News (US:NWSA)2024-11-08 11:53Revenue 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]