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News (NWS) - 2025 Q2 - Quarterly Results
NWSNews (NWS)2025-02-14 21:14

Revenue Growth - Second quarter revenues increased 5% to 2.24billion,upfrom2.24 billion, up from 2.14 billion in the prior year, driven by growth in Digital Real Estate, Book Publishing, and Dow Jones segments [3]. - Total revenues for the three months ended December 31, 2024, were 2,238million,comparedto2,238 million, compared to 2,135 million in the prior year, representing an increase of approximately 4.8% [41]. - Adjusted total revenues for the three months ended December 31, 2024, were 2,225million,representinga42,225 million, representing a 4% increase from 2,135 million in 2023 [53]. - For the six months ended December 31, 2024, total revenues were 4,334million,upfrom4,334 million, up from 4,166 million in the prior year, reflecting a 4% increase [64]. - Adjusted total revenues for the six months ended December 31, 2024, were 4,295million,a34,295 million, a 3% increase from 4,166 million in 2023 [56]. Net Income - Net income from continuing operations surged 58% to 306million,comparedto306 million, compared to 194 million in the prior year [8]. - Net income attributable to News Corporation stockholders for the three months ended December 31, 2024, was 215million,comparedto215 million, compared to 156 million in the prior year, an increase of about 37.9% [41]. - For the six months ended December 31, 2024, net income attributable to News Corporation stockholders from continuing operations was 346million,anincreasefrom346 million, an increase from 184 million in the same period of 2023, representing an 88% increase [59]. Segment Performance - Total Segment EBITDA rose 20% to 478million,upfrom478 million, up from 400 million in the prior year, with strong contributions from all operating segments [9]. - Book Publishing revenues grew 8% to 595million,withSegmentEBITDAincreasing19595 million, with Segment EBITDA increasing 19% due to strong physical and digital book sales [20]. - The Dow Jones segment reported adjusted revenues of 599 million for the three months ended December 31, 2024, a 3% increase from 584millionin2023[53].−DigitalRealEstateServicessegmentrevenuesincreasedby13584 million in 2023 [53]. - Digital Real Estate Services segment revenues increased by 13% to 930 million for the six months ended December 31, 2024, compared to 822millioninthesameperiodof2023[64].−TheDigitalRealEstateServicessegmentgeneratedadjustedrevenuesof822 million in the same period of 2023 [64]. - The Digital Real Estate Services segment generated adjusted revenues of 470 million for the three months ended December 31, 2024, a 12% increase from 419millionin2023[53].DigitalTransformation−DigitalrevenuesatDowJonesrepresented81419 million in 2023 [53]. Digital Transformation - Digital revenues at Dow Jones represented 81% of total revenues, up from 78% in the prior year, indicating a shift towards digital [12]. - Total average subscriptions to Dow Jones' consumer products increased 9% to over 5.9 million, with digital-only subscriptions growing 13% to over 5.3 million [14]. - As of December 31, 2024, News Corp Australia had 1,126,000 digital subscribers, an increase from 1,051,000 in the prior year, representing a growth of approximately 7.1% [30]. - The Times and Sunday Times had 616,000 digital subscribers as of December 31, 2024, up from 575,000, indicating a growth of about 7.1% [30]. Cash Flow and Financial Position - Free cash flow for the six months ended December 31, 2024, was 121 million, an increase from 97millionintheprioryear,primarilyduetohighercashprovidedbyoperatingactivities[28].−Cashandcashequivalentsattheendoftheperiodwere97 million in the prior year, primarily due to higher cash provided by operating activities [28]. - Cash and cash equivalents at the end of the period were 1,751 million, compared to 1,707millionattheendofthepreviousyear[45].−Thecompanyreportedanetcashprovidedbyoperatingactivitiesfromcontinuingoperationsof1,707 million at the end of the previous year [45]. - The company reported a net cash provided by operating activities from continuing operations of 278 million for the six months ended December 31, 2024, compared to 251millionin2023[45].DivestituresandStrategicMoves−ThecompanyannouncedtheagreementtosellFoxteltoDAZNforA251 million in 2023 [45]. Divestitures and Strategic Moves - The company announced the agreement to sell Foxtel to DAZN for A3.4 billion, aimed at simplifying operations and focusing on key growth areas [5]. - The company entered into an agreement to sell the Foxtel Group for A574millioninoutstandingprincipal,withaminorityequityinterestofapproximately6574 million in outstanding principal, with a minority equity interest of approximately 6% in DAZN [32]. Advertising and Circulation - Circulation and subscription revenues for the consolidated results increased by 3% to 1,488 million for the six months ended December 31, 2024, compared to 1,449millionintheprioryear[64].−Advertisingrevenuesfortheconsolidatedresultsdecreasedby21,449 million in the prior year [64]. - Advertising revenues for the consolidated results decreased by 2% to 706 million for the six months ended December 31, 2024, compared to $723 million in the same period of 2023 [64].