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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Fox’s Q3 Buoyed by Strong Affiliate Fee Growth; Fox News Returns to the Top of Cable News Ratings

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Fox posted strong fiscal 2021 third-quarter results as revenue and EBITDA both beat FactSet consensus. Both segments generated solid results despite strong comps from the same quarter last year that included the Super Bowl and much higher political spending. With less focus on politics by many Americans in general, Fox News has regained its position as the top cable news channel, as it has held onto its audience despite challenges from newer right-wing outlets like Newsmax and OAN. We expect that Fox News will maintain its lead in a less charged environment moving forward. We are maintaining our narrow moat and $37 fair value estimate.

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Company Profile

Business Description

Fox represents the assets not sold to Disney by the predecessor firm, Twenty First Century Fox. The remaining assets include Fox News, the FOX broadcast network, FS1 and FS2, Fox Business, Big Ten Network, 28 owned and operated local television stations of which 17 are affiliated with the Fox Network, and the Fox Studios lot. The Murdoch family continues to control the successor firm, which represents a large-scale bet on the value of live sports and news in the U.S. market.

Contact
1211 Avenue of the Americas
New York, NY, 10036
T +1 212 852-7000
Sector Communication Services
Industry Broadcasting
Most Recent Earnings Mar 31, 2021
Fiscal Year End Jun 30, 2021
Stock Type Slow Growth
Employees 9,000

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