News (US:NWS)2025-05-09 11:02Part I. Financial Information Financial Statements This section presents News Corporation's unaudited Consolidated Financial Statements, including Statements of Operations, Balance Sheets, and Cash Flows, with the Foxtel Group classified as a discontinued operation Consolidated Statements of Operations Highlights (Unaudited, in millions, except per share amounts) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Change (%) | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $2,009 | $1,994 | +0.8% | $6,343 | $6,160 | +3.0% | | Net income from continuing operations | $107 | $64 | +67.2% | $562 | $312 | +80.1% | | Net income attributable to News Corporation stockholders | $103 | $30 | +243.3% | $437 | $216 | +102.3% | | Diluted EPS from continuing operations | $0.14 | $0.07 | +100.0% | $0.75 | $0.39 | +92.3% | Consolidated Balance Sheet Highlights (Unaudited, in millions) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,095 | $1,872 | | Total current assets | $6,841 | $4,372 | | Goodwill | $4,285 | $4,336 | | Total assets | $16,580 | $16,684 | | Total current liabilities | $4,081 | $3,055 | | Total borrowings | $1,965 | $2,102 | | Total News Corporation stockholders' equity | $8,203 | $8,120 | Consolidated Statements of Cash Flows Highlights (Unaudited, in millions) | Cash Flow Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities from continuing operations | $789 | $721 | | Net cash used in investing activities from continuing operations | ($194) | ($296) | | Net cash used in financing activities from continuing operations | ($425) | ($322) | - The Foxtel Group's assets and liabilities are classified as held for sale, with results reported as discontinued operations following a definitive sale agreement to DAZN Group Limited that closed on April 2, 2025243334 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the financial performance for Q3 and 9M FY2025, highlighting revenue growth driven by Digital Real Estate, Book Publishing, and Dow Jones, alongside significant increases in net income from continuing operations Results of Operations Total revenues increased by 1% to $2.01 billion in Q3 and 3% to $6.34 billion for the nine months, driven by Digital Real Estate, Dow Jones, and Book Publishing, while net income from continuing operations significantly improved Consolidated Results of Operations (in millions) | Metric | Q3 FY25 | Q3 FY24 | % Change | 9M FY25 | 9M FY24 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $2,009 | $1,994 | 1% | $6,343 | $6,160 | 3% | | Net income from continuing operations | $107 | $64 | 67% | $562 | $312 | 80% | | Net income attributable to stockholders | $103 | $30 | 243% | $437 | $216 | 102% | - Quarterly revenue growth was driven by Dow Jones (higher circulation), Digital Real Estate Services (higher Australian residential revenues), and Book Publishing (acquisition impact), partially offset by lower advertising and circulation revenues at the News Media segment121 - The nine-month increase in net income was significantly impacted by an $87 million gain from the sale of REA Group's interest in PropertyGuru48107135 Segment Analysis Total Segment EBITDA increased 12% to $290 million in Q3 and 17% to $1.09 billion for the nine months, driven by strong performance across Dow Jones, Digital Real Estate Services, and Book Publishing, with News Media EBITDA also growing due to cost savings Segment EBITDA (in millions) | Segment | Q3 FY25 | Q3 FY24 | % Change | 9M FY25 | 9M FY24 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dow Jones | $132 | $118 | 12% | $437 | $405 | 8% | | Digital Real Estate Services | $124 | $104 | 19% | $449 | $373 | 20% | | Book Publishing | $64 | $62 | 3% | $246 | $212 | 16% | | News Media | $33 | $27 | 22% | $125 | $101 | 24% | | Other | ($63) | ($52) | (21)% | ($164) | ($158) | (4)% | | Total Segment EBITDA | $290 | $259 | 12% | $1,093 | $933 | 17% | - Dow Jones' digital revenues reached 82% of total revenues in Q3, with consumer digital-only subscriptions growing 9% to 5.5 million150155 - Digital Real Estate Services' growth was led by REA Group, with revenues increasing 6% despite currency impacts, while Move revenues grew 2% amid a challenging U.S. housing market160 - News Media's revenue declined 8% due to lower advertising and printing contracts, but Segment EBITDA grew 22% due to significant cost savings168169 Liquidity and Capital Resources The company maintains strong liquidity with $2.1 billion in cash, improved free cash flow to $539 million, and continued its capital return program, repurchasing $115 million in stock with $345 million remaining authorized - The company's principal source of liquidity is internally generated funds and cash on hand, totaling $2.1 billion as of March 31, 2025176 Free Cash Flow Reconciliation (in millions) | Metric | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities from continuing operations | $789 | $721 | | Less: Capital expenditures | ($250) | ($246) | | Free cash flow | $539 | $475 | Stock Repurchases (in millions) | Period | Shares Repurchased | Amount Paid | | :--- | :--- | :--- | | Q3 FY25 | 1.2 | $37 | | 9M FY25 | 4.0 | $115 | - As of March 31, 2025, approximately $345 million remained authorized under the stock Repurchase Program179 Quantitative and Qualitative Disclosures About Market Risk There has been no material change in the company's assessment of its sensitivity to market risk since the disclosures in its FY2024 Form 10-K - There has been no material change in the Company's assessment of its sensitivity to market risk since its presentation in the 2024 Form 10-K197 Controls and Procedures The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of the end of the quarter198 - There were no material changes to the Company's internal control over financial reporting during the third quarter of fiscal 2025199 Part II. Other Information Legal Proceedings The company discloses legal matters including a settled antitrust class action against Dow Jones (OPIS), a dismissed case against HarperCollins, and ongoing U.K. Newspaper Matters with accrued liabilities and indemnification - Dow Jones (OPIS) entered a settlement in May 2025 to resolve class action antitrust complaints related to pipe pricing reports79 - Antitrust complaints against HarperCollins and other publishers were dismissed with prejudice by the U.S. District Court81 - For U.K. Newspaper Matters, the company accrued approximately $27 million for liabilities and recorded a corresponding indemnification receivable from FOX of approximately $44 million as of March 31, 20258384 Risk Factors There have been no material changes to the risk factors previously disclosed in the company's FY2024 Form 10-K - There have been no material changes to the risk factors described in the 2024 Form 10-K202 Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 1.2 million shares for $37 million in Q3 FY2025 under its authorized program, with approximately $345 million remaining for future repurchases Share Repurchases for Q3 FY2025 | Month (2025) | Class A Shares (millions) | Class B Shares (millions) | Total Shares (millions) | Total Value (millions) | | :--- | :--- | :--- | :--- | :--- | | Jan | 0.2 | 0.1 | 0.3 | ~$11.2* | | Feb | 0.3 | 0.2 | 0.5 | ~$15.2* | | Mar | 0.3 | 0.1 | 0.4 | ~$11.3* | | Total | 0.8 | 0.4 | 1.2 | ~$37.7* | Calculated from data in the table. Total for the quarter is $37M per chunk 61. - The stock repurchase program has no time limit, with approximately $345 million remaining authorized for purchases as of the end of the quarter203204 Defaults Upon Senior Securities This section is not applicable - Not applicable206 Mine Safety Disclosures This section is not applicable - Not applicable207 Other Information There is no other information to report for this period - None208 Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL formatted financial data - The exhibits filed with this report include: - CEO Certification (Rule 13a-14) - CFO Certification (Rule 13a-14) - CEO/CFO Certification (Sarbanes-Oxley Section 906) - Inline XBRL formatted financial data211