Fox Corporation

At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session. I would like to emphasize that functionality for the question and answer queue will be given at that time. If you require assistance during the call, please press star then zero on your touchstone keypad. As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown.

Thank you, Carly. Good morning and welcome to our fiscal 2025 fourth quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer, John Nallen, Chief Operating Officer, and Steve Tomczyk, our Chief Financial Officer. First, Lachlan and Steve will give some prepared remarks on the most recent quarter and then we'll take questions from the investment community. Please note that this call may include forward-looking statements regarding Fox Corporation's financial performance and operating results. These statements are based on management's current expectations and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filing. Additionally, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA, or EBITDA as we refer to it on this call. Reconciliation of non-GAAP financial measures are included in our earnings release and our SEC filing, which are available in the investor relations section of our website. We also refer to free cash flow, which we define as net cash provided by operating activities plus capital expenditures. And with that, I'm pleased to turn the call over to Lachlan.

Thank you very much, Gabby. Before we start, I preemptively apologize for my coughing from the end of a cold, which Gabby and Steve are thrilled to be locked in an AV closet with me, but you guys should all be thankful that you're this is telephonic. Well, Gabby, thank you very much and thank you all for joining us this morning as we discuss our fourth quarter and full year earnings results. Fiscal 2025 was another outstanding year for Fox, demonstrating the strength, operationally and financially across all of our businesses and delivering our best year yet. The year was highlighted by our strong financial performance with revenue growth of 17% and $16 billion, EVADOT growth of 26% to $3.6 billion, adjusted EPS growth of 39% to $4.78 per share, and free cash flow growth of 100% to $3 billion. All records for Fox. We also generated record political advertising revenue of well over $400 million across the Fox platforms. Fox's broadcast of Super Bowl 59 broke viewership and advertising records as the most watched telecast in U.S. history, generating over $800 million of gross advertising revenue. And engagement at Fox News led to record audience share, reaching over 70% of the cable news audience at times during the year. Our noteworthy fiscal 2025 results were underpinned by a 26% lift in total advertising revenue to $7 billion. The momentum we have reported over the first three quarters of our fiscal year continued unabated during the fourth quarter, with 7% growth over last year despite tougher comparisons from last year's UEFA Euros and Copa America soccer tournaments. As we look to fiscal 26, the overall advertising market for Fox continues to be healthy and robust as evidenced by our recently concluded upfront, where we achieved record-setting double-digit volume growth and strong pricing growth across our portfolio. The power of our brands and our ability to deliver engaged audiences at scale across our platforms is exceptionally strong. Nowhere is that scale and engagement more evident than at Fox News. Fox News ended the fiscal year as it began, as the most watched cable network in total day and in primetime. In the fourth quarter, total day audience was up 25% in total viewers and 31% in the demo, while maintaining over 60% share of the cable news audience. And now, for the second quarter in a row, Fox News was the second most watched network in Monday through Friday Prime in all of television, surpassing all but one broadcast network. But it's not only linear news driving that performance. Fox News Digital achieved new records for engagement during the quarter with over 1.5 billion YouTube views and over 3.7 billion social media video views, our highest totals ever. Engagement trends are off to a good start in the first quarter of this new year, with Fox News finishing as the highest rated television network in America for the month of July, no doubt aided by must-watch programming like Jesse Waters' Plinetime and Gutfeld, the leading late-night program on television. Fox Sports once again cemented its position, finishing the year first among all networks in live sports. That engagement was driven by an impressive portfolio of sporting events including a riveting Major League Baseball postseason, the launch of Fox College Football Fridays, the NFL and Fox, and of course, the record-breaking Super Bowl 59. And while our fourth quarter has a lighter sports calendar, Fox's first presentation of the Indianapolis 500 was an unqualified success, averaging over 7 million viewers, a 41% gain over last year and the most-watched running of the race in 17 years. The power of live sports remains unmatched, and our sports portfolio is in increasing demand by advertisers and viewers alike. We expect that to continue as we charge ahead to autumn, when we welcome back postseason baseball, the NFL, and college football on Fox. Fox's big noon Saturday kicks off on August 30th with a highly anticipated rematch of last season's college football playoffs, semifinal Texas versus Ohio State. By then, you will be able to watch our entire sports portfolio along with our news and entertainment programming on Fox One, our -to-consumer streaming platform. Fox One is a truly innovative digital offering launching across the U.S. on August 21st for $19.99 per month. While Fox One will be marketed to the cordless market, current PayTV subscribers will also have access to Fox One on an authenticated basis. And yes, we will be offering bundling opportunities that make sense to achieve our targeted objectives. We have said before that our aspirations for Fox One subscribers are modest and our measured investment toward this initiative will match these long-range goals. Speaking of the cordless market, Tubi notched multiple achievements in fiscal 2025, including delivering the most streamed Super Bowl in history, exceeding 100 million monthly active users, generating over $1.1 billion in revenue, and reaching an all-time high of .2% share of total U.S. television viewings. The sustained momentum we have seen at Tubi throughout this fiscal year continued into the fourth quarter with 17% growth in total view time, along with favorable progress in our direct response and partner channels, combining to drive revenue growth of 32% in the quarter.

To this

-to-reach audience resonates with advertisers looking to tap into the cordless market as evidenced by this year's upfront results that saw Tubi volume grow over 35% year on year while holding rates stable in a competitive, connected TV market. Fiscal 2025 was a decent year for Fox and a clear demonstration of the efficacy of our differentiated strategy. And there's more to come. On these calls, we have long said that we aspire to engage with our viewers wherever suits them best. The traditional cable bundle remains our favorite distribution channel as we believe it continues to provide exceptional value to consumers.

Tubi,

with two-thirds of its users cordless and outside of the bundle, serves a massive market hungry for free, premium content. And soon, Fox One will additionally service another important audience segment, those wanting a paid, targeted offering encompassing all Fox brands. These pillars of our distribution strategy provide us access to the largest audience possible and will underpin our growth in the years ahead. We enter Fiscal 2026 with solid operational and financial momentum across our company. And we look forward to another exciting year that will see the launch of Fox One in just a few weeks, the renewal of one-quarter of our distribution revenue, a healthy advertising environment, and of course, Fox broadcast of the FIFA Men's World Cup beginning later this fiscal year. Underscoring our confidence in the trajectory of the business, this morning we are announcing a $5 billion increase to our share repurchase authorization. With our balance sheet having never been stronger, we expect to continue repurchasing our shares while still accommodating our continued program of organic investment and preserving flexibility to thoughtfully invest in new businesses. And with that, let me turn it over to Steve. Thanks, Lachlan,

and good morning, everyone. With a strong fourth quarter capping off, which is already shaping up to be a strong year, Fox delivered record financial results in Fiscal 25, with record total company revenues of over 16 billion growing 17% year over year and record adjusted EDA of $3.6 billion growing an impressive 26% year over year, converting to record free cash flow of $3 billion. Advertising revenues across the company were up 26% with strong growth of both our television and cable network programming segments. This growth was driven by both our banner year of events, including record breaking advertising revenues for both Super Bowl 59 and the presidential election cycle, as well as strength in our underlying core, highlighted by accelerating 2D growth, robust news pricing and engagement growth, and very healthy advertiser demand for our sports programming. We successfully completed renewals with distributors representing approximately one quarter of our overall affiliate revenues this year, with the financial benefits of these renewals driving 5% growth in total company affiliate fee revenues, led by 7% growth at the television segment. Total company other revenues were up 47% year over year, driven by high sports of licensing revenues at our cable network segment. As we've previously mentioned, this growth in revenue was largely offset by a corresponding increase in rights costs, with no material impact on year over year overall in the data. Total company expenses increased 14%, largely due to high sports rights amortisation and production costs, including costs associated with Super Bowl 59 and the sub-licensing revenues I just mentioned. Net income attributable to stockholders was $2.3 billion or $4.91 per share, up versus the $1.5 billion or $3.13 per share reported in fiscal 24. Excluding non-core items, full year adjusted net income was $2.2 billion and adjusted EPS was $4.78 per share, up 39% year over year. Turning to our fiscal fourth quarter, Fox delivered another quarter of impressive results, highlighted by 6% increase in total revenues and 21% growth in adjusted EDA data. Our advertising revenues increased 7%, led by continued growth at 2% and strong engagement and pricing at news. Total company affiliate fee revenues grew 3% over the prior year quarter, once again demonstrating the strength of our brands and focused portfolio of channels. Other revenues grew 33%, driven by higher content revenues. Net income attributable to stockholders was $717 million or $1.57 per share, as compared to the $319 million or $0.68 per share reported in the prior year period. Excluding non-core items, adjusted net income was $581 million and adjusted EPS was $1.27, up 41% compared to the $0.90 per share recorded in the prior year. Now let's turn to the Q4 performance of our operating segments, starting with the cable network programming segment, which delivered 7% revenue growth and 6% EDA growth. Cable advertising revenues grew 15% over the prior year, driven by the strength in Fox News engagement and supported by healthy national and direct response pricing. Cable affiliate fee revenues grew 2% over the prior year quarter, as pricing gains from our affiliate renewals outpaced the impact from net subscriber declines, which were consistent with the prior quarter at under 7%. Cable other revenues grew 39%, led by higher Fox Nation subscribers. Revenue growth at cable segments was partially offset by a 7% increase in expenses, primarily attributable to an increase in sports rights amortization and production costs. Turning to our television segment, which delivered 6% revenue growth. Advertising revenues at television grew 3% over the prior year, led by continued growth at Tubi, which more than offset the tough comparison against the UEFA European Championships and Conmobil Copper America in the prior year. Television affiliate fee revenues increased 4% in the quarter, as healthy growth in fees across both Fox-owned and affiliated stations more than offset the impact from industry subscriber declines. Television other revenues were up 34% -over-year, primarily due to higher content revenues tied to our entertainment production studios. Expenses at the television segment decreased 5%, primarily reflecting the absence of the prior year broadcast of the UEFA Euros. All in, EBITDA at our TV segment was $308 million, an increase of over 100% as compared to the prior year quarter. Turning to cash flow, where we generated robust quarterly free cash flow of nearly $1.4 billion. This strong quarterly free cash flow delivery is consistent with the seasonality of our working capital cycle, where the first half of our fiscal year reflects the concentration of payments for sports rights and buildup of advertising-related receivables, both of which reversed in the second half of our fiscal year. Before we get to capital allocation and balance sheet, it is worth noting some key items for this coming fiscal year. From an affiliate revenue perspective, in fiscal 2026, we have another relatively light year of renewals, with approximately one quarter of our total company distribution revenues up for renewal. In fiscal 2026, we expect to continue to invest in our digital-led growth initiatives. The excellent progress we have made at Tubi reinforces our confidence in Tubi's past profitability, and its obvious asset value underscores the opportunity to drive ROI from our digital investments more broadly. Tubi delivered moderate improvement in profitability in fiscal 2025, in line with the expectations we laid out at the start of the year, and we anticipate a more substantial improvement in Tubi profitability in fiscal 2026, which we waited toward the second half of the year. This total improvement will support our initial incremental investment in new opportunities, including Latam Sports, and more notably the launch of Fox One, which will be more concentrated in the first half of our fiscal year as we launch this offering this month. From a cyclical event perspective, we look forward to our broadcast of the 2026 FISA Men's World Cup, which will span our fiscal fourth quarter of 2026 and first quarter of 2027. We are encouraged by the momentum we are already generating, and expect this North American World Cup to drive strong results for Fox. And finally, as we look at free cash flow, the strong working capital tailwind from the Super Bowl in fiscal 2025 will give way to a working capital timing headwind from the World Cup, where rights payments for the tournament will land in fiscal 2026, while advertising receivables will be collected early in fiscal 2027. In terms of capital allocation, in fiscal 2025 we repurchased an additional $1 billion through our Share Buyback program, and made approximately $245 million in dividend payments. As Lachlan mentioned, underscoring our commitment to return capital to shareholders, today we announced both an incremental buyback authorization of $5 billion and an increase in our semi-annual dividend to $0.28 per share. With the payment of this dividend and taking into account share repurchase activity since year end, we will have cumulatively returned $8.5 billion of capital to our shareholders since the spin. This includes $6.65 billion of share repurchases, representing 31% of our total shares outstanding since the launch of the buyback program in November 2019. This is all supported by the strength of our balance sheet, where we ended the quarter with approximately $5.4 billion in cash and $6.6 billion in debt. With that, I'll turn the call back over to Gabby.

Thank you, Steve. And now we will be happy to take questions from the investment community.

Ladies and gentlemen, I would like to emphasize the new functionality for the question and answer queue. If you wish to ask a question, please press star, then 1 on your touchstone keypad. You will hear a tone indicating that you have been placed in queue. You may remove yourself from queue at any time by once again pressing star, then 1. If you're using a speakerphone, please pick up the handset before pressing the numbers. It has been requested that you limit yourself to one question. Once again, if you have a question, please press star, then 1 at this time. One moment, please, for the first question. We have a question from Ben Swinburne with Morgan Stanley.

Good morning. I'm going to ask Steve a question because I can't ask Lachlan a question. That would be cruel. Thank you. I hope you feel better. Steve, you gave us a lot of good color thinking about fiscal 26. I know you're not going to guide. I'm sure you also know that consensus is expecting like a 10% decline. And obviously, you laugh. Political in the Super Bowl. But I don't know if your revenue trends have been this strong in a long time. I just wonder if there's any way you can help us think about fiscal 26, maybe a little more specifically. One way might be just to talk about the sort of net drag on EBITDA from investment. If you sort of put it all together, all the puts and takes, you know, that digital drag in 26 versus 25 or anything else you can tell us to help us think about your expectations for EBITDA in the year ahead. Thank you.

Sure. Thank you, Ben. Thank you for sparing Lachlan. Yeah, there's a ton of puts and takes for 26. And you're right, listen, when we're when we assemble our plan for 26, it starts with the really strong foundation of what the underlying momentum in the business is, particularly with respect to audience and advertising demand for sports and news verticals. So that's the starting point from an affiliate revenue perspective, as I called out, it's relatively light in this coming fiscal year. So only a quarter of the book is up for renewal. So we'll be more driven by where subscribers land over the course of the year. And if you look at sort of the next thing that sort of drives the results into next year, we've got a lot of moving parts from a cyclical event perspective. So we'll obviously have the political headwinds and particularly we'll see that in the TV segment from the stations. And that's a real sort of first quarter, second quarter phenomenon for us. And so to give you some dimensioning of that, like I think the stations in the first half of the year in fiscal 25 did 270 million in political revenue. So we'll be swimming against that. We've obviously got Super Bowl in Q3, which will be an ad revenue negative for us. But from an even-dark perspective, it's a bit of a push. And then we complete the year from a cyclical event perspective. We've got FIFA, which we have high hopes for in Q4 of the coming fiscal year and Q1 of the next fiscal year. The other put and take is MLB. We had a massive MLB in Q1 and Q2 of fiscal 25. We hope for a blockbuster postseason again, but who knows. And then to sort of address your digital growth, you'll remember, I think at the start of fiscal 24, we called out an envelope of about $350 million of even-dark deficit that would be used towards funding our digital growth initiatives. And you'll remember that we had expected that investment envelope to decrease in fiscal 25. And it has largely on the back of things like to be improving profitability. And so I think when you look at fiscal 26 from that digital investment perspective, you should expect to be to improve quite a lot. And that will happen in the back half of our fiscal year. And then Q1 and Q2, we will be looking to invest in things like Latin America and Fox One. And when you put that all together, I think on a conservative sort of forecasting basis, I'd imagine that sort of collective investment portfolio moves back towards that $350 million mark.

Operator, next question, please.

We have a question from John Hodelik with UBS.

Great. Thank you. I don't know if this is for Lachlan or maybe Steve can handle it, but just an update on the cable advertising trends and the ever sort of expand the advertising base and the receptivity you're getting from advertisers there. And then maybe, Steve, can you just follow up on the LAC-TAM comments? Just what's the strategy there? I don't know if you can give us a sense of how much spending, but just what the plan is and potential growth opportunities in LAC-TAM. Thanks.

Thanks, John. On the cable advertising trends, and we'll probably talk more later if someone asks about the sort of overall advertising market, but if you're speaking specifically about the incredibly positive momentum at Fox News, advertising is very strong, both from an upfront perspective, from a CPM perspective, and direct response. So, and this is all obviously driven off tremendous ratings. I think in the fourth quarter, our P2 plus ratings were up in both total day and prime about 25 percent, and even better in the kind of all-important demo 25 to 54, which we obviously sell to where in total day we were up 31 percent, and in prime time we were up I think 34 percent. So, you know, this rating strength has really flown directly through to the 25 percent sort of advertising revenue increase. I think as you go forward and think about the quarters ahead, obviously this time last year, there was the kind of horror of the Butler assassination attempt on July 13th against then-candidate Trump, and then Biden dropping out of the race I think a couple weeks later, July 21st. And so there was a big uplift in ratings then, which we've been able to sustain since then, but you know, the comps do get harder. Having said that, if you think about our share in July, so as we've started this first quarter, our share has actually marginally increased against our competitors. So in P2 Plus, in total day, I think we're up to 64 percent of our cable news audience share versus MSNBC at 21 percent, CNN at 15 percent, and also in prime the numbers are roughly the same. So we feel very good about maintaining our share and our elevated ratings, to be frank, and obviously that will flow through to the advertising revenue line. On lap time, and Stephen talked to the numbers, but we're very excited about our purchase of Caliente TV, a streaming service in Mexico. The Fox brand remains incredibly strong, both in Mexico and Latin America, and we see it as an opportunity for us to sort of further grow with a relatively modest investment spend in those markets. Steve, do you want to add to that? Yeah, so John,

in the quarter, so LATAM has kind of been two things for us. We've organically assembled some sports rights there, which impacted the P&L in this fiscal year and in this quarter, and that's in sort of the low to mid tens of in terms of expenses on those. And then very recently, you would have noticed we acquired Caliente TV, which gives us a running start or a really fast start in terms of it's already got an S-wide platform there and already has distribution arrangements. And so we would expect some investment spend over the course of this current fiscal year. But then once we get monetization into sort of full force, then we'll start to see that come back for us.

Operator, we're ready for the next question.

We have a question from Michael Morris with Guggenheim.

Thank you. Good morning to two, if I could please. First, I just wanted to ask on Tubi, appreciate the color and the strength you're seeing there. You're outpacing the broader CTV market pretty meaningfully. So I'd love to hear any detail on why you think you've been able to do that and how you feel about the ability to continue to beat the market in the coming year. And then just bigger picture, there's been some press reports that ESPN and the NFL might enter an agreement that would give the NFL an ownership stake in ESPN. And I'm curious if you could comment at all on what that might mean for Fox Sports and your relationship with the NFL or sports leagues more broadly. Thank you.

Thanks, Mike. So first on Tubi, you're correct. You know, Tubi is competing very well in the CTV market. I said this is obviously for a number of reasons. So that we've I think we've spoken about before, you know, the core technology, the ad technology. I think we've now grown the library to over 300,000 movies and television titles. And also it's clearly by a wide margin the largest television and movie library in the country. It reaches two thirds of its users are outside of the traditional cable bundle. They're cordless. This is a very difficult market for advertisers to reach. And so it makes Tubi's engagement with our users incredibly valuable and coveted by our clients. So, you know, all of these things come together to really make it a tremendous and exciting product that we are we're enjoying the growth of and the growth that we see continuing into the future. Obviously in the quarter we've announced 17 percent total viewing time growth in the fourth quarter. You know, we believe that this sort of growth is relatively sustainable and 32 percent revenue growth in the quarter. And, you know, which is our highest growth or any of our segments. Tubi now I think achieves in the upfront about 25 percent of our upfront committed revenue. So it's really become a significant part of the business. And, you know, if you look at our competitors, I think that that stat on the cordless market, we reach more cordless viewers than sort of any of our competitors. So it's not something that's actually simply applicable to the market. The Tubi audience really does skew cordless and and younger. And we saw that very much in the in our Super Bowl broadcast or some some cast earlier in the year. We are at our median age watching the Super Bowl with 38 years old. It was younger and more female significantly than the broadcast audience. I think 40 percent of that audience was between 18 and 34. And really it was with the help of Tubi that really pushed the audience for the Super Bowl to the record highs of 128 million viewers that the Super Bowl achieved. I don't think broadcast would have achieved that statistically broadcast wouldn't have achieved that alone without Tubi simulcasting the streaming. So so we're incredibly excited about Tubi as we go forward on the NFL. And they're rumored to announce them tomorrow, but they're rumored investment into ESPN. We have a tremendous relationship with the NFL. We appreciate that they are their fans of the broadcast and cable networks. And we look forward to work with them and deepening our relationship with them as we move forward.

So

next question, please, operator. We have a question from Michael with Goldman Sachs.

Hey, good morning. Thank you for the question. I just wanted to follow up with Steve on the comments around the collective investments for fiscal 26. I think that implies at least 100 to maybe 150 million dollars of additional investments in Latam and Fox one next year, just given the 50 to 75 million dollar improvement this year and the comments you made about Tubi profits further improving next year. I just want to ask, is that kind of like the ballpark of the incremental investment levels that we're talking about? And maybe you can just help frame some of the expected returns on those investments, whether that be for Latam or Fox one subscribers to just give a little bit more transparency there. Thank you very much.

Thanks, Mike. So, that's what you're doing, Matt. But in terms of the investment, I think where we were for this fiscal, when you look at it collectively across the P&L, if I look at our digital growth investments, which is not just Tubi, it's Tubi plus things like Nation, Weather, across the portfolio, we're a touch under 300 across those for fiscal 25. And what I'm basically saying is that we get improvement in those kind of businesses, those growth businesses have become more mature. We'll give some of that back towards these new initiatives and in particular Fox one and Latin America, where the collective goes back towards that 350 mark. Now, how we break that up and how we see that going through, I think we'll look at over the course of the year, but that's kind of the envelope we're looking at. And then when you look at, I think, return profile, I think you should expect like Tubi is probably the best benchmark that we have, right, which is we've been investing in that. And as we've continued to see growth in that business and opportunity to continue to build in it, we've continued to invest in it. And now we're seeing at a point where we can continue to drive the growth and start to see sort of real meaningful profitability improvement. And that's been over three to four years. I imagine for both of those two new investments, whether it be Latin America or Fox one, you should be thinking around that same sort of profile. Can I

answer that in a non math

part of your question and a non math

answer just on Fox one, because Fox one is the larger piece of the new investment. And it's important just to remember that none of the investment Fox one is original programming or exclusive programming to that platform. Fox one will encompass all of our existing Fox content with the addition as well as the Fox Nation content on a tier. But none of that will will will include any incremental and sticky additional spend. So the new spend in Fox one, other than some overhead and some relatively modest tech costs, is really the marketing and launch costs of Fox one. And it's important to remember that our subscriber expectations or aspirations for Fox one are modest and therefore our marketing spend we can is relatively modest compared to our peers as well. And it's something that we can toggle up and down depending on how Fox one is going and if we're meeting our our relatively modest goal. So I think that's an important context when we think about both the initials, the upfront cost of launching Fox one, but the sustainability of that business and the and the return profile of that business going forward.

Great. Next question, please. Operator. We have a question from Jessica with American security.

Thank you. I guess the first question is, New Balance Sheet, even if you did your full and newly announced buyback, you still have flexibility. And clearly the industry is going to be M&A in the current year or the coming year. How will Fox participate or not? Your investment needs, as you guys just outlined, very specifically, very modest $250 million. So just curious, you know, it seems like it's finally going to happen maybe next week. So that's one. And then Latha, maybe just to go back to something you mentioned on advertising, this kind of bigger picture, you guys are clearly outpacing the market. And so you gave some color on to be in Fox News, just overall television. What would you guys say? Yeah,

I'm so sorry. Jessica, the beginning of your question, I call for your first question is on M&A overall and whether or not we have we participate in any M&A activity. The short answer is we don't have anything pronounced. We look we look at all sorts of opportunities. We have a very high internal benchmark for the use of our capital. And so obviously we reject out of hand anything that we think would not be a prudent use of that and, you know, our shareholders capital as well. So but we are we're always looking at opportunities. But we haven't found anything yet that sort of surpasses our our sort of benchmarks in terms of what we feel we would need to do to inorganically kind of grow the business. So we're pretty focused on our organic growth at the moment. In terms of the overall ad market, the ad sales are across across the business, you know, very strong. Again, again, we've talked before about the ad market that we see versus the ad market. Maybe that the rest of the market fees is a little bit different because of the the fortune of being so focused on the segments that we're in, particularly live news, live sports, and obviously a successful free streaming platform such as Tubi. Ad sales nationally, Jessica, you know, are are very strong, really led by pharma category, financial services category, consumer packets, good category. And this this really played out in the upfront where we saw a double digit volume increases and strong pricing growth across all of our our businesses. You know, I think we might have called out earlier that Fox Sports had the record breaking upfront. If you exclude the impact of the Super Bowl, I think it over two billion dollars committed in the upfront. Tubi saw 35 percent volume increase with stable pricing. I think the stable pricing on Tubi is important to call out because the CTV market is I know other other people have mentioned this on their earnings calls. The CTV market is incredibly competitive, but Tubi's been competing and winning very strongly in that market. I think while that market, this is as an industry comment, while that market is competitive, it will remain the beneficiary of advertising revenue shifting from linear cable entertainment programming into digital and frankly also into sports. But the CTV market, the people you're fighting for that advertising revenue where the beneficiary of that. But we see the the volume of advertising dollars continue to stream into that market pretty pretty heavily. Mark sports upfront, as I mentioned, was was was very strong and remains healthy. You know, it's a single data point, but we record revenue for the Major League All-Star Game. The demand far outstripped the supply of spots in that game. NFL, college football, all are pacing very well, and we're incredibly encouraged by the demand, the kind of incredible demand for the FIFA World Cup later on in the in the year. News we talked about before, the our pricing is up 30 percent. Scatter pricing in news is up 54 percent above the upfront. So all very good. The local market is the one that remains mixed with gains from again, like national strong pharmaceutical segment. But that's offset by telecom and I believe restaurants are offsetting those gains in pharmaceutical. And then just finally, and we talk about to be but on entertainment, you know, very healthy with double digit increases in scatter pricing. So the advertising market is is robust for us and strong and really is propelling us forward.

Operator, we have time for one more question.

We have a question from Stephen Kail with Wells Fargo.

Thanks. So first, Lachlan, sorry to make you speak, but you did mention that there could be some bundles coming for for Fox one. I was just wondering how you think about different partners there. You know, one partner has probably the most sports rights. There's some others that could be kind of complementary to your afternoon NFL package and also how you think about sort of integrating apps versus just having them be sort of more pricing bundles for consumers. And then over on the TV side of things, the FCC has been much more vocal around I think what it's kind of expecting in terms of reverse comp and splits between networks and affiliates. Do you think things have changed in this outlook for your network business in your relationship with affiliates? And is there any meaningful financial impact we need to think about for the next couple of years from that? Thank you.

Thanks, Steve. Let me start with the I was in the order of your question with Fox one and bundling. We will bundle Fox one with other services. That's absolutely in our marketing and sort of launch plans, but it will also be obviously available the 1999 as a standalone as a standalone service. One of the things with the bundles that we're cognizant of, there's two factors. One is to offer the consumer the most convenient package of our content and channels and others that they desire to subscribe to. And so the most convenient, the most sort of valuable bundles that you could put together will be in a position to help them do that. But we're also very focused at keeping Fox one as a very targeted service that's targeted on the cordless audience. And sometimes those two things can conflict with each other. So we want to stay very targeted, but we also want to make it easy for our consumers and our viewers to gain our content, whether it's in conjunction with other services or not. We don't really see and you'll you'll understand this on the 21st when you see Fox one. We don't really see this as a service that is that you can compare to a separate bundle of channels only. The Fox one user interface is incredibly innovative. It can be very highly personalized and relies on some really very sort of clever technology to offer something that's truly unique in the marketplace. So we see Fox one as all of our brands, all of our content, but in a truly kind of unique and I think important user interface that we be very cutting edge. On FCC and affiliate, look, we are first of all, I should say on the FCC, you know, we're very pleased that under the new leadership of the FCC, the FCC is is is is pro local stations, is pro competitive. They bring a lot of fresh ideas to the regulatory environment. And we're very pleased to see that as regards to how it affects our affiliates. We remain, I think the the most affiliate focused company, a certain broadcasting company in this country. And we don't really see it impacting in any way with our affiliate, our relationships, if anything, it could improve them. I should mention that joins the two questions together. Fox one will uniquely combine both our Foxken content, but our local affiliates content. If you're a Fox one, our aspiration is if you're a Fox one subscriber, you will be getting your local sports and local news, not just our through our own and own stations, but our affiliate stations as well available available to you on that app. So, you know, we're excited and we're very happy to be, you know, pro our local affiliate groups and local independent stations. I think that's an important place for us to be in the marketplace.

Great. At this point, we're out of time. But if you have any further questions, please give me or Charlie Cassandra a call. Thanks again for joining us today.

Thank you. Thanks, everyone. Thank you.

Ladies and gentlemen, that does conclude the Fox Corporation fourth quarter fiscal year 2025 earnings conference call. Thank you.