Twenty-First Century Fox, Inc. (NASDAQ:FOXA) Q3 2018 Earnings Conference Call - Preliminary Transcript

May 09, 2018 • 04:30 pm ET


Twenty-First Century Fox, Inc. (NASDAQ:FOXA) Q3 2018 Earnings Conference Call - Preliminary Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Twenty-First Century Fox Third Quarter 2018 Earnings Call. At this time, all lines are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) And as a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, Mr. Reed Nolte, Executive Vice President, Investor Relations.

Reed Nolte

Thank you very much, operator. Hello, everyone, and welcome to our Third Quarter Fiscal 2018 Earnings Conference Call. On the call today are Lachlan Murdoch, Executive Chairman, James Murdoch, Chief Executive Officer and John Nallen, our Chief Financial Officer. First, we'll give some prepared remarks on the most recent quarter and then we'll be happy to take questions from the investment community.

This call may include certain forward-looking information with respect to Twenty-First Century Fox's business and strategy. Actual results could differ materially from what is said. The company's Form 10-Q for the three months ended March 31, 2018 identifies risks and uncertainties that could cause actual results to differ, and these statements are qualified by the cautionary statements contained in such filings.

Please note that certain financial measures used in this call such as segment operating income before depreciation and amortization, often referred to as EBITDA, and adjusted earnings per share are expressed on a non-GAAP basis. The GAAP to non-GAAP reconciliation of these non-GAAP measures is included in our earnings release and our 10-Q filing.

And with that, I'm pleased to turn it over to Lachlan.

Lachlan Murdoch

Thanks, Reed, and good afternoon, everyone. Thanks for joining us today. Before giving comments on the quarter's results, I'll take just a minute to provide an update on the two transactions we announced at the end of 2017. But first, we want to note recent press reports about the potential of a further offer for our businesses. Consistent with past practice, we are not going to comment on market speculation.

And regarding our agreement with Disney, we jointly filed a preliminary proxy three weeks ago. It is a detailed filing that should answer any questions people have about this transaction. Once finalized and cleared by the SEC, we anticipate being in a position this summer to request shareholder approval for both the merger with Disney and the creation of New Fox.

Planning for New Fox is well underway and we'll keep you posted on our progress, including announcements on the new company's leadership team and organizational structure. In the meantime, we are making strategic investments such as the addition of key sports markets through our acquisition of 7 Sinclair stations announced this morning and our deal with the NFL for Thursday Night Football that will deliver New Fox the very best content available.

Now let me provide some highlights on the company's performance this past quarter. A couple of things really stand out. First and foremost, the earnings power of our Cable Networks. This segment delivered 16%