FOX REPORTS SECOND QUARTER FISCAL 2025 REVENUES OF $5.08 BILLION, NET INCOME OF $388 MILLION, AND ADJUSTED EBITDA OF $781 MILLION

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NEW YORK , Feb. 4, 2025 /PRNewswire/ -- Fox Corporation (Nasdaq: FOXA, FOX ; " FOX " or the "Company") today reported financial results for the three months ended December 31, 2024 . The Company reported total quarterly revenues of $5 .08 billion, an increase of $844 million or 20% from the amount reported in the prior year quarter. Affiliate fee revenues increased 6%, driven by 9% growth at the Television segment and 4% growth at the Cable Network Programming segment. Advertising revenues increased 21%, primarily due to higher political advertising revenues, the impact of higher MLB postseason ratings and NFL pricing, continued digital growth led by the Tubi AVOD service, and stronger news ratings and pricing. Other revenues increased 70%, primarily due to higher sports sublicensing revenues. The Company reported quarterly net income of $388 million as compared to the $115 million reported in the prior year quarter. Net income attributable to Fox Corporation stockholders was $373 million ( $0.81 per share) as compared to the $109 million ( $0.23 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders1 was $442 million ( $0.96 per share) as compared to the $165 million ( $0.34 per share) reported in the prior year quarter. Quarterly Adjusted EBITDA2 was $781 million , an increase of $431 million or 123% 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 primarily driven by higher sports programming rights amortization and production costs, and higher digital costs. Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said: "A compelling fall sports schedule combined with a record-breaking presidential election news cycle resulted in second quarter results that reflect the strength and breadth of FOX . Whether measured in terms of engagement, monetization or profitability, our focused strategy of live news and sports programming, coupled with our growing digital initiatives, continues to deliver. We remain committed to sustained long-term value creation for our shareholders through our thoughtful and disciplined strategy for growth." REVIEW OF OPERATING RESULTS Three Months Ended December 31 , Six Months Ended December 31 , 2024 2023 2024 2023 $ Millions Revenues by Component: Affiliate fee $ 1,900 $ 1,787 $ 3,743 $ 3,527 Advertising 2,422 2,002 3,751 3,202 Other 756 445 1,148 712 Total revenues $ 5,078 $ 4,234 $ 8,642 $ 7,441 Segment Revenues: Cable Network Programming $ 2,165 $ 1,658 $ 3,762 $ 3,045 Television 2,961 2,542 4,914 4,322 Corporate and Other 58 49 123 103 Eliminations (106) (15) (157) (29) Total revenues $ 5,078 $ 4,234 $ 8,642 $ 7,441 Adjusted EBITDA: Cable Network Programming $ 657 $ 564 $ 1,405 $ 1,171 Television 205 (138) 577 213 Corporate and Other (81) (76) (153) (165) Adjusted EBITDA 3 $ 781 $ 350 $ 1,829 $ 1,219 Depreciation and amortization: Cable Network Programming $ 25 $ 19 $ 45 $ 37 Television 30 28 59 57 Corporate and Other 42 50 84 99 Total depreciation and amortization $ 97 $ 97 $ 188 $ 193 CABLE NETWORK PROGRAMMING Three Months Ended December 31 , Six Months Ended December 31 , 2024 2023 2024 2023 $ Millions Revenues Affiliate fee $ 1,076 $ 1,031 $ 2,113 $ 2,036 Advertising 460 348 781 638 Other 629 279 868 371 Total revenues 2,165 1,658 3,762 3,045 Operating expenses (1,354) (942) (2,056) (1,591) Selling, general and administrative (158) (156) (309) (291) Amortization of cable distribution investments 4 4 8 8 Segment EBITDA $ 657 $ 564 $ 1,405 $ 1,171 Cable Network Programming reported quarterly segment revenues of $2.17 billion , an increase of $507 million or 31% from the amount reported in the prior year quarter. Affiliate fee revenues increased $45 million or 4% as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenues increased $112 million or 32%, primarily due to higher news ratings, pricing and digital advertising revenues, and higher MLB postseason ratings. Other revenues increased $350 million , primarily due to higher sports sublicensing revenues. Cable Network Programming reported quarterly segment EBITDA of $657 million , an increase of $93 million or 16% 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 December 31 , Six Months Ended December 31 , 2024 2023 2024 2023 $ Millions Revenues Advertising $ 1,962 $ 1,654 $ 2,970 $ 2,564 Affiliate fee 824 756 1,630 1,491 Other 175 132 314 267 Total revenues 2,961 2,542 4,914 4,322 Operating expenses (2,499) (2,440) (3,832) (3,638) Selling, general and administrative (257) (240) (505) (471) Segment EBITDA $ 205 $ (138) $ 577 $ 213 Television reported quarterly segment revenues of $2.96 billion , an increase of $419 million or 16% from the amount reported in the prior year quarter. Advertising revenues increased $308 million or 19%, primarily due to higher political advertising revenues, the impact of higher MLB postseason ratings and NFL pricing, and continued digital growth led by the Tubi AVOD service. Affiliate fee revenues increased $68 million or 9%, 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 $43 million or 33%, primarily due to higher content revenues. Television reported quarterly segment EBITDA of $205 million , an increase of $343 million , primarily due to the revenue increase noted above, partially offset by higher expenses. The increase in expenses was driven by higher digital costs. DIVIDEND The Company has declared a dividend of $0.27 per Class A and Class B share. This dividend is payable on March 26, 2025 with a record date for determining dividend entitlements of March 5, 2025 . SHARE REPURCHASE PROGRAM As of December 31, 2024 , the Company has repurchased approximately $5.1 billion of its Class A common stock and approximately $1 billion of its Class B common stock, with a remaining authorization of $900 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 December 31 , Six Months Ended December 31 , 2024 2023 2024 2023 $ Millions, except per share amounts Revenues $ 5,078 $ 4,234 $ 8,642 $ 7,441 Operating expenses (3,776) (3,393) (5,794) (5,255) Selling, general and administrative (525) (495) (1,027) (975) Depreciation and amortization (97) (97) (188) (193) Restructuring, impairment and other corporate matters (170) (18) (196) (9) Equity earnings of affiliates 4 1 7 2 Interest expense, net (80) (72) (130) (114) Non-operating other, net 81 (29) 314 (205) Income before income tax expense 515 131 1,628 692 Income tax expense (127) (16) (408) (162) Net income 388 115 1,220 530 Less: Net income attributable to noncontrolling interests (15) (6) (20) (14) Net income attributable to Fox Corporation stockholders $ 373 $ 109 $ 1,200 $ 516 Weighted average shares: 462 482 463 488 Net income attributable to Fox Corporation stockholders per share: $ 0.81 $ 0.23 $ 2.59 $ 1.06 CONSOLIDATED BALANCE SHEETS December 31 ,2024 June 30 ,2024 $ Millions Assets: Current assets: Cash and cash equivalents $ 3,322 $ 4,319 Receivables, net 3,492 2,364 Inventories, net 1,171 626 Other 252 192 Total current assets 8,237 7,501 Non-current assets: Property, plant and equipment, net 1,671 1,696 Intangible assets, net 3,020 3,038 Goodwill 3,543 3,544 Deferred tax assets 2,729 2,878 Other non-current assets 3,822 3,315 Total assets $ 23,022 $ 21,972 Liabilities and Equity: Current liabilities: Borrowings $ 600 $ 599 Accounts payable, accrued expenses and other current liabilities 2,697 2,353 Total current liabilities 3,297 2,952 Non-current liabilities: Borrowings 6,600 6,598 Other liabilities 1,314 1,366 Redeemable noncontrolling interests 200 242 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 7,650 7,678 Retained earnings 3,949 3,139 Accumulated other comprehensive loss (108) (107) Total Fox Corporation stockholders' equity 11,495 10,714 Noncontrolling interests 116 100 Total equity 11,611 10,814 Total liabilities and equity $ 23,022 $ 21,972 CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended December 31 , 2024 2023 $ Millions Operating Activities: Net income $ 1,220 $ 530 Adjustments to reconcile net income to cash used in operating activities Depreciation and amortization 188 193 Amortization of cable distribution investments 8 8 Restructuring, impairment and other corporate matters 196 9 Equity-based compensation 68 48 Equity earnings of affiliates (7) (2) Cash distributions received from affiliates 13 — Non-operating other, net (314) 205 Deferred income taxes 145 29 Change in operating assets and liabilities, net of acquisitions and dispositions Receivables and other assets (1,198) (853) Inventories net of programming payable (431) (405) Accounts payable and accrued expenses (75) (180) Other changes, net (17) (117) Net cash used in operating activities (204) (535) Investing Activities: Property, plant and equipment (138) (150) Purchase of investments (79) (6) Other investing activities, net (23) 13 Net cash used in investing activities (240) (143) Financing Activities: Borrowings — 1,232 Repurchase of shares (500) (500) Dividends paid and distributions (134) (142) Other financing activities, net 81 (62) Net cash (used in) provided by financing activities (553) 528 Net decrease in cash and cash equivalents (997) (150) Cash and cash equivalents, beginning of year 4,319 4,272 Cash and cash equivalents, end of period $ 3,322 $ 4,122 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 December 31, 2024 and 2023: Three Months Ended December 31, 2024 December 31, 2023 Income EPS Income EPS $ Millions, except per share data Net income attributable to Fox Corporation stockholders $ 373 $ 0.81 $ 109 $ 0.23 Restructuring, impairment and other corporate matters 170 0.37 18 0.04 Non-operating other, net (81) (0.18) 29 0.06 Tax provision (20) (0.04) 9 0.02 Rounding — — — (0.01) As adjusted $ 442 $ 0.96 $ 165 $ 0.34 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 six months ended December 31, 2024 and 2023: Three Months Ended December 31 , Six Months Ended December 31 , 2024 2023 2024 2023 $ Millions Net income $ 388 $ 115 $ 1,220 $ 530 Add: Amortization of cable distribution investments 4 4 8 8 Depreciation and amortization 97 97 188 193 Restructuring, impairment and other corporate matters 170 18 196 9 Equity earnings of affiliates (4) (1) (7) (2) Interest expense, net 80 72 130 114 Non-operating other, net (81) 29 (314) 205 Income tax expense 127 16 408 162 Adjusted EBITDA $ 781 $ 350 $ 1,829 $ 1,219 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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