Fox (FOXA) investor relations material

Business performance and strategic highlights

• Strong results over the past 12 months driven by record-breaking revenues in sports, significant rating gains in news, and successful launches of new entertainment shows and FOX One.

• Tubi achieved notable engagement and revenue growth, turning profitable ahead of expectations, with a 19% top-line revenue increase and 27%-28% growth in TVT.

• Advertising market remains healthy, with seven consecutive quarters of growth and nine out of ten top categories expanding, led by finance, pharma, and tech.

• FOX One subscriber growth exceeded expectations, primarily attracting cordless users without cannibalizing pay TV.

• Balance sheet and cash flow generation remain strong, supporting disciplined capital allocation and continued shareholder returns.

Affiliate and distribution trends

• Subscriber decline rates have improved for seven consecutive quarters, excluding FOX One, with expectations that innovations like skinny bundles will further aid trends.

• Recent affiliate renewals were completed quietly and successfully, with a larger renewal cycle and new rate negotiations set for fiscal 2027 and 2028.

• Focused channel portfolio and investments in content support strong pricing power in negotiations.

• Distribution evolution is expected, with FOX One as a key digital initiative targeting non-pay TV subscribers.

News and advertising outlook

• Fox News continues to gain market share, achieving 70% cable news share during major events and attracting hundreds of new national advertisers.

• Fox News ad rates remain at a 50% discount to broadcast, presenting ongoing pricing opportunity; high single-digit national rate increases have been achieved.

• Robust political advertising cycle expected for the 2026 midterms, with local stations and Tubi positioned to benefit from record projected spend of $11 billion.

• Tubi's audience is predominantly cordless, making it a unique beneficiary of political ad spend.