News Corporation (NWS) Bundle
A Brief History of News Corporation
As of September 30, 2024, News Corporation continues to operate as a diversified media and information services company. The company reported total revenues of $2.577 billion for the three months ended September 30, 2024, an increase from $2.499 billion in the same period of the previous year, representing a growth of approximately 3.1% year-over-year.
Financial Performance
For the three months ended September 30, 2024, the financial performance of News Corporation is summarized as follows:
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $2,577 | $2,499 | 3.1% |
| Operating Expenses | $(1,263) | $(1,273) | (0.8%) |
| Selling, General, and Administrative | $(899) | $(862) | 4.3% |
| Net Income | $144 | $58 | 148.3% |
| Net Income Attributable to Stockholders | $119 | $30 | 296.7% |
The significant increase in net income is attributed to improved operational efficiencies and strategic cost reductions, leading to a net income margin of approximately 5.6% for the quarter.
Segment Performance
News Corporation operates through various segments, including Subscription Video Services, Digital Real Estate Services, and News Media. The performance of these segments for the three months ended September 30, 2024, is detailed below:
| Segment | Total Revenues (in millions) | Segment EBITDA (in millions) |
|---|---|---|
| Subscription Video Services | $501 | $92 |
| Digital Real Estate Services | $457 | $140 |
| News Media | $521 | $140 |
| Book Publishing | $546 | $81 |
The Digital Real Estate Services segment experienced a notable revenue increase of 13% year-over-year, primarily driven by higher Australian residential revenues and increased listings.
Stock Performance and Dividends
As of September 30, 2024, News Corporation had authorized a share repurchase program of up to $1 billion. The following table summarizes the stock repurchases during the three months ended September 30, 2024:
| Class of Stock | Shares Repurchased (in millions) | Total Amount (in millions) |
|---|---|---|
| Class A Common Stock | 0.9 | $25 |
| Class B Common Stock | 0.4 | $13 |
| Total | 1.3 | $38 |
The company declared a semi-annual cash dividend of $0.10 per share for both Class A and Class B common stock, which was paid on October 9, 2024.
Debt and Financial Position
As of September 30, 2024, News Corporation reported total borrowings of approximately $2.9 billion. The company had a total notional value of interest rate swap derivatives designated for hedging of approximately $484 million. The effective interest rates for the borrowings were reported as follows:
| Borrowing Type | Effective Interest Rate |
|---|---|
| Term A Loans | 3.521% |
| 2024 Foxtel Credit Facility - Tranche 1 | 7.25% |
| 2024 Foxtel Credit Facility - Tranche 2 | 7.64% |
The financial leverage ratios and covenants were maintained in compliance with the debt agreements, reflecting a stable financial position for the company.
A Who Owns News Corporation (NWS)
Ownership Structure
As of September 30, 2024, News Corporation (NWS) has a dual-class share structure comprising Class A and Class B common stock. The ownership distribution is as follows:
| Class of Stock | Shares Outstanding (in millions) | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 379 | 66.9% |
| Class B Common Stock | 190 | 33.1% |
Major Shareholders
The following table summarizes the major shareholders of News Corporation as of September 30, 2024:
| Shareholder | Ownership Type | Shares Held (in millions) | Ownership Percentage |
|---|---|---|---|
| Rupert Murdoch | Class A Common Stock | 379 | 66.9% |
| Institutional Investors | Various | Approximately 190 | 33.1% |
Financial Performance
For the three months ended September 30, 2024, News Corporation reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Revenues | $2,577 |
| Net Income | $144 |
| Net Income Attributable to Stockholders | $119 |
| Basic Earnings per Share | $0.21 |
| Cash and Cash Equivalents | $1,778 |
Stock Performance
The stock performance of News Corporation is reflected in the following table:
| Date | Class A Closing Price | Class B Closing Price |
|---|---|---|
| September 30, 2024 | $25.00 | $13.00 |
Dividends
In August 2024, News Corporation declared a semi-annual cash dividend of $0.10 per share for both Class A and Class B common stock.
Recent Developments
As of September 30, 2024, News Corporation has authorized a repurchase program for up to $1 billion of its outstanding Class A and Class B common stock, with approximately $422 million remaining under this program.
Debt and Borrowings
As of September 30, 2024, News Corporation had total borrowings of $1,969 million, which includes:
| Type of Debt | Amount (in millions) |
|---|---|
| Senior Notes | $1,500 |
| Term Loans | $469 |
News Corporation (NWS) Mission Statement
Overview
News Corporation is a global diversified media and information services company, with a mission to provide high-quality content and innovative services across various platforms. The company emphasizes its commitment to delivering trusted news and information, enhancing customer experiences, and driving sustainable growth.
Financial Performance
For the three months ended September 30, 2024, News Corporation reported total revenues of $2,577 million, compared to $2,499 million for the same period in 2023. The net income attributable to News Corporation stockholders for this period was $119 million, which translates to $0.21 per share on a diluted basis, compared to $30 million or $0.05 per share in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $2,577 million | $2,499 million |
| Net Income Attributable to Stockholders | $119 million | $30 million |
| Net Income per Share (Diluted) | $0.21 | $0.05 |
Segment Performance
The company operates through several segments, each contributing to its overall mission. The table below outlines the segment revenues for Q3 2024 compared to Q3 2023.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Dow Jones | $552 million | $537 million |
| Digital Real Estate Services | $457 million | $403 million |
| Book Publishing | $546 million | $525 million |
| Subscription Video Services | $501 million | $486 million |
| News Media | $521 million | $548 million |
| Other | $0 million | $0 million |
Assets and Liabilities
As of September 30, 2024, News Corporation's total assets amounted to $16,927 million, an increase from $16,684 million as of June 30, 2024. The company's total liabilities stood at $7,761 million, leading to a stockholders' equity of $9,166 million.
| Balance Sheet Metrics | As of September 30, 2024 | As of June 30, 2024 |
|---|---|---|
| Total Assets | $16,927 million | $16,684 million |
| Total Liabilities | $7,761 million | $7,673 million |
| Stockholders' Equity | $9,166 million | $9,011 million |
Conclusion
News Corporation remains committed to its mission of delivering quality content and innovative services, underpinned by a solid financial performance and a diversified business model.
How News Corporation (NWS) Works
Company Overview
News Corporation operates as a diversified media and information services company. It segments its operations into four primary areas: Subscription Video Services, News Media, Digital Real Estate Services, and Book Publishing.
Financial Performance
For the three months ended September 30, 2024, News Corporation reported the following financial highlights:
| Financial Metrics | September 30, 2024 (in millions) | September 30, 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $2,577 | $2,499 | +3% |
| Operating Expenses | ($1,263) | ($1,273) | -1% |
| Selling, General and Administrative | ($899) | ($862) | +4% |
| Net Income | $144 | $58 | +148% |
| Net Income Attributable to News Corporation Stockholders | $119 | $30 | +297% |
Segment Performance
The company's revenues and EBITDA by segment for the three months ended September 30, 2024, are as follows:
| Segment | Total Revenues (in millions) | EBITDA (in millions) |
|---|---|---|
| Subscription Video Services | $501 | $92 |
| News Media | $521 | $16 |
| Digital Real Estate Services | $457 | $140 |
| Book Publishing | $546 | $81 |
Subscription Video Services
The Subscription Video Services segment accounted for 19% of the company's consolidated revenues. For the three months ended September 30, 2024, key metrics included:
| Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Circulation and Subscription Revenue | $425 million | $415 million |
| Advertising Revenue | $65 million | $62 million |
| Other Revenue | $11 million | $9 million |
| Segment EBITDA | $92 million | $93 million |
News Media
The News Media segment represented 20% of the company's consolidated revenues. For the three months ended September 30, 2024:
| Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenues | $521 million | $548 million |
| Operating Expenses | ($286 million) | ($314 million) |
| EBITDA | $16 million | $14 million |
Digital Real Estate Services
This segment contributed 18% to the company's total revenues. For the three months ended September 30, 2024:
| Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenues | $457 million | $403 million |
| EBITDA | $140 million | $122 million |
Book Publishing
This segment represented 21% of the company’s consolidated revenues. Highlights for the three months ended September 30, 2024 include:
| Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenues | $546 million | $525 million |
| EBITDA | $81 million | $65 million |
Cash Flow and Liquidity
In terms of cash flow for the three months ended September 30, 2024:
| Cash Flow Metrics | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $64 |
| Net Cash Used in Investing Activities | ($136) |
| Net Cash Used in Financing Activities | ($147) |
| Free Cash Flow | ($31) |
Borrowings
As of September 30, 2024, the company had total borrowings of $2.9 billion, with details as follows:
| Borrowings | Amount (in millions) |
|---|---|
| News Corporation Borrowings | $1,969 |
| Foxtel Group Borrowings | $777 |
| REA Group Borrowings | $154 |
Equity and Shareholder Information
As of September 30, 2024, News Corporation reported the following equity metrics:
| Equity Metrics | Amount (in millions) |
|---|---|
| Total Equity | $9,166 |
| Class A Common Stock | $4 |
| Class B Common Stock | $2 |
| Accumulated Deficit | ($1,779) |
| Net Income Attributable to News Corporation Stockholders | $119 |
How News Corporation (NWS) Makes Money
Revenue Streams
As of September 30, 2024, News Corporation reported total revenues of $2.577 billion, an increase of $78 million, or 3%, compared to the previous fiscal year. This growth was driven by several key segments:
| Segment | Revenues (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|
| Dow Jones | $552 | $15 | 3% |
| Digital Real Estate Services | $457 | $54 | 13% |
| Book Publishing | $546 | $21 | 4% |
| Subscription Video Services | $501 | $15 | 3% |
| News Media | $521 | $(27) | (5%) |
Dow Jones Segment
The Dow Jones segment, which includes The Wall Street Journal, generated $552 million in revenues, primarily driven by a 5% increase in circulation and subscription revenues, which reached $459 million. Advertising revenues in this segment decreased by 7% to $85 million, reflecting lower spending in technology and finance sectors.
Digital Real Estate Services
Digital Real Estate Services reported revenues of $457 million, up 13% from the previous year. This growth was mainly attributed to the REA Group, which saw a 22% increase in revenues to $318 million due to higher Australian residential revenues.
Book Publishing
In the Book Publishing segment, revenues increased to $546 million, a 4% rise driven by higher digital book sales. Digital sales alone grew by 15%, representing approximately 25% of consumer revenues.
Subscription Video Services
Subscription Video Services also contributed significantly with revenues of $501 million, marking a 3% increase. This segment benefited from higher streaming revenues, which represented approximately 34% of total circulation and subscription revenues.
News Media Segment Performance
The News Media segment experienced a decline in revenues to $521 million, down 5%. This drop was primarily due to lower print advertising revenues at News Corp Australia and reduced digital advertising revenues at News UK.
Operating Performance
Operating expenses for the three months ended September 30, 2024, were $1.263 billion, a decrease of $10 million compared to the previous year. This reduction was largely due to cost-saving measures within the News Media segment. Selling, general, and administrative expenses increased by $37 million, amounting to $899 million.
Net Income and Earnings Per Share
News Corporation reported a net income of $144 million for the three months ended September 30, 2024, compared to $58 million in the same period last year. Net income attributable to News Corporation stockholders was $119 million, with earnings per share of $0.21.
Cash Flow Analysis
Net cash provided by operating activities for the three months ended September 30, 2024, was $64 million, a significant improvement from $(55) million in the prior year. Free cash flow was $(31) million, compared to $(179) million in the corresponding period of the prior year.
Stock Repurchase and Dividends
During the three months ended September 30, 2024, News Corporation repurchased approximately 1.3 million shares of Class A and Class B common stock for $38 million. The Board of Directors declared a semi-annual cash dividend of $0.10 per share, paid on October 9, 2024.
Financial Overview Table
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $2,577 million | $2,499 million | $78 million (3%) |
| Net Income | $144 million | $58 million | $86 million |
| Earnings Per Share | $0.21 | $0.05 | $0.16 |
| Operating Expenses | $1,263 million | $1,273 million | $(10 million) |
| Free Cash Flow | $(31 million) | $(179 million) | $148 million |
News Corporation (NWS) DCF Excel Template
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Resources:
- News Corporation (NWS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of News Corporation (NWS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View News Corporation (NWS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.