21st Century Fox FY 2Q17 Earnings Call Notes

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James Murdoch

88 of the top 100 telecasts last year were live sports

“So, the power of sports can’t be overstated. In the US, 88 of the top 100 most viewed telecasts on television last year were live sports. And across all of our broadcasts, Fox Sports continued to deliver what we believe is a superior experience to viewers in terms of production, talent and technology, and we’re very proud of what the team is doing.”

Sky transaction levers up balance sheet but going to focus on de-leveraging

“Thanks, Anthony. Look, I think with respect to capital allocation, looking at the balance sheet going forward, I think the key thing to remember about the Sky transaction that we kind of detailed in December was the rapid deleveraging profile of the combined business. So, yes, we sort of land at around 4 times, a little bit above. It really de-levers rapidly. And we’re going to be focused on deleveraging, right? So, we’re going to put that at the top of the agenda for the number of kind of quarters and years post-closing. So, I think it kind of de-levers pretty quickly and I think we have capacity to do other things, either think about additional capital returns by way of buybacks and continuing, obviously, with a growing dividend. ”

Proliferation of downstream competition is really good for content creators

“we think that that proliferation of downstream competition is really, really healthy for content creators and for brands like ours that robust, that are differentiated, that can really deliver content that works for customers. So, we think that that, A, from a 21CF perspective, that proliferation is going to be a positive thing for our business and we do believe that it can reverse some of these overall declines in subscriber trends in the total MVPD universe and have that go forward.”