Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q _________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 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 _________________ ...

Financial Data and Key Metrics Changes - Revenues from continuing operations grew 5% to $2.24 billion, while profitability rose 20% to $478 million, indicating significant progress in digital development [6][33] - Net income from continuing operations surged 58% to $306 million, and EPS from continuing operations increased to $0.40 from $0.28 in the prior quarter [7][34] - Overall margin improved from 18.7% to 21.4%, reflecting enhanced operational efficiency [7][33] Business Line Data and Key Metrics Changes - Digital Real Estate revenue increased 13% to $473 million, with segment EBITDA margin rising 26% to $185 million [17][41] - Dow Jones reported a 3% revenue growth to $600 million, with segment EBITDA expanding 7% to $174 million [19][41] - Book Publishing revenue grew 8% to $595 million, and segment EBITDA surged 19% to $101 million [23][45] - News Media revenue fell 2% to $570 million, but segment EBITDA grew 30% to $74 million due to cost-saving initiatives [25][49] Market Data and Key Metrics Changes - Digital circulation revenue at Dow Jones grew year-over-year at its fastest pace in two years, with digital ARPU improving sequentially [20][38] - REA achieved a quarterly record in revenue with 129 million average monthly visits, nearly four times more than the nearest competitor [19][42] - Digital advertising grew by 13% at the New York Post, contributing to profitability [26] Company Strategy and Development Direction - The company is focusing on its three pillars of growth: Digital Real Estate, Dow Jones, and Book Publishing, which collectively grew revenue by 7% and segment EBITDA by 16% [33] - The agreement to sell Foxtel to DAZN for AUD 3.4 billion is seen as a strategic move to strengthen the balance sheet and focus on core growth areas [8][31] - The company is committed to maximizing shareholder returns, with a $1 billion buyback provision in place [79] Management's Comments on Operating Environment and Future Outlook - Management noted a tangible increase in business confidence in the US, which is expected to lead to greater capital formation and opportunities [15] - The company anticipates mixed market trends geographically, with currency translation expected to be a headwind in the second half [50] - There is confidence in the growth of Dow Jones, particularly in B2B segments, despite ongoing challenges [50][102] Other Important Information - The company has been upgraded to investment grade by both S&P Global and Moody's, reflecting its long-term strategy and improved financial position [11] - The partnership with OpenAI is expected to enhance content visibility in the AI space, with ongoing legal actions to protect intellectual property [12][28] Q&A Session Summary Question: Discussion on the Foxtel deal structure and overall News Corp strategy - Management emphasized the importance of regulatory approvals for the Foxtel deal and highlighted the partnership with DAZN as a significant strategic move [58][60] Question: Insights on Dow Jones earnings growth in the second half - Management attributed confidence in growth to improved subscriber trends and the phasing of discounted offers to standard pricing [66][70] Question: Expected use of proceeds from the Foxtel sale - Management confirmed a focus on maximizing long-term shareholder value, with plans for buybacks and dividends [79] Question: Outlook for Dow Jones pricing and product launches - Management provided insights on the expected trajectory for pricing and emphasized the importance of the backlist in the Book Publishing segment [87][89]

Core Insights - News Corp. reported revenue of $2.24 billion for the quarter ended December 2024, reflecting a 13.5% decline year-over-year, while EPS increased to $0.33 from $0.26 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.2 billion by 1.86%, but the EPS met the consensus estimate without any surprise [1] Financial Performance Metrics - Key metrics indicate that News Corp. shares returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change, with a Zacks Rank 1 (Strong Buy) suggesting potential outperformance in the near term [3] - Revenue breakdown by product shows: - Dow Jones: $600 million, +2.7% year-over-year, below the estimate of $611.83 million [4] - Book Publishing: $595 million, +8.2% year-over-year, above the estimate of $575 million [4] - Digital Real Estate Services: $473 million, +12.9% year-over-year, above the estimate of $468.46 million [4] - News Media: $570 million, +1.2% year-over-year, above the estimate of $542.27 million [4] - EBITDA performance: - Dow Jones: $174 million, above the estimate of $171 million [4] - News Media: $74 million, significantly above the estimate of $48.52 million [4] - Other: -$56 million, slightly worse than the estimate of -$53.50 million [4] - Book Publishing: $101 million, above the estimate of $92.05 million [4] - Digital Real Estate Services: $185 million, above the estimate of $176.98 million [4]

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Analysts on Wall Street project that News Corp. (NWSA) will announce quarterly earnings of $0.33 per share in its forthcoming report, representing an increase of 26.9% year over year. Revenues are projected to reach $2.2 billion, declining 15% from the same quarter last year.The consensus EPS estimate for the quarter has undergone an upward revision of 16.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates d ...

News Corporation (NWSA) is scheduled to report second-quarter fiscal 2025 results on Feb. 5.The Zacks Consensus Estimate for revenues is pegged at $2.19 billion, indicating a decline of 15.39% from the year-ago quarter’s levels.The consensus mark for earnings has moved up by a penny to 31 cents per share in the past 30 days, indicating 19.23% growth year over year.The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.15%.Stay on top of ...

News Corp. (NWSA) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 5 ...

News Corp. (NWSA) closed the last trading session at $28.08, gaining 1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $37.50 indicates a 33.6% upside potential.The average comprises six short-term price targets ranging from a low of $32 to a high of $43, with a standard deviation of $4.04. While the lowest estimate indicates an increase of 14% from the current price level, the mo ...

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 ...