News (US:NWSA)2025-05-09 11:02Discontinued Operations - Foxtel's results have been classified as discontinued operations, reflecting a strategic shift that significantly impacts the Company's operations and financial results[117]. - The Company entered into a definitive agreement to sell the Foxtel Group for A$592 million, which closed on April 2, 2025[116]. Financial Performance - Revenues increased by $15 million, or 1%, for the three months ended March 31, 2025, and by $183 million, or 3%, for the nine months ended March 31, 2025, compared to the same periods in fiscal 2024[120]. - Net income for the three months ended March 31, 2025, was $137 million, a 226% increase compared to $42 million for the same period in fiscal 2024[145]. - Net income attributable to News Corporation stockholders was $103 million for the three months ended March 31, 2025, compared to $30 million for the same period in 2024, representing a 243% increase[120]. - Net income from continuing operations increased by $43 million, or 67%, for the three months ended March 31, 2025, and by $250 million, or 80%, for the nine months ended March 31, 2025[143]. - Total revenues decreased by $22 million, or 3%, to $671 million for the nine months ended March 31, 2025, compared to $693 million in the same period of fiscal 2024[173]. Segment Performance - The Digital Real Estate Services segment includes a 61.4% interest in REA Group and an 80% interest in Move, which operates Realtor.com[114]. - Revenues at the Digital Real Estate Services segment increased by $126 million, or 10%, for the nine months ended March 31, 2025, compared to the same period in fiscal 2024[163]. - Revenues at the Book Publishing segment increased by $74 million, or 5%, for the nine months ended March 31, 2025, compared to the same period in fiscal 2024[167]. - Revenues for the Dow Jones segment increased by $31 million, or 6%, to $575 million for the three months ended March 31, 2025, driven by higher circulation and subscription revenues[150]. - Revenues at the News Media segment decreased by $42 million, or 8%, for the three months ended March 31, 2025, compared to the same period in fiscal 2024[168]. Expenses and Cash Flow - Operating expenses decreased by $34 million, or 4%, for the three months ended March 31, 2025, and by $67 million, or 2%, for the nine months ended March 31, 2025[124]. - Selling, general and administrative expenses increased by $18 million, or 2%, for the three months ended March 31, 2025, and by $90 million, or 4%, for the nine months ended March 31, 2025[127]. - Free cash flow for the nine months ended March 31, 2025, was $539 million, an increase from $475 million in the same period of fiscal 2024[190]. - Net cash provided by operating activities increased by $68 million to $789 million for the nine months ended March 31, 2025, compared to $721 million in the same period of fiscal 2024[182]. Market and Economic Conditions - Recent changes in trade policy may lead to economic volatility and could negatively impact customer sentiment and spending, affecting the Company's financial condition[118]. - The Company does not expect announced tariffs to materially impact its supply chain or costs but acknowledges potential future uncertainties[118]. - The Company will continue to monitor macroeconomic trends and seek to mitigate potential impacts on its operations[118]. Legal and Regulatory Matters - Legal proceedings and claims may adversely affect the Company's results of operations and financial condition due to significant uncertainty in outcomes[195]. - The Company establishes accrued liabilities for legal claims when a loss is probable and can be reasonably estimated, with adjustments made as necessary[196]. Strategic Acquisitions and Divestitures - The Company has made significant strategic acquisitions and divestitures, which introduce risks and uncertainties to its business[116]. - The Company has commitments under firm contractual arrangements for future payments, which will change upon the sale of Foxtel on April 2, 2025[194].