Executive Summary
Fox Corporation reported a modest year-over-year revenue uptick in Q4 2024, supported by stable demand across its broadcast, cable, and content licensing franchises. Despite higher other expenses weighing on pretax income, the company delivered solid operating leverage with operating income of $671 million and EBITDA of $645 million, translating to an EBITDA margin of roughly 20.9% on $3.092 billion of revenue. Net income was $319 million, or $0.68 per share, reflecting a net margin of 10.3% and YoY and QoQ declines driven largely by non-operating charges.
Cash generation remained a standout feature. Operating cash flow reached $899 million for the period, with capital expenditures of $112 million and free cash flow of $787 million. Fox returned capital to shareholders via a $250 million share repurchase program and a small dividend payout (~$9 million), while ending the quarter with $4.32 billion in cash and equivalents and total liquidity ample enough to support ongoing capital allocation priorities. Net debt stood at approximately $3.83 billion, reinforcing a comfortable balance sheet posture with a current ratio of 2.54 and a debt-to-capitalization of about 0.43.
Looking ahead, Fox's investment thesis hinges on sustaining a diversified, cash-generative business model across news, sports, and entertainment, and advancing monetization of digital and streaming assets (e.g., Tubi and Fox Alternative Entertainment). Management guidance for QQ4 2024 is not explicitly stated in the provided materials; thus investors should monitor ad market trends, sports-rights costs, and the contribution from digital platforms to earnings and free cash flow. The company appears well-positioned to fund continued buybacks and modest capex while preserving liquidity, albeit with continued sensitivity to macro ad cycles and content licensing dynamics.
Key Performance Indicators
QoQ: -10.30% | YoY:168.64%
QoQ: -52.10% | YoY:-14.93%
QoQ: -51.77% | YoY:-8.11%
Key Insights
Revenue: $3.092B, YoY +1.98%, QoQ -10.30% | Gross Profit: $3.092B, YoY +168.64%, QoQ -10.30% (note: gross margin shown as 100% due to null cost of revenue in the data) | EBITDA: $645M, Margin ~20.9% | Operating Income: $671M, Margin ~21.7%, YoY +5.01%, QoQ -14.96% | Net Income: $319M, YoY -14.93%, QoQ -52.10%, EPS: $0.68, YoY -8.11%, QoQ -51.77%
Cash Flow & Returns: Net cash from operating activities $899M; Capex $112M; Free cash flow $787M; CFO-to-revenue ratio 29.1%; Operating cash flow p...
Financial Highlights
Revenue: $3.092B, YoY +1.98%, QoQ -10.30% | Gross Profit: $3.092B, YoY +168.64%, QoQ -10.30% (note: gross margin shown as 100% due to null cost of revenue in the data) | EBITDA: $645M, Margin ~20.9% | Operating Income: $671M, Margin ~21.7%, YoY +5.01%, QoQ -14.96% | Net Income: $319M, YoY -14.93%, QoQ -52.10%, EPS: $0.68, YoY -8.11%, QoQ -51.77%
Cash Flow & Returns: Net cash from operating activities $899M; Capex $112M; Free cash flow $787M; CFO-to-revenue ratio 29.1%; Operating cash flow per share $1.92; Free cash flow per share $1.68; Net debt at period-end ~$3.83B; Cash balance $4.32B; Debt total $8.16B; Interest coverage ~7.0x; Dividends paid ~$9M; Share repurchases ~$250M.
Balance Sheet: Total assets $21.97B; Total liabilities $10.92B; Total stockholders’ equity $10.71B; Cash and cash equivalents $4.32B; Goodwill $3.544B; Intangible assets $3.038B; Goodwill and intangible assets total ~$6.58B; Current assets ~$7.50B; Current liabilities ~$2.95B; Current ratio 2.54; Quick ratio 2.33; Cash ratio 1.46.
Valuation & Benchmarks: P/E ~12.5x; P/B ~1.49x; P/S ~5.16x; EV/EBITDA ~30.7x; Dividend yield ~0.056%; Dividend payout ratio ~2.82%; Operating cash flow yield ~29.1%; Free cash flow yield not explicitly stated but implied by FCF per share and share count.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.09B |
1.98% |
-10.30% |
| Gross Profit |
3.09B |
168.64% |
-10.30% |
| Operating Income |
671.00M |
5.01% |
-14.96% |
| Net Income |
319.00M |
-14.93% |
-52.10% |
| EPS |
0.68 |
-8.11% |
-51.77% |
Key Financial Ratios
operatingProfitMargin
21.7%
operatingCashFlowPerShare
$1.92
freeCashFlowPerShare
$1.68
dividendPayoutRatio
2.82%
Management Commentary
Note: The earnings transcript is not included in the provided data. As a result, management quotes and theme-based highlights from the call cannot be extracted from the input. If you can share the transcript or key quotes, I will extract and organize them by themes (strategy, operations, market conditions) with context and significance.
Forward Guidance
There is no explicit forward guidance in the supplied materials for QQ4 2024. Given Fox’s diversified portfolio—news, sports, entertainment—and ongoing investments in digital platforms (e.g., Tubi, Fox Alternative Entertainment), the key uncertainty remains the trajectory of advertising demand and the cost structure of sports rights. In a qualitative assessment, investors should monitor: (1) ad-market recovery and linear vs. digital mix; (2) sports rights renegotiations and licensing revenue trends; (3) progress and monetization of streaming initiatives; (4) cash tax implications and working capital dynamics; (5) capital allocation choices, including the balance between buybacks and reinvestment. If management reiterates steady FCF generation and a disciplined buyback cadence, Fox could sustain a modest earnings trajectory with downside risk tied to ad softness and content-cost headwinds.