News (US:NWSA)2025-02-14 21:14Financial Performance - 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]. - Net income from continuing operations surged 58% to $306 million, compared to $194 million in the prior year [8]. - Total Segment EBITDA rose 20% to $478 million, up from $400 million in the prior year, with strong contributions from all operating segments [9]. - Total revenues for the three months ended December 31, 2024, were $2,238 million, compared to $2,135 million in the prior year, marking an increase of 4.8% [41]. - Net income attributable to News Corporation stockholders for the three months ended December 31, 2024, was $215 million, up from $156 million, reflecting a growth of 37.9% [41]. - Total revenues for the six months ended December 31, 2024, were $4,334 million, an increase of $168 million from $4,166 million in 2023 [51]. - Net income from continuing operations for the six months ended December 31, 2024, was $455 million, an increase of 83% compared to $248 million in 2023 [48]. - 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]. - 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]. Segment Performance - REA Group achieved record revenues of $343 million, a 17% increase driven by strong Australian residential performance [6]. - Dow Jones reported record revenues of $600 million, supported by improved circulation and higher professional information business revenues, with 11% growth in Risk & Compliance and 10% in Dow Jones Energy [6]. - Book Publishing revenues grew 8% to $595 million, with Segment EBITDA increasing 19% due to strong physical and digital book sales [20]. - Digital Real Estate Services saw a 25% increase in adjusted segment EBITDA for the three months ended December 31, 2024, reaching $184 million compared to $147 million in 2023 [53]. - News Media segment reported a 28% increase in adjusted segment EBITDA for the three months ended December 31, 2024, totaling $73 million, up from $57 million in 2023 [53]. - Digital Real Estate Services segment revenues grew by 13% to $930 million for the six months ended December 31, 2024, compared to $822 million in the prior year [64]. - The Book Publishing segment reported revenues of $1,141 million for the six months ended December 31, 2024, an increase of 6% from $1,075 million in the same period of 2023 [64]. - The Dow Jones segment revenues increased by 3% to $1,152 million for the six months ended December 31, 2024, compared to $1,121 million in the prior year [64]. 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]. - Digital sales in Book Publishing increased 9%, driven by a 13% growth in audiobook sales and a 6% increase in e-book sales [21]. - As of December 31, 2024, News Corp Australia had 1,126,000 closing digital subscribers, up from 1,051,000 in the prior year, representing a 7.1% increase [30]. - The Times and Sunday Times reported 616,000 closing digital subscribers, an increase from 575,000, reflecting a growth of 7.1% year-over-year [30]. - The Sun's digital offering reached 70 million global monthly unique users, down from 143 million, indicating a decline of 51.2% compared to the previous year [30]. - New York Post's digital network had 90 million unique users, a decrease from 124 million, representing a decline of 27.4% year-over-year [30]. Cash Flow and Dividends - 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 from operating activities [28]. - Cash and cash equivalents at the end of the period were $1,751 million, up from $1,707 million in the previous year [50]. - Net cash provided by operating activities from continuing operations was $278 million for the six months ended December 31, 2024, compared to $251 million in 2023 [45]. - The company paid dividends totaling $92 million, compared to $85 million in the same period last year [45]. - The company declared a semi-annual cash dividend of $0.10 per share for Class A and Class B Common Stock, payable on April 9, 2025 [31]. Asset Management - Current assets increased to $6,452 million as of December 31, 2024, compared to $4,372 million as of June 30, 2024, indicating a growth of 47.4% [43]. - Total assets decreased to $16,161 million as of December 31, 2024, down from $16,684 million as of June 30, 2024, reflecting a decline of 3.1% [43]. Impairment and Foreign Currency Impact - The company recognized non-cash impairment charges of $1 million in the News Media segment during the three months ended December 31, 2023 [58]. - The Company recognized non-cash impairment charges of $22 million at the News Media segment related to the write-down of fixed assets during the six months ended December 31, 2023 [59]. - The impact of foreign currency fluctuations reduced revenues by $35 million for the six months ended December 31, 2024 [51]. - The company emphasizes the importance of constant currency revenues to provide a clearer picture of core business performance, excluding the impact of foreign currency fluctuations [60].