News (US:NWSA)2025-05-08 20:17Financial Performance - Third quarter revenues were $2.01 billion, a 1% increase compared to $1.99 billion in the prior year, driven by growth in Dow Jones, Digital Real Estate Services, and Book Publishing[8]. - Net income from continuing operations rose 67% to $107 million, compared to $64 million in the prior year, primarily due to higher Total Segment EBITDA and lower impairment charges[10]. - Total Segment EBITDA for the quarter was $290 million, a 12% increase compared to $259 million in the prior year, with strong contributions from Digital Real Estate Services and Dow Jones segments[11]. - Total revenues for the three months ended March 31, 2025, were $2,009 million, compared to $1,994 million in the prior year, reflecting a growth of 0.8%[46]. - Net income attributable to News Corporation stockholders for the three months ended March 31, 2025, was $103 million, compared to $30 million in the prior year, marking a significant increase of 243.3%[46]. - For the nine months ended March 31, 2025, adjusted total revenues were $6,323 million, a 3% increase from $6,160 million in the same period of 2024[65]. - Total revenues for the nine months ended March 31, 2025, were $6,343 million, a 3% increase from $6,160 million in the same period of 2024[75]. Segment Performance - Dow Jones achieved revenues of $575 million, a 6% increase, with digital circulation revenues growing significantly and representing 82% of total revenues[15]. - REA Group posted revenues of $271 million, a 6% increase, driven by strong Australian residential performance despite a negative impact from foreign currency fluctuations[21]. - Book Publishing revenues increased by $8 million, or 2%, due to higher book sales, partially offset by a $5 million negative impact from foreign currency fluctuations[23]. - Digital revenues represented 39% of News Media segment revenues, up from 37% in the prior year, indicating a shift towards digital content consumption[30]. - Digital Real Estate Services segment saw a 25% increase in adjusted EBITDA, rising to $130 million from $104 million year-over-year[63]. - Dow Jones adjusted revenues increased by 6% to $577 million in Q3 2025, up from $544 million in Q3 2024[63]. - The News Media segment revenues decreased by 6% to $525 million in Q3 2025, down from $556 million in Q3 2024[63]. Cash Flow and Expenses - Free cash flow for the nine months ended March 31, 2025, was $539 million, an increase from $475 million in the prior year, primarily due to higher cash provided by operating activities[31]. - Operating expenses for the three months ended March 31, 2025, were $904 million, down from $938 million in the prior year, a decrease of 3.6%[46]. - Cash provided by operating activities from continuing operations was $789 million for the nine months ended March 31, 2025, compared to $721 million in 2024, marking a growth of 9.4%[1]. - The company reported capital expenditures of $250 million for the nine months ended March 31, 2025, compared to $246 million in 2024, indicating a slight increase[1]. - The net cash used in investing activities from continuing operations was $194 million for the nine months ended March 31, 2025, a decrease from $296 million in 2024[1]. Subscriber Growth - Total average subscriptions to Dow Jones' consumer products reached 6.1 million, a 7% increase, with digital-only subscriptions growing 9% to over 5.5 million[17]. - As of March 31, 2025, News Corp Australia had 1,148,000 digital subscribers, an increase from 1,113,000 in the prior year, representing a growth of approximately 3.1%[34]. - The Times and Sunday Times reported 629,000 digital subscribers, up from 582,000 year-over-year, indicating an increase of about 8.1%[34]. Foreign Currency Impact - The company experienced a foreign currency fluctuation impact of $32 million on revenues for the three months ended March 31, 2025[60]. - The average foreign exchange rate for the U.S. Dollar per British Pound Sterling was $1.30 for Q1 of fiscal year 2025, compared to $1.27 in Q1 of fiscal year 2024[62]. Shareholder Returns - The company repurchased shares amounting to $114 million during the nine months ended March 31, 2025, compared to $83 million in 2024[1]. - The company completed the sale of the Foxtel Group to DAZN Group Limited, with a repayment of A$592 million in shareholder loans at closing[36]. - The company holds a minority equity interest of approximately 6% in DAZN following the sale of Foxtel, along with one seat on its Board of Directors[36].