Twenty-First Century Fox, Inc. (NASDAQ:FOX) Q3 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 04:30 pm ET


Twenty-First Century Fox, Inc. (NASDAQ:FOX) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Ladies and gentlemen, thank you for standing by and welcome to the Fox Corporation Fourth Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions].

I'll now turn the conference over to Chief Investor Relations Officer and Executive Vice President of Corporate Initiatives. Mr. Joe Dorrego. Please go ahead, sir.

Joe Dorrego

Thank you very much, operator. Hello everyone and welcome to our fouth quarter fiscal 2019 earnings conference call. Joining me on the call today are Lachlan Murdoch, Executive Chairman and Chief Executive Officer; John Nallen, Chief Operating Officer; and Steve Tomsic, our CFO. First Lachlan and Steve will give some prepared remarks on the most recent quarter and fiscal year and then we'll be happy to take questions from the investment community.

Please note that this call may include forward-looking statements regarding Fox' financial performance, operating results, strategy, among other things. These statements are based on management's current expectations and actual results to differ materially from what is stated as a result of certain factors identified on today's call in the Company's SEC filings. Including the Company's Registration Statement on Form-10 and subsequent Quarterly Reports on Form 10-Q.

Additionally, this call will include certain non-GAAP financial measures, reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release and our SEC filings, which are available in the Investor Relations section of our website.

With that, I'll turn the call over to Lachlan.

Lachlan K. Murdoch

Thanks, Joe. Good afternoon, and thank you all for joining us today on Fox Corporation's year-end earnings call. While we are ending a fiscal year, we're also just starting our growth trajectory and are hitting key milestones at a good pace. Specifically, we just reported strong financial results. We recently concluded a very successful advertising upfront, very successful. We're making good progress on our distribution renewals. And we are having a compelling content lineup across our linear and digital channels, all of which positions us well as we commence our first full fiscal year 2020.

For fiscal 2019, we delivered exceptional financial results, achieving 12% revenue growth and 8% EBITDA growth. Our revenue growth was led by double-digit gains in both affiliate and advertising revenues. As you all know, about half of our annual revenue comes from affiliate revenue. And despite continued subscriber declines, we achieved 12% affiliate revenue growth in fiscal 2019. Renewing distribution arrangements with our partners is a normal course activity for us, and we have accomplished these renewals without much clamor over many cycles. This past fiscal year was no exception. We were able to reset affiliate rates, particularly in the Television segment, successfully renewing numerous distribution agreements.

Today, the remainder of our annual revenue principally comes from advertising. In fiscal 2019, we achieved 10% growth, led by the addition of Thursday Night Football and record gross political revenues of more than $185 million at the