ANNUAL REPORT 2019 ANNUAL REPORT 2019 A MESSAGE FROM RUPERT MURDOCH Dear Shareholders, transaction, this leadership team delivered consistently impressive results. In Fiscal Year This letter to my fellow shareholders marks the first 2019, FOX News continued its run as the dominant I am writing for our new company, Fox Corporation, cable news channel for 17 consecutive years and which is anchored by FOX News Media, FOX Sports, launched FOX Nation to deepen and expand the FOX Entertainment and FOX Television Stations. experience for our most dedicated FOX News The future for Fox Corporation, and each of our viewers. FOX Entertainment debuted The Masked brands, has never been brighter. Singer as the most successful new show of the In our abbreviated Fiscal Year 2019, we began to season. FOX Sports delivered flawless coverage unlock value for our shareholders and create a of a historic FIFA Women’s World Cup. And FOX distinctive and agile company poised for future Television Stations delivered nearly 1,000 hours growth. Fox Corporation has invested in strategic of local news each week in addition to popular growth opportunities, further enhancing our digital original programming. capabilities. We have also made acquisitions that With Lachlan at the helm, FOX will continue to complement our existing businesses, and diversify strengthen and expand. We are well-positioned to our revenue streams, all while staying true to the benefit from the rapidly changing media industry focused and nimble structure that differentiates us. by focusing on the content that Americans are most Across Fox Corporation, we remain committed to passionate about and enhancing the platforms we culture-defining entertainment, breaking news, offer for viewing and engagement. Through it all, informed opinion and, of course, captivating sports. we will continue to drive innovation, creativity and, The strength of Fox Corporation and each of our of course, shareholder value. brands coupled with our strong balance sheet, our Sincerely, robust cash flow, our entrepreneurial DNA and our dynamic leadership team make the prospects exciting for us all. In fact, even in a year of transformative events Rupert Murdoch with the launch of FOX and closing of the Disney Chairman Over the course of the next fiscal year, our unique A MESSAGE direct-to-consumer approach will be an area of continued focus. Our customer strategy is to FROM invest in businesses, technologies and programs that enhance the viewer experience by deepening LACHLAN and broadening the relationship with FOX brands. That enhanced relationship, in turn, reinforces MURDOCH viewer trust and allows us to continue the cycle of engagement. Dear Shareholders, This is already proving to be a winning approach. FOX Nation, launched by FOX News Media in The history of the Fox Corporation brands, 2018, is the paradigm of this investment strategy. including FOX News Media, FOX Sports, FOX The service offers exclusive content adjacent and Entertainment and FOX Television Stations, complementary to our linear FOX News channel, defines the animating ethos of our company. and it hosts special events for the audience to We are, at heart, a company dedicated to telling further interact with the community that has stories, reporting facts, expressing opinions formed around the FOX News brand. Subscribers, and showcasing sporting excellence. in turn, deepen their engagement with the Each of these core brands was built with the same linear channel and across a multitude of other strong roots and defended tenaciously against the platforms. FOX News Media reaches 200 million entrenched establishment they sought to challenge people per month across multiple platforms, and disrupt. This legacy of creative disruption and users of the FOX News mobile app interact defines the FOX culture. We ask hard questions, with the brand on average about 175 times per form strong opinions and, where warranted, make month. We plan to emulate this cross-platform bold decisions even when unpopular. The launch success when we relaunch FOX Business in of FOX and our leaner management structure Fiscal Year 2020. The rebranding of FOX Business has allowed us to return to our roots: an agile, will emphasize a strong digital presence that imaginative, entrepreneurial and sometimes addresses the daily financial and business topics contrarian company. We are a company with the that are of interest to our audiences. mindset of a growth-oriented start-up, but one Similarly, FOX Bet, a partnership with The endowed with some of America’s most recognized Stars Group, is a direct-to-consumer business and influential media brands and an enviable that leans into our expertise in sports and the balance sheet. connection between our programming, brand Fox Corporation’s well-defined strategy, pathway and viewers. FOX Bet’s interactive application to growth and differentiating strengths are clear. enables sports fans to place online wagers in We are intensely focused on a direct relationship states that permit them. We entered this field with our audience. That doesn’t mean simply trying with the belief that sports wagering done right to supplement our valued distribution partners. would increase the popularity, engagement, and Instead, we engage directly with consumers by viewership of our sports content. Although we do further developing our most valuable asset: the believe that the upside potential is meaningful, relationship based on trust that audiences have we embarked on the venture to enhance the with our brands, which fuels their desire for content viewer experience and fortify our leadership in that connects. sports. FOX Bet aims to be a destination for the average sports fan who wants to add excitement to their viewing by having skin in the game. It is our balance sheet that enables us to pursue opportunities like FOX Bet, Bento Box, an animation studio we acquired to fortify our leadership in that genre, and Credible Labs, a direct-to-consumer personal financial marketplace that neatly dovetails with the digital assets of FOX Business and the FOX Television Stations. FOX is a company focused on long-term, sustainable growth, and we will continue to invest in both organic and external opportunities at a time of dramatic change in our industry. We will be disciplined in deploying our capital, whether to enhance programming, to expand our capabilities or to acquire businesses. We will take measured risks where we believe they will provide an acceptable return on capital. From product launches to capital expenditures, from acquisitions to digital opportunities, our team discusses major issues with transparency and trust. I am most proud of the collaborative culture that with major organizations at the national and local has developed and can say with confidence level to further our reach and deepen our impact. that everyone is rowing in the same direction. In addition, our businesses will continue their commitments to organizations and causes, We are dedicated to a better future for both the Fox including those that serve active duty military Corporation and the communities we serve. Having and veterans, underserved youth and the been blessed with opportunity, we are embracing creative community. our social responsibility with a new company-wide initiative called FOX Forward. I look forward to the future of Fox Corporation with optimism, from the businesses in which we FOX Forward will address a wide variety of are proven leaders to growth opportunities that issues impacting communities across the country, we are pursuing in an innovative and disciplined utilizing our resources and platforms to support manner, to the connections we seek to facilitate the voices and efforts of important constituencies, in our communities. including military veterans, athletes and members of the creative community, all of whom play Sincerely, a vital role in the vibrance and culture of our company. We will use FOX Forward to lead by example, from community outreach and wellness programs to storytelling that substantively Lachlan Murdoch explores these issues. FOX Forward will align Executive Chairman and Chief Executive Officer FOX SPORTS With its portfolio of premier rights, live event viewership domination and evolving digital footprint, FOX Sports is a powerhouse brand and business for its audiences, advertisers and partners. This fiscal year, FOX Sports solidified its leadership position in the Fall with the addition of Thursday Night Football, which bolstered its already strong NFL offerings, including the number one show on television for the 10th consecutive year, America’s Game of the Week on FOX. With Friday Night Smackdown joining the schedule in October 2019 and FOX’s broadcast of Super Bowl LIV in February 2020, FOX Sports is sure to deliver a banner year of can’t-miss live moments. FOX Bet, FOX Sports’ partnership with The Stars Group, recently introduced two products, targeting sports fans who want to deepen their connections to their favorite teams and enhance the excitement of watching live games. Additionally, FOX Sports’ expanded deployment of pay-per-view functionality on its app and support of its eSports joint venture Caffeine Studios will continue its legacy of challenging established models and pushing industry-changing technology. FOX NEWS MEDIA FOX News has not only been the highest-rated national cable news network for over 17 consecutive years, it has also been the most- watched cable network across the entire television landscape for three straight years. The leading television ratings for FOX News are matched by its growth in digital engagement and across a multitude of platforms, making it America’s number one brand in news. Across all platforms, FOX News reaches 200 million people per month. From its strength in digital and social platforms to its satellite and terrestrial radio presence, FOX News has long been an innovator. During this fiscal year, FOX News launched the first-ever direct-to- consumer news service, FOX Nation, which is geared toward the FOX News superfan.