News (US:NWSA)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, with Total Segment EBITDA rising 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]. - Net income attributable to News Corporation stockholders for the three months ended September 30, 2025, was $112 million, a decrease of 5.9% from $119 million in the prior year[46]. - Net income from continuing operations for Q3 2025 was $150 million, a marginal increase of 1% from $149 million in Q3 2024[55]. - Adjusted net income for Q1 Fiscal 2026 was $122 million, compared to $117 million in Q1 Fiscal 2025, resulting in adjusted EPS of $0.22 versus $0.20[65]. Revenue Segments - 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]. - Adjusted Revenues for Q3 2025 were $2,128 million, up 2% from $2,092 million in Q3 2024[59]. - 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 Expenses - Free cash flow improved to $4 million from $(49) million in the prior year, primarily due to higher cash provided by operating activities[32]. - Operating expenses for the three months ended September 30, 2025, were $941 million, a decrease of 1.2% compared to $952 million in the prior year[46]. - The company reported a net cash used in financing activities from continuing operations of $179 million for the three months ended September 30, 2025, compared to $109 million in the prior year[52]. Digital and Advertising Performance - Digital revenues accounted for 68% of total advertising revenues, with a 2% increase in digital advertising offset by a 4% decrease in print advertising[18]. - Digital subscribers at News Corp Australia reached 1,162,000 as of September 30, 2025, up from 1,127,000 in the prior year, representing a growth of 3.1%[35]. - The Times and Sunday Times closing digital subscribers increased to 640,000, compared to 600,000 in the prior year, reflecting a growth of 6.7%[35]. - Advertising revenues for Q1 Fiscal 2026 were $317 million, a slight decrease from $321 million in Q1 Fiscal 2025, showing a 1% decline[69]. Asset and Cash Position - Cash and cash equivalents as of September 30, 2025, were $2,198 million, down from $2,403 million as of June 30, 2025, indicating a decrease of 8.5%[49]. - Total assets as of September 30, 2025, were $15,343 million, a decrease from $15,504 million as of June 30, 2025, reflecting a decline of 1.0%[49]. Currency Impact - 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 for total revenues in Q1 Fiscal 2026 showed a 2% increase compared to the previous year, indicating stable performance despite foreign currency fluctuations[68]. - The company emphasizes the importance of constant currency revenues for assessing core business performance, excluding the impact of currency volatility[67].