FISCAL 2023 SECOND QUARTER KEY
FINANCIAL HIGHLIGHTS
- Revenues in the quarter were $2.52 billion, a 7% decrease
compared to $2.72 billion in the prior year, reflecting a $171
million, or 6%, negative impact from foreign currency fluctuations.
Adjusted Revenues decreased 3%
- Net income in the quarter was $94 million compared to $262
million in the prior year
- Total Segment EBITDA in the quarter was $409 million
compared to $586 million in the prior year
- In the quarter, reported EPS were $0.12 compared to $0.40 in
the prior year – Adjusted EPS were $0.14 compared to $0.44 in the
prior year
- At the Dow Jones segment, revenues from its professional
information business grew 45%, benefiting from the acquisitions of
OPIS and CMA and the ongoing momentum in its Risk & Compliance
products
- At the Subscription Video Services segment, higher streaming
revenues from Foxtel’s Kayo and BINGE continued to offset broadcast
revenue declines
- Revenues at News UK continued to benefit from strong digital
advertising revenue growth at The Sun, highlighting the brand’s
successful expansion into the U.S. and increase in yield
- Engaged in discussions with CoStar Group regarding a
potential sale of Move
News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS,
NWSA; ASX: NWS, NWSLV) today reported financial results for the
three months ended December 31, 2022.
Commenting on the results, Chief Executive Robert Thomson
said:
“The second quarter highlighted the progress made in certain of
our business segments. Obviously, a surge in interest rates and
acute inflation had a tangible impact on all of our businesses. But
we believe these challenges are more ephemeral than eternal. Just
as our company passed the stress-test of the pandemic with record
profits, the initiatives now underway, including an expected 5
percent headcount reduction, or around 1,250 positions this
calendar year, will create a robust platform for future growth.
Even in the midst of the obvious global challenges, the
professional information business at Dow Jones displayed particular
promise, with revenues surging 45 percent year-over-year. That
encouraging result highlights the value of our opportunistic
acquisitions of OPIS and CMA, and continuing growth at our
burgeoning Risk and Compliance business.
In terms of portfolio optimization, as publicly reported, we
have been actively engaged in discussions with CoStar Group about a
potential sale of Move. Any transaction would be designed to create
shareholder value and strengthen Realtor.com®’s competitive
position.”
SECOND QUARTER RESULTS
The Company reported fiscal 2023 second quarter total revenues
of $2.52 billion, a 7% decrease compared to $2.72 billion in the
prior year period. The decline was primarily due to a $171 million,
or 6%, negative impact from foreign currency fluctuations, lower
revenues at the Book Publishing segment primarily due to lower book
sales and lower revenues at the Digital Real Estate Services
segment due to challenging housing market conditions in Australia
and the U.S. The decline was partially offset by higher Dow Jones
segment revenues, which includes the acquisitions of OPIS and
Chemical Market Analytics (“CMA”), and higher Subscription Video
Services revenues on a constant currency basis. Adjusted Revenues
(which excludes the foreign currency impact, acquisitions and
divestitures as defined in Note 2) decreased 3%.
Net income for the quarter was $94 million, a 64% decline
compared to $262 million in the prior year, primarily due to lower
Total Segment EBITDA, as discussed below, and higher losses from
equity affiliates due to losses from the Company’s investment in a
newly launched sports wagering platform in Australia, partially
offset by lower tax expense.
The Company reported second quarter Total Segment EBITDA of $409
million, a 30% decline compared to $586 million in the prior year,
primarily due to higher costs at the Dow Jones segment, higher
operating expenses at the News Media segment, partly due to
inflationary pressures, lower revenues, as discussed above, and a
$30 million, or 5%, negative impact from foreign currency
fluctuations. The results this quarter also include $6 million of
one-time costs related to the professional fees incurred by the
Special Committee and the Company in connection with evaluating the
proposal from the Murdoch Family Trust. Adjusted Total Segment
EBITDA (as defined in Note 2) decreased 28%.
Net income per share attributable to News Corporation
stockholders was $0.12 as compared to $0.40 in the prior year.
Adjusted EPS (as defined in Note 3) were $0.14 compared to $0.44
in the prior year.
SEGMENT REVIEW
For the three months ended
December 31,
For the six months ended December
31,
2022
2021
% Change
2022
2021
% Change
(in millions)
Better/
(Worse)
(in millions)
Better/
(Worse)
Revenues:
Digital Real Estate Services
$
386
$
456
(15
)%
$
807
$
882
(9
)%
Subscription Video Services
462
498
(7
)%
964
1,008
(4
)%
Dow Jones
563
508
11
%
1,078
952
13
%
Book Publishing
531
617
(14
)%
1,018
1,163
(12
)%
News Media
579
638
(9
)%
1,132
1,214
(7
)%
Other
—
—
—
%
—
—
—
%
Total Revenues
$
2,521
$
2,717
(7
)%
$
4,999
$
5,219
(4
)%
Segment EBITDA:
Digital Real Estate Services
$
128
$
178
(28
)%
$
247
$
316
(22
)%
Subscription Video Services
90
86
5
%
201
200
1
%
Dow Jones
139
144
(3
)%
252
239
5
%
Book Publishing
51
107
(52
)%
90
192
(53
)%
News Media
59
111
(47
)%
77
145
(47
)%
Other
(58
)
(40
)
(45
)%
(108
)
(96
)
(13
)%
Total Segment EBITDA
$
409
$
586
(30
)%
$
759
$
996
(24
)%
Digital Real Estate Services
Revenues in the quarter decreased $70 million, or 15%, compared
to the prior year, reflecting a $26 million, or 5%, negative impact
from foreign currency fluctuations. Segment EBITDA in the quarter
decreased $50 million, or 28%, compared to the prior year,
primarily due to the lower revenues and a $13 million, or 7%,
negative impact from foreign currency fluctuations, partially
offset by lower broker commissions at REA Group. Adjusted Revenues
and Adjusted Segment EBITDA (as defined in Note 2) decreased 10%
and 22%, respectively.
In the quarter, revenues at REA Group decreased $47 million, or
16%, to $240 million, driven by a $26 million, or 9%, negative
impact from foreign currency fluctuations, lower financial services
revenues due to declines in settlement activity and lower
Australian residential revenues due to the decline in national
listings, most notably in Sydney and Melbourne. The decline was
partially offset by price increases and increased depth penetration
in the Australian residential and commercial businesses, increased
penetration of Premiere Plus and higher revenues from REA India.
Australian national residential buy listing volumes in the quarter
declined 21% compared to the prior year, with listings in Sydney
and Melbourne down 34% and 31%, respectively.
Move’s revenues in the quarter decreased $23 million, or 14%, to
$146 million, primarily as a result of lower real estate revenues.
Real estate revenues, which represented 83% of total Move revenues,
decreased $25 million, or 17%, driven by the impact of the
macroeconomic environment on the housing market, including higher
household interest rates, which has led to lower lead and
transaction volumes. Revenues from the referral model, which
includes the ReadyConnect Concierge℠ product, and the traditional
lead generation product decreased due to these factors. The
referral model generated 27% of total Move revenues in the quarter
compared to 32% in the prior year. Based on Move’s internal data,
average monthly unique users of Realtor.com®’s web and mobile sites
for the fiscal second quarter declined 23% year-over-year to 66
million. Lead volume declined 37%.
Subscription Video Services
Revenues of $462 million in the quarter decreased $36 million,
or 7%, compared with the prior year, due to a $52 million, or 10%,
negative impact from foreign currency fluctuations. Adjusted
Revenues of $514 million increased 3% compared to the prior year.
Higher revenues from Kayo and BINGE, driven by increases in both
volume and pricing, and higher commercial revenues were partially
offset by the impact from fewer residential broadcast subscribers
and lower advertising revenues. Foxtel Group streaming subscription
revenues represented approximately 26% of total circulation and
subscription revenues in the quarter, as compared to 19% in the
prior year.
As of December 31, 2022, Foxtel’s total closing paid subscribers
were over 4.3 million, a 10% increase compared to the prior year,
primarily due to the growth in BINGE and Kayo subscribers,
partially offset by lower residential broadcast subscribers.
Broadcast subscriber churn in the quarter improved slightly to
12.9% from 13.0% in the prior year. Broadcast ARPU for the quarter
increased 2% year-over-year to A$83 (US$55).
As of December 31,
2022
2021
(in 000's)
Broadcast Subscribers
Residential
1,401
1,564
Commercial
230
218
Streaming Subscribers (Total (Paid))
Kayo
1,136 (1,126 paid)
1,031 (1,013 paid)
BINGE
1,439 (1,375 paid)
1,037 (928 paid)
Foxtel Now
183 (177 paid)
219 (211 paid)
Total Subscribers (Total (Paid))
4,414 (4,329 paid)
4,075 (3,937 paid)
Segment EBITDA in the quarter increased $4 million, or 5%,
compared with the prior year, reflecting a $10 million, or 11%,
negative impact from foreign currency fluctuations. The growth was
partially offset by higher sports programming rights and production
costs, driven by contractual increases and enhanced digital rights,
as well as higher entertainment rights costs due to an increase in
content availability compared to the prior year. Adjusted Segment
EBITDA increased 16%.
Dow Jones
Revenues in the quarter increased $55 million, or 11%, compared
to the prior year, which includes $36 million and $18 million
contributions from the acquisitions of OPIS and CMA, respectively.
Adjusted Revenues at the Dow Jones segment increased 1% compared to
the prior year, primarily due to the growth in circulation and
subscription revenues from continued digital subscription gains and
growth in Risk & Compliance products. The growth was partially
offset by lower advertising revenues. Digital revenues at Dow Jones
in the quarter represented 76% of total revenues compared to 72% in
the prior year.
Circulation and subscription revenues increased $61 million, or
17%, which includes the contributions from the acquisitions of OPIS
and CMA. Circulation revenue grew 3%, reflecting the continued
growth in digital-only subscriptions, primarily at The Wall Street
Journal. Professional information business revenues grew 45%,
primarily driven by the acquisitions of OPIS and CMA and growth in
Risk & Compliance products, partially offset by negative
foreign currency fluctuations. Revenues from the Risk &
Compliance products grew 13%, which includes a 7% negative impact
from foreign currency fluctuations. Digital circulation revenues
accounted for 69% of circulation revenues for the quarter, compared
to 67% in the prior year.
During the second quarter, total average subscriptions to Dow
Jones’ consumer products reached over 4.9 million, a 5% increase
compared to the prior year. Digital-only subscriptions to Dow
Jones’ consumer products grew 10%. Total subscriptions to The Wall
Street Journal grew 4% compared to the prior year, to nearly 3.8
million average subscriptions in the quarter. Digital-only
subscriptions to The Wall Street Journal grew 9% to over 3.1
million average subscriptions in the quarter, and represented 84%
of total Wall Street Journal subscriptions.
For the three months ended
December 31,
2022
2021
% Change
(in thousands, except %)
Better/(Worse)
The Wall Street Journal
Digital-only subscriptions
3,167
2,918
9
%
Total subscriptions
3,780
3,618
4
%
Barron’s Group
Digital-only subscriptions
894
757
18
%
Total subscriptions
1,062
963
10
%
Total Consumer
Digital-only subscriptions
4,139
3,774
10
%
Total subscriptions
4,943
4,707
5
%
Advertising revenues decreased $10 million, or 7%, primarily due
to a 13% decline in print advertising revenues and a 3% decline in
digital advertising revenues. Digital advertising accounted for 59%
of total advertising revenues in the quarter, compared to 56% in
the prior year.
Segment EBITDA for the quarter decreased $5 million, or 3%,
which includes an $18 million combined contribution from the
acquisitions of OPIS and CMA. The decline was primarily due to
higher employee costs and higher marketing costs, partly due to
timing. Adjusted Segment EBITDA decreased 16%.
Book Publishing
Revenues in the quarter decreased $86 million, or 14%, compared
to the prior year, primarily driven by lower book sales due to
slowing consumer demand industry-wide, difficult frontlist
comparisons and some logistical constraints at Amazon. The decline
also reflects a $22 million, or 4%, negative impact from foreign
currency fluctuations. Key titles in the quarter included The
Stories We Tell by Joanna Gaines, Demon Copperhead by Barbara
Kingsolver and Faith Still Moves Mountains by Harris Faulkner.
Adjusted Revenues decreased 11%. Digital sales declined 7% compared
to the prior year due to lower e-book sales. Digital sales
represented 19% of Consumer revenues for the quarter compared to
17% in the prior year. Backlist sales represented approximately 57%
of total revenues in the quarter.
Segment EBITDA for the quarter decreased $56 million, or 52%,
compared to the prior year, driven by lower revenues, as discussed
above, ongoing supply chain, inventory and inflationary pressures
on manufacturing, freight and distribution costs and a $2 million,
or 2%, negative impact from foreign currency fluctuations,
partially offset by lower costs due to lower sales volume and lower
employee costs. These pressures are expected to continue to impact
the business in the near term. Adjusted Segment EBITDA decreased
51%.
News Media
Revenues in the quarter decreased $59 million, or 9%, as
compared to the prior year, driven by a $65 million, or 10%,
negative impact from foreign currency fluctuations and lower
advertising revenues in constant currency, partially offset by
higher circulation and subscription revenues in constant currency.
Within the segment, revenues at News Corp Australia and News UK
decreased 13% and 10%, respectively, as both were impacted by
negative foreign currency fluctuations. On a constant currency
basis, revenues at News Corp Australia and News UK decreased 3% and
increased 3%, respectively. Adjusted Revenues for the segment
increased 1% compared to the prior year.
Circulation and subscription revenues decreased $20 million, or
7%, compared to the prior year, primarily due to a $31 million, or
11%, negative impact from foreign currency fluctuations and lower
print volume. The decline was partially offset by cover price
increases and digital subscriber growth.
Advertising revenues decreased $37 million, or 13%, compared to
the prior year, primarily due to a $27 million, or 10%, negative
impact from foreign currency fluctuations and lower print
advertising at News UK and News Corp Australia. The decline was
partially offset by growth in digital advertising, primarily at
News UK (mainly at The Sun), and higher revenues at Wireless Group,
partly due to the FIFA World Cup 2022.
In the quarter, Segment EBITDA decreased $52 million, or 47%,
compared to the prior year, driven by lower revenues, as discussed
above, and reflects a $5 million, or 5%, negative impact from
foreign currency fluctuations. The decline was also due to
approximately $22 million of higher costs related to TalkTV and
other digital investments, primarily at News Corp Australia, the
$21 million negative impact from higher newsprint prices, higher
employee costs and higher marketing expenses, partially due to the
increased spend in relation to the World Cup at News UK. The
Segment EBITDA decline was partially offset by cost saving
initiatives. Newsprint, production and distribution costs are
expected to be higher in fiscal 2023 than the prior year due to
supply chain and inflationary pressures, partially offset by the
Company’s continued transition to digital products. Adjusted
Segment EBITDA decreased 43%.
Digital revenues represented 37% of News Media segment revenues
in the quarter, compared to 34% in the prior year, and represented
35% 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, 2022 were 1,011,000 (924,000 for news mastheads),
compared to 909,000 (861,000 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, 2022
were 489,000, compared to 399,000 in the prior year (Source:
Internal data)
- The Sun’s digital offering reached 194 million global monthly
unique users in December 2022, compared to 163 million in the prior
year (Source: Google Analytics)
- New York Post’s digital network reached 141 million unique
users in December 2022, compared to 160 million in the prior year
(Source: Google Analytics)
CASH FLOW
The following table presents a reconciliation of net cash
provided by operating activities to free cash flow and free cash
flow available to News Corporation:
For the six months ended December
31,
2022
2021
(in millions)
Net cash provided by operating
activities
$
161
$
430
Less: Capital expenditures
(217
)
(208
)
Free cash flow
(56
)
222
Less: REA Group free cash flow
(96
)
(121
)
Plus: Cash dividends received from REA
Group
50
43
Free cash flow available to News
Corporation
$
(102
)
$
144
Net cash provided by operating activities of $161 million for
the six months ended December 31, 2022 was $269 million lower than
$430 million in the prior year, primarily due to lower Total
Segment EBITDA, as noted above, and higher working capital,
partially offset by lower restructuring and tax payments.
Free cash flow in the six months ended December 31, 2022 was
$(56) million compared to $222 million in the prior year. Free cash
flow available to News Corporation in the six months ended December
31, 2022 was $(102) million compared to $144 million in the prior
year period. The decrease in both free cash flow and free cash flow
available to News Corporation was primarily due to lower cash
provided by operating activities, as mentioned above. Foxtel’s
capital expenditures for the six months ended December 31, 2022
were $84 million compared to $89 million in the prior year.
Free cash flow and free cash flow available to News Corporation
are non-GAAP financial measures. Free cash flow is defined as net
cash provided by operating activities, less capital expenditures,
and free cash flow available to News Corporation is defined as free
cash flow, less REA Group free cash flow, plus cash dividends
received from REA Group.
The Company believes free cash flow provides useful information
to management and investors about the Company’s liquidity and cash
flow trends. The Company believes free cash flow available to News
Corporation, which adjusts free cash flow to exclude REA Group’s
free cash flow and include dividends received from REA Group,
provides management and investors with a measure of the amount of
cash flow that is readily available to the Company, as REA Group is
a separately listed public company in Australia and must declare a
dividend in order for the Company to have access to its share of
REA Group’s cash balance. The Company believes free cash flow
available to News Corporation provides a more conservative view of
the Company’s free cash flow because this presentation includes
only that amount of cash the Company actually receives from REA
Group, which has generally been lower than the Company’s unadjusted
free cash flow. A limitation of both free cash flow and free cash
flow available to News Corporation is that they do not represent
the total increase or decrease in the cash balance for the period.
Management compensates for the limitation of free cash flow and
free cash flow available to News Corporation by also relying on 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.
SUBSEQUENT EVENTS
Potential Disposition of Move
In January 2023, the Company announced that it was engaged in
discussions with CoStar Group, Inc. regarding a potential sale of
its subsidiary, Move, Inc. However, there is no assurance regarding
the timing or completion of any transaction.
OTHER ITEMS
Dividends
The Company today declared a semi-annual cash dividend of $0.10
per share for Class A Common Stock and Class B Common Stock. The
dividend is payable on April 12, 2023 to stockholders of record as
of March 15, 2023.
Withdrawal of Proposal to Explore Potential Combination with
Fox Corporation (“Fox”)
In October 2022, the Company announced that its Board of
Directors (the “Board”), following the receipt of letters from K.
Rupert Murdoch and the Murdoch Family Trust, had formed a special
committee of independent and disinterested members of the Board
(the “Special Committee”) to begin exploring a potential
combination with Fox (the “Potential Transaction”). In January
2023, the Board of Directors received a letter from Mr. Murdoch
withdrawing the proposal to explore the Potential Transaction. As a
result of the letter, the Special Committee has been dissolved.
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, free cash flow and free cash flow available to News
Corporation 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 to free cash flow and free cash
flow available to News Corporation is included above.
Conference call
News Corporation’s earnings conference call can be heard live at
5:00 p.m. EST on February 9, 2023. 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 potential acquisitions, investments and dispositions, 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: digital real estate services,
subscription video services in Australia, news and information
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,
2022
2021
2022
2021
Revenues:
Circulation and subscription
$
1,085
$
1,072
$
2,196
$
2,149
Advertising
464
519
870
924
Consumer
512
594
979
1,118
Real estate
301
352
624
672
Other
159
180
330
356
Total Revenues
2,521
2,717
4,999
5,219
Operating expenses
(1,294
)
(1,279
)
(2,567
)
(2,523
)
Selling, general and administrative
(818
)
(852
)
(1,673
)
(1,700
)
Depreciation and amortization
(174
)
(168
)
(353
)
(333
)
Impairment and restructuring charges
(19
)
(23
)
(40
)
(45
)
Equity losses of affiliates
(29
)
(6
)
(33
)
(6
)
Interest expense, net
(26
)
(21
)
(53
)
(43
)
Other, net
(6
)
(7
)
(24
)
130
Income before income tax expense
155
361
256
699
Income tax expense
(61
)
(99
)
(96
)
(170
)
Net income
94
262
160
529
Less: Net income attributable to
noncontrolling interests
(27
)
(27
)
(53
)
(98
)
Net income attributable to News
Corporation stockholders
$
67
$
235
$
107
$
431
Weighted average shares outstanding:
Basic
576
592
579
592
Diluted
578
595
581
595
Net income attributable to News
Corporation stockholders per share:
Basic
$
0.12
$
0.40
$
0.18
$
0.73
Diluted
$
0.12
$
0.40
$
0.18
$
0.72
NEWS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in
millions)
As of December 31, 2022
As of June 30, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
1,328
$
1,822
Receivables, net
1,636
1,502
Inventory, net
328
311
Other current assets
471
458
Total current assets
3,763
4,093
Non-current assets:
Investments
524
488
Property, plant and equipment, net
2,045
2,103
Operating lease right-of-use assets
1,021
891
Intangible assets, net
2,585
2,671
Goodwill
5,167
5,169
Deferred income tax assets
386
422
Other non-current assets
1,400
1,384
Total assets
$
16,891
$
17,221
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
308
$
411
Accrued expenses
1,052
1,236
Deferred revenue
591
604
Current borrowings
27
293
Other current liabilities
961
975
Total current liabilities
2,939
3,519
Non-current liabilities:
Borrowings
2,998
2,776
Retirement benefit obligations
156
155
Deferred income tax liabilities
179
198
Operating lease liabilities
1,092
947
Other non-current liabilities
471
483
Commitments and contingencies
Equity:
Class A common stock
4
4
Class B common stock
2
2
Additional paid-in capital
11,550
11,779
Accumulated deficit
(2,186
)
(2,293
)
Accumulated other comprehensive loss
(1,255
)
(1,270
)
Total News Corporation stockholders'
equity
8,115
8,222
Noncontrolling interests
941
921
Total equity
9,056
9,143
Total liabilities and equity
$
16,891
$
17,221
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited; in
millions)
For the six months ended December
31,
2022
2021
Operating activities:
Net income
$
160
$
529
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
353
333
Operating lease expense
57
64
Equity losses of affiliates
33
6
Cash distributions received from
affiliates
5
7
Other, net
24
(130
)
Deferred income taxes and taxes
payable
17
79
Change in operating assets and
liabilities, net of acquisitions:
Receivables and other assets
(351
)
(222
)
Inventories, net
(11
)
6
Accounts payable and other liabilities
(126
)
(242
)
Net cash provided by operating
activities
161
430
Investing activities:
Capital expenditures
(217
)
(208
)
Acquisitions, net of cash acquired
(15
)
(21
)
Investments in equity affiliates and
other
(92
)
(46
)
Proceeds from property, plant and
equipment and other asset dispositions
8
(2
)
Other, net
(21
)
28
Net cash used in investing activities
(337
)
(249
)
Financing activities:
Borrowings
407
495
Repayment of borrowings
(462
)
(500
)
Repurchase of shares
(178
)
(43
)
Dividends paid
(89
)
(86
)
Other, net
10
(64
)
Net cash used in financing activities
(312
)
(198
)
Net change in cash and cash
equivalents
(488
)
(17
)
Cash and cash equivalents, beginning of
period
1,822
2,236
Exchange movement on opening cash
balance
(6
)
(35
)
Cash and cash equivalents, end of
period
$
1,328
$
2,184
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 and income tax (expense) benefit.
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), cash flow 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
to Total Segment EBITDA for the three and six months ended December
31, 2022 and 2021:
For the three months ended
December 31,
2022
2021
Change
% Change
(in millions)
Net income
$
94
$
262
$
(168
)
(64
)%
Add:
Income tax expense
61
99
(38
)
(38
)%
Other, net
6
7
(1
)
(14
)%
Interest expense, net
26
21
5
24
%
Equity losses of affiliates
29
6
23
**
Impairment and restructuring charges
19
23
(4
)
(17
)%
Depreciation and amortization
174
168
6
4
%
Total Segment EBITDA
$
409
$
586
$
(177
)
(30
)%
** - Not meaningful
For the six months ended December
31,
2022
2021
Change
% Change
(in millions)
Net income
$
160
$
529
$
(369
)
(70
)%
Add:
Income tax expense
96
170
(74
)
(44
)%
Other, net
24
(130
)
154
**
Interest expense, net
53
43
10
23
%
Equity losses of affiliates
33
6
27
**
Impairment and restructuring charges
40
45
(5
)
(11
)%
Depreciation and amortization
353
333
20
6
%
Total Segment EBITDA
$
759
$
996
$
(237
)
(24
)%
** - 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, 2022
and 2021:
Revenues
Total Segment EBITDA
For the three months ended
December 31,
For the three months ended
December 31,
2022
2021
Difference
2022
2021
Difference
(in millions)
(in millions)
As reported
$
2,521
$
2,717
$
(196
)
$
409
$
586
$
(177
)
Impact of acquisitions
(64
)
—
(64
)
(13
)
—
(13
)
Impact of divestitures
—
—
—
—
3
(3
)
Impact of foreign currency
fluctuations
171
—
171
30
—
30
Net impact of U.K. Newspaper Matters
—
—
—
3
4
(1
)
As adjusted
$
2,628
$
2,717
$
(89
)
$
429
$
593
$
(164
)
Revenues
Total Segment EBITDA
For the six months ended December
31,
For the six months ended December
31,
2022
2021
Difference
2022
2021
Difference
(in millions)
(in millions)
As reported
$
4,999
$
5,219
$
(220
)
$
759
$
996
$
(237
)
Impact of acquisitions
(126
)
—
(126
)
(31
)
—
(31
)
Impact of divestitures
—
(1
)
1
—
5
(5
)
Impact of foreign currency
fluctuations
324
—
324
53
—
53
Net impact of U.K. Newspaper Matters
—
—
—
9
6
3
As adjusted
$
5,197
$
5,218
$
(21
)
$
790
$
1,007
$
(217
)
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, 2022 and 2021 are as follows:
Fiscal Year 2023
Q1
Q2
U.S. Dollar per Australian Dollar
$0.68
$0.66
U.S. Dollar per British Pound Sterling
$1.17
$1.17
Fiscal Year 2022
Q1
Q2
U.S. Dollar per Australian Dollar
$0.74
$0.73
U.S. Dollar per British Pound Sterling
$1.38
$1.35
Adjusted Revenues and Adjusted Segment EBITDA by segment for the
three and six months ended December 31, 2022 and 2021 are as
follows:
For the three months ended
December 31,
2022
2021
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services
$
409
$
456
(10
)%
Subscription Video Services
514
498
3
%
Dow Jones
515
508
1
%
Book Publishing
548
617
(11
)%
News Media
642
638
1
%
Other
—
—
—
%
Adjusted Total Revenues
$
2,628
$
2,717
(3
)%
Adjusted Segment EBITDA:
Digital Real Estate Services
$
142
$
181
(22
)%
Subscription Video Services
100
86
16
%
Dow Jones
121
144
(16
)%
Book Publishing
52
107
(51
)%
News Media
63
111
(43
)%
Other
(49
)
(36
)
(36
)%
Adjusted Total Segment EBITDA
$
429
$
593
(28
)%
For the six months ended December
31,
2022
2021
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services
$
846
$
881
(4
)%
Subscription Video Services
1,056
1,008
5
%
Dow Jones
987
952
4
%
Book Publishing
1,056
1,163
(9
)%
News Media
1,252
1,214
3
%
Other
—
—
—
%
Adjusted Total Revenues
$
5,197
$
5,218
—
%
Adjusted Segment EBITDA:
Digital Real Estate Services
$
272
$
321
(15
)%
Subscription Video Services
220
200
10
%
Dow Jones
215
239
(10
)%
Book Publishing
94
192
(51
)%
News Media
82
145
(43
)%
Other
(93
)
(90
)
(3
)%
Adjusted Total Segment EBITDA
$
790
$
1,007
(22
)%
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, 2022 and
2021:
For the three months ended
December 31, 2022
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
386
$
(3
)
$
—
$
26
$
—
$
409
Subscription Video Services
462
—
—
52
—
514
Dow Jones
563
(54
)
—
6
—
515
Book Publishing
531
(5
)
—
22
—
548
News Media
579
(2
)
—
65
—
642
Other
—
—
—
—
—
—
Total Revenues
$
2,521
$
(64
)
$
—
$
171
$
—
$
2,628
Segment EBITDA:
Digital Real Estate Services
$
128
$
1
$
—
$
13
$
—
$
142
Subscription Video Services
90
—
—
10
—
100
Dow Jones
139
(18
)
—
—
—
121
Book Publishing
51
(1
)
—
2
—
52
News Media
59
(1
)
—
5
—
63
Other
(58
)
6
—
—
3
(49
)
Total Segment EBITDA
$
409
$
(13
)
$
—
$
30
$
3
$
429
For the six months ended December
31, 2022
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
807
$
(7
)
$
—
$
46
$
—
$
846
Subscription Video Services
964
—
—
92
—
1,056
Dow Jones
1,078
(106
)
—
15
—
987
Book Publishing
1,018
(6
)
—
44
—
1,056
News Media
1,132
(7
)
—
127
—
1,252
Other
—
—
—
—
—
—
Total Revenues
$
4,999
$
(126
)
$
—
$
324
$
—
$
5,197
Segment EBITDA:
Digital Real Estate Services
$
247
$
3
$
—
$
22
$
—
$
272
Subscription Video Services
201
—
—
19
—
220
Dow Jones
252
(37
)
—
—
—
215
Book Publishing
90
(1
)
—
5
—
94
News Media
77
(2
)
—
7
—
82
Other
(108
)
6
—
—
9
(93
)
Total Segment EBITDA
$
759
$
(31
)
$
—
$
53
$
9
$
790
For the three months ended
December 31, 2021
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
456
$
—
$
—
$
—
$
—
$
456
Subscription Video Services
498
—
—
—
—
498
Dow Jones
508
—
—
—
—
508
Book Publishing
617
—
—
—
—
617
News Media
638
—
—
—
—
638
Other
—
—
—
—
—
—
Total Revenues
$
2,717
$
—
$
—
$
—
$
—
$
2,717
Segment EBITDA:
Digital Real Estate Services
$
178
$
—
$
3
$
—
$
—
$
181
Subscription Video Services
86
—
—
—
—
86
Dow Jones
144
—
—
—
—
144
Book Publishing
107
—
—
—
—
107
News Media
111
—
—
—
—
111
Other
(40
)
—
—
—
4
(36
)
Total Segment EBITDA
$
586
$
—
$
3
$
—
$
4
$
593
For the six months ended December
31, 2021
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
882
$
—
$
(1
)
$
—
$
—
$
881
Subscription Video Services
1,008
—
—
—
—
1,008
Dow Jones
952
—
—
—
—
952
Book Publishing
1,163
—
—
—
—
1,163
News Media
1,214
—
—
—
—
1,214
Other
—
—
—
—
—
—
Total Revenues
$
5,219
$
—
$
(1
)
$
—
$
—
$
5,218
Segment EBITDA:
Digital Real Estate Services
$
316
$
—
$
5
$
—
$
—
$
321
Subscription Video Services
200
—
—
—
—
200
Dow Jones
239
—
—
—
—
239
Book Publishing
192
—
—
—
—
192
News Media
145
—
—
—
—
145
Other
(96
)
—
—
—
6
(90
)
Total Segment EBITDA
$
996
$
—
$
5
$
—
$
6
$
1,007
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 and diluted earnings per share (“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 and net income (loss) per share 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 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,
2022 and 2021:
For the three months ended
December 31, 2022
For the three months ended
December 31, 2021
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net income attributable to
stockholders
EPS
Net income
$
94
$
262
Less: Net income attributable to
noncontrolling interests
(27
)
(27
)
Net income attributable to News
Corporation stockholders
$
67
$
0.12
$
235
$
0.40
U.K. Newspaper Matters
3
0.01
4
0.01
Impairment and restructuring charges
19
0.02
23
0.04
Equity losses of affiliates (a)
—
—
3
0.01
Other, net
6
0.01
7
0.01
Tax impact on items above
(12
)
(0.02
)
(10
)
(0.02
)
Impact of noncontrolling interest on items
above
—
—
(2
)
(0.01
)
As adjusted
$
83
$
0.14
$
260
$
0.44
(a)
During the three months ended December 31,
2021, the Company recognized a non-cash impairment charge related
to an equity method investment.
For the six months ended December
31, 2022
For the six months ended December
31, 2021
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net income attributable to
stockholders
EPS
Net income
$
160
$
529
Less: Net income attributable to
noncontrolling interests
(53
)
(98
)
Net income attributable to News
Corporation stockholders
$
107
$
0.18
$
431
$
0.72
U.K. Newspaper Matters
9
0.02
6
0.01
Impairment and restructuring charges
40
0.07
45
0.08
Equity losses of affiliates (a)
—
—
3
0.01
Other, net
24
0.04
(130
)
(0.22
)
Tax impact on items above
(27
)
(0.05
)
2
—
Impact of noncontrolling interest on items
above
(1
)
—
41
0.07
As adjusted
$
152
$
0.26
$
398
$
0.67
(a)
During the six months ended December 31,
2021, the Company recognized a non-cash impairment charge related
to an equity method investment.
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,
2022:
Q2 Fiscal 2022
Q2 Fiscal 2023
FX impact
Q2 Fiscal 2023 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Consolidated results:
Circulation and subscription
$
1,072
$
1,085
$
(82
)
$
1,167
1
%
9
%
Advertising
519
464
(33
)
497
(11
)%
(4
)%
Consumer
594
512
(22
)
534
(14
)%
(10
)%
Real estate
352
301
(20
)
321
(14
)%
(9
)%
Other
180
159
(14
)
173
(12
)%
(4
)%
Total revenues
$
2,717
$
2,521
$
(171
)
$
2,692
(7
)%
(1
)%
Digital Real Estate Services:
Circulation and subscription
$
3
$
3
$
—
$
3
—
%
—
%
Advertising
33
33
(1
)
$
34
—
%
3
%
Real estate
352
301
(20
)
$
321
(14
)%
(9
)%
Other
68
49
(5
)
$
54
(28
)%
(21
)%
Total Digital Real Estate Services segment
revenues
$
456
$
386
$
(26
)
$
412
(15
)%
(10
)%
REA Group revenues
$
287
$
240
$
(26
)
$
266
(16
)%
(7
)%
Subscription Video Services:
Circulation and subscription
$
433
$
405
$
(45
)
$
450
(6
)%
4
%
Advertising
55
47
(5
)
$
52
(15
)%
(5
)%
Other
10
10
(2
)
$
12
—
%
20
%
Total Subscription Video Services segment
revenues
$
498
$
462
$
(52
)
$
514
(7
)%
3
%
Q2 Fiscal 2022
Q2 Fiscal 2023
FX impact
Q2 Fiscal 2023 constant
currency
% Change - reported
% Change -
constant currency
($ in millions)
Better/(Worse)
Dow Jones:
Circulation and subscription
$
356
$
417
$
(6
)
$
423
17
%
19
%
Advertising
141
131
—
$
131
(7
)%
(7
)%
Other
11
15
—
$
15
36
%
36
%
Total Dow Jones segment revenues
$
508
$
563
$
(6
)
$
569
11
%
12
%
Book Publishing:
Consumer
594
512
(22
)
$
534
(14
)%
(10
)%
Other
23
19
—
$
19
(17
)%
(17
)%
Total Book Publishing segment revenues
$
617
$
531
$
(22
)
$
553
(14
)%
(10
)%
News Media:
Circulation and subscription
$
280
$
260
$
(31
)
$
291
(7
)%
4
%
Advertising
290
253
(27
)
$
280
(13
)%
(3
)%
Other
68
66
(7
)
$
73
(3
)%
7
%
Total News Media segment revenues
$
638
$
579
$
(65
)
$
644
(9
)%
1
%
News UK
Circulation and subscription
$
139
$
129
$
(20
)
$
149
(7
)%
7
%
Advertising
95
83
(10
)
$
93
(13
)%
(2
)%
Other
29
26
(3
)
$
29
(10
)%
—
%
Total News UK revenues
$
263
$
238
$
(33
)
$
271
(10
)%
3
%
News Corp Australia
Circulation and subscription
$
117
$
107
$
(11
)
$
118
(9
)%
1
%
Advertising
131
113
(12
)
$
125
(14
)%
(5
)%
Other
40
32
(3
)
$
35
(20
)%
(13
)%
Total News Corp Australia revenues
$
288
$
252
$
(26
)
$
278
(13
)%
(3
)%
Q2 YTD Fiscal 2022
Q2 YTD Fiscal 2023
FX impact
Q2 YTD Fiscal 2023 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Consolidated results:
Circulation and subscription
$
2,149
$
2,196
$
(157
)
$
2,353
2
%
9
%
Advertising
924
870
(61
)
931
(6
)%
1
%
Consumer
1,118
979
(44
)
1,023
(12
)%
(8
)%
Real estate
672
624
(34
)
658
(7
)%
(2
)%
Other
356
330
(28
)
358
(7
)%
1
%
Total revenues
$
5,219
$
4,999
$
(324
)
$
5,323
(4
)%
2
%
Digital Real Estate Services:
Circulation and subscription
$
6
$
6
$
—
$
6
—
%
—
%
Advertising
66
68
(2
)
$
70
3
%
6
%
Real estate
672
624
(34
)
$
658
(7
)%
(2
)%
Other
138
109
(10
)
$
119
(21
)%
(14
)%
Total Digital Real Estate Services segment
revenues
$
882
$
807
$
(46
)
$
853
(9
)%
(3
)%
REA Group revenues
$
533
$
492
$
(46
)
$
538
(8
)%
1
%
Subscription Video Services:
Circulation and subscription
$
873
$
830
$
(79
)
$
909
(5
)%
4
%
Advertising
114
111
(10
)
$
121
(3
)%
6
%
Other
21
23
(3
)
$
26
10
%
24
%
Total Subscription Video Services segment
revenues
$
1,008
$
964
$
(92
)
$
1,056
(4
)%
5
%
Dow Jones:
Circulation and subscription
$
705
$
831
$
(15
)
$
846
18
%
20
%
Advertising
231
225
—
$
225
(3
)%
(3
)%
Other
16
22
—
$
22
38
%
38
%
Total Dow Jones segment revenues
$
952
$
1,078
$
(15
)
$
1,093
13
%
15
%
Book Publishing:
Consumer
1,118
979
(44
)
$
1,023
(12
)%
(8
)%
Other
45
39
—
$
39
(13
)%
(13
)%
Total Book Publishing segment revenues
$
1,163
$
1,018
$
(44
)
$
1,062
(12
)%
(9
)%
Q2 YTD Fiscal 2022
Q2 YTD Fiscal 2023
FX impact
Q2 YTD Fiscal 2023 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
News Media:
Circulation and subscription
$
565
$
529
$
(63
)
$
592
(6
)%
5
%
Advertising
513
466
(49
)
$
515
(9
)%
—
%
Other
136
137
(15
)
$
152
1
%
12
%
Total News Media segment revenues
$
1,214
$
1,132
$
(127
)
$
1,259
(7
)%
4
%
News UK
Circulation and subscription
$
284
$
263
$
(43
)
$
306
(7
)%
8
%
Advertising
163
144
(19
)
$
163
(12
)%
—
%
Other
60
52
(8
)
$
60
(13
)%
—
%
Total News UK revenues
$
507
$
459
$
(70
)
$
529
(9
)%
4
%
News Corp Australia
Circulation and subscription
$
235
$
219
$
(20
)
$
239
(7
)%
2
%
Advertising
232
217
(20
)
$
237
(6
)%
2
%
Other
74
71
(6
)
$
77
(4
)%
4
%
Total News Corp Australia revenues
$
541
$
507
$
(46
)
$
553
(6
)%
2
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230209005693/en/
Investor Relations Michael Florin
212-416-3363 mflorin@newscorp.com
Leslie Kim 212-416-4529 lkim@newscorp.com
Corporate Communications Jim
Kennedy 212-416-4064 jkennedy@newscorp.com
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