分组1 - News Corp. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, and up from $0.09 per share a year ago, representing a 10% earnings surprise [1] - The company posted revenues of $2.42 billion for the quarter ended March 2024, which was 2.30% below the Zacks Consensus Estimate and down from $2.45 billion year-over-year [1] - Over the last four quarters, News Corp. has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [1] 分组2 - The stock has underperformed the market, losing about 0.5% since the beginning of the year compared to the S&P 500's gain of 8.8% [2] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $2.55 billion, and for the current fiscal year, it is $0.71 on revenues of $10.11 billion [4] - The Zacks Industry Rank for Film and Television Production and Distribution is in the bottom 24% of over 250 Zacks industries, indicating potential underperformance [5] 分组3 - Warner Music Group Corp. is expected to report quarterly earnings of $0.11 per share, reflecting an 83.3% year-over-year change, with revenues anticipated to be $1.49 billion, up 6.2% from the previous year [6]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Third Quarter Fiscal 2024 Results](index=1&type=section&id=Third%20Quarter%20Fiscal%202024%20Results) News Corp's Q3 FY2024 revenues slightly decreased by 1% to $2.42 billion, with net income down 29% to $42 million, while Total Segment EBITDA increased 1% and Adjusted EPS rose to $0.11 Q3 FY2024 Key Financial Highlights | Metric | Q3 FY2024 | Q3 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $2.42 billion | $2.45 billion | (1)% | | Net Income | $42 million | $59 million | (29)% | | Total Segment EBITDA | $322 million | $320 million | 1% | | Reported EPS | $0.05 | $0.09 | (44)% | | Adjusted EPS | $0.11 | $0.09 | 22% | - Revenue decline was driven by lower advertising at News Media, lower physical book sales, challenging U.S. housing market conditions, and a **$21 million negative foreign currency impact**, partly offset by higher Australian residential revenues at **REA Group** and strong growth in **Dow Jones' professional information business**[5](index=5&type=chunk) - The company is focused on its **strategic transformation**, promoting its journalism in the age of **Generative AI**, and has extended its **Google partnership**; an intense review of the company's structure is underway for maximum flexibility[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) [Segment Review](index=2&type=section&id=Segment%20Review) [Segment Performance Summary](index=2&type=section&id=Segment%20Performance%20Summary) Q3 revenue growth was led by Digital Real Estate Services (+7%) and Dow Jones (+3%), while other segments declined, with Dow Jones showing the highest EBITDA growth at 8% and News Media declining 24% Segment Revenues and EBITDA (Q3 FY2024 vs Q3 FY2023) | Segment | Q3 2024 Revenues (M) | Q3 2023 Revenues (M) | % Change | Q3 2024 Segment EBITDA (M) | Q3 2023 Segment EBITDA (M) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Digital Real Estate Services | $388 | $363 | 7% | $104 | $102 | 2% | | Subscription Video Services | $455 | $477 | (5)% | $66 | $68 | (3)% | | Dow Jones | $544 | $529 | 3% | $118 | $109 | 8% | | Book Publishing | $506 | $515 | (2)% | $62 | $61 | 2% | | News Media | $530 | $563 | (6)% | $26 | $34 | (24)% | [Digital Real Estate Services](index=2&type=section&id=Digital%20Real%20Estate%20Services) Digital Real Estate Services revenue grew **7% to $388 million**, driven by **REA Group's 15% surge** in Australia, partially offset by **Move's 6% decline** in the challenging U.S. market, with Segment EBITDA up **2% to $104 million** - **REA Group's revenues increased 15% to $256 million**, benefiting from price increases, increased depth penetration, and a **6% rise** in national residential buy listing volumes[14](index=14&type=chunk) - **Move's revenues decreased 6% to $132 million** due to lower real estate transaction volumes in the U.S., though lead volume saw a **4% year-over-year increase**, its first in over two years[15](index=15&type=chunk) [Subscription Video Services](index=3&type=section&id=Subscription%20Video%20Services) Subscription Video Services revenue fell **5% to $455 million** due to foreign currency impact, with total paid subscribers decreasing **1% to over 4.5 million**, and Segment EBITDA down **3% to $66 million** - Foxtel Group streaming subscription revenues accounted for approximately **29% of total circulation and subscription revenues**, **up from 26%** in the prior year[16](index=16&type=chunk) Foxtel Closing Subscribers (as of March 31) | Subscriber Type | 2024 (in 000s) | 2023 (in 000s) | | :--- | :--- | :--- | | **Total Paid Subscribers** | **4,537** | **4,585** | | Kayo (Paid) | 1,442 | 1,309 | | BINGE (Paid) | 1,453 | 1,484 | | Residential Broadcast | 1,239 | 1,369 | - Broadcast ARPU for the quarter **increased 2% year-over-year to A$85 (US$56)**[17](index=17&type=chunk) [Dow Jones](index=4&type=section&id=Dow%20Jones) Dow Jones revenues increased **3% to $544 million**, driven by **10% growth** in professional information, with digital revenues at **81%** and Segment EBITDA growing **8% to $118 million** - The professional information business saw strong growth, with **Risk & Compliance revenues up 15% to $76 million** and **Dow Jones Energy revenues up 15% to $63 million**[21](index=21&type=chunk) Dow Jones Average Consumer Subscriptions (Q3) | Product | 2024 (in 000s) | 2023 (in 000s) | % Change | | :--- | :--- | :--- | :--- | | **Total Digital-only** | **5,068** | **4,347** | **17%** | | The Wall Street Journal (Digital-only) | 3,715 | 3,299 | 13% | | The Wall Street Journal (Total) | 4,217 | 3,888 | 8% | - **Digital advertising revenues grew 4%**, while **print advertising revenues declined 11%**; digital advertising now accounts for **63% of total advertising revenues**[23](index=23&type=chunk) [Book Publishing](index=4&type=section&id=Book%20Publishing) HarperCollins' revenues decreased **2% to $506 million** due to lower physical book sales, offset by a **5% rise in digital sales**, with Segment EBITDA increasing **2% to $62 million** - **Digital sales increased 5%** compared to the prior year, driven by strong market growth for downloadable audiobooks, which benefited from a new **Spotify partnership**; digital sales represented **25% of Consumer revenues**[26](index=26&type=chunk) - Backlist sales remained strong, representing approximately **63% of consumer revenues** in the quarter, **up from 60%** in the prior year[26](index=26&type=chunk) - Key titles in the quarter included *Blood Money* by Peter Schweizer, *Mostly What God Does* by Savannah Guthrie and *Fangirl Down* by Tessa Bailey[25](index=25&type=chunk) [News Media](index=5&type=section&id=News%20Media) News Media revenues declined **6% to $530 million** due to a **13% drop in advertising revenues** and reduced digital traffic, resulting in Segment EBITDA falling **24% to $26 million** - **Advertising revenues decreased $28 million, or 13%**, due to lower print advertising at News Corp Australia and lower digital advertising from a decline in traffic at some mastheads[30](index=30&type=chunk) - Digital revenues represented **38% of segment revenues**, an **increase from 36%** in the prior year[32](index=32&type=chunk) - Closing digital subscribers at **News Corp Australia grew to 1,113,000 from 1,043,000** in the prior year; The Times and Sunday Times closing digital subscribers **grew to 582,000 from 554,000**[32](index=32&type=chunk) [Cash Flow](index=6&type=section&id=Cash%20Flow) [Cash Flow Summary](index=6&type=section&id=Cash%20Flow%20Summary) Net cash from operating activities for the nine months ended March 31, 2024, increased to **$844 million**, driven by lower working capital and higher EBITDA, resulting in free cash flow of **$378 million** Free Cash Flow Reconciliation (Nine months ended March 31) | Metric | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $844 | $670 | | Less: Capital expenditures | ($353) | ($350) | | **Free cash flow** | **$491** | **$320** | | **Free cash flow available to News Corporation** | **$378** | **$258** | - The increase in net cash from operating activities was primarily due to **lower working capital** and **higher Total Segment EBITDA**, partially offset by higher restructuring payments[33](index=33&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 FY2024 total revenues were **$2.42 billion**, a slight decrease from the prior year, with net income at **$42 million** and diluted EPS of **$0.05** Q3 FY2024 Statement of Operations Highlights (in millions) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenues | $2,423 | $2,447 | | Income before income tax expense | $64 | $91 | | Net income | $42 | $59 | | Net income attributable to News Corporation stockholders | $30 | $50 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, News Corp reported total assets of **$16.54 billion**, total liabilities of **$7.64 billion**, cash of **$1.94 billion**, and total equity of **$8.91 billion** Balance Sheet Summary (in millions) | Metric | As of March 31, 2024 | As of June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,943 | $1,833 | | Total current assets | $4,128 | $4,053 | | Total assets | $16,544 | $16,921 | | Total current liabilities | $3,042 | $3,165 | | Total liabilities | $7,636 | $7,976 | | Total equity | $8,908 | $8,945 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 31, 2024, operating activities generated **$844 million** in cash, leading to a net increase of **$123 million** in cash and equivalents, totaling **$1.94 billion** Cash Flow Summary (Nine months ended March 31, in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $844 | $670 | | Net cash used in investing activities | ($404) | ($440) | | Net cash used in financing activities | ($317) | ($382) | | **Net change in cash and cash equivalents** | **$123** | **($152)** | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) [Note 1 – Total Segment EBITDA](index=12&type=section&id=Note%201%20%E2%80%93%20Total%20Segment%20EBITDA) This note reconciles Q3 FY2024 Net Income of **$42 million** to Total Segment EBITDA of **$322 million**, representing a **1% increase** from the prior year after various adjustments Reconciliation of Net Income to Total Segment EBITDA (Q3, in millions) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income | $42 | $59 | | Add: Income tax expense | $22 | $32 | | Add: Other, net | $10 | ($14) | | Add: Interest expense, net | $19 | $25 | | Add: Equity losses of affiliates | $2 | $10 | | Add: Impairment and restructuring charges | $35 | $25 | | Add: Depreciation and amortization | $192 | $183 | | **Total Segment EBITDA** | **$322** | **$320** | [Note 2 – Adjusted Revenues and Adjusted Segment EBITDA](index=14&type=section&id=Note%202%20%E2%80%93%20Adjusted%20Revenues%20and%20Adjusted%20Segment%20EBITDA) This note adjusts Q3 FY2024 reported revenues of **$2.423 billion** to **$2.440 billion** (flat year-over-year) and Adjusted Total Segment EBITDA increased **1% to $331 million**, accounting for various impacts Reconciliation to Adjusted Revenues and EBITDA (Q3, in millions) | Metric | As Reported | Adjustments | As Adjusted | | :--- | :--- | :--- | :--- | | **Revenues** | $2,423 | $17 | $2,440 | | **Total Segment EBITDA** | $322 | $9 | $331 | [Note 3 – Adjusted Net Income and Adjusted EPS](index=19&type=section&id=Note%203%20%E2%80%93%20Adjusted%20Net%20Income%20and%20Adjusted%20EPS) This note reconciles Q3 FY2024 reported net income of **$30 million** (EPS **$0.05**) to an adjusted net income of **$65 million**, yielding an Adjusted EPS of **$0.11**, up from **$0.09** Reconciliation of Net Income and EPS to Adjusted Figures (Q3) | Metric | Reported | Adjustments | Adjusted | | :--- | :--- | :--- | :--- | | Net Income Attributable to Stockholders (M) | $30 | $35 | $65 | | EPS | $0.05 | $0.06 | $0.11 | [Note 4 – Constant Currency Revenues](index=21&type=section&id=Note%204%20%E2%80%93%20Constant%20Currency%20Revenues) This note highlights a **$21 million negative foreign exchange impact** on Q3 FY2024 revenues, showing total revenues were **$2.444 billion** on a constant currency basis, a flat year-over-year performance Reconciliation of Reported to Constant Currency Revenues (Q3, in millions) | Metric | Q3 2023 Reported | Q3 2024 Reported | FX Impact | Q3 2024 Constant Currency | % Change (Reported) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $2,447 | $2,423 | ($21) | $2,444 | (1)% | 0% |

MANHATTAN, NEW YORK, UNITED STATES - 2024/04/09: Marquee at the main entrance to the FOX News ... [+] Headquarters at NewsCorp Building in Manhattan. (Photo by Erik McGregor/LightRocket via Getty Images)LightRocket via Getty Images[Note: News Corp Fiscal Year Ends in June]News Corp stock (NASDAQ NASDAQ : NWSA), a global, diversified media and information services company, is scheduled to report its third-quarter results on Wednesday, May 8. We expect NWSA’s stock to see little to no movement with revenues a ...

Core Viewpoint - News Corporation reported strong second-quarter fiscal 2024 earnings, with significant year-over-year growth in earnings per share and revenues, driven by robust performance in Digital Real Estate Services and other segments [2][3]. Financial Performance - Earnings per share for Q2 fiscal 2024 were 26 cents, exceeding the Zacks Consensus Estimate by 30% and increasing 85.7% year over year [2]. - Revenues reached $2.59 billion, a 3% increase year over year, surpassing the consensus mark by 0.29% [2]. - Total EBITDA rose 16% to $473 million, aided by revenue growth and cost savings from a 5% headcount reduction initiative [3]. Segment Performance - **Digital Real Estate Services**: Revenues increased 9% to $419 million, driven by strong performance at REA Group, although Move experienced a 13% decline in revenues [4][5]. - **Subscription Video Services**: Revenues were $470 million, up 2% year over year, primarily due to higher revenues from Kayo and BINGE [6]. - **Dow Jones**: Revenues grew 4% to $584 million, with digital revenues accounting for 78% of total revenues [7][8]. - **Book Publishing**: Revenues increased 4% to $550 million, driven by digital book sales [9]. - **News Media**: Revenues dipped 3% to $563 million, primarily due to lower advertising revenues [10][11]. Key Metrics - Digital sales in Book Publishing rose 15% year over year, representing 21% of Consumer revenues [9]. - Average monthly unique users for Realtor.com remained flat at 66 million, with a 7% decline in lead volume [4]. - Total average subscriptions to Dow Jones' consumer products exceeded 5.4 million, a 10% increase year over year [8]. Financial Position - As of the end of the quarter, News Corporation had cash and cash equivalents of $1.724 billion and borrowings of $2.984 billion [13].

Core Points - News Corporation reported second-quarter fiscal 2024 earnings of 26 cents per share, exceeding the Zacks Consensus Estimate by 30% and showing an 85.7% increase year over year [1] - Revenues reached $2.59 billion, a 3% year-over-year increase, driven by strong performance in Digital Real Estate Services and growth in Dow Jones and Book Publishing segments [1][2] Quarterly Details - Adjusted revenues, excluding foreign currency impacts, acquisitions, and divestitures, increased by 2% compared to the previous year [2] - Total EBITDA rose 16% to $473 million, attributed to higher revenues and cost savings from a 5% headcount reduction initiative [2] Segment Details Digital Real Estate Services - Revenues increased 9% to $419 million, primarily due to strong performance at REA Group, despite a 13% decline in Move revenues [3][4] - Move's real estate revenues, which constitute 82% of total Move revenues, fell 14% year over year due to macroeconomic factors affecting the housing market [3] Subscription Video Services - Revenues in this segment were $470 million, up 2% year over year, driven by Kayo and BINGE, despite a decline in residential broadcast subscribers [5][6] - Foxtel Group's streaming subscription revenues accounted for approximately 29% of total circulation and subscription revenues, up from 26% in the prior year [5] Dow Jones - Revenues increased 4% year over year to $584 million, supported by growth in circulation and subscription revenues [7] - Digital revenues represented 78% of total revenues, with professional information business revenues growing 13% [7][8] Book Publishing - Revenues rose 4% year over year to $550 million, driven by digital book sales and improved inventory returns [9] - Digital sales increased 15% year over year, representing 21% of Consumer revenues [9] News Media - Revenues dipped 3% to $563 million, mainly due to lower advertising revenues, although circulation and subscription revenues increased by 5% [10][11] - Digital revenues accounted for 38% of News Media segment revenues, up from 37% in the prior year [11] Other Financial Aspects - News Corporation ended the quarter with cash and cash equivalents of $1.724 billion, borrowings of $2.984 billion, and stockholder equity of $8.182 billion [12]

Part I. [Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) This section presents News Corporation's unaudited consolidated financial statements and management's analysis of financial condition and operations [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Presents News Corporation's unaudited consolidated financial statements, including operations, balance sheets, cash flows, and detailed notes [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Details News Corporation's revenues, net income, and earnings per share for the specified periods | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Total Revenues | $2,586 | $2,521 | $5,085 | $4,999 | | Net income | $183 | $94 | $241 | $160 | | Net income attributable to News Corporation stockholders | $156 | $67 | $186 | $107 | | Net income attributable to News Corporation stockholders per share - basic | $0.27 | $0.12 | $0.33 | $0.18 | | Net income attributable to News Corporation stockholders per share - diluted | $0.27 | $0.12 | $0.32 | $0.18 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents News Corporation's net income and other comprehensive income components for the periods | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Net income | $183 | $94 | $241 | $160 | | Other comprehensive income | $196 | $269 | $65 | $18 | | Comprehensive income | $379 | $363 | $306 | $178 | | Comprehensive income attributable to News Corporation stockholders | $303 | $277 | $233 | $122 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Outlines News Corporation's assets, liabilities, and equity as of December 31, 2023, and June 30, 2023 | Metric | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :--------------------------------------- | :---------------------------- | :---------------------------- | | Total assets | $16,681 | $16,921 | | Total current liabilities | $2,784 | $3,165 | | Total liabilities and equity | $16,681 | $16,921 | | Total News Corporation stockholders' equity | $8,182 | $8,064 | | Total equity | $9,102 | $8,945 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes News Corporation's cash flows from operating, investing, and financing activities | Metric | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash provided by operating activities | $305 | $161 | | Net cash used in investing activities | $(278) | $(337) | | Net cash used in financing activities | $(144) | $(312) | | Net change in cash and cash equivalents | $(117) | $(488) | | Cash and cash equivalents, end of period | $1,724 | $1,328 | [Notes to the Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [Note 1. Description of Business and Basis of Presentation](index=7&type=section&id=NOTE%201.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) Describes News Corporation's global media business and the accounting principles used for financial reporting - News Corporation is a global diversified media and information services company, including digital real estate, subscription video, news, and book publishing[21](index=21&type=chunk) - The financial statements are prepared in accordance with GAAP for interim information, with all necessary normal recurring adjustments reflected[22](index=22&type=chunk) - The Company is evaluating the impact of recently issued accounting pronouncements ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes) on its consolidated financial statements[25](index=25&type=chunk)[26](index=26&type=chunk) [Note 2. Revenues](index=8&type=section&id=NOTE%202.%20REVENUES) Details News Corporation's revenue streams by segment and deferred revenue balances | Revenue Type | Digital Real Estate Services (2023) | Digital Real Estate Services (2022) | Subscription Video Services (2023) | Subscription Video Services (2022) | Dow Jones (2023) | Dow Jones (2022) | Book Publishing (2023) | Book Publishing (2022) | News Media (2023) | News Media (2022) | Total Revenues (2023) | Total Revenues (2022) | | :------------------------- | :---------------------------------- | :---------------------------------- | :----------------------------------- | :----------------------------------- | :--------------- | :--------------- | :--------------------- | :--------------------- | :---------------- | :---------------- | :-------------------- | :-------------------- | | Circulation and subscription | $2 | $3 | $404 | $405 | $441 | $417 | $0 | $0 | $272 | $260 | $1,119 | $1,085 | | Advertising | $32 | $33 | $51 | $47 | $126 | $131 | $0 | $0 | $229 | $253 | $438 | $464 | | Consumer | $0 | $0 | $0 | $0 | $0 | $0 | $527 | $512 | $0 | $0 | $527 | $512 | | Real estate | $327 | $301 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $327 | $301 | | Other | $58 | $49 | $15 | $10 | $17 | $15 | $23 | $19 | $62 | $66 | $175 | $159 | | **Total Revenues** | **$419** | **$386** | **$470** | **$462** | **$584** | **$563** | **$550** | **$531** | **$563** | **$579** | **$2,586** | **$2,521** | | Revenue Type | Digital Real Estate Services (2023) | Digital Real Estate Services (2022) | Subscription Video Services (2023) | Subscription Video Services (2022) | Dow Jones (2023) | Dow Jones (2022) | Book Publishing (2023) | Book Publishing (2022) | News Media (2023) | News Media (2022) | Total Revenues (2023) | Total Revenues (2022) | | :------------------------- | :---------------------------------- | :---------------------------------- | :----------------------------------- | :----------------------------------- | :--------------- | :--------------- | :--------------------- | :--------------------- | :---------------- | :---------------- | :-------------------- | :-------------------- | | Circulation and subscription | $5 | $6 | $819 | $830 | $877 | $831 | $0 | $0 | $547 | $529 | $2,248 | $2,196 | | Advertising | $67 | $68 | $113 | $111 | $217 | $225 | $0 | $0 | $432 | $466 | $829 | $870 | | Consumer | $0 | $0 | $0 | $0 | $0 | $0 | $1,029 | $979 | $0 | $0 | $1,029 | $979 | | Real estate | $638 | $624 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $638 | $624 | | Other | $112 | $109 | $24 | $23 | $27 | $22 | $46 | $39 | $132 | $137 | $341 | $330 | | **Total Revenues** | **$822** | **$807** | **$956** | **$964** | **$1,121** | **$1,078** | **$1,075** | **$1,018** | **$1,111** | **$1,132** | **$5,085** | **$4,999** | | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Balance, beginning of period | $624 | $592 | $622 | $604 | | Deferral of revenue | $806 | $893 | $1,743 | $1,790 | | Recognition of deferred revenue | $(930) | $(917) | $(1,859) | $(1,813) | | Other | $10 | $23 | $4 | $10 | | **Balance, end of period** | **$510** | **$591** | **$510** | **$591** | - The Company recognized **$330 million** and **$499 million** in revenue from opening deferred revenue balances for the three and six months ended December 31, 2023, respectively[35](index=35&type=chunk) - Remaining transaction price for unsatisfied performance obligations as of December 31, 2023, was approximately **$1,240 million**, with **$263 million** expected in fiscal 2024, **$372 million** in fiscal 2025, and **$212 million** in fiscal 2026[38](index=38&type=chunk) [Note 3. Impairment and Restructuring Charges](index=10&type=section&id=NOTE%203.%20IMPAIRMENT%20AND%20RESTRUCTURING%20CHARGES) Outlines non-cash impairment and restructuring charges, primarily for employee termination benefits - Non-cash impairment charges of **$1 million** and **$22 million** were recognized at the News Media segment for the three and six months ended December 31, 2023, respectively, related to the proposed combination of U.K. printing operations[41](index=41&type=chunk) - Restructuring charges of **$10 million** and **$27 million** were recorded for the three and six months ended December 31, 2023, respectively, primarily for employee termination benefits due to a **5% headcount reduction initiative**[42](index=42&type=chunk) | Metric | 2023 (Millions) | 2022 (Millions) | | :-------------------------- | :-------------- | :-------------- | | Balance, beginning of period | $94 | $66 | | Additions | $27 | $40 | | Payments | $(59) | $(38) | | Other | $0 | $(2) | | **Balance, end of period** | **$62** | **$66** | - As of December 31, 2023, restructuring liabilities totaled approximately **$62 million**, with **$35 million** classified as current and **$27 million** as non-current[45](index=45&type=chunk) [Note 4. Investments](index=11&type=section&id=NOTE%204.%20INVESTMENTS) Summarizes News Corporation's equity method investments and other securities holdings | Investment Type | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :-------------------------- | :---------------------------- | :---------------------------- | | Equity method investments | $197 | $192 | | Equity and other securities | $227 | $235 | | **Total Investments** | **$424** | **$427** | - Equity method investments primarily include REA Group's ownership interest in PropertyGuru Group Ltd[48](index=48&type=chunk) - Equity and other securities are primarily comprised of Nexxen International, Ltd., certain investments in China, ARN Media Limited, and Dow Jones's investment in an artificial intelligence-focused data analytics company[48](index=48&type=chunk) - Equity losses of affiliates decreased by **$28 million** and **$30 million** for the three and six months ended December 31, 2023, respectively, primarily due to the absence of losses from an Australian sports wagering venture in the prior year[51](index=51&type=chunk) [Note 5. Borrowings](index=12&type=section&id=NOTE%205.%20BORROWINGS) Details News Corporation's debt structure, including interest rates, maturities, and refinancing activities | Borrowing Type | Interest Rate (Dec 31, 2023) | Maturity (Dec 31, 2023) | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :---------------------------------------------------------------- | :--------------------------- | :---------------------- | :---------------------------- | :---------------------------- | | News Corporation: 2022 Term loan A | 6.948% | Mar 31, 2027 | $491 | $497 | | News Corporation: 2022 Senior notes | 5.125% | Feb 15, 2032 | $493 | $492 | | News Corporation: 2021 Senior notes | 3.875% | May 15, 2029 | $990 | $989 | | Foxtel Group: 2024 Foxtel credit facility — tranche 1 | 7.26% | Aug 1, 2026 | $405 | $0 | | Foxtel Group: 2024 Foxtel credit facility — USD portion — tranche 2 | 8.63% | Aug 1, 2027 | $49 | $0 | | Foxtel Group: 2024 Foxtel credit facility — tranche 3 | 7.41% | Aug 1, 2027 | $212 | $0 | | Foxtel Group: Telstra facility | 11.95% | Dec 22, 2027 | $101 | $100 | | REA Group: 2024 REA credit facility — tranche 1 | 5.85% | Sep 15, 2028 | $81 | $0 | | REA Group: 2024 REA credit facility — tranche 2 | 5.55% | Sep 16, 2025 | $136 | $0 | | REA Group: 2024 Subsidiary facility | 5.75% | Sep 28, 2025 | $54 | $0 | | Finance lease liability | N/A | N/A | $30 | $42 | | **Total borrowings** | | | **$3,042** | **$2,967** | | Less: current portion | | | $(58) | $(27) | | **Long-term borrowings** | | | **$2,984** | **$2,940** | - The Foxtel Group refinanced its debt during the six months ended December 31, 2023, with a new **A$1.2 billion** syndicated credit facility (2024 Foxtel Credit Facility) and extended its 2017 working capital facility[57](index=57&type=chunk) - REA Group entered into a new unsecured syndicated credit facility (2024 REA Credit Facility) and an **A$83 million** unsecured bilateral revolving credit facility (2024 Subsidiary Facility) during the six months ended December 31, 2023[60](index=60&type=chunk)[64](index=64&type=chunk) - The Company was in compliance with all debt covenants as of December 31, 2023[65](index=65&type=chunk) [Note 6. Equity](index=14&type=section&id=NOTE%206.%20EQUITY) Presents News Corporation's equity components, including share repurchases and dividend declarations | Metric | Dec 31, 2023 (Millions) | Dec 31, 2022 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Total News Corp Equity (End of Period) | $8,182 | $8,115 | | Noncontrolling Interests (End of Period) | $920 | $941 | | Total Equity (End of Period) | $9,102 | $9,056 | | Net income attributable to News Corporation stockholders | $156 | $67 | | Share repurchases | $(26) | $(47) | | Metric | Dec 31, 2023 (Millions) | Dec 31, 2022 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Total News Corp Equity (End of Period) | $8,182 | $8,115 | | Noncontrolling Interests (End of Period) | $920 | $941 | | Total Equity (End of Period) | $9,102 | $9,056 | | Net income attributable to News Corporation stockholders | $186 | $107 | | Dividends | $(85) | $(89) | | Share repurchases | $(55) | $(174) | - The Board of Directors authorized a **$1 billion** share repurchase program, with approximately **$522 million** remaining as of December 31, 2023[72](index=72&type=chunk) - The Company repurchased **1.2 million** shares (**0.8M** Class A, **0.4M** Class B) for **$26 million** during the three months ended December 31, 2023, and **2.6 million** shares (**1.8M** Class A, **0.8M** Class B) for **$55 million** during the six months ended December 31, 2023[73](index=73&type=chunk) - A semi-annual cash dividend of **$0.10 per share** for Class A Common Stock and Class B Common Stock was declared in August 2023 and paid on October 11, 2023[76](index=76&type=chunk) [Note 7. Financial Instruments and Fair Value Measurements](index=16&type=section&id=NOTE%207.%20FINANCIAL%20INSTRUMENTS%20AND%20FAIR%20VALUE%20MEASUREMENTS) Describes News Corporation's derivative instruments and fair value measurements for financial assets and liabilities | Asset/Liability | Level 1 (Dec 31, 2023) | Level 2 (Dec 31, 2023) | Level 3 (Dec 31, 2023) | Total (Dec 31, 2023) | Level 1 (Jun 30, 2023) | Level 2 (Jun 30, 2023) | Level 3 (Jun 30, 2023) | Total (Jun 30, 2023) | | :---------------------------------------------------------------------------------------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | **Assets:** | | | | | | | | | | Interest rate derivatives - cash flow hedges | $0 | $25 | $0 | $25 | $0 | $41 | $0 | $41 | | Equity and other securities | $96 | $0 | $131 | $227 | $105 | $0 | $130 | $235 | | **Total assets** | **$96** | **$25** | **$131** | **$252** | **$105** | **$89** | **$130** | **$324** | | **Liabilities:** | | | | | | | | | | Interest rate derivatives - cash flow hedges | $0 | $(5) | $0 | $(5) | $0 | $0 | $0 | $0 | | Foreign currency derivatives - cash flow hedges | $0 | $(1) | $0 | $(1) | $0 | $0 | $0 | $0 | | Cross-currency interest rate derivatives - cash flow hedges | $0 | $(3) | $0 | $(3) | $0 | $0 | $0 | $0 | | **Total liabilities** | **$0** | **$(9)** | **$0** | **$(9)** | **$0** | **$(3)** | **$0** | **$(3)** | - The Company uses derivative instruments (interest rate, foreign currency, and cross-currency interest rate derivatives) to mitigate foreign currency exchange rate risk and interest rate risk[86](index=86&type=chunk)[92](index=92&type=chunk) - During the six months ended December 31, 2023, the Company entered into new cross-currency and interest rate swap derivatives totaling **$49 million** and **A$610 million**, respectively, designated as cash flow hedges[87](index=87&type=chunk) - The total notional value of interest rate swap derivatives designated for hedging was approximately **$491 million** and **A$610 million** as of December 31, 2023[93](index=93&type=chunk) - Approximately **$13 million** of net derivative gains related to interest rate swap cash flow hedges are estimated to be reclassified into the Statements of Operations within the next **12 months**[93](index=93&type=chunk) [Note 8. Earnings (Loss) Per Share](index=20&type=section&id=NOTE%208.%20EARNINGS%20(LOSS)%20PER%20SHARE) Calculates basic and diluted earnings per share for News Corporation stockholders | Metric | 3 Months Ended Dec 31, 2023 | 3 Months Ended Dec 31, 2022 | 6 Months Ended Dec 31, 2023 | 6 Months Ended Dec 31, 2022 | | :---------------------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income attributable to News Corporation stockholders | $156 | $67 | $186 | $107 | | Weighted-average number of shares of common stock outstanding - basic (millions) | 571.9 | 576.0 | 572.1 | 578.7 | | Dilutive effect of equity awards (millions) | 1.6 | 1.8 | 1.7 | 1.8 | | Weighted-average number of shares of common stock outstanding - diluted (millions) | 573.5 | 577.8 | 573.8 | 580.5 | | Net income attributable to News Corporation stockholders per share - basic | $0.27 | $0.12 | $0.33 | $0.18 | | Net income attributable to News Corporation stockholders per share - diluted | $0.27 | $0.12 | $0.32 | $0.18 | [Note 9. Commitments and Contingencies](index=21&type=section&id=NOTE%209.%20COMMITMENTS%20AND%20CONTINGENCIES) Outlines News Corporation's contractual commitments and potential liabilities from legal proceedings | Commitment Type | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :-------------------------- | :---- | :--------------- | :-------- | :-------- | :---------------- | | Borrowings | $3,029 | $36 | $694 | $799 | $1,500 | | Interest payments on borrowings | $686 | $155 | $269 | $153 | $109 | - The Company is routinely involved in various legal proceedings, claims, and governmental inspections or investigations, including class action complaints against HarperCollins and matters related to U.K. Newspaper Matters[110](index=110&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - As of December 31, 2023, the Company accrued approximately **$81 million** for U.K. Newspaper Matters, with **$89 million** indemnified by FOX Corporation recorded as a receivable[118](index=118&type=chunk) [Note 10. Income Taxes](index=22&type=section&id=NOTE%2010.%20INCOME%20TAXES) Discusses News Corporation's income tax expense, effective tax rates, and impact of global tax reforms - For the three and six months ended December 31, 2023, income tax expense was **$94 million** (on **$277 million** pre-tax income) and **$131 million** (on **$372 million** pre-tax income), respectively, with effective tax rates higher than the U.S. statutory rate due to foreign operations and valuation allowances[122](index=122&type=chunk) - The Company does not expect to be subject to the **15% corporate minimum tax** imposed by the Inflation Reduction Act[126](index=126&type=chunk) - The Company does not expect to be subject to **Pillar One taxes** based on current proposed revenue and profit thresholds[127](index=127&type=chunk) - The Company is evaluating the potential impact of **Pillar Two global minimum tax proposals** (**15% effective tax rate** for multinational groups with over **750 million Euros** annual global revenue) on its consolidated financial statements[128](index=128&type=chunk) [Note 11. Segment Information](index=24&type=section&id=NOTE%2011.%20SEGMENT%20INFORMATION) Provides financial data by News Corporation's operating segments, including revenues, EBITDA, and assets - News Corporation manages and reports its businesses in six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other[130](index=130&type=chunk)[131](index=131&type=chunk) - Segment EBITDA 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[132](index=132&type=chunk) | Segment | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Digital Real Estate Services | $419 | $386 | $822 | $807 | | Subscription Video Services | $470 | $462 | $956 | $964 | | Dow Jones | $584 | $563 | $1,121 | $1,078 | | Book Publishing | $550 | $531 | $1,075 | $1,018 | | News Media | $563 | $579 | $1,111 | $1,132 | | Other | $0 | $0 | $0 | $0 | | **Total revenues** | **$2,586** | **$2,521** | **$5,085** | **$4,999** | | Segment | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Digital Real Estate Services | $147 | $128 | $269 | $247 | | Subscription Video Services | $77 | $90 | $170 | $201 | | Dow Jones | $163 | $139 | $287 | $252 | | Book Publishing | $85 | $51 | $150 | $90 | | News Media | $52 | $59 | $66 | $77 | | Other | $(51) | $(58) | $(105) | $(108) | | **Total Segment EBITDA** | **$473** | **$409** | **$837** | **$759** | | Segment | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :-------------------------- | :---------------------------- | :---------------------------- | | Digital Real Estate Services | $3,073 | $2,942 | | Subscription Video Services | $2,633 | $2,812 | | Dow Jones | $4,178 | $4,305 | | Book Publishing | $2,731 | $2,629 | | News Media | $1,966 | $2,023 | | Other | $1,676 | $1,783 | | Investments | $424 | $427 | | **Total assets** | **$16,681** | **$16,921** | | Segment | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :-------------------------- | :---------------------------- | :---------------------------- | | Digital Real Estate Services | $1,826 | $1,779 | | Subscription Video Services | $1,288 | $1,288 | | Dow Jones | $3,273 | $3,298 | | Book Publishing | $942 | $958 | | News Media | $308 | $306 | | **Total Goodwill and intangible assets, net** | **$7,637** | **$7,629** | [Note 12. Additional Financial Information](index=27&type=section&id=NOTE%2012.%20ADDITIONAL%20FINANCIAL%20INFORMATION) Presents supplementary financial details on receivables, other non-current assets, and current liabilities | Metric | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :-------------------------- | :---------------------------- | :---------------------------- | | Receivables | $1,579 | $1,482 | | Less: allowances | $(63) | $(57) | | **Receivables, net** | **$1,516** | **$1,425** | | Component | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :-------------------------- | :---------------------------- | :---------------------------- | | Royalty advances to authors | $384 | $376 | | Retirement benefit assets | $141 | $134 | | Inventory | $236 | $267 | | News America Marketing deferred consideration | $164 | $157 | | Other | $395 | $407 | | **Total Other non-current assets** | **$1,320** | **$1,341** | | Component | As of Dec 31, 2023 (Millions) | As of Jun 30, 2023 (Millions) | | :-------------------------- | :---------------------------- | :---------------------------- | | Royalties and commissions payable | $242 | $206 | | Current operating lease liabilities | $111 | $112 | | Allowance for sales returns | $155 | $154 | | Current tax payable | $11 | $16 | | Other | $359 | $465 | | **Total Other current liabilities** | **$878** | **$953** | | Component | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :------------------------------------------------ | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Remeasurement of equity securities | $13 | $(11) | $(10) | $(14) | | Dividends received from equity security investments | $1 | $2 | $3 | $4 | | Gain on remeasurement of previously-held interest | $0 | $0 | $4 | $0 | | Other | $8 | $3 | $(10) | $(14) | | **Total Other, net** | **$22** | **$(6)** | **$(13)** | **$(24)** | | Metric | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :-------------------------- | :------------------------------------- | :------------------------------------- | | Cash paid for interest | $51 | $54 | | Cash paid for taxes | $74 | $81 | [Note 13. Subsequent Events](index=28&type=section&id=NOTE%2013.%20SUBSEQUENT%20EVENTS) Discloses significant events occurring after the balance sheet date, such as dividend declarations - In February 2024, the Board of Directors declared a semi-annual cash dividend of **$0.10 per share** for Class A Common Stock and Class B Common Stock, payable on April 10, 2024[151](index=151&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses News Corporation's financial condition, operational results, business segments, liquidity, and capital resources [Introduction](index=29&type=section&id=INTRODUCTION) Provides an overview of News Corporation's business and cautions regarding forward-looking statements - The document contains forward-looking statements, and readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties[154](index=154&type=chunk) - News Corporation is a global diversified media and information services company comprised of businesses across digital real estate services, subscription video services in Australia, news and information services, and book publishing[155](index=155&type=chunk) [Overview of the Company's Businesses](index=30&type=section&id=OVERVIEW%20OF%20THE%20COMPANY%27S%20BUSINESSES) Describes News Corporation's diversified media and information services segments - The Company manages six segments: Digital Real Estate Services (REA Group, Move), Subscription Video Services (Foxtel Group, Australian News Channel), Dow Jones (The Wall Street Journal, Risk & Compliance), Book Publishing (HarperCollins), News Media (News Corp Australia, News UK, New York Post), and Other[158](index=158&type=chunk)[159](index=159&type=chunk) [Other Business Developments](index=31&type=section&id=Other%20Business%20Developments) Highlights recent strategic initiatives, including headcount reductions and proposed printing operations combination - The Company implemented a **5% headcount reduction**, expecting annualized gross cost savings of at least **$160 million**, with the majority reflected in fiscal 2024[160](index=160&type=chunk) - News UK and DMG Media announced a proposed arrangement to combine certain U.K. printing operations within a separate joint venture, subject to regulatory approval, to improve efficiency and establish a sustainable business model[161](index=161&type=chunk) [Results of Operations](index=32&type=section&id=RESULTS%20OF%20OPERATIONS) Analyzes News Corporation's consolidated revenues, expenses, and net income for the reporting periods | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | % Change (3 Months) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | % Change (6 Months) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------ | :------------------------------------- | :------------------------------------- | :------------------ | | Total Revenues | $2,586 | $2,521 | 3% | $5,085 | $4,999 | 2% | | Operating expenses | $(1,281) | $(1,294) | 1% | $(2,554) | $(2,567) | 1% | | Selling, general and administrative | $(832) | $(818) | (2)% | $(1,694) | $(1,673) | (1)% | | Depreciation and amortization | $(179) | $(174) | (3)% | $(350) | $(353) | 1% | | Impairment and restructuring charges | $(13) | $(19) | 32% | $(51) | $(40) | (28)% | | Equity losses of affiliates | $(1) | $(29) | 97% | $(3) | $(33) | 91% | | Interest expense, net | $(25) | $(26) | 4% | $(48) | $(53) | 9% | | Other, net | $22 | $(6) | N/A | $(13) | $(24) | 46% | | Income before income tax expense | $277 | $155 | 79% | $372 | $256 | 45% | | Income tax expense | $(94) | $(61) | (54)% | $(131) | $(96) | (36)% | | Net income | $183 | $94 | 95% | $241 | $160 | 51% | | Net income attributable to News Corporation stockholders | $156 | $67 | N/A | $186 | $107 | 74% | - Total Revenues increased by **$65 million** (**3%**) and **$86 million** (**2%**) for the three and six months ended December 31, 2023, respectively, driven by Digital Real Estate Services, Dow Jones, and Book Publishing, partially offset by News Media[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk) - Operating expenses decreased by **$13 million** (**1%**) for both the three and six months ended December 31, 2023, primarily due to lower costs in Book Publishing and News Media, partially offset by higher sports programming rights costs in Subscription Video Services[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - Selling, general and administrative expenses increased by **$14 million** (**2%**) and **$21 million** (**1%**) for the three and six months, respectively, mainly due to higher employee costs and broker commissions in Digital Real Estate Services and Book Publishing, partially offset by Subscription Video Services[171](index=171&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk) - Net income increased by **$89 million** (**95%**) to **$183 million** for the three months and by **$81 million** (**51%**) to **$241 million** for the six months ended December 31, 2023, driven by higher Total Segment EBITDA, lower equity losses, and higher Other, net[182](index=182&type=chunk)[183](index=183&type=chunk) [Segment Analysis](index=35&type=section&id=Segment%20Analysis) Examines the financial performance of News Corporation's individual operating segments - Segment EBITDA is the primary measure for evaluating business performance and resource allocation, excluding depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net, and income tax (expense) benefit[184](index=184&type=chunk) | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Net income | $183 | $94 | $241 | $160 | | Income tax expense | $94 | $61 | $131 | $96 | | Other, net | $(22) | $6 | $13 | $24 | | Interest expense, net | $25 | $26 | $48 | $53 | | Equity losses of affiliates | $1 | $29 | $3 | $33 | | Impairment and restructuring charges | $13 | $19 | $51 | $40 | | Depreciation and amortization | $179 | $174 | $350 | $353 | | **Total Segment EBITDA** | **$473** | **$409** | **$837** | **$759** | | Segment | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Digital Real Estate Services | $419 | $386 | $822 | $807 | | Subscription Video Services | $470 | $462 | $956 | $964 | | Dow Jones | $584 | $563 | $1,121 | $1,078 | | Book Publishing | $550 | $531 | $1,075 | $1,018 | | News Media | $563 | $579 | $1,111 | $1,132 | | Other | $0 | $0 | $0 | $0 | | **Total revenues** | **$2,586** | **$2,521** | **$5,085** | **$4,999** | | Digital Real Estate Services (EBITDA) | $147 | $128 | $269 | $247 | | Subscription Video Services (EBITDA) | $77 | $90 | $170 | $201 | | Dow Jones (EBITDA) | $163 | $139 | $287 | $252 | | Book Publishing (EBITDA) | $85 | $51 | $150 | $90 | | News Media (EBITDA) | $52 | $59 | $66 | $77 | | Other (EBITDA) | $(51) | $(58) | $(105) | $(108) | | **Total Segment EBITDA** | **$473** | **$409** | **$837** | **$759** | [Digital Real Estate Services](index=37&type=section&id=Digital%20Real%20Estate%20Services) Analyzes revenue and EBITDA performance of REA Group and Move, reflecting market conditions | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | % Change (3 Months) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | % Change (6 Months) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------ | :------------------------------------- | :------------------------------------- | :------------------ | | Total Revenues | $419 | $386 | 9% | $822 | $807 | 2% | | Segment EBITDA | $147 | $128 | 15% | $269 | $247 | 9% | - Revenues increased by **$33 million** (**9%**) for the three months and **$15 million** (**2%**) for the six months ended December 31, 2023, driven by REA Group's higher Australian residential and financial services revenues, partially offset by Move's decline due to the U.S. housing market[191](index=191&type=chunk)[193](index=193&type=chunk) - Segment EBITDA increased by **$19 million** (**15%**) for the three months and **$22 million** (**9%**) for the six months, primarily due to REA Group's increased contribution, partially offset by the adverse impact from Move[192](index=192&type=chunk)[194](index=194&type=chunk) [Subscription Video Services](index=38&type=section&id=Subscription%20Video%20Services) Reviews Foxtel Group's revenue, EBITDA, and subscriber trends, including streaming growth | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | % Change (3 Months) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | % Change (6 Months) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------ | :------------------------------------- | :------------------------------------- | :------------------ | | Total Revenues | $470 | $462 | 2% | $956 | $964 | (1)% | | Segment EBITDA | $77 | $90 | (14)% | $170 | $201 | (15)% | - Revenues increased by **$8 million** (**2%**) for the three months but decreased by **$8 million** (**1%**) for the six months ended December 31, 2023. Streaming revenues (Kayo, BINGE) increased due to volume and pricing, offsetting lower residential broadcast subscribers and negative foreign currency impact[195](index=195&type=chunk)[197](index=197&type=chunk) - Segment EBITDA decreased by **$13 million** (**14%**) for the three months and **$31 million** (**15%**) for the six months, driven by higher sports programming rights costs and **$10 million** for the upcoming Hubbl launch, partially offset by revenue growth and cost savings[196](index=196&type=chunk)[198](index=198&type=chunk) | Metric | As of Dec 31, 2023 (Thousands) | As of Dec 31, 2022 (Thousands) | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Broadcast Subscribers (Residential) | 1,273 | 1,401 | | Broadcast Subscribers (Commercial) | 232 | 230 | | Streaming Subscribers (Kayo) | 1,183 (1,173 paid) | 1,136 (1,126 paid) | | Streaming Subscribers (BINGE) | 1,503 (1,471 paid) | 1,439 (1,375 paid) | | Streaming Subscribers (Foxtel Now) | 155 (150 paid) | 183 (177 paid) | | Total Subscribers (Total (Paid)) | 4,365 (4,317 paid) | 4,414 (4,329 paid) | | Metric | 3 Months Ended Dec 31, 2023 | 3 Months Ended Dec 31, 2022 | 6 Months Ended Dec 31, 2023 | 6 Months Ended Dec 31, 2022 | | :--------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Broadcast ARPU | A$86 (US$56) | A$83 (US$55) | A$85 (US$56) | A$83 (US$56) | | Broadcast Subscriber Churn | 12.9% | 12.9% | 12.2% | 13.6% | [Dow Jones](index=40&type=section&id=Dow%20Jones) Evaluates Dow Jones's revenue and EBITDA growth, driven by professional information and digital subscriptions | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | % Change (3 Months) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | % Change (6 Months) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------ | :------------------------------------- | :------------------------------------- | :------------------ | | Total Revenues | $584 | $563 | 4% | $1,121 | $1,078 | 4% | | Segment EBITDA | $163 | $139 | 17% | $287 | $252 | 14% | - Revenues increased by **$21 million** (**4%**) for the three months and **$43 million** (**4%**) for the six months ended December 31, 2023, primarily due to higher professional information business revenues. Digital revenues represented **78%** and **79%** of total revenues for these periods, respectively[203](index=203&type=chunk)[204](index=204&type=chunk) - Professional information business revenues increased by **$24 million** (**13%**) for the three months and **$49 million** (**13%**) for the six months, driven by growth in Risk & Compliance, Dow Jones Energy, and Factiva[205](index=205&type=chunk)[206](index=206&type=chunk) | Publication | 2023 (Thousands) | 2022 (Thousands) | % Change | | :--------------------------------------- | :--------------- | :--------------- | :------- | | The Wall Street Journal (Digital-only) | 3,528 | 3,167 | 11% | | The Wall Street Journal (Total) | 4,052 | 3,780 | 7% | | Barron's Group (Digital-only) | 1,104 | 894 | 23% | | Barron's Group (Total) | 1,242 | 1,062 | 17% | | Total Consumer (Digital-only) | 4,746 | 4,139 | 15% | | Total Consumer (Total) | 5,427 | 4,943 | 10% | - Segment EBITDA increased by **$24 million** (**17%**) for the three months and **$35 million** (**14%**) for the six months, due to revenue growth and gross cost savings related to the announced **5% headcount reduction initiative**[210](index=210&type=chunk)[211](index=211&type=chunk) [Book Publishing](index=42&type=section&id=Book%20Publishing) Assesses HarperCollins' revenue and EBITDA performance, highlighting digital sales and cost efficiencies | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | % Change (3 Months) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | % Change (6 Months) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------ | :------------------------------------- | :------------------------------------- | :------------------ | | Total Revenues | $550 | $531 | 4% | $1,075 | $1,018 | 6% | | Segment EBITDA | $85 | $51 | 67% | $150 | $90 | 67% | - Revenues increased by **$19 million** (**4%**) for the three months and **$57 million** (**6%**) for the six months ended December 31, 2023, driven by higher digital book sales, improved returns in the U.S., and recovering consumer demand[212](index=212&type=chunk)[214](index=214&type=chunk) - Digital sales increased by **15%** for the three months and **9%** for the six months, primarily due to strong market growth for downloadable audiobook sales and a new Spotify partnership. Digital sales represented approximately **21%** and **22%** of consumer revenues, respectively[212](index=212&type=chunk)[214](index=214&type=chunk) - Segment EBITDA increased by **$34 million** (**67%**) for the three months and **$60 million** (**67%**) for the six months, due to higher revenues and lower manufacturing, freight, and distribution costs, partially offset by higher employee costs[213](index=213&type=chunk)[215](index=215&type=chunk) [News Media](index=43&type=section&id=News%20Media) Examines News Media's revenue and EBITDA trends, impacted by advertising declines and cost savings | Metric | 3 Months Ended Dec 31, 2023 (Millions) | 3 Months Ended Dec 31, 2022 (Millions) | % Change (3 Months) | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | % Change (6 Months) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------ | :------------------------------------- | :------------------------------------- | :------------------ | | Total Revenues | $563 | $579 | (3)% | $1,111 | $1,132 | (2)% | | Segment EBITDA | $52 | $59 | (12)% | $66 | $77 | (14)% | - Revenues decreased by **$16 million** (**3%**) for the three months and **$21 million** (**2%**) for the six months ended December 31, 2023, primarily due to lower advertising revenues (digital and print), partially offset by circulation and subscription revenue growth from cover price increases and digital subscribers[217](index=217&type=chunk)[219](index=219&type=chunk) - Segment EBITDA decreased by **$7 million** (**12%**) for the three months and **$11 million** (**14%**) for the six months, due to lower revenues, partially offset by reduced production costs at News UK and gross cost savings from headcount reductions[218](index=218&type=chunk)[220](index=220&type=chunk) - News Corp Australia's revenues decreased by **$16 million** (**6%**) for the three months and **$33 million** (**7%**) for the six months, mainly due to lower print and digital advertising revenues[221](index=221&type=chunk)[222](index=222&type=chunk) - News UK's revenues increased by **$1 million** for the three months and **$8 million** (**2%**) for the six months, driven by circulation and subscription growth, partially offset by advertising declines[223](index=223&type=chunk)[224](index=224&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Discusses News Corporation's cash position, debt, equity, and ability to meet financial obligations - As of December 31, 2023, the Company had **$1.7 billion** in cash and cash equivalents, with **$838 million** held by foreign subsidiaries, of which **$214 million** is not readily accessible by the Company as it is held by REA Group, a majority-owned but separately listed public company[225](index=225&type=chunk)[226](index=226&type=chunk) - The Company expects its internally generated funds, cash on hand, and access to the credit and capital markets to meet its liquidity needs for at least the next **12 months**[225](index=225&type=chunk) [Issuer Purchases of Equity Securities](index=45&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) Details News Corporation's share repurchase program and shares bought back during the period - The Company has a **$1 billion** share repurchase program, with approximately **$522 million** remaining authorized as of December 31, 2023[228](index=228&type=chunk) - During the three and six months ended December 31, 2023, the Company repurchased **1.2 million** shares for **$26 million** and **2.6 million** shares for **$55 million**, respectively[229](index=229&type=chunk) [Dividends](index=45&type=section&id=Dividends) Reports on News Corporation's dividend declarations and factors influencing future payments - A semi-annual cash dividend of **$0.10 per share** for Class A Common Stock and Class B Common Stock was declared in August 2023 and paid on October 11, 2023[230](index=230&type=chunk) - The timing, declaration, amount, and payment of future dividends are at the discretion of the Board of Directors, depending on financial condition, earnings, capital requirements, and debt covenants[230](index=230&type=chunk) [Sources and Uses of Cash](index=45&type=section&id=Sources%20and%20Uses%20of%20Cash) Analyzes News Corporation's cash flows from operating, investing, and financing activities | Metric | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash provided by operating activities | $305 | $161 | - Net cash provided by operating activities increased by **$144 million** to **$305 million** for the six months ended December 31, 2023, due to higher Total Segment EBITDA, lower working capital, and lower tax payments[231](index=231&type=chunk) | Metric | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash used in investing activities | $(278) | $(337) | - Net cash used in investing activities decreased by **$59 million** to **$278 million** for the six months ended December 31, 2023, with **$236 million** for capital expenditures and **$42 million** for acquisitions and investments[231](index=231&type=chunk) | Metric | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash used in financing activities | $(144) | $(312) | - Net cash used in financing activities decreased to **$144 million** for the six months ended December 31, 2023, from **$312 million** in the prior year, primarily due to debt refinancings at Foxtel and REA Group[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) [Reconciliation of Free Cash Flow and Free Cash Flow Available to News Corporation](index=46&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow%20and%20Free%20Cash%20Flow%20Available%20to%20News%20Corporation) Reconciles non-GAAP free cash flow measures to operating cash flow, highlighting liquidity trends - Free cash flow and free cash flow available to News Corporation are non-GAAP financial measures providing useful information about the Company's liquidity and cash flow trends[236](index=236&type=chunk)[238](index=238&type=chunk) | Metric | 6 Months Ended Dec 31, 2023 (Millions) | 6 Months Ended Dec 31, 2022 (Millions) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash provided by operating activities | $305 | $161 | | Less: Capital expenditures | $(236) | $(217) | | **Free cash flow** | **$69** | **$(56)** | | Less: REA Group free cash flow | $(134) | $(96) | | Plus: Cash dividends received from REA Group | $44 | $50 | | **Free cash flow available to News Corporation** | **$(21)** | **$(102)** | - Free cash flow improved to **$69 million** (from **-$56 million**) and free cash flow available to News Corporation improved to **-$21 million** (from **-$102 million**) for the six months ended December 31, 2023, primarily due to higher cash provided by operating activities[241](index=241&type=chunk) [Borrowings](index=47&type=section&id=Borrowings) Summarizes News Corporation's total borrowings, undrawn commitments, and debt covenant compliance - Total borrowings were **$3.0 billion** as of December 31, 2023, with Foxtel Group and REA Group debt being non-recourse to News Corp[242](index=242&type=chunk) - News Corp had **$1,974 million** in borrowings and **$750 million** of undrawn commitments available under its Revolving Facility[243](index=243&type=chunk) - The Foxtel Debt Group had approximately **$767 million** in borrowings and **A$255 million** in undrawn commitments, having refinanced with a new **A$1.2 billion** syndicated credit facility[244](index=244&type=chunk)[245](index=245&type=chunk) - REA Group had approximately **$271 million** in borrowings and **A$285 million** in undrawn commitments, having entered into new syndicated and bilateral credit facilities[249](index=249&type=chunk)[250](index=250&type=chunk)[254](index=254&type=chunk) - The Company was in compliance with all debt covenants as of December 31, 2023[255](index=255&type=chunk) [Commitments](index=49&type=section&id=Commitments) Outlines News Corporation's contractual obligations, including borrowings and interest payments | Commitment Type | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :-------------------------- | :---- | :--------------- | :-------- | :-------- | :---------------- | | Borrowings | $3,029 | $36 | $694 | $799 | $1,500 | | Interest payments on borrowings | $686 | $155 | $269 | $153 | $109 | - The Company's other commitments as of December 31, 2023, have not changed significantly from the disclosures included in the 2023 Form 10-K[258](index=258&type=chunk) [Contingencies](index=49&type=section&id=Contingencies) Discusses News Corporation's involvement in legal proceedings and the accrual of related liabilities - The Company is routinely involved in various legal proceedings, claims, and governmental inspections or investigations, with outcomes subject to significant uncertainty[259](index=259&type=chunk) - Accrued liabilities for legal claims are established when a loss is probable and estimable, and are adjusted as new information becomes available[260](index=260&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the Company's market risk sensitivity assessment since the 2023 Form 10-K disclosures - There has been **no material change** in the Company's assessment of its sensitivity to market risk since its presentation set forth in Item 7A of the Company's 2023 Form 10-K[261](index=261&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effective disclosure controls and no material changes to internal control over financial reporting - The Company's management, with the participation of the CEO and CFO, evaluated and concluded that the **disclosure controls and procedures were effective** as of December 31, 2023[262](index=262&type=chunk) - There has been **no material change** in the Company's **internal control over financial reporting** during the second quarter of fiscal 2024[263](index=263&type=chunk) Part II. [Other Information](index=51&type=section&id=Part%20II.%20Other%20Information) Presents supplementary information not covered in the financial statements, including legal, risk, and equity details [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 9 of the Consolidated Financial Statements for details on legal proceedings and claims - Legal proceedings are detailed in Note 9—Commitments and Contingencies in the accompanying Consolidated Financial Statements[265](index=265&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously described in the Company's 2023 Form 10-K - There have been **no material changes to the risk factors** described in the 2023 Form 10-K[266](index=266&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the Company's ongoing $1 billion stock repurchase program, including shares repurchased and remaining authorization - The Company has a **$1 billion** stock repurchase program with no time limit, with approximately **$522 million** remaining authorized as of December 31, 2023[267](index=267&type=chunk)[268](index=268&type=chunk) | Period | Total Number of Shares Purchased (Millions) | Average Price Paid Per Share (Class A) | Average Price Paid Per Share (Class B) | Dollar Value of Shares Yet To Be Purchased (Millions) | | :--------------------------------------- | :---------------------------------------- | :------------------------------------- | :------------------------------------- | :---------------------------------------------------- | | Oct 2, 2023 - Oct 29, 2023 | 0.4 | $20.71 | $21.48 | $539 | | Oct 30, 2023 - Dec 3, 2023 | 0.5 | $21.41 | $22.27 | $529 | | Dec 4, 2023 - Dec 31, 2023 | 0.3 | $22.90 | $23.92 | $522 | | **Total** | **1.2** | **$21.52** | **$22.35** | | [Item 3. Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Indicates that this item is not applicable, signifying no defaults upon senior securities - **Not applicable**[269](index=269&type=chunk) [Item 4. Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that this item is not applicable, signifying no mine safety disclosures - **Not applicable**[269](index=269&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) Indicates that this item is marked as 'None,' signifying no other information to disclose - **None**[269](index=269&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL financial data - Includes **Chief Executive Officer and Chief Financial Officer Certifications** required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended, and pursuant to 18 U.S.C. Section 1350[270](index=270&type=chunk) - The Company's Quarterly Report on Form 10-Q financial information is formatted in **Inline XBRL** as Exhibit 101[270](index=270&type=chunk) [Signature](index=52&type=section&id=Signature) Contains the signature of News Corporation's CFO, Susan Panuccio, certifying the report on February 8, 2024 - The report was signed by Susan Panuccio, Chief Financial Officer, on February 8, 2024[272](index=272&type=chunk)

News Corporation (NASDAQ:NWSA) Q2 2024 Earnings Conference Call February 7, 2024 5:00 PM ET Company Participants Michael Florin - Senior Vice President and Head, Investor Relations Robert Thomson - Chief Executive Susan Panuccio - Chief Financial Officer Conference Call Participants David Karnovsky - JPMorgan Entcho Raykovski - Evans & Partners Kane Hannan - Goldman Sachs Craig Huber - Huber Research Lucy Huang - UBS Brian Han - Morningstar Darren Leung - Macquarie Operator Welcome to News Corp’s Second Qua ...

For the quarter ended December 2023, News Corp. (NWSA) reported revenue of $2.59 billion, up 2.6% over the same period last year. EPS came in at $0.26, compared to $0.14 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.58 billion, representing a surprise of +0.29%. The company delivered an EPS surprise of +30.00%, with the consensus EPS estimate being $0.20.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Wall Street analysts forecast that News Corp. (NWSA) will report quarterly earnings of $0.20 per share in its upcoming release, pointing to a year-over-year increase of 42.9%. It is anticipated that revenues will amount to $2.58 billion, exhibiting an increase of 2.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior t ...

News Corporation (NWSA) is set to report second-quarter fiscal 2024 results on Feb 7.The Zacks Consensus Estimate for revenues is pegged at $2.58 billion, indicating an increase of 2.28% from the year-ago quarter’s levels.The consensus mark for earnings has remained steady at 20 cents per share in the past 30 days.The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters, missing the mark once. News Corporation has a trailing four-quarter earnings surprise of 26.75%, on a ...