On this page of StockholderLetter.com we present the 9/22/2023 shareholder letter from Fox Corp — ticker symbol FOX. Reading current and past FOX letters to shareholders can bring important insights into the investment thesis.
20 23 ANNUAL REPORT


A MESSAGE FROM L ACHL AN MURDOCH Dear Shareholders, Fiscal 2023 was a showcase year for FOX, demonstrating our unique strategy that distinguishes us from our peers and delivers for our audience, advertising and distribution partners and our shareholders. The dedication and contribution from our employees served as the foundation for the successes across our portfolio and was re ected in our nancial delivery. This Fiscal year, we generated record annual revenue and Adjusted EBITDA. Notably, we reported revenue growth of 7%, including 12% advertising growth, supported by major tentpole events, including the midterm elections and Super Bowl LVII, and further propelled by outstanding growth at Tubi. Meanwhile, we continued to post solid growth in our a liate revenue as we completed the rst third of our current distribution renewal cycle. These results demonstrate that FOX s portfolio, featuring our incredibly compelling live news and sports events along with our linear and digital entertainment o ering, continues to deliver engaged audiences at scale across all content verticals, while also driving exceptional growth throughout our digital businesses. In a world of increasing audience fragmentation, FOX s collective linear and digital viewership increased 8% year over year. Tubi s Fiscal 2023 was nothing short of spectacular, underpinned by growth in total view time, which in turn powered revenue growth. Tubi made its debut in Nielsen s The Gauge, growing total consumption in scal 2023 by 79% and making it the #1 AVOD player with consumption levels equal to a Top-5 cable network. With a burgeoning library of over 60,000 titles, including a growing collection of Tubi originals and nearly 250 FAST channels available to viewers, Tubi achieved successive gains across each quarter of the year.
FOX Entertainment notched multiple wins throughout the year including the #1 entertainment telecast with Next Level Chef, the #1 new scripted drama of 2023 with Accused and the #1 new unscripted series with Special Forces: World s Toughest Test. Recognizing the industry-wide changes in viewership habits, FOX Entertainment continues to expand its footprint across owned and unscripted content, investing in more co-production arrangements and securing a stake in each new series that premiered on the FOX Network during the 2022-2023 broadcast season. At FOX News Media, we continued to lead, both in ratings and engagement, as the top-rated network across the entire cable ecosystem and the number two national network in all of U.S. television. We sustained a double-digit lead in total viewership over our nearest competitors for the entire scal year, even during the period where our primetime lineup was in transition. In fact, since its mid-July debut, FOX News new primetime lineup was up 38% in total viewers and up 62% in the Adults 25-54 demographic versus the June schedule through August 2023. We are con dent that our deep bench of talent will continue to set the standard for all news services as we move towards the 2024 Presidential election. Our FOX Television Stations collectively produced approximately 1,200 hours of local news coverage every week throughout the year. And thanks to locations across many of the key battleground political markets, our stations delivered a record midterm election sales cycle that was just shy of the last Presidential cycle. FOX Sports portfolio of premium sports rights continues to be the industry leader in live sports event viewing. The FOX broadcast of Super Bowl LVII was the most watched U.S. TV show of all time. Additionally, our Thanksgiving Day game was the most-watched NFL regular season game of all time, and the USA-England match was the most-watched U.S. Men s FIFA World Cup match of all time. This past year, our continued focus and dedication to corporate social responsibility earned increasingly high marks from several ESG ratings providers and established FOX as a leader among our industry peers. Over the course of Fiscal 2023, across all FOX businesses, our FOX Forward philanthropic programs positively impacted the communities which we serve, with a continued focus on veterans and active-duty military, rst responders and underserved students. As we look to Fiscal 2024, notwithstanding headwinds facing our industry and macroeconomic uncertainty, we enter the new scal year from a position of strength. Our balance sheet is among the most robust in the industry with approximately $4.3 billion in cash and cash equivalents at scal year end and a modest net leverage ratio of approximately 1 times, giving us the exibility to support our ongoing commitment to capital returns to shareholders as well as to pursue value accretive investment. Our mix of assets puts us in a uniquely strong position when compared to our peers. Leveraging the strengths of our market-leading brands and our relentless focus on our core businesses, we are committed to delivering value to our shareholders in a thoughtful and disciplined manner. As always, we are grateful for your con dence and value your support. Sincerely, Lachlan Murdoch Executive Chair and CEO, Fox Corporation
 • shareholder letter icon 9/22/2023 Letter Continued (Full PDF)
 • stockholder letter icon 9/26/2024 FOX Stockholder Letter
 • stockholder letter icon 9/25/2025 FOX Stockholder Letter
 • stockholder letter icon More "Television & Radio" Category Stockholder Letters


FOX 9/22/2023 Shareholder/Stockholder Letter Transcript:

20
23
ANNUAL REPORT



A MESSAGE FROM
L ACHL AN MURDOCH
Dear Shareholders,
Fiscal 2023 was a showcase year for FOX, demonstrating our unique strategy
that distinguishes us from our peers and delivers for our audience, advertising
and distribution partners and our shareholders.
The dedication and contribution from our employees served as the foundation
for the successes across our portfolio and was re   ected in our    nancial delivery.
This Fiscal year, we generated record annual revenue and Adjusted EBITDA. Notably, we reported
revenue growth of 7%, including 12% advertising growth, supported by major tentpole events,
including the midterm elections and Super Bowl LVII, and further propelled by outstanding growth at
Tubi. Meanwhile, we continued to post solid growth in our a   liate revenue as we completed the    rst
third of our current distribution renewal cycle.
These results demonstrate that FOX   s portfolio, featuring our incredibly compelling live news and
sports events along with our linear and digital entertainment o   ering, continues to deliver engaged
audiences at scale across all content verticals, while also driving exceptional growth throughout our
digital businesses. In a world of increasing audience fragmentation, FOX   s collective linear and digital
viewership increased 8% year over year.
Tubi   s Fiscal 2023 was nothing short of spectacular, underpinned by growth in total view time,
which in turn powered revenue growth. Tubi made its debut in Nielsen   s    The Gauge,    growing total
consumption in    scal 2023 by 79% and making it the #1 AVOD player with consumption levels equal
to a Top-5 cable network.
With a burgeoning library of over 60,000 titles, including a growing collection of Tubi originals and nearly
250 FAST channels available to viewers, Tubi achieved successive gains across each quarter of the year.

FOX Entertainment notched multiple wins throughout the year including the #1 entertainment
telecast with Next Level Chef, the #1 new scripted drama of 2023 with Accused and the #1
new unscripted series with Special Forces: World   s Toughest Test. Recognizing the industry-wide
changes in viewership habits, FOX Entertainment continues to expand its footprint across owned
and unscripted content, investing in more co-production arrangements and securing a stake in each
new series that premiered on the FOX Network during the 2022-2023 broadcast season.
At FOX News Media, we continued to lead, both in ratings and engagement, as the top-rated network
across the entire cable ecosystem and the number two national network in all of U.S. television.
We sustained a double-digit lead in total viewership over our nearest competitors for the entire    scal
year, even during the period where our primetime lineup was in transition.
In fact, since its mid-July debut, FOX News    new primetime lineup was up 38% in total viewers and
up 62% in the Adults 25-54 demographic versus the June schedule through August 2023. We are
con   dent that our deep bench of talent will continue to set the standard for all news services as we
move towards the 2024 Presidential election.
Our FOX Television Stations collectively produced approximately 1,200 hours of local news coverage
every week throughout the year. And thanks to locations across many of the key battleground political
markets, our stations delivered a record midterm election sales cycle that was just shy of the last
Presidential cycle.
FOX Sports    portfolio of premium sports rights continues to be the industry leader in live sports
event viewing. The FOX broadcast of Super Bowl LVII was the most watched U.S. TV show of all time.
Additionally, our Thanksgiving Day game was the most-watched NFL regular season game of all time,
and the USA-England match was the most-watched U.S. Men   s FIFA World Cup    match of all time.
This past year, our continued focus and dedication to corporate social responsibility earned
increasingly high marks from several ESG ratings providers and established FOX as a leader among
our industry peers. Over the course of Fiscal 2023, across all FOX businesses, our FOX Forward
philanthropic programs positively impacted the communities which we serve, with a continued focus
on veterans and active-duty military,    rst responders and underserved students.
As we look to Fiscal 2024, notwithstanding headwinds facing our industry and macroeconomic
uncertainty, we enter the new    scal year from a position of strength. Our balance sheet is among
the most robust in the industry with approximately $4.3 billion in cash and cash equivalents at
   scal year end and a modest net leverage ratio of approximately 1 times, giving us the    exibility
to support our ongoing commitment to capital returns to shareholders as well as to pursue value
accretive investment.
Our mix of assets puts us in a uniquely strong position when compared to our peers.
Leveraging the strengths of our market-leading brands and our relentless focus on
our core businesses, we are committed to delivering value to our shareholders in a
thoughtful and disciplined manner. As always, we are grateful for your con   dence and
value your support.
Sincerely,
Lachlan Murdoch
Executive Chair and CEO, Fox Corporation


shareholder letter icon 9/22/2023 Letter Continued (Full PDF)
 

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