FOX REPORTS FOURTH QUARTER FISCAL 2023 REVENUES OF $3.03 BILLION, NET INCOME OF $369 MILLION, AND ADJUSTED EBITDA OF $735 MILLION
FOX REPORTS FULL YEAR FISCAL 2023
REVENUES OF
NET INCOME OF
ADJUSTED EBITDA OF
Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said:
"Fiscal 2023 showcased the very best of FOX's portfolio while achieving record annual revenue and EBITDA. From the exceptional sports calendar that included Super Bowl LVII and the FIFA Men's World Cup, to the record-breaking political midterm cycle and the impressive growth seen at Tubi, the power of the FOX platform was on full display. We enter Fiscal 2024 with a focused strategy and best-in-class balance sheet as we continue to drive shareholder value."
FOURTH QUARTER COMPANY RESULTS
The Company reported total quarterly revenues of
The Company reported quarterly net income of
Quarterly Adjusted EBITDA2 was
FULL YEAR COMPANY RESULTS
The Company reported total full year revenues of
The Company reported full year net income of
Full year Adjusted EBITDA was
REVIEW OF OPERATING RESULTS | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
$ Millions | |||||||
Revenues by Component: | |||||||
Affiliate fee | $ 1,771 | $ 1,726 | $ 7,051 | $ 6,878 | |||
Advertising | 1,008 | 1,055 | 6,606 | 5,900 | |||
Other | 253 | 252 | 1,256 | 1,196 | |||
Total revenues | $ 3,032 | $ 3,033 | $ 14,913 | $ 13,974 | |||
Segment Revenues: | |||||||
Cable Network Programming | $ 1,410 | $ 1,460 | $ 6,043 | $ 6,097 | |||
Television | 1,587 | 1,525 | 8,710 | 7,685 | |||
Other, Corporate and Eliminations | 35 | 48 | 160 | 192 | |||
Total revenues | $ 3,032 | $ 3,033 | $ 14,913 | $ 13,974 | |||
Adjusted EBITDA: | |||||||
Cable Network Programming | $ 585 | $ 628 | $ 2,472 | $ 2,934 | |||
Television | 227 | 226 | 1,009 | 347 | |||
Other, Corporate and Eliminations | (77) | (84) | (290) | (326) | |||
Adjusted EBITDA3 | $ 735 | $ 770 | $ 3,191 | $ 2,955 | |||
Depreciation and amortization: | |||||||
Cable Network Programming | $ 19 | $ 17 | $ 71 | $ 60 | |||
Television | 29 | 30 | 126 | 112 | |||
Other, Corporate and Eliminations | 55 | 52 | 214 | 191 | |||
Total depreciation and amortization | $ 103 | $ 99 | $ 411 | $ 363 |
CABLE NETWORK PROGRAMMING | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
$ Millions | |||||||
Revenues | |||||||
Affiliate fee | $ 1,027 | $ 1,043 | $ 4,175 | $ 4,205 | |||
Advertising | 320 | 358 | 1,403 | 1,462 | |||
Other | 63 | 59 | 465 | 430 | |||
Total revenues | 1,410 | 1,460 | 6,043 | 6,097 | |||
Operating expenses | (656) | (655) | (2,927) | (2,595) | |||
Selling, general and administrative | (173) | (181) | (660) | (586) | |||
Amortization of cable distribution investments | 4 | 4 | 16 | 18 | |||
Segment EBITDA | $ 585 | $ 628 | $ 2,472 | $ 2,934 |
Three Months Ended June 30, 2023
Cable Network Programming reported quarterly segment revenues of
Cable Network Programming reported quarterly segment EBITDA of
Twelve Months Ended June 30, 2023
Cable Network Programming reported full year segment revenues of
Cable Network Programming reported full year segment EBITDA of
TELEVISION | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
$ Millions | |||||||
Revenues | |||||||
Advertising | $ 688 | $ 698 | $ 5,204 | $ 4,440 | |||
Affiliate fee | 744 | 683 | 2,876 | 2,673 | |||
Other | 155 | 144 | 630 | 572 | |||
Total revenues | 1,587 | 1,525 | 8,710 | 7,685 | |||
Operating expenses | (1,112) | (1,039) | (6,704) | (6,431) | |||
Selling, general and administrative | (248) | (260) | (997) | (907) | |||
Segment EBITDA | $ 227 | $ 226 | $ 1,009 | $ 347 |
Three Months Ended June 30, 2023
Television reported quarterly segment revenues of
Television reported quarterly segment EBITDA of
Twelve Months Ended June 30, 2023
Television reported full year segment revenues of
Television reported full year segment EBITDA of
DIVIDEND
The Company's Board of Directors has authorized an increase in the Company's semi-annual dividend and has declared a dividend of
SHARE REPURCHASE PROGRAM
The Company has authorized a
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook" and similar expressions are used to identify these forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements in this press release due to changes in economic, business, competitive, technological, strategic and/or regulatory factors and other factors affecting the operation of the Company's businesses. More detailed information about these factors is contained in the documents the Company has filed with or furnished to the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
Statements in this press release speak only as of the date they were made, and the Company undertakes no duty to update or release any revisions to any forward-looking statement made in this press release or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or to conform such statements to actual results or changes in the Company's expectations, except as required by law.
To access a copy of this press release through the Internet, access Fox Corporation's corporate website located at http://www.foxcorporation.com.
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
$ Millions, except per share amounts | |||||||
Revenues | $ 3,032 | $ 3,033 | $ 14,913 | $ 13,974 | |||
Operating expenses | (1,778) | (1,715) | (9,689) | (9,117) | |||
Selling, general and administrative | (523) | (552) | (2,049) | (1,920) | |||
Depreciation and amortization | (103) | (99) | (411) | (363) | |||
Impairment and restructuring charges | (99) | — | (111) | — | |||
Interest expense, net | (35) | (86) | (218) | (371) | |||
Other, net4 | 11 | (134) | (699) | (509) | |||
Income before income tax expense | 505 | 447 | 1,736 | 1,694 | |||
Income tax expense | (136) | (139) | (483) | (461) | |||
Net income | 369 | 308 | 1,253 | 1,233 | |||
Less: Net loss (income) attributable to noncontrolling interests | 6 | (2) | (14) | (28) | |||
Net income attributable to Fox Corporation stockholders | $ 375 | $ 306 | $ 1,239 | $ 1,205 | |||
Weighted average shares: | 506 | 560 | 531 | 570 | |||
Net income attributable to Fox Corporation stockholders per share: | $ 0.74 | $ 0.55 | $ 2.33 | $ 2.11 |
CONSOLIDATED BALANCE SHEETS | |||
June 30, | June 30, | ||
$ Millions | |||
Assets: | |||
Current assets: | |||
Cash and cash equivalents | $ 4,272 | $ 5,200 | |
Receivables, net | 2,177 | 2,128 | |
Inventories, net | 543 | 791 | |
Other | 265 | 162 | |
Total current assets | 7,257 | 8,281 | |
Non-current assets: | |||
Property, plant and equipment, net | 1,708 | 1,682 | |
Intangible assets, net | 3,084 | 3,157 | |
Goodwill | 3,559 | 3,554 | |
Deferred tax assets | 3,090 | 3,440 | |
Other non-current assets | 3,168 | 2,071 | |
Total assets | $ 21,866 | $ 22,185 | |
Liabilities and Equity: | |||
Current Liabilities: | |||
Borrowings | $ 1,249 | $ — | |
Accounts payable, accrued expenses and other current liabilities | 2,514 | 2,296 | |
Total current liabilities | 3,763 | 2,296 | |
Non-current liabilities: | |||
Borrowings | 5,961 | 7,206 | |
Other liabilities | 1,484 | 1,120 | |
Redeemable noncontrolling interests | 213 | 188 | |
Commitments and contingencies | |||
Equity: | |||
Class A common stock, | 3 | 3 | |
Class B common stock, | 2 | 3 | |
Additional paid-in capital | 8,253 | 9,098 | |
Retained earnings | 2,269 | 2,461 | |
Accumulated other comprehensive loss | (149) | (226) | |
Total Fox Corporation stockholders' equity | 10,378 | 11,339 | |
Noncontrolling interests | 67 | 36 | |
Total equity | 10,445 | 11,375 | |
Total liabilities and equity | $ 21,866 | $ 22,185 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Twelve Months Ended | |||
2023 | 2022 | ||
$ Millions | |||
OPERATING ACTIVITIES | |||
Net income | $ 1,253 | $ 1,233 | |
Adjustments to reconcile net income to cash provided by operating activities | |||
Depreciation and amortization | 411 | 363 | |
Amortization of cable distribution investments | 16 | 18 | |
Impairment and restructuring charges | 111 | — | |
Equity-based compensation | 74 | 102 | |
Other, net | (116) | 509 | |
Deferred income taxes | 321 | 342 | |
Change in operating assets and liabilities, net of acquisitions and dispositions | |||
Receivables and other assets | (104) | (79) | |
Inventories net of programming payable | 145 | (301) | |
Accounts payable and accrued expenses | (68) | (54) | |
Other changes, net | (243) | (249) | |
Net cash provided by operating activities | 1,800 | 1,884 | |
INVESTING ACTIVITIES | |||
Property, plant and equipment | (357) | (307) | |
Acquisitions, net of cash acquired | — | (243) | |
Proceeds from dispositions, net | — | 83 | |
Purchase of investments | (54) | (28) | |
Other investing activities, net | (27) | (18) | |
Net cash used in investing activities | (438) | (513) | |
FINANCING ACTIVITIES | |||
Repayment of borrowings | — | (750) | |
Repurchase of shares | (2,000) | (1,000) | |
Non-operating cash flows from The Walt Disney Company | — | — | |
Settlement of Divestiture Tax Prepayment | — | — | |
Dividends paid and distributions | (299) | (307) | |
Purchase of subsidiary noncontrolling interest | — | — | |
Sale of subsidiary noncontrolling interest | 35 | 25 | |
Other financing activities, net | (26) | (25) | |
Net cash used in financing activities | (2,290) | (2,057) | |
Net decrease in cash and cash equivalents | (928) | (686) | |
Cash and cash equivalents, beginning of year | 5,200 | 5,886 | |
Cash and cash equivalents, end of year | $ 4,272 | $ 5,200 |
NOTE 1 – ADJUSTED NET INCOME AND ADJUSTED EPS
The Company uses net income and earnings per share ("EPS") attributable to Fox Corporation stockholders excluding net income effects of Impairment and restructuring charges, adjustments to Equity (losses) earnings of affiliates, Other, net, and tax provision adjustments ("Adjusted Net Income" and "Adjusted EPS" respectively) to evaluate the performance of the Company's operations exclusive of certain items that impact the comparability of results from period to period.
Adjusted Net Income and Adjusted EPS may not be comparable to similarly titled measures reported by other companies. Adjusted Net Income and Adjusted EPS are not measures of performance under GAAP and should be considered in addition to, and not as substitutes for, net income attributable to Fox Corporation stockholders and EPS as reported in accordance with GAAP. However, management uses these measures in comparing the Company's historical performance and believes that they provide meaningful and comparable information to management, investors and equity analysts to assist in their analysis of the Company's performance relative to prior periods and the Company's competitors.
The following table reconciles net income and EPS attributable to Fox Corporation stockholders to Adjusted Net Income and Adjusted EPS for the three months ended June 30, 2023 and 2022:
Three Months Ended | |||||||
June 30, 2023 | June 30, 2022 | ||||||
Income | EPS | Income | EPS | ||||
$ Millions, except per share data | |||||||
Net income | $ 369 | $ 308 | |||||
Less: Net loss (income) attributable to noncontrolling interests | 6 | (2) | |||||
Net income attributable to Fox Corporation stockholders | $ 375 | $ 0.74 | $ 306 | $ 0.55 | |||
Impairment and restructuring charges | 99 | 0.20 | — | — | |||
Other, net5 | (10) | (0.02) | 135 | 0.24 | |||
Tax provision | (21) | (0.04) | (28) | (0.05) | |||
As adjusted | $ 443 | $ 0.88 | $ 413 | $ 0.74 |
The following table reconciles net income and EPS attributable to Fox Corporation stockholders to Adjusted Net Income and Adjusted EPS for the twelve months ended June 30, 2023 and 2022:
Twelve Months Ended | |||||||
June 30, 2023 | June 30, 2022 | ||||||
Income | EPS | Income | EPS | ||||
$ Millions, except per share data | |||||||
Net income | $ 1,253 | $ 1,233 | |||||
Less: Net income attributable to noncontrolling interests | (14) | (28) | |||||
Net income attributable to Fox Corporation stockholders | $ 1,239 | $ 2.33 | $ 1,205 | $ 2.11 | |||
Impairment and restructuring charges | 111 | 0.21 | — | — | |||
Other, net6 | 703 | 1.32 | 513 | 0.90 | |||
Tax provision | (187) | (0.35) | (127) | (0.22) | |||
As adjusted | $ 1,866 | $ 3.51 | $ 1,591 | $ 2.79 |
NOTE 2 – ADJUSTED EBITDA
Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Adjusted EBITDA does not include: Amortization of cable distribution investments, Depreciation and amortization, Impairment and restructuring charges, Interest expense, net, Other, net and Income tax expense.
Management believes that information about Adjusted EBITDA assists all users of the Company's Unaudited Consolidated Financial Statements by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect net income, thus providing insight into both operations and the other factors that affect reported results. Adjusted EBITDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company's business and its enterprise value against historical data and competitors' data, although historical results, including Adjusted EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).
Adjusted EBITDA is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company's financial performance. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The following table reconciles net income to Adjusted EBITDA for the three months and twelve months ended June 30, 2023:
Three Months Ended | Twelve Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
$ Millions | |||||||
Net Income | $ 369 | $ 308 | $ 1,253 | $ 1,233 | |||
Add: | |||||||
Amortization of cable distribution investments | 4 | 4 | 16 | 18 | |||
Depreciation and amortization | 103 | 99 | 411 | 363 | |||
Impairment and restructuring charges | 99 | — | 111 | — | |||
Interest expense, net | 35 | 86 | 218 | 371 | |||
Other, net7 | (11) | 134 | 699 | 509 | |||
Income tax expense | 136 | 139 | 483 | 461 | |||
Adjusted EBITDA | $ 735 | $ 770 | $ 3,191 | $ 2,955 |
1 | 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. |
2 | 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. |
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. |
4 | Other, net presented above includes Equity earnings (losses) of affiliates, as well as legal settlement costs at FOX News Media and the change in fair value of the Company's investments. |
5 | Other, net presented above excludes Equity earnings (losses) of affiliates |
6 | Other, net presented above excludes Equity earnings (losses) of affiliates. |
7 | Other, net presented above includes Equity earnings (losses) of affiliates. |
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SOURCE Fox Corporation