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News Corporation (NWSA) Q2 Earnings & Revenues Beat, Up Y/Y
News News (US:NWSA) Zacks Investment Researchยท2024-02-08 18:46

Core Points - News Corporation reported second-quarter fiscal 2024 earnings of 26 cents per share, exceeding the Zacks Consensus Estimate by 30% and showing an 85.7% increase year over year [1] - Revenues reached $2.59 billion, a 3% year-over-year increase, driven by strong performance in Digital Real Estate Services and growth in Dow Jones and Book Publishing segments [1][2] Quarterly Details - Adjusted revenues, excluding foreign currency impacts, acquisitions, and divestitures, increased by 2% compared to the previous year [2] - Total EBITDA rose 16% to $473 million, attributed to higher revenues and cost savings from a 5% headcount reduction initiative [2] Segment Details Digital Real Estate Services - Revenues increased 9% to $419 million, primarily due to strong performance at REA Group, despite a 13% decline in Move revenues [3][4] - Move's real estate revenues, which constitute 82% of total Move revenues, fell 14% year over year due to macroeconomic factors affecting the housing market [3] Subscription Video Services - Revenues in this segment were $470 million, up 2% year over year, driven by Kayo and BINGE, despite a decline in residential broadcast subscribers [5][6] - Foxtel Group's streaming subscription revenues accounted for approximately 29% of total circulation and subscription revenues, up from 26% in the prior year [5] Dow Jones - Revenues increased 4% year over year to $584 million, supported by growth in circulation and subscription revenues [7] - Digital revenues represented 78% of total revenues, with professional information business revenues growing 13% [7][8] Book Publishing - Revenues rose 4% year over year to $550 million, driven by digital book sales and improved inventory returns [9] - Digital sales increased 15% year over year, representing 21% of Consumer revenues [9] News Media - Revenues dipped 3% to $563 million, mainly due to lower advertising revenues, although circulation and subscription revenues increased by 5% [10][11] - Digital revenues accounted for 38% of News Media segment revenues, up from 37% in the prior year [11] Other Financial Aspects - News Corporation ended the quarter with cash and cash equivalents of $1.724 billion, borrowings of $2.984 billion, and stockholder equity of $8.182 billion [12]