Fox Corporation (NASDAQ:FOX) Q1 2024 Earnings Call Transcript

So the refreshing of our schedule and our lineup has worked from both a ratings perspective, but also from an advertising perspective really, really very well. Direct Response continues to face some headwinds really from last year from the previous upfront where there was which technically created sort of an oversupply in the market for direct response and put downward pressure on pricing. So we would expect as we go forward for that pressure to be relieved. There will be some — and we’ve got increased audiences due to the new cycle which is a positive from a ratings point of view, but that’s partially offset by an increased level of preemptions due to our kind of really in-depth and incredible reported. So overall, I should just overall sports and news we are very happy with the overall performance of both of those verticals in our business.

We’re also very happy with Tubi. We announced we had 30% revenue gains, which is well-driven off the 65% growth in total view time. I think going forward, we’ll see continued growth in view time. Anjali is very focused on that. And what there is softness in the entertainment advertising market and Tubi is not immune from that softness. But Anjali is focused on how we better monetize. We’ve written this incredible growth in audience and viewership and now it’s time we really focus on how we more effectively and efficiently monetize that huge audience. We’ve earned the right because of the audience growth to really start to take a greater share of wallet from our advertising partners. Finally, the local stations. We are pacing slightly ahead of last year in the base market if you exclude political.

You have to remember this quarter last year of October particularly I think it had over $125 million worth of political revenue in the month of October alone. So, it’s a huge year-on-year comparison. But ex-political we’re very pleased with the base market is strong. And that’s really led by the auto and recently the retail categories are very strong also financial services. That’s offset with bedding wager and also entertainment right? It’s — there’s not a lot of opportunity, the strike in Hollywood. There’s no movie launches. So that’s offsetting some of the growth in auto retail and financial services. Now, I should go on to some of your — the other part of your question in the — sort of taking too long Jessica. That’s what happens when you ask three questions in one.

But so the longer-term strategy for Tubi. Look I think we have a multipronged strategy. I think Tubi is in an enviable position. It’s the leading AVOD player. It’s free. It’s focused. It’s entirely advertising-driven. That’s appreciated by all of our clients and obviously by our audiences. And I couldn’t be happier with our transition from Farid who is an incredible entrepreneur who deserves all the credit for founding and building and driving Tubi to-date. It’s always a difficult transition when you move to — from a founder to new leadership. So far it’s early days but Anjali’s very focused on all the issues and all the opportunities that Tubi has in front of it to continue it to grow at impressive levels. But Tubi is our free AVOD streaming service that does not — it’s not our only strategy in the streaming space.

Direct-to-consumer is obviously something that we look at closely. We have a small direct-to-consumer SVOD service in Fox Nation and we have optionality of expanding those services further into news and potentially sports. I hope I answered most of your questions Jessica.

Gabrielle Brown: Operator, next question please.

Operator: The next question is from John Hodulik from UBS. Please go ahead.