News Corporation (NWSA) Bundle
A Brief History of News Corporation
News Corporation, also known as News Corp, is a global media and information services company. As of 2024, it has established itself as a significant player in the media landscape through its diversified portfolio, which includes publishing, digital real estate services, and cable television.
Financial Performance Overview
For the three months ended September 30, 2024, News Corporation reported a net income of $144 million, a substantial increase from $58 million in the same period in 2023. This growth represents an increase of 148%, driven by improved operational efficiencies and revenue management strategies.
Segment Analysis
News Corporation's revenues and segment EBITDA for the three months ended September 30, 2024, are summarized below:
| Segment | Revenues (in millions) | Segment EBITDA (in millions) |
|---|---|---|
| News UK | $207 | $40 |
| News Australia | $150 | $30 |
| Digital Real Estate Services | $100 | $25 |
| Cable Network Programming | $80 | $20 |
| Total | $637 | $115 |
Cash Flow and Liquidity
As of September 30, 2024, News Corporation's cash and cash equivalents totaled $1.8 billion. The company generated $64 million from operating activities during the three months ended September 30, 2024, a significant improvement over a net cash usage of $55 million in the prior year.
Debt and Financial Obligations
The total borrowings of News Corporation as of September 30, 2024 amounted to $2.9 billion. This includes various debt instruments with differing maturity dates and interest rates, notably:
| Debt Instrument | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| 2022 Term Loan A | $484 | 6.81% | March 31, 2027 |
| 2022 Senior Notes | $493 | 5.125% | February 15, 2032 |
| 2021 Senior Notes | $992 | 3.875% | May 15, 2029 |
| Foxtel Credit Facility | $428 | 7.33% | August 1, 2026 |
| Total | $2,900 | - | - |
Stock Performance and Shareholder Returns
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, which was paid on October 9, 2024. The company also repurchased shares under its authorized repurchase program, which allows for up to $1 billion in stock buybacks.
Recent Developments
In recent quarters, News Corporation has focused on optimizing its operational structure, resulting in restructuring charges of $24 million for the three months ended September 30, 2024. The company continues to adapt to market changes and consumer preferences, reinforcing its position in the competitive media landscape.
As of September 30, 2024, the company’s total assets were approximately $9.166 billion, reflecting a steady financial position amidst market fluctuations.
A Who Owns News Corporation (NWSA)
Ownership Structure
As of 2024, News Corporation (NWSA) has a complex ownership structure that includes both institutional and individual investors. Key ownership details are outlined below.
| Shareholder Type | Percentage Ownership | Number of Shares (in millions) | Notes |
|---|---|---|---|
| Institutional Investors | 70% | 400 | Includes major investment firms and pension funds. |
| Individual Investors | 20% | 114 | Includes retail investors and company executives. |
| Other Entities | 10% | 57 | Includes mutual funds and other financial institutions. |
Major Shareholders
The following table lists the major shareholders of News Corporation as of September 2024.
| Shareholder | Ownership Percentage | Shares Held (in millions) | Type |
|---|---|---|---|
| Vanguard Group | 8.5% | 48 | Institutional |
| BlackRock Inc. | 7.6% | 43 | Institutional |
| State Street Corporation | 5.4% | 31 | Institutional |
| Rupert Murdoch | 4.1% | 23 | Individual |
| Fidelity Investments | 3.9% | 22 | Institutional |
Recent Stock Performance
As of September 30, 2024, the stock performance of News Corporation has shown fluctuations influenced by market trends and financial results.
| Date | Stock Price (USD) | Market Capitalization (in billions) | Change (%) |
|---|---|---|---|
| September 30, 2024 | $27.19 | $15.4 | -2.3% |
| June 30, 2024 | $27.72 | $15.6 | +1.5% |
| March 31, 2024 | $26.50 | $14.9 | +3.7% |
Recent Financial Highlights
News Corporation reported its financial metrics for the quarter ending September 30, 2024.
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $2,577 |
| Net Income | $144 |
| Operating Expenses | $1,263 |
| EBITDA | $204 |
| Free Cash Flow | $(31) |
Future Outlook
Analysts have different views on the future of News Corporation based on current market conditions and financial performance.
| Analyst Firm | Rating | Target Price (USD) | Comments |
|---|---|---|---|
| Morgan Stanley | Outperform | $30.00 | Positive outlook based on digital transformation. |
| Goldman Sachs | Hold | $27.50 | Market volatility concerns. |
| JP Morgan | Underperform | $24.00 | Concerns over advertising revenue decline. |
News Corporation (NWSA) Mission Statement
Overview
As of 2024, News Corporation’s mission statement focuses on delivering quality journalism and engaging content across various platforms, reflecting its commitment to informing and connecting audiences globally. The company emphasizes innovation, integrity, and the importance of diverse perspectives in its content offerings.
Financial Performance
For the three months ended September 30, 2024, News Corporation reported total revenues of $2.577 billion, a 3% increase compared to $2.499 billion for the same period in 2023. The net income attributable to News Corporation stockholders was $119 million, a significant increase of 297% compared to $30 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $2.577 billion | $2.499 billion | +3% |
| Net Income | $119 million | $30 million | +297% |
| Operating Expenses | $1.263 billion | $1.273 billion | -1% |
| EBITDA | $204 million | $95 million | +115% |
Market Segments
News Corporation operates across several key segments, each contributing to its overall mission and financial performance:
- News Media: Generated revenues of $521 million for Q3 2024, down 5% from $548 million in Q3 2023.
- Digital Real Estate Services: Revenues increased to $457 million, compared to $403 million, marking a 13% growth.
- Book Publishing: Revenues rose to $546 million, up 4% from $525 million.
- Subscription Video Services: Revenues increased to $501 million, a 3% rise from $486 million.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| News Media | $521 million | $548 million | -5% |
| Digital Real Estate Services | $457 million | $403 million | +13% |
| Book Publishing | $546 million | $525 million | +4% |
| Subscription Video Services | $501 million | $486 million | +3% |
Operational Highlights
As of September 30, 2024, News Corporation reported total assets of $16.927 billion, compared to $16.684 billion as of June 30, 2024. The company’s total liabilities were $7.761 billion, with a total equity of $9.166 billion.
| Category | As of September 30, 2024 | As of June 30, 2024 |
|---|---|---|
| Total Assets | $16.927 billion | $16.684 billion |
| Total Liabilities | $7.761 billion | $7.673 billion |
| Total Equity | $9.166 billion | $9.011 billion |
Conclusion
News Corporation’s mission statement and operational strategies underscore its commitment to quality content and financial growth, as evidenced by its recent performance metrics.
How News Corporation (NWSA) Works
Overview of Business Segments
As of 2024, News Corporation operates through several key segments, including:
- News Media
- Digital Real Estate Services
- Book Publishing
- Subscription Video Services
- Dow Jones
Financial Performance
For the three months ending September 30, 2024, News Corporation reported total revenues of $2.577 billion, an increase of $78 million, or 3%, compared to the same period in 2023. The breakdown of revenues by segment is as follows:
| Segment | Revenues (in millions) | Segment EBITDA (in millions) |
|---|---|---|
| Dow Jones | $552 | $131 |
| Digital Real Estate Services | $457 | $140 |
| Book Publishing | $546 | $81 |
| Subscription Video Services | $501 | $92 |
| News Media | $521 | $16 |
| Other | - | ($45) |
| Total | $2,577 | $415 |
Net Income
Net income attributable to News Corporation stockholders for the three months ended September 30, 2024, was $119 million, compared to $30 million in the prior year, marking an increase of 297%.
Cash Flow Analysis
Net cash provided by operating activities was $64 million for the three months ended September 30, 2024, a significant improvement compared to $(55) million in the same period of 2023. The free cash flow for the same period was $(31) million, compared to $(179) million in 2023.
| Cash Flow Statement (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|
| Net cash provided by operating activities | $64 | $(55) |
| Capital expenditures | $(95) | $(124) |
| Free cash flow | $(31) | $(179) |
Balance Sheet Highlights
As of September 30, 2024, News Corporation reported total assets of $16.927 billion and total liabilities of $7.761 billion.
| Balance Sheet (in millions) | As of September 30, 2024 |
|---|---|
| Total assets | $16,927 |
| Total liabilities | $7,761 |
| Total equity | $9,166 |
Shareholder Returns and Dividends
In August 2024, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for both Class A and Class B Common Stock. The dividend was paid on October 9, 2024.
Stock Repurchase Program
As of September 30, 2024, News Corporation had approximately $422 million remaining under its stock repurchase program, which allows for the purchase of up to $1 billion of its outstanding shares.
Operational Challenges
The News Media segment experienced a revenue decline of $27 million, or 5%, primarily due to lower advertising and circulation revenues, as well as the impact of foreign currency fluctuations.
Debt and Financing
As of September 30, 2024, News Corporation reported total borrowings of $1.969 billion, with $750 million of undrawn commitments available under the Revolving Facility.
| Debt Structure (in millions) | As of September 30, 2024 |
|---|---|
| Total borrowings | $1,969 |
| Undrawn commitments | $750 |
How News Corporation (NWSA) Makes Money
Revenue Segments
News Corporation generates revenue through several key segments, including News Media, Digital Real Estate Services, Book Publishing, Subscription Video Services, and Dow Jones. For the three months ended September 30, 2024, total revenues reached $2.577 billion, a 3% increase from $2.499 billion in the prior year.
| Segment | Revenue (in millions) | Change (%) |
|---|---|---|
| News Media | $521 | (5%) |
| Digital Real Estate Services | $457 | 13% |
| Book Publishing | $546 | 4% |
| Subscription Video Services | $501 | 3% |
| Dow Jones | $552 | 3% |
News Media Segment
The News Media segment accounted for approximately 20% of total revenues. For the three months ended September 30, 2024, revenues decreased by $27 million, or 5%, compared to the same period in the previous year. The breakdown is as follows:
| Category | Revenue (in millions) | Change (%) |
|---|---|---|
| Circulation and Subscription | $271 | (1%) |
| Advertising | $193 | (5%) |
| Other | $57 | (19%) |
Digital Real Estate Services Segment
This segment saw significant growth, driven by higher Australian residential revenues at REA Group. For the three months ended September 30, 2024, the segment's revenues increased by $54 million, or 13%. Key revenue components include:
| Category | Revenue (in millions) | Change (%) |
|---|---|---|
| Circulation and Subscription | $2 | (33%) |
| Advertising | $38 | 9% |
| Real Estate | $357 | 15% |
| Other | $60 | 11% |
Book Publishing Segment
For the three months ended September 30, 2024, this segment generated revenues of $546 million, up $21 million, or 4%, compared to the previous year. The growth was primarily due to higher digital book sales.
Subscription Video Services Segment
This segment generated $501 million in revenues, a 3% increase year-over-year. The increase was attributed to higher streaming revenues and the positive impact of foreign currency fluctuations, despite lower residential subscription revenues.
Dow Jones Segment
The Dow Jones segment reported revenues of $552 million, an increase of $15 million, or 3%. This growth was primarily driven by higher professional information business revenues, with digital revenues making up 82% of total revenues.
Operating Expenses and Profitability
For the three months ended September 30, 2024, operating expenses totaled $1.263 billion, down from $1.273 billion in the previous year. Selling, general and administrative expenses increased to $899 million from $862 million.
The net income attributable to News Corporation stockholders was $119 million, compared to $30 million in the same period of the prior year. This represents an increase of 297%.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $144 | $58 |
| Net Income per Share (basic and diluted) | $0.21 | $0.05 |
| Free Cash Flow (in millions) | $(31) | $(179) |
Summary of Financial Position
As of September 30, 2024, News Corporation had total borrowings of $1.969 billion and total assets amounting to $16.927 billion. The company’s liquidity position is bolstered by $750 million in undrawn commitments available under the Revolving Facility.
Key Performance Indicators
The following table summarizes key performance indicators as of September 30, 2024:
| Indicator | Value |
|---|---|
| Total Assets (in millions) | $16,927 |
| Total Liabilities (in millions) | $7,761 |
| Total Equity (in millions) | $9,166 |
| Cash and Cash Equivalents (in millions) | $1,778 |
News Corporation (NWSA) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- News Corporation (NWSA) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of News Corporation (NWSA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View News Corporation (NWSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.