Fox (FOXA) investor relations material

Executive summary

• Q1 FY27 revenue reached a record $4.571B, up 22% YoY; Adjusted EBITDA was a record $1.641B, up 54%, and net income was $957M.

• Results were driven by World Cup and political advertising, sports programming, higher distribution revenue and continued digital growth at Tubi.

Financial highlights

• Advertising revenue increased 47% to $2.081B, distribution revenue rose 9% to $2.084B, and content and other revenue declined 1% to $406M.

• Net income attributable to stockholders was $943M, or $2.20 per diluted share, versus $599M, or $1.32; Adjusted net income was $1.085B, or $2.54 per share, versus $686M, or $1.51.

• Operating expenses increased 11% to $2.363B; higher sports rights, World Cup production and digital content costs were among the drivers.

• Operating cash flow was $616M versus cash used of $130M in the prior-year quarter.

Outlook and guidance

• Advertising trends remained healthy into Q2, with Tubi revenue growth continuing; FOX One additions may vary seasonally and may not consistently offset traditional subscriber declines.

• Tubi is expected to become a ~20% margin business at greater maturity; its EBITDA contribution grew YoY in Q1.

• Full-year share repurchases are expected to remain within the historical range, with buybacks anticipated to resume in Q2; management said timing is separate from the Roku transaction.

• About $6.9B of revenue is expected to be recognized primarily over the next one to three years, mainly from distribution, fixed-fee content licensing and sports advertising contracts.

• Rights for the 2030 and 2034 FIFA World Cups will be evaluated in a disciplined manner.