News Corporation (NASDAQ:NWSA) Q2 2022 Earnings Conference Call February 3, 2022 5:00 PM ET Company Participants Mike Florin – Senior Vice President and Head of Investor Relations Robert Thomson – Chief Executive Susan Panuccio – Chief Financial Officer Conference Call Participants Kane Hannan – Goldman Sachs Entcho Raykovski – Credit Suisse Craig Huber – Huber Research Partners Alan Gould – Loop Capital Darren Leung – Macquarie Brian Han – Morningstar Edmonds Bafford – TIG Advisors Operator Good day, and w ...

News Corporation (NASDAQ:NWSA) Q1 2022 Earnings Conference Call November 4, 2021 5:00 PM ET Company Participants Mike Florin – Senior Vice President & Head of Investor Relations Robert Thomson – Chief Executive Officer Susan Panuccio – Chief Financial Officer Conference Call Participants Entcho Raykovski – Credit Suisse Alexia Quadrani – JP Morgan Craig Huber – Research Partners Brian Han – Morningstar Operator Good day and welcome to the News Corp First Quarter Fiscal 2022 Conference Call. Today's confe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-K ________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35769 Title of each classTrading Symbol(s) Name of each exchange on whi ...

News Corporation (NASDAQ:NWSA) Q4 2021 Results Earnings Conference Call August 5, 2021 5:00 PM ET Company Participants Mike Florin - Senior Vice President & Head of Investor Relations Robert Thomson - Chief Executive Officer Susan Panuccio - Chief Financial Officer Conference Call Participants Kane Hannan - Goldman Sachs. Entcho Raykovski - Credit Suisse Darren Leung - Macquarie Brian Han - Morningstar Kane Hannan - Goldman Sachs Operator Good day, and welcome to the News Corp, 4Q Fiscal 2021 Conference Ca ...

News Corporation (NASDAQ:NWSA) Q3 2021 Earnings Conference Call May 6, 2021 5:00 PM ET Company Participants Mike Florin - Senior Vice President & Head of Investor Relations Robert Thomson - Chief Executive Officer Susan Panuccio - Chief Financial Officer Conference Call Participants Alan Gould - Loop Capital Kane Hannan - Goldman Sachs Alexia Quadrani - JPMorgan Entcho Raykovski - Credit Suisse Craig Huber - Huber Research Partners Darren Leung - Macquarie Brian Han - Morningstar Operator Good day, and welc ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) News Corporation reported Q3 FY21 revenue growth and a shift to net income, with improved nine-month net income, increased assets, and doubled operating cash flow [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (Unaudited, in millions) | Financial Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$2,335** | **$2,266** | **$6,866** | **$7,085** | | Operating Expenses | $(1,186) | $(1,283) | $(3,548) | $(3,972) | | Impairment & Restructuring | $(30) | $(1,125) | $(93) | $(1,451) | | Income (Loss) before Tax | $139 | $(1,046) | $557 | $(1,123) | | **Net Income (Loss)** | **$96** | **$(1,036)** | **$404** | **$(1,144)** | | Net Income (Loss) Attributable to Stockholders | $79 | $(730) | $344 | $(872) | [Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Statements of Comprehensive Income (Loss) (Unaudited, in millions) | Financial Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $96 | $(1,036) | $404 | $(1,144) | | Other Comprehensive Income (Loss) | $29 | $(460) | $450 | $(462) | | **Comprehensive Income (Loss)** | **$125** | **$(1,496)** | **$854** | **$(1,606)** | | Comprehensive Income (Loss) Attributable to Stockholders | $104 | $(1,081) | $710 | $(1,216) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in millions) | Account | As of March 31, 2021 (Unaudited) | As of June 30, 2020 (Audited) | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $1,974 | $1,517 | | Total current assets | $3,943 | $3,461 | | **Non-Current Assets** | | | | Goodwill | $4,304 | $3,951 | | **Total Assets** | **$15,397** | **$14,261** | | **Liabilities & Equity** | | | | Total current liabilities | $3,169 | $2,682 | | Borrowings (Non-current) | $1,000 | $1,183 | | **Total Equity** | **$9,129** | **$8,389** | | **Total Liabilities and Equity** | **$15,397** | **$14,261** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Unaudited, in millions) | Cash Flow Activity | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,060 | $462 | | Net cash used in investing activities | $(346) | $(327) | | Net cash used in financing activities | $(329) | $(341) | | **Net change in cash and cash equivalents** | **$385** | **$(206)** | | Cash and cash equivalents, end of period | $1,974 | $1,388 | [Notes to the Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies, segment reporting changes, recent acquisitions, restructuring charges, and significant subsequent events - The company disaggregated its Dow Jones operating segment into a separate reportable segment, revising historical disclosures accordingly[18](index=18&type=chunk)[276](index=276&type=chunk) - In December 2020, the company acquired Avail for approximately **$36 million** and a controlling interest in Elara Technologies for **$138 million**[42](index=42&type=chunk)[43](index=43&type=chunk)[300](index=300&type=chunk) - For fiscal 2021, the company recorded **$93 million** in restructuring charges for the nine months ended March 31, primarily for employee termination benefits and plant closure costs[44](index=44&type=chunk)[45](index=45&type=chunk)[302](index=302&type=chunk) - The company is involved in several legal proceedings, including antitrust claims related to News America Marketing and HarperCollins, and U.K. Newspaper Matters civil claims indemnified by FOX[98](index=98&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - Subsequent to quarter end, the company acquired Investor's Business Daily for **$275 million**, issued **$1 billion** in senior notes, and agreed to acquire HMH Books & Media for **$349 million** and Mortgage Choice for approximately **A$244 million**[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q3 FY21 revenue growth to key segments, offsetting News Media declines, with significant EBITDA growth, strong liquidity, and increased free cash flow [Overview of the Company's Businesses](index=30&type=section&id=Overview%20of%20the%20Company's%20Businesses) - The company operates across six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other[152](index=152&type=chunk)[153](index=153&type=chunk)[410](index=410&type=chunk) - Recent strategic developments include the acquisition of Investor's Business Daily for **$275 million**, a **$1 billion** senior notes offering, and agreements to acquire HMH Books & Media and Mortgage Choice[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - In February 2021, the company entered a multi-year partnership with Google for content provision, subscription platform development, and ad revenue sharing[160](index=160&type=chunk)[418](index=418&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Consolidated Revenue and Expense Changes (Q3 FY21 vs Q3 FY20, in millions) | Item | Q3 FY21 | Q3 FY20 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$2,335** | **$2,266** | **$69** | **3%** | | Operating expenses | $(1,186) | $(1,283) | $97 | 8% | | SG&A | $(851) | $(741) | $(110) | (15)% | | Impairment & restructuring | $(30) | $(1,125) | $1,095 | 97% | | **Net Income (Loss) to Stockholders** | **$79** | **$(730)** | **$809** | **N/M** | - The Q3 revenue increase was driven by growth in Digital Real Estate, Book Publishing, Subscription Video, and Dow Jones segments, partially offset by a **$199 million** negative impact from the sale of News America Marketing[166](index=166&type=chunk) - The significant improvement in Net Income was primarily due to the absence of a **$1.1 billion** non-cash impairment charge recognized in the prior-year quarter[174](index=174&type=chunk)[182](index=182&type=chunk) [Segment Analysis](index=37&type=section&id=Segment%20Analysis) Segment EBITDA (in millions) | Segment | Q3 FY21 | Q3 FY20 | % Change | 9 Months FY21 | 9 Months FY20 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Digital Real Estate Services | $117 | $74 | 58% | $378 | $274 | 38% | | Subscription Video Services | $91 | $68 | 34% | $293 | $219 | 34% | | Dow Jones | $82 | $51 | 61% | $263 | $176 | 49% | | Book Publishing | $80 | $55 | 45% | $255 | $167 | 53% | | News Media | $8 | $24 | (67)% | $52 | $97 | (46)% | | **Total Segment EBITDA** | **$298** | **$242** | **23%** | **$1,063** | **$818** | **30%** | - Digital Real Estate Services revenue grew **34%** in Q3, driven by strong performance at Move (realtor.com) and REA Group[191](index=191&type=chunk) - Subscription Video Services (Foxtel) saw total paid subscribers grow to **3.54 million** from **2.93 million** year-over-year, driven by growth in Kayo and Binge OTT services[199](index=199&type=chunk)[200](index=200&type=chunk) - Dow Jones' Segment EBITDA increased **61%** in Q3, benefiting from strong growth in digital-only subscriptions at The Wall Street Journal, which reached **2.6 million** (up **29%** YoY)[203](index=203&type=chunk)[205](index=205&type=chunk) - Book Publishing revenue increased **19%** in Q3, boosted by strong sales of the Bridgerton series and other backlist titles, with digital sales growing **38%**[213](index=213&type=chunk) - News Media revenues declined **25%** in Q3, primarily due to the sale of News America Marketing, with Segment EBITDA falling **67%** to **$8 million**[218](index=218&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's principal source of liquidity is internally generated funds and cash on hand, which stood at **$2.0 billion** as of March 31, 2021[225](index=225&type=chunk)[483](index=483&type=chunk) Free Cash Flow Available to News Corporation (in millions) | Metric | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,060 | $462 | | Less: Capital expenditures | $(253) | $(335) | | **Free cash flow available to News Corporation** | **$762** | **$63** | - As of March 31, 2021, total borrowings were **$1.2 billion**, primarily non-recourse debt at the Foxtel and REA Group subsidiaries[239](index=239&type=chunk)[497](index=497&type=chunk) - In April 2021, the company issued **$1 billion** of 3.875% senior notes due 2029 for general corporate purposes, including potential acquisitions[241](index=241&type=chunk)[499](index=499&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its assessment of market risk sensitivity since its 2020 Form 10-K disclosure - There has been no material change in the Company's assessment of its sensitivity to market risk since its 2020 Form 10-K presentation[247](index=247&type=chunk)[505](index=505&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal controls during Q3 FY21 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of period end[248](index=248&type=chunk)[506](index=506&type=chunk) - No material changes occurred in internal control over financial reporting during Q3 FY21[249](index=249&type=chunk)[507](index=507&type=chunk) [Part II - Other Information](index=50&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 of the Consolidated Financial Statements for details on legal proceedings - For details on legal proceedings, the report refers to Note 10—Commitments and Contingencies in the Consolidated Financial Statements[251](index=251&type=chunk)[509](index=509&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously described in its 2020 Form 10-K and Q1 FY21 Form 10-Q - There have been no material changes to the risk factors described in the Company's 2020 Form 10-K[252](index=252&type=chunk)[510](index=510&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[252](index=252&type=chunk)[510](index=510&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including debt agreements, incentive plan forms, and required CEO/CFO certifications - Exhibits filed include the Indenture for the April 2021 Senior Notes, amendments to Foxtel facility agreements, and CEO/CFO certifications[255](index=255&type=chunk)[513](index=513&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for the second quarter were over $2.4 billion, a decline of 3% year-on-year, primarily due to the sale of News America Marketing in 2020 [9][28] - Segment EBITDA for the quarter was $497 million, representing a 40% year-over-year increase, marking the highest quarterly segment EBITDA since the company's formation in 2013 [9][28] - Net income for the quarter was $261 million compared to $103 million in the prior year, with diluted earnings per share of $0.39 versus $0.14 in the prior year [29] Business Line Data and Key Metrics Changes - Digital Real Estate Services segment revenues increased by 15% to $339 million, with Move accounting for over 75% of segment revenue growth [29][30] - Subscription Video Services segment revenues were $511 million, up 2% year-over-year, with segment EBITDA improving 77% to $124 million [33][35] - Dow Jones revenues for the quarter were $446 million, up 4% year-over-year, with segment EBITDA rising 43% to $109 million [36][38] - HarperCollins posted a 23% revenue growth to $544 million, with segment EBITDA growth of 65% to $104 million [39] Market Data and Key Metrics Changes - Move's revenue growth was 28%, with real estate revenues rising 30% [30] - Average monthly unique users for realtor.com reached 80 million, reflecting a 37% year-over-year increase [30] - Digital advertising at Dow Jones expanded by 29%, marking the highest quarter in Dow Jones history [38] Company Strategy and Development Direction - The company is focused on a long-term strategic shift towards digitization and cost discipline, which has contributed to increased profitability [7][8] - The acquisition of Elara Technologies is expected to enhance the company's presence in the Indian digital real estate market [15] - The company aims to leverage its digital assets and improve ad tech capabilities to drive revenue growth [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the housing market in the U.S. and Australia, despite ongoing challenges from COVID-19 [14][15] - The company anticipates some slowdown in second-half results due to the unpredictable macro environment [44][48] - Management remains cautious about the sustainability of growth in the Move segment, given the historically low listing volumes across the industry [59] Other Important Information - The New York Post reported a significant increase in digital advertising revenues, up 64% year-over-year, achieving its highest digital revenue since 2013 [43] - The company has secured long-term rights to popular sports, enhancing its content offerings for the Foxtel platform [22] Q&A Session Summary Question: What is driving the outperformance in digital advertising at Dow Jones? - Management attributed the success to a strong team and improved ad tech capabilities, leading to growth across various categories [52][54] Question: What trends are being monitored for Foxtel's next steps? - The focus will be on OTT growth and managing broadcast subscriber stability while continuing cost reductions [55][56] Question: What is the outlook for Move's revenue growth? - Management remains confident in Move's growth, expecting continued revenue increases despite low industry listing volumes [59] Question: Are there permanent cost reductions in News Media? - Some cost reductions are permanent, while others may fluctuate based on business performance; further opportunities for cost reductions are being explored [63] Question: How many Live Pass users are expected to transition to Kayo? - Management believes a significant number of Live Pass users will migrate to Kayo, but specific numbers are not yet available [65]