Core Viewpoint - News Corp's stock has seen a 14% increase since the beginning of 2024, but it has underperformed compared to broader indices like the S&P 500, which rose about 27% during the same period [1] Financial Performance - In Q1 2025, News Corp's total revenues increased by 3% year-over-year to $2.6 billion, driven by higher revenues in Australian residential at REA Group, digital book sales, and growth in the Dow Jones segment [2] - Net income per share rose to $0.21 from $0.05 in the prior year, with adjusted EPS up 31% year-over-year to $0.21 [2] - The company forecasts revenues of $10.4 billion for fiscal year 2025, representing a 4% year-over-year increase, with an expected EPS of $0.90 [7] Segment Analysis - The Subscription Video Services segment showed a revenue increase of 3% but a decline in EBITDA by 1%, attributed to higher costs related to Hubbl's launch and increased sports programming rights expenses [3] - The News Media segment experienced a revenue decline of 5%, although EBITDA increased by 14%, indicating ongoing challenges in print and a transition to digital platforms [3] Strategic Moves - News Corp has agreed to sell its Australian cable TV unit Foxtel to DAZN for AUD 3.4 billion (USD 2.1 billion), marking a strategic exit from a struggling business amid competition from streaming platforms [5] - The company plans to focus on growth in key divisions, with Dow Jones expected to drive B2B growth and Digital Real Estate seeing a 14% rise in Australian residential listings [6] Valuation Insights - The revised valuation for News Corp is set at $31 per share, based on a projected EPS of $0.90 and a P/E multiple of 34.5x, indicating that the stock appears undervalued at its current price [8]

Key TakeawaysNews Corp and Australian partner Telstra sold their interest in the Foxtel subscription TV and streaming service to DAZN Group for an enterprise value of 3.4 billion Australian dollars ($2.12 billion).The agreement includes the repayment of $360 million in shareholder loans owed to News Corp.News Corp will also get a 6% stake in DAZN Group, and a seat on the board. News Corp (NWSA) shares gained Monday when Rupert Murdoch's media company and Australian telecom company Telstra agreed to sell the ...

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News Corporation (NASDAQ:NWSA) Q1 2025 Earnings Call Transcript November 7, 2024 5:00 PM ET Company Participants Michael Florin - SVP and Head of IR Robert Thomson - CEO Susan Panuccio - CFO Conference Call Participants Alan Gould - Loop Capital David Karnovsky - JPMorgan Kane Hannan - Goldman Sachs Entcho Raykovski - Evans and Partners Craig Huber - Huber Research Lucy Huang - UBS Operator Welcome to the News Corp's First Quarter Fiscal 2025 Earnings Conference Call. Today's conference is being recorded. M ...

News Corporation (NWSA) reported first-quarter fiscal 2025 earnings of 21 cents per share, which beat the Zacks Consensus Estimate by 31.25% and increased 31.25% year over year.NWSA’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 24.7%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $2.58 billion increased 3.1% year over year and beat the consensus mark by 0.63%. The improvement was driven by growth in the Digital ...

Revenue Growth - Total revenues increased by $78 million, or 3%, to $2,577 million for the three months ended September 30, 2024, compared to the same period in 2023[111] - Digital Real Estate Services segment drove revenue growth, primarily due to higher Australian residential revenues at REA Group, contributing to a 15% increase in real estate revenues[114] - The Subscription Video Services segment saw higher streaming revenues, contributing to overall revenue growth despite lower residential subscription revenues[114] - Total revenues for the Digital Real Estate Services segment increased by $54 million, or 13%, reaching $457 million for the three months ended September 30, 2024[141] - REA Group's revenues increased by $57 million, or 22%, to $318 million, primarily due to higher Australian residential revenues[141] - Revenues for the Book Publishing segment increased by $21 million, or 4%, reaching $546 million, primarily due to higher digital book sales[144] - Total revenues for the Subscription Video Services segment increased by $15 million, or 3%, reaching $501 million, driven by higher streaming revenues[145] - Revenues at the Dow Jones segment increased by $15 million, or 3%, for the three months ended September 30, 2024, primarily due to higher professional information business revenues[136] - Circulation and subscription revenues increased by $23 million, or 5%, during the three months ended September 30, 2024, compared to the same period of fiscal 2024[138] Profitability - Net income attributable to News Corporation stockholders rose to $119 million, an increase of 297% compared to $30 million in the prior year[111] - Income before income tax expense increased by 115% to $204 million, compared to $95 million in the same quarter last year[111] - Net income for the three months ended September 30, 2024, was $144 million, an increase of $86 million, or 148%, compared to the corresponding period of fiscal 2024[128] - Total Segment EBITDA for the three months ended September 30, 2024, was $415 million, up from $364 million in the same period of fiscal 2024, representing a 14% increase[132] - Segment EBITDA for the Digital Real Estate Services segment increased by $18 million, or 15%, driven by higher contributions from REA Group[142] - For the three months ended September 30, 2024, Segment EBITDA at the Dow Jones segment increased by $7 million, or 6% compared to the same period in fiscal 2024[140] - Segment EBITDA for the News Media segment increased by $2 million, or 14%, driven by cost savings initiatives[150] Expenses and Costs - Operating expenses decreased by $10 million, or 1%, to $1,263 million, attributed to cost savings from the combination of News UK's printing operations with DMG Media[116] - Selling, general and administrative expenses increased by $37 million, or 4%, primarily due to higher costs at the Digital Real Estate Services segment[118] - Impairment and restructuring charges decreased by 37% to $24 million, compared to $38 million in the prior year[111] - Depreciation and amortization expense increased by $18 million, or 11%, for the three months ended September 30, 2024, primarily due to higher depreciation of capitalized software costs[120] - Advertising revenues decreased by $6 million, or 7%, during the three months ended September 30, 2024, primarily due to lower advertising spend in the technology and finance sectors[139] - Advertising revenues decreased by $9 million, or 15%, primarily due to lower digital advertising revenues and print advertising revenues[152] Cash Flow and Financing - Free cash flow for the three months ended September 30, 2024, was $(31) million, an improvement from $(179) million in the same period of fiscal 2023[167] - The company repurchased 1.3 million shares for $38 million during the three months ended September 30, 2024[157] - Total borrowings as of September 30, 2024, amounted to $2.9 billion, including $1.969 billion from News Corporation[168][169] - Net cash used in financing activities was $147 million for the three months ended September 30, 2024, compared to $65 million in the same period of 2023[162] Strategic Initiatives - The Company is reviewing strategic and financial options for the Foxtel Group, including its capital structure and assets, in response to third-party interest[110] - The company expects to continue evaluating possible future acquisitions and dispositions of certain businesses[155] Internal Controls and Governance - The Company's management has evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[178] - There has been no change in the Company's internal control over financial reporting during the first quarter of fiscal 2025 that materially affected its internal control[179] Currency Impact - The impact of foreign currency fluctuations resulted in a revenue increase of $35 million, or 1%, for the three months ended September 30, 2024[114] - Circulation and subscription revenues increased by $2 million, or 1%, driven by foreign currency fluctuations and cover price increases[152] Subscriber Metrics - Total subscribers for the Foxtel Group increased to 4,658,000, up from 4,646,000 in the previous year[147] Taxation - Income tax expense for the three months ended September 30, 2024, was $60 million on pre-tax income of $204 million, resulting in an effective tax rate higher than the U.S. statutory tax rate[126] Digital Revenue - Digital revenues represented 72% of circulation revenue for the three months ended September 30, 2024, compared to 70% in the corresponding period of fiscal 2024[138] - Digital sales in the Book Publishing segment increased by 15%, representing approximately 25% of consumer revenues[144]

News Corp posted record first-quarter revenue driven by growth at its digital real estate services, book publishing and Dow Jones segments, blowing past Wall Street estimates, the company said Thursday. The media giant, which owns the New York Post and the Wall Street Journal, saw net income jump 148% in the quarter to $144 million, or 21 cents a share.Meanwhile, revenue edged up 3% to $2.58 billion in the quarter ended Sept. 30, News Corp said. News Corp, home of the Wall Street Journal, Dow Jones and New ...

News Corp. (NWSA) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 31.25%. A quarter ago, it was expected that this publishing company whose flagship is The Wall Street Journal would post earnings of $0.15 per share when it actually produced earnings of $0.17, delivering a surprise of ...