FISCAL 2025 SECOND QUARTER KEY
FINANCIAL HIGHLIGHTS
- Second quarter revenues were $2.24 billion, a 5% increase
compared to $2.14 billion in the prior year, driven by growth at
the Digital Real Estate Services, Book Publishing and Dow Jones
segments
- Net income from continuing operations in the quarter was
$306 million, a 58% increase compared to $194 million in the prior
year
- Second quarter Total Segment EBITDA was $478 million, a 20%
increase compared to $400 million in the prior year
- In the quarter, reported EPS from continuing operations were
$0.40 as compared to $0.28 in the prior year - Adjusted EPS were
$0.33 compared to $0.27 in the prior year
- REA Group posted record revenues for the quarter of $343
million, a 17% increase compared to the prior year, driven by
continued strong Australian residential performance
- Dow Jones achieved record revenues for the quarter of $600
million, underpinned by improved circulation revenues and higher
professional information business revenues driven by growth of 11%
at Risk & Compliance and 10% at Dow Jones Energy
- Book Publishing revenues grew 8% in the quarter, while
Segment EBITDA increased 19%, driven by strong physical and digital
book sales
- Announced agreement to sell Foxtel to DAZN for A$3.4 billion
enterprise value. Results from Foxtel are reflected as discontinued
operations. This transaction will enable News Corp to further
simplify to drive long-term stockholder value and increase focus on
key growth pillars
News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS,
NWSA; ASX: NWS, NWSLV) today reported financial results for the
three months ended December 31, 2024.
Commenting on the results, Chief Executive Robert Thomson
said:
“News Corp had a fruitful quarter, qualitatively and
quantitatively. Revenues on a continuing operations basis, which
excludes Foxtel, grew 5 percent to $2.24 billion, net income from
continuing operations surged 58 percent to $306 million and Total
Segment EBITDA rose 20 percent to $478 million.
The three pillars of growth—Digital Real Estate, Dow Jones and
Book Publishing—continued to expand Segment EBITDA robustly. We
also saw the positive impact of rigorous cost discipline and
digital development in the News Media segment, and our overall
margin rose meaningfully compared to the prior year.
With a keen eye on those core areas of growth, we took a
significant step towards simplification with the agreement to sell
Foxtel to DAZN, a premier global sports streaming provider, for a
total enterprise value of A$3.4 billion. The agreement is tangible
recognition of Foxtel’s successful digital transformation, and
should surely benefit our shareholders, our partners at DAZN and
all Australian sports fans.
We are providing priceless content for Generative AI, and remain
vigilant in our pursuit of degenerative AI. We are pleased with our
partnership with OpenAI and hope that other companies in the
segment take a similarly enlightened approach. Our legal action
against the perplexing Perplexity is underway and we look forward
with relish to document discovery. The sudden rise of DeepSeek is
itself a salutary lesson for all AI players. Data centers, chips,
and energy costs aside, we believe DeepSeek lacks the immediacy of
trusted news and, ultimately, content will be king in the world of
AI.”
SECOND QUARTER RESULTS
The Company reported fiscal 2025 second quarter total revenues
of $2.24 billion, a 5% increase compared to $2.14 billion in the
prior year period, primarily driven by higher Australian
residential revenues at REA Group, higher book sales at the Book
Publishing segment and higher circulation and subscription revenues
at the Dow Jones segment, in addition to an $11 million, or 1%,
positive impact from foreign currency fluctuations. The increase
was partly offset by modestly lower revenues at the News Media
segment. Adjusted Revenues (which excludes the foreign currency
impact, acquisitions and divestitures as defined in Note 2)
increased 4% compared to the prior year.
Net income from continuing operations for the quarter was $306
million, a 58% increase compared to $194 million in the prior year,
primarily driven by higher Total Segment EBITDA and higher Other,
net. These impacts were partially offset by higher income tax
expense.
The Company reported second quarter Total Segment EBITDA of $478
million, a 20% increase compared to $400 million in the prior year
due to strong contributions from all four operating segments.
Adjusted Total Segment EBITDA (as defined in Note 2) increased
20%.
Net income from continuing operations per share attributable to
News Corporation stockholders was $0.40 as compared to $0.28 in the
prior year.
Adjusted EPS (as defined in Note 3) were $0.33 compared to $0.27
in the prior year.
SEGMENT REVIEW
For the three months ended
December 31,
For the six months ended
December 31,
2024
2023
% Change
2024
2023
% Change
(in millions)
Better/
(Worse)
(in millions)
Better/
(Worse)
Revenues:
Dow Jones
$
600
$
584
3
%
$
1,152
$
1,121
3
%
Digital Real Estate Services
473
419
13
%
$
930
$
822
13
%
Book Publishing
595
550
8
%
1,141
1,075
6
%
News Media
570
582
(2
)%
1,111
1,148
(3
)%
Other
—
—
—
%
—
—
—
%
Total Revenues
$
2,238
$
2,135
5
%
$
4,334
$
4,166
4
%
Segment EBITDA:
Dow Jones
$
174
$
163
7
%
$
305
$
287
6
%
Digital Real Estate Services
185
147
26
%
325
269
21
%
Book Publishing
101
85
19
%
182
150
21
%
News Media
74
57
30
%
92
74
24
%
Other
(56
)
(52
)
(8
)%
(101
)
(106
)
5
%
Total Segment EBITDA
$
478
$
400
20
%
$
803
$
674
19
%
Dow Jones
Revenues in the quarter increased $16 million, or 3%, compared
to the prior year, driven by higher circulation and subscription
revenues from continued growth in the professional information
business, higher circulation revenues and higher content licensing
revenues, partially offset by lower print advertising revenues.
Digital revenues at Dow Jones in the quarter represented 81% of
total revenues compared to 78% in the prior year. Adjusted Revenues
increased 3%.
Circulation and subscription revenues increased $20 million, or
5%, reflecting a 4% increase in professional information business
revenues, led by 11% growth in Risk & Compliance revenues to
$80 million and 10% growth in Dow Jones Energy revenues to $68
million, partially offset by lower Factiva revenues primarily due
to an ongoing customer dispute. Circulation revenues increased 3%
compared to the prior year, as the continued growth in digital-only
subscriptions was partly offset by lower print volume. Digital
circulation revenues accounted for 73% of circulation revenues for
the quarter, compared to 70% in the prior year, while digital ARPU
improved sequentially.
During the second quarter, total average subscriptions to Dow
Jones’ consumer products were over 5.9 million, a 9% increase
compared to the prior year. Digital-only subscriptions to Dow
Jones’ consumer products grew 13% to over 5.3 million. Total
subscriptions to The Wall Street Journal grew 4% compared to the
prior year, to over 4.2 million average subscriptions in the
quarter. Digital-only subscriptions to The Wall Street Journal grew
7% to nearly 3.8 million average subscriptions in the quarter, and
represented 90% of total Wall Street Journal subscriptions.
For the three months ended
December 31,
2024
2023
% Change
(in thousands, except %)
Better/(Worse)
The Wall Street Journal
Digital-only subscriptions
3,787
3,528
7
%
Total subscriptions
4,225
4,052
4
%
Barron’s Group
Digital-only subscriptions
1,341
1,104
21
%
Total subscriptions
1,458
1,242
17
%
Total Consumer
Digital-only subscriptions
5,352
4,746
13
%
Total subscriptions
5,924
5,427
9
%
Advertising revenues decreased $5 million, or 4%, due to a 10%
decline in print advertising revenues, as digital advertising
revenues were flat. Digital advertising accounted for 64% of total
advertising revenues in the quarter, compared to 62% in the prior
year.
Segment EBITDA for the quarter increased $11 million, or 7%,
primarily as a result of the higher revenues discussed above and
lower newsprint, production and distribution costs, partially
offset by higher marketing costs. Adjusted Segment EBITDA increased
7%.
Digital Real Estate Services
Revenues in the quarter increased $54 million, or 13%, compared
to the prior year, driven by strong performance at REA Group, while
Move revenues increased for the first time in ten quarters. Segment
EBITDA in the quarter increased $38 million, or 26%, compared to
the prior year, due to higher contribution from REA Group. Adjusted
Revenues and Adjusted Segment EBITDA (as defined in Note 2)
increased 12% and 25%, respectively.
In the quarter, revenues at REA Group increased $51 million, or
17%, to $343 million, driven by higher Australian residential
revenues due to price increases, increased depth penetration and an
increase in national listings, higher revenues from REA India and a
$2 million positive impact from foreign currency fluctuations.
Australian national residential buy listing volumes in the quarter
increased 4% compared to the prior year, with listings in Sydney
and Melbourne each up 2%.
Move’s revenues in the quarter increased $3 million, or 2%, to
$130 million, primarily as a result of strong revenue growth in
seller, new homes and rentals, including the partnership with
Zillow, and increased advertising revenues, partially offset by the
ongoing impact of the macroeconomic environment on the housing
market, which led to lower lead and transaction volumes. Real
estate revenues, which represented 78% of total Move revenues, were
essentially flat. Based on Move’s internal data, average monthly
unique users of Realtor.com®’s web and mobile sites for the fiscal
second quarter decreased 6% compared to the prior year to 62
million. Lead volume was down 2% year over year as it continues to
be impacted by high mortgage rates and affordability issues.
Book Publishing
Revenues in the quarter increased $45 million, or 8%, compared
to the prior year, primarily driven by higher physical and digital
book sales. Key titles in the quarter included Cher: The Memoir by
Cher and Wicked by Gregory Maguire. Sales in the U.K. performed
well driven by multiple titles by Laurie Gilmore, as did Christian
publishing, driven by higher Bible sales. Adjusted Revenues
increased 8%.
Digital sales increased 9% compared to the prior year, driven by
13% growth from audiobook sales, which benefited from the continued
contribution from the Spotify partnership and strong market
conditions, in addition to higher e-book sales, which increased 6%
compared to the prior year. Digital sales represented 21% of
Consumer revenues for both the quarter and the prior year period.
Backlist sales represented approximately 61% of Consumer revenues
in the quarter compared to 60% in the prior year.
Segment EBITDA for the quarter increased $16 million, or 19%,
compared to the prior year, primarily due to the higher revenues
discussed above, partially offset by higher manufacturing costs due
to higher sales volume and higher employee costs. Adjusted Segment
EBITDA increased 19%.
News Media
Revenues in the quarter decreased $12 million, or 2%, as
compared to the prior year, primarily driven by lower revenues from
the transfer of third-party printing revenue contracts to News UK’s
joint venture with DMG Media and lower advertising revenues, partly
offset by a $7 million, or 1%, positive impact from foreign
currency fluctuations. Adjusted Revenues for the segment decreased
3% compared to the prior year.
Circulation and subscription revenues were flat compared to the
prior year, as cover price increases, higher digital subscribers
and the $5 million, or 2%, positive impact from foreign currency
fluctuations were offset by lower print volumes.
Advertising revenues decreased $4 million, or 2%, compared to
the prior year, primarily due to lower print advertising revenues
and lower digital advertising revenues at News UK mainly driven by
a decline in traffic at some mastheads due to algorithm changes at
certain platforms, partially offset by a $2 million, or 1%,
positive impact from foreign currency fluctuations.
In the quarter, Segment EBITDA increased $17 million, or 30%,
compared to the prior year, driven by cost savings at News UK as a
result of the combination of its printing operations with those of
DMG Media and other cost savings initiatives, including lower Talk
costs, partially offset by the lower revenues discussed above.
Adjusted Segment EBITDA increased 28%.
Sky News results have now been reflected within the News Media
segment. Revenue contribution in the quarter of $17 million was
flat compared to the prior year.
Digital revenues represented 39% of News Media segment revenues
in the quarter, compared to 37% in the prior year, and represented
37% of the combined revenues of the newspaper mastheads. Digital
subscribers and users across key properties within the News Media
segment are summarized below:
- Closing digital subscribers at News Corp Australia as of
December 31, 2024 were 1,126,000 (979,000 for news mastheads),
compared to 1,051,000 (940,000 for news mastheads) in the prior
year (Source: Internal data)
- The Times and Sunday Times closing digital subscribers,
including the Times Literary Supplement, as of December 31, 2024
were 616,000, compared to 575,000 in the prior year (Source:
Internal data).
- The Sun’s digital offering reached 70 million global monthly
unique users in December 2024, compared to 143 million in the prior
year (Source: Meta Pixel)
- New York Post’s digital network reached 90 million unique users
in December 2024, compared to 124 million in the prior year
(Source: Google Analytics)
CASH FLOW
The following table presents a reconciliation of net cash
provided by operating activities from continuing operations to free
cash flow:
For the six months ended
December 31,
2024
2023
(in millions)
Net cash provided by operating activities
from continuing operations
$
278
$
251
Less: Capital expenditures
(157
)
(154
)
Free cash flow
$
121
$
97
Net cash provided by operating activities from continuing
operations of $278 million for the six months ended December 31,
2024 was $27 million higher than net cash provided by operating
activities from continuing operations of $251 million in the prior
year, primarily due to higher Total Segment EBITDA, as noted above,
partly offset by higher working capital and tax payments.
Free cash flow in the six months ended December 31, 2024 was
$121 million compared to $97 million in the prior year. The
improvement in free cash flow was primarily due to higher cash
provided by operating activities from continuing operations, as
mentioned above.
Free cash flow is a non-GAAP financial measure. Free cash flow
is defined as net cash provided by (used in) operating activities
from continuing operations less capital expenditures. Free cash
flow excludes cash flows from discontinued operations. Free cash
flow may not be comparable to similarly titled measures reported by
other companies, since companies and investors may differ as to
what items should be included in the calculation of free cash
flow.
Free cash flow does not represent the total increase or decrease
in the cash balance for the period and should be considered in
addition to, not as a substitute for, the net change in cash and
cash equivalents as presented in the Company’s consolidated
statements of cash flows prepared in accordance with GAAP, which
incorporates all cash movements during the period.
The Company believes free cash flow provides useful information
to management and investors about the Company’s liquidity and cash
flow trends.
OTHER ITEMS
Dividends
The Company declared today a semi-annual cash dividend of $0.10
per share for Class A Common Stock and Class B Common Stock. This
dividend is payable on April 9, 2025 to stockholders of record as
of March 12, 2025.
Foxtel Sale
During the second quarter of fiscal 2025, the Company entered
into a definitive agreement to sell the Foxtel Group (“Foxtel”) to
DAZN Group Limited (“DAZN”). Under the terms of the agreement,
amounts outstanding under Foxtel’s shareholder loans with News Corp
(A$574 million of outstanding principal, including capitalized
interest, as of December 31, 2024) will be repaid in full in cash
at closing. Foxtel’s third-party borrowings will transfer with the
business, and News Corp will receive a minority equity interest in
DAZN of approximately 6% and hold one seat on its Board of
Directors. Telstra Group Ltd will also sell its minority interest
in Foxtel. The transaction is expected to close in the second half
of fiscal 2025, subject to regulatory approvals and other customary
closing conditions.
As a result of the progression of the sales process and the
discontinuation of further significant business activities in the
Subscription Video Services segment, the assets and liabilities of
Foxtel were classified as held for sale and the results of
operations have been classified as discontinued operations for all
periods presented as the disposition reflects a strategic shift
that has, and will have, a major effect on the Company’s operations
and financial results. Furthermore, upon reclassification of
Foxtel’s results, the Subscription Video Services segment ceased to
be a reportable segment and the residual results of the segment
were aggregated into the News Media segment. News Media segment
results have been recast to reflect this change for all periods
presented.
COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION
Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment
EBITDA, Adjusted Segment EBITDA, adjusted net income attributable
to News Corporation stockholders, Adjusted EPS, constant currency
revenues and free cash flow are non-GAAP financial measures
contained in this earnings release. The Company believes these
measures are important tools for investors and analysts to use in
assessing the Company’s underlying business performance and to
provide for more meaningful comparisons of the Company’s operating
performance between periods. These measures also allow investors
and analysts to view the Company’s business from the same
perspective as Company management. These non-GAAP measures may be
different than similar measures used by other companies and should
be considered in addition to, not as a substitute for, measures of
financial performance calculated in accordance with GAAP.
Reconciliations for the differences between non-GAAP measures used
in this earnings release and comparable financial measures
calculated in accordance with U.S. GAAP are included in Notes 1, 2,
3 and 4 and the reconciliation of net cash provided by operating
activities from continuing operations to free cash flow is included
above.
Conference call
News Corporation’s earnings conference call can be heard live at
5:00 p.m. EST on February 5, 2025. To listen to the call, please
visit http://investors.newscorp.com.
Cautionary Statement Concerning Forward-Looking
Statements
This document contains certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, but are not
limited to, statements regarding trends and uncertainties affecting
the Company’s business, results of operations and financial
condition, the Company’s strategy and strategic initiatives,
including the sale of the Foxtel Group and other potential
acquisitions, investments and dispositions, the Company’s cost
savings initiatives and the outcome of contingencies such as
litigation and investigations. These statements are based on
management’s views and assumptions regarding future events and
business performance as of the time the statements are made. Actual
results may differ materially from these expectations due to the
risks, uncertainties and other factors described in the Company’s
filings with the Securities and Exchange Commission. More detailed
information about factors that could affect future results is
contained in our filings with the Securities and Exchange
Commission. The “forward-looking statements” included in this
document are made only as of the date of this document and we do
not have and do not undertake any obligation to publicly update any
“forward-looking statements” to reflect subsequent events or
circumstances, and we expressly disclaim any such obligation,
except as required by law or regulation.
About News Corporation
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global,
diversified media and information services company focused on
creating and distributing authoritative and engaging content and
other products and services. The company comprises businesses
across a range of media, including: information services and news,
digital real estate services and book publishing. Headquartered in
New York, News Corp operates primarily in the United States,
Australia, and the United Kingdom, and its content and other
products and services are distributed and consumed worldwide. More
information is available at: www.newscorp.com.
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited; in millions,
except per share amounts)
For the three months ended
December 31,
For the six months ended
December 31,
2024
2023
2024
2023
Revenues:
Circulation and subscription
$
745
$
725
$
1,488
$
1,449
Advertising
385
391
706
723
Consumer
572
527
1,093
1,029
Real estate
377
327
734
638
Other
159
165
313
327
Total Revenues
2,238
2,135
4,334
4,166
Operating expenses
(963
)
(970
)
(1,915
)
(1,948
)
Selling, general and administrative
(797
)
(765
)
(1,616
)
(1,544
)
Depreciation and amortization
(113
)
(110
)
(225
)
(211
)
Impairment and restructuring charges
(16
)
(12
)
(38
)
(49
)
Equity losses of affiliates
(8
)
(1
)
(11
)
(3
)
Interest expense, net
(3
)
(7
)
(3
)
(15
)
Other, net
92
21
114
(17
)
Income before income tax expense from
continuing operations
430
291
640
379
Income tax expense from continuing
operations
(124
)
(97
)
(185
)
(131
)
Net income from continuing operations
306
194
455
248
Net loss from discontinued operations, net
of tax
(23
)
(11
)
(28
)
(7
)
Net income
283
183
427
241
Net income attributable to noncontrolling
interests from continuing operations
(78
)
(34
)
(109
)
(64
)
Net loss attributable to noncontrolling
interests from discontinued operations
10
7
16
9
Net income attributable to News
Corporation stockholders
$
215
$
156
$
334
$
186
Weighted-average shares outstanding
Basic
568.5
571.9
568.8
572.1
Diluted
570.1
573.5
570.7
573.8
Net income (loss) attributable to News
Corporation stockholders per share:
Basic
Continuing operations
$
0.40
$
0.28
$
0.61
$
0.33
Discontinued operations
$
(0.02
)
$
(0.01
)
$
(0.02
)
$
—
$
0.38
$
0.27
$
0.59
$
0.33
Diluted
Continuing operations
$
0.40
$
0.28
$
0.61
$
0.32
Discontinued operations
$
(0.02
)
$
(0.01
)
$
(0.02
)
$
—
$
0.38
$
0.27
$
0.59
$
0.32
NEWS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in
millions)
As of
December 31, 2024
As of
June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
1,751
$
1,872
Receivables, net
1,655
1,420
Inventory, net
296
266
Other current assets
554
474
Current assets held for sale
2,196
340
Total current assets
6,452
4,372
Non-current assets:
Investments
365
429
Property, plant and equipment, net
1,241
1,272
Operating lease right-of-use assets
769
805
Intangible assets, net
1,893
1,948
Goodwill
4,265
4,336
Deferred income tax assets, net
241
332
Other non-current assets
935
957
Non-current assets held for sale
—
2,233
Total assets
$
16,161
$
16,684
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
365
$
254
Accrued expenses
832
986
Deferred revenue
431
483
Current borrowings
19
9
Other current liabilities
759
772
Current liabilities held for sale
1,324
551
Total current liabilities
3,730
3,055
Non-current liabilities:
Borrowings
1,948
2,093
Retirement benefit obligations
126
125
Deferred income tax liabilities, net
14
21
Operating lease liabilities
872
912
Other non-current liabilities
446
472
Non-current liabilities held for sale
—
995
Commitments and contingencies
Equity:
Class A common stock
4
4
Class B common stock
2
2
Additional paid-in capital
11,141
11,254
Accumulated deficit
(1,574
)
(1,889
)
Accumulated other comprehensive loss
(1,424
)
(1,251
)
Total News Corporation stockholders'
equity
8,149
8,120
Noncontrolling interests
876
891
Total equity
9,025
9,011
Total liabilities and equity
$
16,161
$
16,684
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited; in
millions)
For the six months ended
December 31,
2024
2023
Operating activities:
Net income
$
427
$
241
Net loss from discontinued operations, net
of tax
28
7
Net income from continuing operations
455
248
Adjustments to reconcile net income from
continuing operations to net cash provided by operating activities
from continuing operations:
Depreciation and amortization
225
211
Operating lease expense
37
36
Equity losses of affiliates
11
3
Impairment charges
—
24
Deferred income taxes
80
60
Other, net
(112
)
20
Change in operating assets and
liabilities, net of acquisitions:
Receivables and other assets
(247
)
(79
)
Inventories, net
(31
)
23
Accounts payable and other liabilities
(140
)
(295
)
Net cash provided by operating activities
from continuing operations
278
251
Investing activities:
Capital expenditures
(157
)
(154
)
Acquisitions, net of cash acquired
(13
)
(20
)
Purchases of investments in equity
affiliates and other
(107
)
(52
)
Proceeds from sales of investments in
equity affiliates and other
234
30
Other, net
(13
)
—
Net cash used in investing activities from
continuing operations
(56
)
(196
)
Financing activities:
Borrowings
61
273
Repayment of borrowings
(196
)
(268
)
Repurchase of shares
(78
)
(56
)
Dividends paid
(92
)
(85
)
Other, net
(37
)
(39
)
Net cash used in financing activities from
continuing operations
(342
)
(175
)
Cash flows from discontinued
operations:
Net cash provided by operating activities
from discontinued operations
90
53
Net cash used in investing activities from
discontinued operations
(43
)
(82
)
Net cash (used in) provided by financing
activities from discontinued operations
(11
)
31
Net cash provided by discontinued
operations
36
2
Net change in cash, cash equivalents, and
restricted cash
(84
)
(118
)
Cash, cash equivalents and restricted
cash, beginning of year
1,960
1,833
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(30
)
9
Cash, cash equivalents and restricted
cash, end of period
1,846
1,724
Less: Cash and cash equivalents at end of
period of discontinued operations
(58
)
(17
)
Less: Restricted cash included in Other
current assets(a)
(37
)
—
Cash and cash equivalents
$
1,751
$
1,707
(a) Represents restricted cash in escrow
to fund an acquisition at the Book Publishing segment which closed
in the third quarter of fiscal 2025
NOTE 1 – TOTAL SEGMENT EBITDA
Segment EBITDA is defined as revenues less operating expenses
and selling, general and administrative expenses. Segment EBITDA
does not include: depreciation and amortization, impairment and
restructuring charges, equity losses of affiliates, interest
(expense) income, net, other, net, income tax (expense) benefit and
net income (loss) from discontinued operations, net of tax.
Management believes that Segment EBITDA is an appropriate measure
for evaluating the operating performance of the Company’s business
segments because it is the primary measure used by the Company’s
chief operating decision maker to evaluate the performance of and
allocate resources within the Company’s businesses. Segment EBITDA
provides management, investors and equity analysts with a measure
to analyze the operating performance of each of the Company’s
business segments and its enterprise value against historical data
and competitors’ data, although historical results may not be
indicative of future results (as operating performance is highly
contingent on many factors, including customer tastes and
preferences).
Total Segment EBITDA is a non-GAAP measure and should be
considered in addition to, not as a substitute for, net income
(loss) from continuing operations, cash flow from continuing
operations and other measures of financial performance reported in
accordance with GAAP. In addition, this measure does not reflect
cash available to fund requirements and excludes items, such as
depreciation and amortization and impairment and restructuring
charges, which are significant components in assessing the
Company’s financial performance. The Company believes that the
presentation of Total Segment EBITDA provides useful information
regarding the Company’s operations and other factors that affect
the Company’s reported results. Specifically, the Company believes
that by excluding certain one-time or non-cash items such as
impairment and restructuring charges and depreciation and
amortization, as well as potential distortions between periods
caused by factors such as financing and capital structures and
changes in tax positions or regimes, the Company provides users of
its consolidated financial statements with insight into both its
core operations as well as the factors that affect reported results
between periods but which the Company believes are not
representative of its core business. As a result, users of the
Company’s consolidated financial statements are better able to
evaluate changes in the core operating results of the Company
across different periods. The following tables reconcile net income
from continuing operations to Total Segment EBITDA for the three
and six months ended December 31, 2024 and 2023:
For the three months ended
December 31,
2024
2023
Change
% Change
(in millions)
Net income from continuing operations
306
194
112
58
%
Add:
Income tax expense from continuing
operations
124
97
27
28
%
Other, net
(92
)
(21
)
(71
)
(338
)%
Interest expense, net
3
7
(4
)
(57
)%
Equity losses of affiliates
8
1
7
700
%
Impairment and restructuring charges
16
12
4
33
%
Depreciation and amortization
113
110
3
3
%
Total Segment EBITDA
$
478
$
400
$
78
20
%
For the six months ended December
31,
2024
2023
Change
% Change
(in millions)
Net income from continuing operations
455
248
207
83
%
Add:
Income tax expense from continuing
operations
185
131
54
41
%
Other, net
(114
)
17
(131
)
**
Interest expense, net
3
15
(12
)
(80
)%
Equity losses of affiliates
11
3
8
267
%
Impairment and restructuring charges
38
49
(11
)
(22
)%
Depreciation and amortization
225
211
14
7
%
Total Segment EBITDA
$
803
$
674
$
129
19
%
**Not meaningful
NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND
ADJUSTED SEGMENT EBITDA
The Company uses revenues, Total Segment EBITDA and Segment
EBITDA excluding the impact of acquisitions, divestitures, fees and
costs, net of indemnification, related to the claims and
investigations arising out of certain conduct at The News of the
World (the “U.K. Newspaper Matters”), charges for other
significant, non-ordinary course legal or regulatory matters
(“litigation charges”) and foreign currency fluctuations (“Adjusted
Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment
EBITDA,” respectively) to evaluate the performance of the Company’s
core business operations exclusive of certain items that impact the
comparability of results from period to period such as the
unpredictability and volatility of currency fluctuations. The
Company calculates the impact of foreign currency fluctuations for
businesses reporting in currencies other than the U.S. dollar by
multiplying the results for each quarter in the current period by
the difference between the average exchange rate for that quarter
and the average exchange rate in effect during the corresponding
quarter of the prior year and totaling the impact for all quarters
in the current period.
The calculation of Adjusted Revenues, Adjusted Total Segment
EBITDA and Adjusted Segment EBITDA may not be comparable to
similarly titled measures reported by other companies, since
companies and investors may differ as to what type of events
warrant adjustment. Adjusted Revenues, Adjusted Total Segment
EBITDA and Adjusted Segment EBITDA are not measures of performance
under generally accepted accounting principles and should not be
construed as substitutes for amounts determined under GAAP as
measures of performance. However, management uses these measures in
comparing the Company’s historical performance and believes that
they provide meaningful and comparable information to investors to
assist in their analysis of our performance relative to prior
periods and our competitors.
The following tables reconcile reported revenues and reported
Total Segment EBITDA to Adjusted Revenues and Adjusted Total
Segment EBITDA for the three and six months ended December 31, 2024
and 2023:
Revenues
Total Segment EBITDA
For the three months ended
December 31,
For the three months ended
December 31,
2024
2023
Difference
2024
2023
Difference
(in millions)
(in millions)
As reported
$
2,238
$
2,135
$
103
$
478
$
400
$
78
Impact of acquisitions
(2
)
—
(2
)
—
—
—
Impact of foreign currency
fluctuations
(11
)
—
(11
)
(1
)
—
(1
)
Net impact of U.K. Newspaper Matters
—
—
—
4
2
2
As adjusted
$
2,225
$
2,135
$
90
$
481
$
402
$
79
Revenues
Total Segment EBITDA
For the six months ended December
31,
For the six months ended December
31,
2024
2023
Difference
2024
2023
Difference
(in millions)
(in millions)
As reported
$
4,334
$
4,166
$
168
$
803
$
674
$
129
Impact of acquisitions
(4
)
—
(4
)
1
—
1
Impact of foreign currency
fluctuations
(35
)
—
(35
)
(7
)
—
(7
)
Net impact of U.K. Newspaper Matters
—
—
—
6
5
1
As adjusted
$
4,295
$
4,166
$
129
$
803
$
679
$
124
Foreign Exchange Rates
Average foreign exchange rates used in the calculation of the
impact of foreign currency fluctuations for the three and six
months ended December 31, 2024 and 2023 are as follows:
Fiscal Year 2025
Q1
Q2
U.S. Dollar per Australian Dollar
$0.67
$0.65
U.S. Dollar per British Pound Sterling
$1.30
$1.28
Fiscal Year 2024
Q1
Q2
U.S. Dollar per Australian Dollar
$0.65
$0.65
U.S. Dollar per British Pound Sterling
$1.27
$1.24
Adjusted Revenues and Adjusted Segment EBITDA by segment for the
three and six months ended December 31, 2024 and 2023 are as
follows:
For the three months ended
December 31,
2024
2023
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Dow Jones
$
599
$
584
3
%
Digital Real Estate Services
470
419
12
%
Book Publishing
593
550
8
%
News Media
563
582
(3
)%
Other
—
—
—
%
Adjusted Total Revenues
$
2,225
$
2,135
4
%
Adjusted Segment EBITDA:
Dow Jones
$
175
$
163
7
%
Digital Real Estate Services
184
147
25
%
Book Publishing
101
85
19
%
News Media
73
57
28
%
Other
(52
)
(50
)
(4
)%
Adjusted Total Segment EBITDA
$
481
$
402
20
%
For the six months ended December
31,
2024
2023
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Dow Jones
$
1,148
$
1,121
2
%
Digital Real Estate Services
919
822
12
%
Book Publishing
1,136
1,075
6
%
News Media
1,092
1,148
(5
)%
Other
—
—
—
%
Adjusted Total Revenues
$
4,295
$
4,166
3
%
Adjusted Segment EBITDA:
Dow Jones
$
305
$
287
6
%
Digital Real Estate Services
322
269
20
%
Book Publishing
181
150
21
%
News Media
90
74
22
%
Other
(95
)
(101
)
6
%
Adjusted Total Segment EBITDA
$
803
$
679
18
%
The following tables reconcile reported revenues and Segment
EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA
by segment for the three and six months ended December 31, 2024 and
2023:
For the three months ended
December 31, 2024
As
Reported
Impact of
Acquisitions
Impact of
Foreign
Currency
Fluctuations
Net Impact
of U.K.
Newspaper
Matters
As
Adjusted
(in millions)
Revenues:
Dow Jones
$
600
$
(1
)
$
—
$
—
$
599
Digital Real Estate Services
473
(1
)
(2
)
—
470
Book Publishing
595
—
(2
)
—
593
News Media
570
—
(7
)
—
563
Other
—
—
—
—
—
Total Revenues
$
2,238
$
(2
)
$
(11
)
$
—
$
2,225
Segment EBITDA:
Dow Jones
$
174
$
—
$
1
$
—
$
175
Digital Real Estate Services
185
—
(1
)
—
184
Book Publishing
101
—
—
—
101
News Media
74
—
(1
)
—
73
Other
(56
)
—
—
4
(52
)
Total Segment EBITDA
$
478
$
—
$
(1
)
$
4
$
481
For the three months ended
December 31, 2023
As
Reported
Impact of
Acquisitions
Impact of
Foreign
Currency
Fluctuations
Net Impact
of U.K.
Newspaper
Matters
As
Adjusted
(in millions)
Revenues:
Dow Jones
$
584
$
—
$
—
$
—
$
584
Digital Real Estate Services
419
—
—
—
419
Book Publishing
550
—
—
—
550
News Media
582
—
—
—
582
Other
—
—
—
—
—
Total Revenues
$
2,135
$
—
$
—
$
—
$
2,135
Segment EBITDA:
Dow Jones
$
163
$
—
$
—
$
—
$
163
Digital Real Estate Services
147
—
—
—
147
Book Publishing
85
—
—
—
85
News Media
57
—
—
—
57
Other
(52
)
—
—
2
(50
)
Total Segment EBITDA
$
400
$
—
$
—
$
2
$
402
For the six months ended December
31, 2024
As
Reported
Impact of
Acquisitions
Impact of
Foreign
Currency
Fluctuations
Net Impact
of U.K.
Newspaper
Matters
As
Adjusted
(in millions)
Revenues:
Dow Jones
$
1,152
$
(2
)
$
(2
)
$
—
$
1,148
Digital Real Estate Services
930
(2
)
(9
)
—
919
Book Publishing
1,141
—
(5
)
—
1,136
News Media
1,111
—
(19
)
—
1,092
Other
—
—
—
—
—
Total Revenues
$
4,334
$
(4
)
$
(35
)
$
—
$
4,295
Segment EBITDA:
Dow Jones
$
305
$
—
$
—
$
—
$
305
Digital Real Estate Services
325
1
(4
)
—
322
Book Publishing
182
—
(1
)
—
181
News Media
92
—
(2
)
—
90
Other
(101
)
—
—
6
(95
)
Total Segment EBITDA
$
803
$
1
$
(7
)
$
6
$
803
For the six months ended December
31, 2023
As
Reported
Impact of
Acquisitions
Impact of
Foreign
Currency
Fluctuations
Net Impact
of U.K.
Newspaper
Matters
As
Adjusted
(in millions)
Revenues:
Dow Jones
$
1,121
$
—
$
—
$
—
$
1,121
Digital Real Estate Services
822
—
—
—
822
Book Publishing
1,075
—
—
—
1,075
News Media
1,148
—
—
—
1,148
Other
—
—
—
—
—
Total Revenues
$
4,166
$
—
$
—
$
—
$
4,166
Segment EBITDA:
Dow Jones
$
287
$
—
$
—
$
—
$
287
Digital Real Estate Services
269
—
—
—
269
Book Publishing
150
—
—
—
150
News Media
74
—
—
—
74
Other
(106
)
—
—
5
(101
)
Total Segment EBITDA
$
674
$
—
$
—
$
5
$
679
NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS
CORPORATION STOCKHOLDERS AND ADJUSTED EPS
The Company uses net income (loss) attributable to News
Corporation stockholders from continuing operations and diluted
earnings per share from continuing operations (“EPS”) excluding
expenses related to U.K. Newspaper Matters, litigation charges,
impairment and restructuring charges and “Other, net”, net of tax,
recognized by the Company or its equity method investees, as well
as the settlement of certain pre-Separation tax matters (“adjusted
net income (loss) attributable to News Corporation stockholders”
and “adjusted EPS,” respectively), to evaluate the performance of
the Company’s operations exclusive of certain items that impact the
comparability of results from period to period, as well as certain
non-operational items. The calculation of adjusted net income
(loss) attributable to News Corporation stockholders and adjusted
EPS may not be comparable to similarly titled measures reported by
other companies, since companies and investors may differ as to
what type of events warrant adjustment. Adjusted net income (loss)
attributable to News Corporation stockholders and adjusted EPS are
not measures of performance under generally accepted accounting
principles and should not be construed as substitutes for
consolidated net income (loss) attributable to News Corporation
stockholders from continuing operations and net income (loss) per
share from continuing operations as determined under GAAP as a
measure of performance. However, management uses these measures in
comparing the Company’s historical performance and believes that
they provide meaningful and comparable information to investors to
assist in their analysis of our performance relative to prior
periods and our competitors.
The following tables reconcile reported net income attributable
to News Corporation stockholders from continuing operations and
reported diluted EPS to adjusted net income attributable to News
Corporation stockholders and adjusted EPS for the three and six
months ended December 31, 2024 and 2023:
For the three months ended
December 31, 2024
For the three months ended
December 31, 2023
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net income attributable to
stockholders
EPS
Net income from continuing
operations
$
306
$
194
Less: Net income attributable to
noncontrolling interests from continuing operations
(78
)
(34
)
Net income attributable to News
Corporation stockholders from continuing operations
$
228
$
0.40
$
160
$
0.28
U.K. Newspaper Matters
4
0.01
2
0.01
Impairment and restructuring
charges(a)
16
0.03
12
0.02
Other, net
(92
)
(0.16
)
(21
)
(0.04
)
Tax impact on items above
—
—
—
—
Impact of noncontrolling interest on items
above
33
0.05
(1
)
—
As adjusted
$
189
$
0.33
$
152
$
0.27
(a)
During the three months ended
December 31, 2023, the Company recognized non-cash impairment
charges of $1 million at the News Media segment related to the
write-down of fixed assets associated with the combination of News
UK’s printing operations with those of DMG Media.
For the six months ended December
31, 2024
For the six months ended December
31, 2023
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net income attributable to
stockholders
EPS
Net income from continuing
operations
$
455
$
248
Less: Net income attributable to
noncontrolling interests from continuing operations
(109
)
(64
)
Net income attributable to News
Corporation stockholders from continuing operations
$
346
$
0.61
$
184
$
0.32
U.K. Newspaper Matters
6
0.01
5
0.01
Impairment and restructuring charges
(a)
38
0.07
49
0.09
Other, net
(114
)
(0.20
)
17
0.03
Tax impact on items above
(3
)
(0.01
)
(19
)
(0.04
)
Impact of noncontrolling interest on items
above
33
0.06
1
—
As adjusted
$
306
$
0.54
$
237
$
0.41
(a)
During the six months ended
December 31, 2023, the Company recognized non-cash impairment
charges of $22 million at the News Media segment related to the
write-down of fixed assets associated with the combination of News
UK’s printing operations with those of DMG Media.
NOTE 4 – CONSTANT CURRENCY REVENUES
The Company believes that the presentation of revenues excluding
the impact of foreign currency fluctuations (“constant currency
revenues”) provides useful information regarding the performance of
the Company’s core business operations exclusive of distortions
between periods caused by the unpredictability and volatility of
currency fluctuations. The Company calculates the impact of foreign
currency fluctuations for businesses reporting in currencies other
than the U.S. dollar as described in Note 2.
Constant currency revenues are not measures of performance under
generally accepted accounting principles and should not be
construed as substitutes for revenues as determined under GAAP as
measures of performance. However, management uses these measures in
comparing the Company’s historical performance and believes that
they provide meaningful and comparable information to investors to
assist in their analysis of our performance relative to prior
periods and our competitors.
The following tables reconcile reported revenues to constant
currency revenues for the three and six months ended December 31,
2024:
Q2 Fiscal 2024
Q2 Fiscal 2025
FX impact
Q2 Fiscal 2025 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Consolidated results:
Circulation and subscription
$
725
$
745
$
5
$
740
3
%
2
%
Advertising
391
385
2
383
(2
)%
(2
)%
Consumer
527
572
2
570
9
%
8
%
Real estate
327
377
1
376
15
%
15
%
Other
165
159
1
158
(4
)%
(4
)%
Total revenues
$
2,135
$
2,238
$
11
$
2,227
5
%
4
%
Dow Jones:
Circulation and subscription
$
441
$
461
$
—
$
461
5
%
5
%
Advertising
126
121
—
121
(4
)%
(4
)%
Other
17
18
—
18
6
%
6
%
Total Dow Jones segment revenues
$
584
$
600
$
—
$
600
3
%
3
%
Digital Real Estate Services:
Circulation and subscription
$
2
$
2
$
—
$
2
—
%
—
%
Advertising
32
35
—
35
9
%
9
%
Real estate
327
377
1
376
15
%
15
%
Other
58
59
1
58
2
%
—
%
Total Digital Real Estate Services segment
revenues
$
419
$
473
$
2
$
471
13
%
12
%
REA Group revenues
$
292
$
343
$
2
$
341
17
%
17
%
Q2 Fiscal 2024
Q2 Fiscal 2025
FX impact
Q2 Fiscal 2025 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Book Publishing:
Consumer
$
527
$
572
$
2
$
570
9
%
8
%
Other
23
23
—
23
—
%
—
%
Total Book Publishing segment revenues
$
550
$
595
$
2
$
593
8
%
8
%
News Media:
Circulation and subscription
$
282
$
282
$
5
$
277
—
%
(2
)%
Advertising
233
229
2
227
(2
)%
(3
)%
Other
67
59
—
59
(12
)%
(12
)%
Total News Media segment revenues
$
582
$
570
$
7
$
563
(2
)%
(3
)%
News UK
Circulation and subscription
$
141
$
143
$
5
$
138
1
%
(2
)%
Advertising
76
71
1
70
(7
)%
(8
)%
Other
22
12
—
12
(45
)%
(45
)%
Total News UK revenues
$
239
$
226
$
6
$
220
(5
)%
(8
)%
News Corp Australia
Circulation and subscription
$
106
$
105
$
—
$
105
(1
)%
(1
)%
Advertising
96
93
—
93
(3
)%
(3
)%
Other
34
35
—
35
3
%
3
%
Total News Corp Australia revenues
$
236
$
233
$
—
$
233
(1
)%
(1
)%
Q2 YTD Fiscal 2024
Q2 YTD Fiscal 2025
FX impact
Q2 YTD Fiscal 2025 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Consolidated results:
Circulation and subscription
$
1,449
$
1,488
$
13
$
1,475
3
%
2
%
Advertising
723
706
7
699
(2
)%
(3
)%
Consumer
1,029
1,093
5
1,088
6
%
6
%
Real estate
638
734
7
727
15
%
14
%
Other
327
313
3
310
(4
)%
(5
)%
Total revenues
$
4,166
$
4,334
$
35
$
4,299
4
%
3
%
Dow Jones:
Circulation and subscription
$
877
$
920
$
2
$
918
5
%
5
%
Advertising
217
206
—
$
206
(5
)%
(5
)%
Other
27
26
—
$
26
(4
)%
(4
)%
Total Dow Jones segment revenues
$
1,121
$
1,152
$
2
$
1,150
3
%
3
%
Digital Real Estate Services:
Circulation and subscription
$
5
$
4
$
—
$
4
(20
)%
(20
)%
Advertising
67
73
—
$
73
9
%
9
%
Real estate
638
734
7
$
727
15
%
14
%
Other
112
119
2
$
117
6
%
4
%
Total Digital Real Estate Services segment
revenues
$
822
$
930
$
9
$
921
13
%
12
%
REA Group revenues
$
553
$
661
$
9
$
652
20
%
18
%
Book Publishing:
Consumer
1,029
1,093
5
$
1,088
6
%
6
%
Other
46
48
—
$
48
4
%
4
%
Total Book Publishing segment revenues
$
1,075
$
1,141
$
5
$
1,136
6
%
6
%
News Media:
Circulation and subscription
$
567
$
564
$
11
$
553
(1
)%
(2
)%
Advertising
439
427
7
$
420
(3
)%
(4
)%
Other
142
120
1
$
119
(15
)%
(16
)%
Total News Media segment revenues
$
1,148
$
1,111
$
19
$
1,092
(3
)%
(5
)%
Q2 YTD Fiscal 2024
Q2 YTD Fiscal 2025
FX impact
Q2 YTD Fiscal 2025 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
News UK
Circulation and subscription
$
285
$
289
$
9
$
280
1
%
(2
)%
Advertising
135
121
3
$
118
(10
)%
(13
)%
Other
47
23
—
$
23
(51
)%
(51
)%
Total News UK revenues
$
467
$
433
$
12
$
421
(7
)%
(10
)%
News Corp Australia
Circulation and subscription
$
213
$
208
$
2
$
206
(2
)%
(3
)%
Advertising
189
183
2
$
181
(3
)%
(4
)%
Other
72
76
1
$
75
6
%
4
%
Total News Corp Australia revenues
$
474
$
467
$
5
$
462
(1
)%
(3
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205444476/en/
Investor Relations Michael Florin
212-416-3363 mflorin@newscorp.com
Anthony Rudolf 212-416-3040 arudolf@newscorp.com
Corporate Communications Arthur
Bochner 646-422-9671 abochner@newscorp.com
News (ASX:NWSLV)
Historical Stock Chart
From Jan 2025 to Feb 2025
News (ASX:NWSLV)
Historical Stock Chart
From Feb 2024 to Feb 2025
