Primed to score World Cup tailwinds

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Primed to score World Cup tailwinds

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Fox Corporation

Reiterate Rating: UNDERPERFORM | PO: 54.00 USD | Price: 49.80 USD

F4Q preview: World Cup to drive advertising 25 June 2026

We anticipate Fox’s F4Q results will largely reflect a continuation of underlying trends. Equity

We believe Fox’s portfolio of “live”, i.e. mainly news and sports, remains well positioned

to outperform other segments (e.g. entertainment) within the linear bundle. In particular,

Key Changeswe believe the World Cup will be a significant driver of advertising as well as Fox One

signups in F4Q/1Q. Nonetheless, while Fox has a strong track record of outperforming (US$) Previous Current

consensus forecasts (and we would not be surprised if this continues in F4Q), we 2026E Rev (m) 16,503.7 16,549.1

anticipate investor focus will remain on the recently announced Roku acquisition. Key F4Q 2027E Rev (m) 16,806.8 17,128.9

revenue drivers include: (1) estimated Cable revenue growth of 4.8% (vs. 1.8% prev) and 2028E Rev (m) 16,867.0 17,181.5

(2) at Television, we forecast growth of 17.1% (unchanged; benefitting from World Cup). 2027E EPS 5.63 5.76

2028E EPS 5.59 5.72

Going where the stream flows 2026E EBITDA (m) 3,695.2 3,695.4

On 6/15, Fox announced a definitive agreement to acquire Roku in a cash-and-stock 2027E EBITDA (m) 3,862.6 3,932.5

transaction. We view the acquisition of Roku as a meaningful strategic shift which 2028E EBITDA (m) 3,699.3 3,768.8

diversifies Fox’s business toward the faster growing CTV segment and alleviates some

of the broader questions regarding the trajectory of the current linear dominant

Jessica Reif Ehrlich

business. Fox cited $400mn in cost synergies, which we view to be conservative and Research Analyst