News (US:NWS)2025-11-06 21:20Financial Performance - Total revenue for the first quarter of fiscal 2026 was $2.14 billion, a 2% increase from $2.10 billion in the prior year, driven by growth in Dow Jones and Digital Real Estate Services segments[8]. - Net income from continuing operations was $150 million, a 1% increase compared to $149 million in the prior year, while Total Segment EBITDA rose 5% to $340 million[5]. - Adjusted EPS increased to $0.22 from $0.20 in the prior year, while reported EPS from continuing operations decreased to $0.20 from $0.21[12]. - Total revenues for the three months ended September 30, 2025, were $2,144 million, compared to $2,096 million in the prior year, marking an increase of 2.3%[46]. - Net income attributable to News Corporation stockholders for the same period was $112 million, down from $119 million, a decrease of 5.9%[46]. - The company reported net cash provided by operating activities from continuing operations of $85 million for the three months ended September 30, 2025, compared to $26 million in the prior year, an increase of 226.9%[52]. - Total Segment EBITDA for Q3 2025 was $340 million, a 5% increase from $325 million in Q3 2024[55]. - Adjusted Revenues for Q3 2025 were $2,128 million, up 2% from $2,092 million in Q3 2024[59]. - Adjusted Total Segment EBITDA for Q3 2025 was $347 million, reflecting a 5% increase from $329 million in Q3 2024[61]. - For the three months ended September 30, 2025, net income attributable to News Corporation stockholders from continuing operations was $112 million, with diluted EPS of $0.20, compared to $118 million and $0.21 for the same period in 2024[65]. Revenue Breakdown - Dow Jones revenues increased by 6% to $586 million, supported by a 16% growth in Risk & Compliance revenues[15]. - Digital Real Estate Services revenues rose 5% to $479 million, with Move's revenues increasing 9% to $152 million, marking the highest quarterly growth since Q2 fiscal 2022[20][23]. - Book Publishing segment revenues decreased by 2% to $534 million, impacted by a $13 million write-off of a customer receivable[24][26]. - News Media revenues increased by 1% to $545 million, driven by higher circulation and subscription revenues[27]. - Dow Jones segment reported Adjusted Revenues of $579 million, a 5% increase from $552 million in Q3 2024[61]. - Digital Real Estate Services segment saw Adjusted Revenues rise by 7% to $485 million from $455 million in Q3 2024[61]. - Book Publishing segment's Adjusted Revenues decreased by 4% to $522 million from $546 million in Q3 2024[61]. - News Media segment reported Adjusted Revenues of $542 million, a slight increase of 1% from $539 million in Q3 2024[61]. Cash Flow and Expenditures - Free cash flow improved to $4 million from a negative $49 million in the prior year, primarily due to higher cash provided by operating activities[32]. - Cash and cash equivalents as of September 30, 2025, were $2,198 million, down from $2,403 million at the end of the previous quarter, a decrease of 8.5%[49]. - The company incurred capital expenditures of $81 million for the three months ended September 30, 2025, compared to $75 million in the prior year, an increase of 8.0%[52]. Digital Performance - Digital revenues accounted for 68% of total advertising revenues, with digital-only subscriptions to Dow Jones' consumer products growing 10% to nearly 5.9 million[18][19]. - As of September 30, 2025, News Corp Australia had 1,162,000 closing digital subscribers, up from 1,127,000 the previous year, representing a growth of 3.1%[35]. - The Times and Sunday Times reported 640,000 closing digital subscribers, an increase from 600,000 year-over-year, reflecting a growth of 6.7%[35]. - The Sun's digital offering reached 77 million global monthly unique users in September 2025, down from 80 million in the prior year, a decrease of 3.8%[35]. - New York Post's digital network had 94 million unique users in September 2025, down from 103 million the previous year, a decrease of 8.7%[35]. Currency Impact and Adjustments - The impact of foreign currency fluctuations on revenues was a decrease of $4 million in Q3 2025 compared to the previous year[59]. - Constant currency revenues are used by management to provide a clearer view of the company's core business performance, excluding the effects of foreign currency fluctuations[67][68]. - Impairment and restructuring charges amounted to $19 million, impacting adjusted EPS by $0.03 for the three months ended September 30, 2025[65]. - The company reported a tax impact of $7 million on the above items, resulting in an adjusted net income of $122 million and adjusted EPS of $0.22[65]. - Adjusted EPS for the company is calculated excluding certain non-operational items, providing a clearer view of operational performance[64].