News (US:NWS)2025-02-14 21:14Revenue Growth - Second quarter revenues increased 5% to $2.24 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 $2,238 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 $2,225 million, representing a 4% increase from $2,135 million in 2023 [53]. - For the six months ended December 31, 2024, total revenues were $4,334 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 $4,295 million, a 3% increase from $4,166 million in 2023 [56]. Net Income - Net income from continuing operations surged 58% to $306 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 $215 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 $346 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 $478 million, up from $400 million in the prior year, with strong contributions from all operating segments [9]. - Book Publishing revenues grew 8% to $595 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 $584 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 $822 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 $419 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 $97 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 $1,707 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 $251 million in 2023 [45]. Divestitures and Strategic Moves - The company announced the agreement to sell Foxtel to DAZN for A$3.4 billion, aimed at simplifying operations and focusing on key growth areas [5]. - The company entered into an agreement to sell the Foxtel Group for A$574 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 $1,449 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].