Analyst Note
| Neil Macker, CFA |Fox posted another strong quarter, as second-quarter 2021 revenue and EBITDA beat FactSet consensus. The cable division continues to drive the bottom line, as the broadcast segment swung back to an EBITDA loss in the quarter versus the first quarter. Fox News benefited from political spending and interest around the false claims of election fraud. CEO Lachlan Murdoch doubled down on Fox News' “center-right” approach despite the emergence of challengers further to the right like One America News Network and Newsmax. While these networks may take some audience, we believe many advertisers will avoid very divisive platforms, lowering the potential financial loss to Fox News. We are maintaining our narrow moat rating and $37 fair value estimate.