Analyst Note| Neil Macker, CFA |
Fox started off fiscal-year 2021 on strong note as first-quarter revenue and EBITDA both beat FactSet consensus projections. The cable division remains the main driver behind profits, though the broadcast segment also posted strong EBITDA growth despite flat revenue. Fox News made history once again as the first cable channel to be the number one overall network in weekday primetime ratings for an entire quarter. In addition, the return of live sports, especially the NFL and college football, only partially benefited Fox during the quarter and any shutdown of either of those sports would have a large impact on the firm. We are maintaining our narrow moat rating and our fair value estimate of $37.