News Corp (NWS, Financial) recently submitted a filing for an automatic mixed securities shelf. This move indicates the company's intention to possibly raise funds through the offering of new securities as part of its ongoing financial strategies. Such filings are often used to expedite the process of issuing various types of securities, providing the company with the flexibility to respond quickly to market opportunities or financial needs.
NWS Key Business Developments
Release Date: May 08, 2025
- Revenue: $2 billion, up 1% year-over-year.
- Net Income: Increased 67% to $107 million.
- Total Segment EBITDA: Increased 12%, with a margin expansion from 13% to 14.4%.
- Adjusted Revenues: Up 2% year-over-year.
- Adjusted Total Segment EBITDA: Increased 15% year-over-year.
- Reported EPS: $0.14, doubled from the prior year.
- Adjusted EPS: $0.17, up from $0.13 in the prior year.
- Dow Jones Revenue Growth: 6% increase, with profitability up 12% and margin rising to 23%.
- Digital Real Estate Revenue Growth: 5% increase, with profitability up 19% and margin improving to 30.5%.
- Book Publishing Revenue: $514 million, up 2%, with EBITDA rising 3% to $64 million.
- News Media EBITDA Growth: 22% increase year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- News Corp (NWS, Financial) reported a 67% increase in net income from continuing operations, reaching $107 million in the third quarter.
- Total segment EBITDA increased by 12%, with the overall margin expanding from 13% to 14.4%.
- Dow Jones posted a 6% revenue growth, with profitability surging 12% and the margin rising from 21.7% to 23%.
- Digital Real Estate Services saw a 19% increase in profitability on a 5% revenue increase, with margins improving from 26.8% to 30.5%.
- The sale of Foxtel to DAZN resulted in the transfer of $724 million of Foxtel debt off News Corp's balance sheet, improving financial flexibility.
Negative Points
- Political turbulence has affected some of News Corp's business partners, creating challenges in planning and operations.
- Currency headwinds negatively impacted revenues, although they still managed a 1% increase.
- Factiva's ongoing customer dispute had a 200 basis point adverse impact on Dow Jones' professional information business revenues.
- Realtor.com faced a decline in lead volumes by 17% and a decrease in average monthly unique users by 8% year over year.
- News Media segment revenues were down 8% year over year, challenged by tougher advertising conditions.
