Key Takeaways NWSA reported Q4 EPS of $0.19, meeting estimates, on 1% y/y growth in revenues to $2.11B.Dow Jones' revenues rose 7% on digital growth and strength in professional information services.Digital Real Estate Services revenues grew 4%, led by REA Group gains and continued Move momentum.News Corporation (NWSA) reported fourth-quarter fiscal 2025 earnings of 19 cents per share, which were in line with the Zacks Consensus Estimate. The bottom line decreased 5% from the year-ago quarter’s reported fig ...

Core Insights - News Corp reported a 28% increase in quarterly profits and a 1% rise in revenue, surpassing Wall Street expectations [1] - The company's net income for the fourth quarter was $86 million, up from $67 million year-over-year, while revenues reached $2.11 billion, compared to $2.09 billion in the prior year [1] - For the fiscal year 2025, profits surged 71% to $648 million from $379 million, with annual revenues increasing 2% to $8.45 billion [4] Revenue Drivers - The earnings growth was primarily driven by higher circulation and subscription revenues from the Dow Jones division, which includes notable publications like The Wall Street Journal and Barron's [2][4] Capital Return Strategy - News Corp's CEO announced a new $1 billion stock repurchase program, in addition to approximately $300 million remaining from a previous program [5] - The company plans to accelerate share repurchases following the release of these strong financial results, reflecting confidence in its financial strength [6] Expansion Plans - The company is set to expand its operations with the launch of The California Post in early 2026, targeting the West Coast market [8] Industry Commentary - The CEO emphasized the importance of protecting intellectual property rights in the face of challenges posed by artificial intelligence, highlighting the need to maintain America's competitive edge through creativity and innovation [9][10]

Financial Data and Key Metrics Changes - For fiscal year 2025, revenues increased by 2% to nearly $8.5 billion, while total segment EBITDA improved by 14% to just over $1.4 billion, marking a record for the company on a continuing operations basis [6] - Net income from continuing operations rose by 71% to $648 million, with profit margins increasing by 170 basis points to 16.7% [6] - In the fourth quarter, revenues rose by 1% to $2.1 billion, profitability grew by 5% to $322 million, and net income from continuing operations increased by 28% to $86 million [6][25] Business Line Data and Key Metrics Changes - Dow Jones reported a strong year with revenue and EBITDA rising by 48% respectively, with fourth-quarter revenues increasing by 7% to $604 million [12][26] - Digital real estate revenues rose by 9% for the year, with segment EBITDA increasing by 18% [14] - Book publishing achieved a 3% revenue increase to $2.1 billion, with segment EBITDA expanding by 10% [17] Market Data and Key Metrics Changes - REA posted a 12% revenue growth for the year, with audience reach improving significantly [17] - Digital real estate segment revenues were up 4% year-over-year, while segment EBITDA increased by 13% [31] - The New York Post continued to expand its influence and profitability, with plans for expansion in California [21] Company Strategy and Development Direction - The company remains focused on driving value across three pillars: Dow Jones, digital real estate services, and book publishing [9] - The recent sale of Foxtel Group has streamlined the portfolio and bolstered cash position, allowing for strategic acquisitions [9] - The company emphasizes the importance of protecting intellectual property in the age of AI, advocating for the value of content creation [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation towards high-margin content licensing and recurring digital revenues [23] - The outlook for Dow Jones remains positive, with expectations for continued margin expansion as the business shifts to B2B [38] - The company anticipates challenges in the housing market affecting digital real estate but remains optimistic about future growth [38] Other Important Information - The board authorized a new $1 billion stock repurchase program, in addition to approximately $300 million remaining from a previous program [7][24] - Free cash flow for fiscal 2025 was $571 million, up from $540 million in the prior year [7] Q&A Session Summary Question: Can you expand on the decision to accelerate the buyback? - Management indicated that the scale and pace of the buyback will increase, supported by improved free cash flow and the sale of Foxtel [43] Question: What is the strategy for Move and its growth adjacencies? - Management expressed positivity about realtor.com, highlighting revenue growth despite a sluggish property market and the focus on rentals, new homes, and seller segments [49] Question: What is the outlook for Dow Jones' revenue growth? - Management is optimistic about continued growth in both the professional information and consumer businesses, with a focus on risk and compliance [57] Question: Any updates on simplifying the company? - Management noted that the sale of Foxtel was a step towards simplification, and they are continuously evaluating the best use of capital [63] Question: What impact is AI having on the publishing business? - Management stated that they are not seeing negative trends from AI and are engaged in negotiations with several AI companies regarding IP rights [68]

Core Viewpoint - The ongoing conflict between News Corp and Donald Trump highlights the tension surrounding intellectual property rights in the age of AI, with CEO Robert Thomson criticizing Trump's support for AI technology while emphasizing the need to protect creators' rights [1][2][5]. Group 1: Company Position on AI and Intellectual Property - News Corp is actively pursuing legal action against AI firms, claiming that their technologies infringe on the company's intellectual property by utilizing content from its publications without permission [4][9]. - Thomson articulated the importance of safeguarding intellectual property, stating that the value of creativity and ingenuity must be preserved to maintain a competitive edge against countries like China [5][8]. - The company is adopting a "woo-and-sue" strategy towards AI firms, indicating a dual approach of collaboration and litigation to protect its content [9]. Group 2: Financial Implications and Industry Context - Thomson noted that companies are investing tens of billions in AI infrastructure, yet they must also allocate significant resources to secure content that is essential for their success [8]. - The potential for AI to cannibalize existing works, such as Trump's books, raises concerns about future sales and the overall health of the content ecosystem [6][7]. - The ongoing legal battles and the need for a healthy content ecosystem are critical for the sustainability of media companies like News Corp in the evolving digital landscape [9].

Core Points - News Corp has extended CEO Robert Thomson's contract through 2030, highlighting his significant contributions to the company's growth and profitability [1][2] - Thomson has led News Corp during its four most profitable years from fiscal 2021 to 2024, with strong performance expected to continue in fiscal 2025 [1] - The company has engaged in major transactions, including the sale of its Australian cable-TV unit Foxtel for $2.19 billion in 2024 [2] - News Corp has established landmark agreements with major technology platforms, including a recent deal with OpenAI for licensing intellectual property [5] Company Performance - Under Thomson's leadership, News Corp has achieved its four most profitable years from fiscal 2021 to 2024 [1] - The company anticipates continued strong performance in fiscal 2025 despite challenges in the media landscape [1] Leadership and Vision - Lachlan Murdoch, News Corp Chair, emphasized Thomson's instrumental role in the company's growth and transformation during a period of rapid change [2] - Thomson expressed gratitude for the opportunity to lead a company that is passionate and principled, acknowledging the challenges and opportunities in the current media environment [5][6]