EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2021
FOX REPORTS FOURTH QUARTER FISCAL 2021
NET INCOME OF $272 MILLION,
EARNINGS PER SHARE OF $0.43 AND
REVENUES OF $2.89 BILLION
FOX REPORTS FULL YEAR FISCAL 2021
NET INCOME OF $2.20 BILLION,
EARNINGS PER SHARE OF $3.61 AND
REVENUES OF $12.91 BILLION
NEW YORK, NY, August 4, 2021 - Fox Corporation (Nasdaq: FOXA, FOX; "FOX" or the "Company") today reported financial results for the three months and twelve months ended June 30, 2021.
Commenting on the results, Executive Chairman and Chief Executive Officer Lachlan Murdoch said:
"Our exceptional Fiscal 2021 financial results highlight the strength of our distinct strategy and serve as a foundation for sustained operating momentum. Despite the challenges presented by COVID, our businesses continued to inform and entertain households across the country. And in the midst of it all, we strengthened our core brands and expanded our digital capabilities, which together provide a robust platform for future growth. We look forward to the year ahead, anticipating the return of normalized sports and entertainment calendars and the start of the midterm election cycle. FOX's core live event programming, coupled with its growing digital businesses, will continue to deliver audiences on an unmatched scale for our advertising and distribution partners."
FOURTH QUARTER COMPANY RESULTS
The Company reported quarterly net income of $272 million as compared to the $145 million reported in the prior year quarter. Net Income attributable to Fox Corporation stockholders was $253 million ($0.43 per share) as compared to the $122 million ($0.20 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders1 was $381 million ($0.65 per share) as compared to the $375 million ($0.62 per share) reported in the prior year quarter.
Total quarterly revenues increased 20% to $2.89 billion with strong growth across all revenue categories. Affiliate revenues increased 10% with 16% growth at the Television segment and 6% growth at the Cable Network Programming segment. Advertising revenues increased 38%, reflecting 51% growth at the Television segment and 17% growth at the Cable Network Programming segment. Other revenues increased by $56 million or 30%.
Quarterly Adjusted EBITDA2 was $717 million as compared to the $742 million reported in the prior year quarter, as the revenue increases noted above were more than offset by higher programming rights amortization, primarily due to schedule changes caused by Coronavirus Disease 2019 ("COVID-19"), and increased digital investment.
- Excludes net income effects of Impairment and restructuring charges, adjustments to Equity (losses) earnings of affiliates, Other, net and tax provision adjustments. See Note 1 for a description of adjusted net income and adjusted earnings per share attributable to Fox Corporation stockholders, which are considered non-GAAP financial measures, and a reconciliation of reported net income and earnings per share attributable to Fox Corporation stockholders to adjusted net income and adjusted earnings per share attributable to Fox Corporation stockholders.
- 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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EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2021
FULL YEAR COMPANY RESULTS
The Company reported full year net income of $2.20 billion as compared to the $1.06 billion reported in the prior year. Net Income attributable to Fox Corporation stockholders was $2.15 billion ($3.61 per share) as compared to the $999 million ($1.62 per share) reported in the prior year. Adjusted net income attributable to Fox Corporation stockholders was $1.71 billion ($2.88 per share) as compared to the $1.53 billion ($2.48 per share) reported in the prior year.
Total full year revenues increased 5% to $12.91 billion. Reported affiliate revenues increased 9%, led by 20% growth at the Television segment. Advertising revenues increased 2% as 15% growth at the Cable Network Programming segment, the consolidation of Tubi and record political revenues at the FOX Television Stations were partially offset by the absence of the prior year's broadcast of Super Bowl LIV at the Television segment. Other revenues were $1.04 billion as compared to the $1.06 billion reported in the prior year, primarily due to the timing of sports sublicensing revenues at the Cable Network Programming segment as a result of COVID-19.
Full year Adjusted EBITDA increased 11% to $3.09 billion as the revenue increases noted above were partially offset by higher expenses. The increase in expenses primarily reflects the consolidation of Tubi and contractual annual rights escalators at FOX Sports, partially offset by the absence of the prior year's broadcast of Super Bowl LIV.
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EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2021
REVIEW OF OPERATING RESULTS | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
$ Millions | |||||||||||||
Revenues by Component: | |||||||||||||
Affiliate fee | $ | 1,665 | $ | 1,519 | $ | 6,435 | $ | 5,908 | |||||
Advertising | 982 | 712 | 5,431 | 5,333 | |||||||||
Other | 243 | 187 | 1,043 | 1,062 | |||||||||
Total revenues | $ | 2,890 | $ | 2,418 | $ | 12,909 | $ | 12,303 | |||||
Segment Revenues: | |||||||||||||
Cable Network Programming | $ | 1,399 | $ | 1,271 | $ | 5,683 | $ | 5,492 | |||||
Television | 1,447 | 1,113 | 7,048 | 6,661 | |||||||||
Other, Corporate and Eliminations | 44 | 34 | 178 | 150 | |||||||||
Total revenues | $ | 2,890 | $ | 2,418 | $ | 12,909 | $ | 12,303 | |||||
Adjusted EBITDA: | |||||||||||||
Cable Network Programming | $ | 674 | $ | 674 | $ | 2,876 | $ | 2,706 | |||||
Television | 148 | 169 | 555 | 430 | |||||||||
Other, Corporate and Eliminations | (105) | (101) | (344) | (357) | |||||||||
Adjusted EBITDA3 | $ | 717 | $ | 742 | $ | 3,087 | $ | 2,779 | |||||
Depreciation and amortization: | |||||||||||||
Cable Network Programming | $ | 14 | $ | 15 | $ | 55 | $ | 59 | |||||
Television | 27 | 27 | 104 | 73 | |||||||||
Other, Corporate and Eliminations | 43 | 52 | 141 | 126 | |||||||||
Total depreciation and amortization | $ | 84 | $ | 94 | $ | 300 | $ | 258 | |||||
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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EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2021
CABLE NETWORK PROGRAMMING | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
$ Millions | ||||||||||||
Revenues | ||||||||||||
Affiliate fee | $ | 1,026 | $ | 968 | $ | 3,995 | $ | 3,870 | ||||
Advertising | 314 | 269 | 1,337 | 1,164 | ||||||||
Other | 59 | 34 | 351 | 458 | ||||||||
Total revenues | 1,399 | 1,271 | 5,683 | 5,492 | ||||||||
Operating expenses | (564) | (450) | (2,289) | (2,316) | ||||||||
Selling, general and administrative | (166) | (152) | (540) | (494) | ||||||||
Amortization of cable distribution investments | 5 | 5 | 22 | 24 | ||||||||
Segment EBITDA | $ | 674 | $ | 674 | $ | 2,876 | $ | 2,706 | ||||
Three Months Ended June 30, 2021
Cable Network Programming reported quarterly segment revenues of $1.40 billion, an increase of $128 million or 10% from the amount reported in the prior year quarter. Affiliate revenues increased $58 million or 6%, driven by contractual price increases, including the impact of distribution agreement renewals. Advertising revenues increased $45 million or 17%, primarily due to continued digital monetization at FOX News Media and the impact of additional live events and studio shows at FOX Sports in the current year quarter, as compared to the postponements and cancellations in the prior year quarter as a result of COVID-19. Other revenues increased $25 million, primarily due to the timing of sublicensing revenues at FOX Sports as a result of COVID-19 and higher subscription revenues at FOX News Media.
Cable Network Programming reported quarterly segment EBITDA of $674 million, unchanged from the prior year quarter, as the revenue increases noted above were offset by higher expenses. The increase in expenses primarily reflects higher programming rights amortization at FOX Sports associated with the return of live events and increased digital investment at FOX News Media.
Twelve Months Ended June 30, 2021
Cable Network Programming reported full year segment revenues of $5.68 billion, an increase of $191 million or 3% from the amount reported in the prior year. Advertising revenues increased $173 million or 15%, primarily due to stronger linear and digital results at FOX News Media, including the impact of the presidential election cycle. Affiliate revenues increased $125 million or 3% as healthy underlying increases in affiliate revenues were partially offset by the impact of an accrual for potential distribution credits as a result of cancelled college football games due to COVID-19. Other revenues were $351 million as compared to the $458 million reported in the prior year, primarily due to the timing of sports sublicensing revenues and pay-per- view boxing content at FOX Sports as a result of COVID-19.
Cable Network Programming reported full year segment EBITDA of $2.88 billion, an increase of $170 million or 6% from the amount reported in the prior year, primarily due to the revenue increases noted above.
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EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2021
TELEVISION | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
$ Millions | ||||||||||||
Revenues | ||||||||||||
Advertising | $ | 668 | $ | 443 | $ | 4,094 | $ | 4,169 | ||||
Affiliate fee | 639 | 551 | 2,440 | 2,038 | ||||||||
Other | 140 | 119 | 514 | 454 | ||||||||
Total revenues | 1,447 | 1,113 | 7,048 | 6,661 | ||||||||
Operating expenses | (1,049) | (724) | (5,662) | (5,437) | ||||||||
Selling, general and administrative | (250) | (220) | (831) | (794) | ||||||||
Segment EBITDA | $ | 148 | $ | 169 | $ | 555 | $ | 430 | ||||
Three Months Ended June 30, 2021
Television reported quarterly segment revenues of $1.45 billion, an increase of $334 million or 30% from the amount reported in the prior year quarter. Advertising revenues increased $225 million or 51%, primarily due to a recovering base market at the FOX Television Stations, as compared to the impact of COVID-19 in the prior year quarter, continued growth at Tubi and strong pricing at FOX Entertainment. Affiliate revenues increased $88 million or 16%, driven by increases in fees from third-party FOX affiliates and higher average rates at the Company's owned and operated television stations. Other revenues increased $21 million or 18%, primarily due to higher content revenues at Bento Box and FOX Entertainment.
Television reported quarterly segment EBITDA of $148 million, as compared to the $169 million reported in the prior year quarter, as the revenue trends noted above were more than offset by higher expenses. The increase in expenses primarily reflects the timing of programming rights amortization at FOX Entertainment as a result of COVID-19 and increased investment at Tubi.
Twelve Months Ended June 30, 2021
Television reported full year segment revenues of $7.05 billion, an increase of $387 million or 6% from the amount reported in the prior year. Affiliate revenues increased $402 million or 20%, driven by increases in fees from third-party FOX affiliates and higher average rates at the Company's owned and operated television stations. Other revenues increased $60 million or 13%, primarily due to higher content revenues at Bento Box. Advertising revenues were $4.09 billion as compared to the $4.17 billion reported in the prior year, as the impact of the consolidation of Tubi and record political advertising revenues at the FOX Television Stations were more than offset by the absence of the prior year's broadcast of Super Bowl LIV.
Television reported full year segment EBITDA of $555 million, an increase of $125 million or 29% from the amount reported in the prior year, as the revenue increases noted above were partially offset by higher expenses. The increase in expenses primarily reflects the consolidation of Tubi and contractual annual rights escalators at FOX Sports, partially offset by the absence of the prior year's broadcast of Super Bowl LIV.
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Fox Corporation published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 20:16:15 UTC.