports programming rights amortization and production costs driven by the broadcast of Super Bowl LIX and higher digital content and marketing costs.

Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said:

"Our strong fiscal third quarter underscored the central role FOX plays in informing and entertaining America, and our financial performance, highlighted by record free cash flow, once again illustrates the strength of the FOX platform. Whether it is our market leading coverage of a sustained, active news cycle or our broadcast of a record-breaking Super Bowl, we deliver for our audiences, advertisers and distribution partners. We are confident that our best-in-class assets, deliberate strategy and robust balance sheet position us strongly to drive long-term value for our shareholders."

REVIEW OF OPERATING RESULTS 



Three Months Ended
March 31,


Nine Months Ended
March 31,


2025


2024


2025


2024


$ Millions

Revenues by Component:
















Affiliate fee

$     2,005


$     1,938


$     5,748


$     5,465

Advertising

2,036


1,235


5,787


4,437

Other

330


274


1,478


986

Total revenues

$     4,371


$     3,447


$   13,013


$   10,888









Segment Revenues:
















Cable Network Programming

$     1,636


$     1,472


$     5,398


$     4,517

Television

2,704


1,938


7,618


6,260

Corporate and Other

58


53


181


156

Eliminations

(27)


(16)


(184)


(45)

Total revenues

$     4,371


$     3,447


$   13,013


$   10,888









Adjusted EBITDA:
















Cable Network Programming

$        878


$        819


$     2,283


$     1,990

Television

60


145


637


358

Corporate and Other

(82)


(73)


(235)


(238)

Adjusted EBITDA3

$        856


$        891


$     2,685


$     2,110









Depreciation and amortization:
















Cable Network Programming

$          24


$          20


$          69


$          57

Television

28


29


87


86

Corporate and Other

43


49


127


148

Total depreciation and amortization

$          95


$          98


$        283


$        291

 

CABLE NETWORK PROGRAMMING



Three Months Ended
March 31,


Nine Months Ended
March 31,


2025


2024


2025


2024


$ Millions

Revenues








Affiliate fee

$     1,135


$     1,104


$     3,248


$     3,140

Advertising

372


296


1,153


934

Other

129


72


997


443

Total revenues

1,636


1,472


5,398


4,517

Operating expenses

(601)


(499)


(2,657)


(2,090)

Selling, general and administrative

(158)


(158)


(467)


(449)

Amortization of cable distribution investments

1


4


9


12

Segment EBITDA

$        878


$        819


$     2,283


$     1,990


Cable Network Programming reported quarterly segment revenues of $1.64 billion, an increase of $164 million or 11% from the amount reported in the prior year quarter. Affiliate fee revenues increased $31 million or 3% as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenues increased $76 million or 26%, primarily due to higher news ratings, pricing and digital advertising revenues. Other revenues increased $57 million or 79%, primarily due to higher sports sublicensing revenues.

Cable Network Programming reported quarterly segment EBITDA of $878 million, an increase of $59 million or 7% from the amount reported in the prior year quarter, primarily due to the revenue increase noted above, partially offset by higher expenses. The increase in expenses was driven by higher sports programming rights amortization and production costs.

TELEVISION



Three Months Ended
March 31,


Nine Months Ended
March 31,


2025


2024


2025


2024


$ Millions

Revenues








Advertising

$     1,664


$        939


$     4,634


$     3,503

Affiliate fee

870


834


2,500


2,325

Other

170


165


484


432

Total revenues

2,704


1,938


7,618


6,260

Operating expenses

(2,359)


(1,540)


(6,191)


(5,178)

Selling, general and administrative

(285)


(253)


(790)


(724)

Segment EBITDA

$          60


$        145


$        637


$        358


Television reported quarterly segment revenues of $2.70 billion, an increase of $766 million or 40% from the amount reported in the prior year quarter. Advertising revenues increased $725 million or 77%, primarily due to the impact of Super Bowl LIX, and continued digital growth led by the Tubi AVOD service. Affiliate fee revenues increased $36 million or 4%, driven by higher average rates at the Company's owned and operated television stations and increases in fees from third-party FOX affiliates. Other revenues increased $5 million or 3%, primarily due to higher content revenues.

Television reported quarterly segment EBITDA of $60 million, as compared to the $145 million reported in the prior year quarter, as the revenue increase noted above was more than offset by higher expenses. The increase in expenses was primarily due to higher sports programming rights amortization and production costs driven by the broadcast of Super Bowl LIX and higher digital content and marketing costs.

SHARE REPURCHASE PROGRAM

As of March 31, 2025, the Company has repurchased approximately $5.35 billion of its Class A common stock and approximately $1 billion of its Class B common stock, with a remaining authorization of $650 million. During the quarter, the Company repurchased approximately $250 million of its Class A common stock.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook" and similar expressions are used to identify these forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements in this press release due to changes in economic, business, competitive, technological, strategic and/or regulatory factors and other factors affecting the operation of the Company's businesses. More detailed information about these factors is contained in the documents the Company has filed with or furnished to the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.

Statements in this press release speak only as of the date they were made, and the Company undertakes no duty to update or release any revisions to any forward-looking statement made in this press release or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or to conform such statements to actual results or changes in the Company's expectations, except as required by law.

To access a copy of this press release through the Internet, access Fox Corporation's corporate website located at http://www.foxcorporation.com. 

CONSOLIDATED STATEMENTS OF OPERATIONS



Three Months Ended
March 31,


Nine Months Ended
March 31,


2025


2024


2025


2024


$ Millions, except per share amounts









Revenues

$     4,371


$     3,447


$   13,013


$   10,888









Operating expenses

(2,965)


(2,050)


(8,759)


(7,305)

Selling, general and administrative

(551)


(510)


(1,578)


(1,485)

Depreciation and amortization

(95)


(98)


(283)


(291)

Restructuring, impairment and other corporate matters

(55)


(15)


(251)


(24)

Equity losses of affiliates

(18)


(2)


(11)


—

Interest expense, net

(55)


(55)


(185)


(169)

Non-operating other, net

(158)


244


156


39

Income before income tax expense

474


961


2,102


1,653

Income tax expense

(120)


(257)


(528)


(419)

Net income

354


704


1,574


1,234

Less: Net income attributable to noncontrolling interests

(8)


(38)


(28)


(52)

Net income attributable to Fox Corporation stockholders

$        346


$        666


$     1,546


$     1,182

















Weighted average shares:

461


475


462


484









Net income attributable to Fox Corporation stockholders per share:

$       0.75


$       1.40


$       3.35


$       2.44

 

CONSOLIDATED BALANCE SHEETS



March 31,
2025


June 30,
2024


$ Millions

Assets:




Current assets:




Cash and cash equivalents

$            4,815


$            4,319

Receivables, net

3,252


2,364

Inventories, net

455


626

Other

227


192

Total current assets

8,749


7,501





Non-current assets:




Property, plant and equipment, net

1,660


1,696

Intangible assets, net

3,030


3,038

Goodwill

3,639


3,544

Deferred tax assets

2,712


2,878

Other non-current assets

3,577


3,315

Total assets

$         23,367


$         21,972





Liabilities and Equity:




Current liabilities:




Borrowings

$               600


$               599

Accounts payable, accrued expenses and other current liabilities

2,967


2,353

Total current liabilities

3,567


2,952





Non-current liabilities:




Borrowings

6,601


6,598

Other liabilities

1,333


1,366

Redeemable noncontrolling interests

228


242

Commitments and contingencies








Equity:




Class A common stock, $0.01 par value

2


2

Class B common stock, $0.01 par value

2


2

Additional paid-in capital

7,628


7,678

Retained earnings

3,999


3,139

Accumulated other comprehensive loss

(105)


(107)

Total Fox Corporation stockholders' equity

11,526


10,714

Noncontrolling interests

112


100

Total equity

11,638


10,814

Total liabilities and equity

$         23,367


$         21,972

 

CONSOLIDATED STATEMENTS OF CASH FLOWS 



Nine Months Ended
March 31,


2025


2024


$ Millions

Operating Activities:




Net income

$        1,574


$        1,234

Adjustments to reconcile net income to net cash provided by operating activities




Depreciation and amortization

283


291

Amortization of cable distribution investments

9


12

Restructuring, impairment and other corporate matters

168


24

Equity-based compensation

97


69

Equity losses of affiliates

11


—

Cash distributions received from affiliates

13


—

Non-operating other, net

(156)


(39)

Deferred income taxes

165


152

Change in operating assets and liabilities, net of acquisitions and dispositions




Receivables and other assets

(906)


(317)

Inventories net of programming payable

691


(220)

Accounts payable and accrued expenses

(26)


(178)

Other changes, net

(112)


(87)

Net cash provided by operating activities

1,811


941





Investing Activities:




Property, plant and equipment

(212)


(233)

Acquisitions, net of cash acquired

(91)


—

Purchase of investments

(79)


(99)

Other investing activities, net

(25)


8

Net cash used in investing activities

(407)


(324)





Financing Activities:




Repayment of borrowings

—


(1,250)

Borrowings

—


1,232

Repurchase of shares

(750)


(750)

Dividends paid and distributions

(267)


(272)

Other financing activities, net

109


(58)

Net cash used in financing activities

(908)


(1,098)





Net increase (decrease) in cash and cash equivalents

496


(481)

Cash and cash equivalents, beginning of year

4,319


4,272

Cash and cash equivalents, end of period

$        4,815


$        3,791


NOTE 1 – ADJUSTED NET INCOME AND ADJUSTED EPS

The Company uses net income attributable to Fox Corporation stockholders and earnings per share ("EPS") attributable to Fox Corporation stockholders excluding net income effects of Restructuring, impairment and other corporate matters, adjustments to Equity earnings (losses) of affiliates, Non-operating other, net, Tax provision and Noncontrolling interest ("Adjusted Net Income" and "Adjusted EPS" respectively) to evaluate the performance of the Company's operations exclusive of certain items that impact the comparability of results from period to period.

Adjusted Net Income and Adjusted EPS may not be comparable to similarly titled measures reported by other companies. Adjusted Net Income and Adjusted EPS are not measures of performance under GAAP and should be considered in addition to, and not as substitutes for, net income attributable to Fox Corporation stockholders and EPS as reported in accordance with GAAP. However, management uses these measures in comparing the Company's historical performance and believes that they provide meaningful and comparable information to management, investors and equity analysts to assist in their analysis of the Company's performance relative to prior periods and the Company's competitors.

The following table reconciles net income attributable to Fox Corporation stockholders and EPS attributable to Fox Corporation stockholders to Adjusted Net Income and Adjusted EPS for the three months ended March 31, 2025 and 2024:

Three Months Ended


March 31, 2025


March 31, 2024


Income


EPS


Income


EPS


$ Millions, except per share data

Net income attributable to Fox Corporation stockholders

$        346


$       0.75


$        666


$       1.40









Restructuring, impairment and other corporate matters

55


0.12


15


0.03









Non-operating other, net

158


0.34


(244)


(0.51)









Tax provision

(52)


(0.11)


52


0.11









Noncontrolling interest adjustment

—


—


31


0.07









Rounding

—


—


—


(0.01)









As adjusted

$        507


$       1.10


$        520


$       1.09









NOTE 2 – ADJUSTED EBITDA

Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Adjusted EBITDA does not include: Amortization of cable distribution investments, Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense.

Management believes that information about Adjusted EBITDA assists all users of the Company's Unaudited Consolidated Financial Statements by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect Net income, thus providing insight into both operations and the other factors that affect reported results. Adjusted EBITDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company's business and its enterprise value against historical data and competitors' data, although historical results, including Adjusted EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

Adjusted EBITDA is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company's financial performance. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

The following table reconciles net income to Adjusted EBITDA for the three and nine months ended March 31, 2025 and 2024:

Three Months Ended
March 31,


Nine Months Ended
March 31,


2025


2024


2025


2024


$ Millions

Net income

$        354


$        704


$     1,574


$     1,234

Add:








Amortization of cable distribution investments

1


4


9


12

Depreciation and amortization

95


98


283


291

Restructuring, impairment and other corporate matters

55


15


251


24

Equity losses of affiliates

18


2


11


—

Interest expense, net

55


55


185


169

Non-operating other, net

158


(244)


(156)


(39)

Income tax expense

120


257


528


419

Adjusted EBITDA

$        856


$        891


$     2,685


$     2,110


______________________________________________

1 Excludes net income effects of Restructuring, impairment and other corporate matters, adjustments to Equity earnings (losses) of affiliates, Non-operating other, net, Tax provision and Noncontrolling interest adjustments. See Note 1 for a description of adjusted net income attributable to Fox Corporation stockholders and adjusted earnings per share attributable to Fox Corporation stockholders, which are considered non-GAAP financial measures, and a reconciliation of reported net income attributable to Fox Corporation stockholders and earnings per share attributable to Fox Corporation stockholders to adjusted net income attributable to Fox Corporation stockholders and adjusted earnings per share attributable to Fox Corporation stockholders.
2 Adjusted EBITDA is considered a non-GAAP financial measure. See Note 2 for a description of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA.
3 Adjusted EBITDA is considered a non-GAAP financial measure. See Note 2 for a description of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA.

 

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SOURCE Fox Corporation