Fox's Q2 2025 Earnings: A Quarter of Growth and Promise

Fox Corporation (NASDAQ: FOX) reported its fiscal second quarter 2025 earnings on February 4, 2025, beating expectations with strong revenue growth and a significant increase in net income. The company's total quarterly revenues reached $5.08 billion, up 20% year-over-year (YoY), while net income attributable to Fox Corporation stockholders came in at $373 million ($0.81 per share), a substantial improvement from the $109 million ($0.23 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders was $442 million ($0.96 per share), reflecting the company's strong operating momentum.

Fox's robust performance can be attributed to several key factors, including:

1. Affiliate fee revenues: Affiliate fees increased by 6% YoY, driven by 9% growth at the Television segment and 4% growth at the Cable Network Programming segment. This growth was achieved despite partial offsets from contractual price increases and net subscriber declines.
2. Advertising revenues: Advertising revenues surged by 21% YoY, primarily due to higher political advertising revenues, strong viewership for NFL, College Football, and Major League Baseball postseason games, and continued digital growth led by the Tubi AVOD service. The company's local stations led the way in political advertising, with first-half fiscal 2025 political revenue exceeding $400 million.
3. Other revenues: Other revenues jumped by 70% YoY, primarily due to higher sports sublicensing revenues. This growth reflects the company's success in monetizing its sports content and securing high-profile events.

Fox's strong performance was driven by its focused strategy of live news and sports programming, coupled with growing digital initiatives. The company's ability to capitalize on the presidential election news cycle, strong viewership for sports events, and the continued expansion of Tubi's audience has resulted in a quarter of growth and promise.

As Fox looks ahead, it remains committed to maximizing distribution and delivering value to shareholders. The company's capital return strategy includes a $0.27 per share dividend and continued share repurchases, with $900 million remaining in the buyback authorization. With a net income margin improvement from 2.7% to 7.6% YoY, Fox has demonstrated its ability to balance content investments with profitability goals.

In conclusion, Fox's Q2 2025 earnings report highlights the company's strong operating momentum and financial performance. With a focus on live news and sports programming, growing digital initiatives, and a commitment to maximizing distribution and value, Fox is well-positioned to continue its growth trajectory in the coming years.