Fox Corporation - Ordinary Shares - Class A

Strong quarter with record profitability; growth driven by distribution + sports/news - Reported $4.0B revenue and adj. EBITDA of $954M (+11% YoY), described as a record third quarter. - Net income: $166M / $0.38 EPS vs $346M / $0.75 prior year (decline largely tied to Super Bowl lap and NFL schedule timing), but “core” earnings improved: adj. EPS $1.32 (+20% YoY), and adj. net income $570M (ex noncore items).

Key segment performance: Cable stable to up; Television ad hit from Super Bowl timing but improved EBITDA - Cable segment: +6% revenue, +1% adj. EBITDA to $884M - Cable distribution revenue +5% YoY, driven by pricing gains; subscriber declines stable under ~6.5% across third-party distributors (excluding Fox One). - Cable advertising +5% YoY, helped by national pricing strength and the World Baseball Classic (WBC). - Content/other +24% driven by higher sports sublicensing; expenses +13% mainly sports rights amortization. - Television segment: revenue $2.2B - Advertising revenue -30% YoY due to absence of Super Bowl LIX (they cite > $800M gross ad revenue from last year’s Super Bowl quarter). - However, TV EBITDA improved dramatically: $191M, >3x prior year quarter, because expenses fell -24% (lower sports amortization/production costs tied to Super Bowl absence). - TV distribution ~flat (-1%), and management reiterated expectation that TV distribution should be ~flat for the full fiscal year before turning to growth in fiscal ’27.

Cash flow + shareholder returns: very strong free cash flow; heavy buybacks - Free cash flow: $1.77B for the quarter (management notes seasonality—working capital dynamics reverse in H2). - Buybacks: $1.95B repurchased YTD, bringing cumulative repurchases to $8.5B+ (~36% of shares outstanding since 2019); includes an $1.5B accelerated share repurchase now complete. - Balance sheet strength: ended the quarter with ~$3.6B cash and ~$6.6B debt.