News (US:NWS)2025-11-07 12:05Revenue Performance - Total revenues increased by $48 million, or 2%, to $2,144 million for the three months ended September 30, 2025, compared to $2,096 million in the same period of 2024[111]. - Circulation and subscription revenues rose by $39 million, or 5%, to $782 million, while advertising revenues decreased by $4 million, or 1%, to $317 million[111]. - Revenues at the Dow Jones segment increased by $34 million, or 6%, to $586 million for the three months ended September 30, 2025, driven by higher circulation and subscription revenues[132]. - Digital revenues represented 84% of total revenues at the Dow Jones segment for the three months ended September 30, 2025, compared to 82% in the same period of fiscal 2025[132]. - Revenues at the Digital Real Estate Services segment increased by $22 million, or 5%, to $479 million for the three months ended September 30, 2025[141]. - News Media segment revenues increased by $4 million, or 1%, to $545 million for the three months ended September 30, 2025, driven by a $7 million increase in circulation and subscription revenues[145]. Operating Expenses - Operating expenses decreased by $11 million, or 1%, to $941 million for the three months ended September 30, 2025[114]. - Selling, general and administrative expenses increased by $44 million, or 5%, to $863 million, primarily due to higher employee and marketing costs[116]. Net Income and Earnings - Net income from continuing operations was $150 million, an increase of $1 million, or 1%, compared to $149 million for the same period in 2024[125]. - Net income for the three months ended September 30, 2025, was $150 million, an increase of $6 million, or 4%, compared to the same period in fiscal 2025[127]. - Net income attributable to noncontrolling interests from continuing operations increased by $7 million, or 23%, for the three months ended September 30, 2025, primarily driven by higher earnings at REA Group[128]. Segment Performance - The Digital Real Estate Services segment contributed to revenue growth, driven by higher revenues at Move and REA Group[112]. - The Book Publishing segment experienced lower revenues due to decreased book sales, impacting overall performance[112]. - Circulation and subscription revenues increased by $32 million, or 7%, to $491 million for the three months ended September 30, 2025, primarily due to growth in digital-only subscriptions[134]. - Average daily digital-only subscriptions for The Wall Street Journal increased by 406 thousand, or 11%, to 4,217 thousand for the three months ended September 30, 2025[135]. - Digital sales in the Book Publishing segment fell by 9%, representing approximately 23% of consumer revenues in Q3 2025, down from 25% in Q3 2024[143]. - Segment EBITDA for Book Publishing decreased by $23 million, or 28%, to $58 million for the three months ended September 30, 2025, primarily due to a $13 million write-off of a customer receivable[144]. - Segment EBITDA for News Media increased by $12 million, or 67%, to $30 million for the three months ended September 30, 2025, due to cost savings initiatives and higher revenues[146]. - Segment EBITDA at the Digital Real Estate Services segment increased by $18 million, or 13%, to $158 million for the three months ended September 30, 2025[141]. - Total Segment EBITDA for the three months ended September 30, 2025, was $340 million, up $15 million, or 5%, from $325 million in the same period of fiscal 2025[131]. Cash Flow and Financing - Free cash flow improved to $4 million for the three months ended September 30, 2025, compared to a negative $49 million in the same period of 2024, primarily due to higher cash provided by operating activities[161]. - Net cash used in financing activities increased to $179 million for the three months ended September 30, 2025, compared to $109 million in the same period of 2024[156]. - The Company announced a new stock repurchase program on July 15, 2025, authorizing the purchase of up to $1 billion in outstanding Class A and Class B Common Stock[150]. - The Company declared a semi-annual cash dividend of $0.10 per share for Class A and Class B Common Stock, paid on October 8, 2025[153]. Legal and Regulatory Matters - The Company is involved in various legal proceedings, which may adversely affect its financial condition[168]. - Accrued liabilities for legal claims are established when a loss is probable and can be reasonably estimated[169]. - There has been no material change in the Company's assessment of its sensitivity to market risk since the last report[170]. Commitments and Leases - The total commitments for operating leases as of September 30, 2025, amount to $1,565 million, with $216 million due in less than 1 year[167]. - The Company has not experienced significant changes in its commitments since the disclosures in the 2025 Form 10-K[166]. - HarperCollins entered into a finance leasing arrangement for up to $120 million for equipment, expected to enhance efficiencies[164]. - The Equipment Lease will accrue interest based on the Term SOFR plus a margin of 1.475% and may be drawn until June 30, 2028[164].