Fox's Q2 2025: Contradictions in Ad Environment, Tubi Strategy, and Skinny Bundles

These are the key contradictions discussed in Fox's latest 2025Q2 earnings call, specifically including: Ad Environment Post-Election and Political Spend, Tubi's Growth and Investment Strategy, and Impact of Skinny Bundles:



Financial Performance and Revenue Growth:
- Fox Corporation reported second quarter record EBITDA of $781 million, more than doubling year-over-year, driven by a 20% increase in revenue to over $5 billion.
- The growth was underpinned by industry-leading affiliate and advertising revenue growth, reflecting strong on-screen delivery across various programs and platforms.

Advertising Revenue and Political Spend:
- The company witnessed a 21% increase in advertising revenues, primarily due to record political revenue exceeding $400 million in the first half of fiscal 2025.
- This was driven by strong demand across local stations and digital platforms, with Tubi contributing significantly to advertising revenue growth.

Subscriber Trends and Affiliate Revenue:
- Total affiliate revenue grew by 6%, with subscriber declines improving for the second consecutive quarter, now at 7%.
- The improvement in subscriber trends was attributed to successful affiliate renewals and increased inclusion in skinny bundles, which align with the company's strategic approach to prioritize the bundle.

Tubi's Growth and Strategy:
- Tubi achieved a 31% increase in ad revenues, with its audience primarily consisting of cord-cutters and cord-nevers, demonstrating strong engagement and targeting of a diverse audience.
- The platform's growth strategy includes leveraging its unique audience for advertising and focusing on increasing first-party data to enhance future CPMs.