FISCAL 2022 FULL YEAR AND FOURTH
QUARTER KEY FINANCIAL HIGHLIGHTS
- Fiscal 2022 full year revenues and net income were records
at $10.39 billion and $760 million, respectively. Revenues grew 11%
compared to $9.36 billion in the prior year and net income
increased 95% compared to $389 million in the prior year
- Full year Total Segment EBITDA was $1.67 billion, also a
record and a 31% increase compared to $1.27 billion in the prior
year. Reported EPS were $1.05 for the full year compared to $0.56
in the prior year – Adjusted EPS were $1.20 compared to $0.67 in
the prior year
- Fourth quarter revenues were $2.67 billion, a 7% increase
compared to $2.49 billion in the prior year, while net income was
$127 million, a substantial improvement from a net loss of $(15)
million in the prior year
- Fourth quarter Total Segment EBITDA was $315 million, a 50%
increase compared to $210 million in the prior year. Reported EPS
were $0.19 for the fourth quarter compared to $(0.02) in the prior
year – Adjusted EPS were $0.37 compared to $0.16 in the prior
year
- Digital Real Estate Services revenues for the fiscal year
grew 25% despite facing tough prior year comparisons, with 37% and
11% revenue growth at REA Group and Move, respectively
- Dow Jones achieved its highest full year revenues and
Segment EBITDA since its acquisition, driven by strategic
acquisitions, continued growth in digital-only subscriptions,
record advertising revenues and robust growth in Risk &
Compliance products
- News Media’s Segment EBITDA improved to $217 million from
$52 million in the prior year, helped by growth in digital
advertising revenues, and was the biggest contributor to Total
Segment EBITDA growth for the fiscal year
- At the Subscription Video Services segment, Foxtel saw its
streaming revenues from Kayo and BINGE offset broadcast declines
during the year, while achieving over 2.8 million total streaming
subscribers as of year-end
- Book Publishing revenues grew 10% in the fiscal year, driven
by the acquisition of the HMH Books and Media segment and continued
strong consumer spending, which remains above pre-pandemic
levels
- Continued strong cash generation funding the execution of
the $1 billion share repurchase program
News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS,
NWSA; ASX: NWS, NWSLV) today reported financial results for the
three months and fiscal year ended June 30, 2022.
Commenting on the results, Chief Executive Robert Thomson
said:
“News Corp set significant records in Fiscal 2022, including in
revenue and profitability, which surged 31 percent to $1.7 billion,
and that came after a resounding 26 percent increase in the
previous year. Revenues rose a robust 11 percent, reaching a record
$10.4 billion, with increases in each and every segment on an
adjusted basis.
Dow Jones profitability soared 54 percent in the quarter to $106
million, while for the year, it rose 30 percent to $433 million.
OPIS and Chemical Market Analytics are already contributing to
profitability, and they have added meaningful depth to our
fast-growing Professional Information Business which targets a
premium audience with premium products providing premium value.
Our Digital Real Estate Services segment reported 25 percent
revenue growth for the year and a healthy 12 percent improvement in
profitability, as we continued to build brands and products for
future success across Realtor.com® and REA Group.
The News Media segment was the single largest contributor to the
enhanced profit picture this fiscal year with profitability
expanding to $217 million from $52 million, bolstered by growth in
digital advertising revenues and record digital subscriber
numbers.
Foxtel’s renaissance continued, as streaming revenues from Kayo
and BINGE offset broadcast declines during the year. While down
slightly for the year due to currency fluctuations, both revenue
and profitability were markedly higher on an adjusted basis.
Our provenance and principles endure at News Corporation but the
business has been fundamentally transformed - we are vastly more
profitable and have created a potent platform for even greater
growth, to the benefit of all our investors and other
stakeholders.”
FULL YEAR RESULTS
The Company reported fiscal 2022 full year total revenues of
$10.39 billion, an 11% increase compared to $9.36 billion in the
prior year, reflecting growth in all revenue lines, including the
contributions from recent acquisitions, a strong increase in
digital subscriptions, growth in digital advertising revenues and a
$110 million benefit from the additional week in fiscal 2022 (see
“Segment Review” below for details). The growth was partially
offset by a $161 million, or 2%, negative impact from foreign
currency fluctuations. Adjusted Revenues (which excludes the
foreign currency impact, acquisitions and divestitures as defined
in Note 2) increased 8%. Adjusted Revenues does not exclude the
impact from the additional week.
Net income for the full year was $760 million, a 95% increase
compared to $389 million in the prior year. The improvement
reflects higher Total Segment EBITDA, as discussed below, lower
impairment and restructuring charges and lower equity losses of
affiliates, partially offset by lower Other, net and higher
interest expense.
Total Segment EBITDA for the full year was $1.67 billion, a 31%
increase compared to $1.27 billion in the prior year, reflecting
improved performance across segments, most notably in the News
Media and Dow Jones segments. The growth was driven by higher
revenues, as discussed above, and lower costs in the Other segment
due to lower employee costs driven by stock price performance and
lower non-recurring legal settlement costs. The growth was
partially offset by higher expenses, primarily at the Digital Real
Estate Services, Book Publishing and Dow Jones segments, and a $24
million, or 2% negative impact from foreign currency fluctuations.
Adjusted Total Segment EBITDA (as defined in Note 2) increased 28%.
Adjusted Total Segment EBITDA does not exclude the impact from the
additional week.
Diluted net income per share attributable to News Corporation
stockholders was $1.05 as compared to $0.56 in the prior year.
Adjusted diluted EPS (as defined in Note 3) were $1.20 compared
to $0.67 in the prior year.
FOURTH QUARTER RESULTS
The Company reported fiscal 2022 fourth quarter total revenues
of $2.67 billion, a 7% increase compared to $2.49 billion in the
prior year period, reflecting strength in all revenue lines,
including the impact of recent acquisitions, notably OPIS and Base
Chemicals (rebranded Chemical Market Analytics, “CMA”), and a $110
million benefit from the additional week in the quarter, partially
offset by a $139 million, or 6%, negative impact from foreign
currency fluctuations. Adjusted Revenues increased 9%.
Net income for the quarter was $127 million, a substantial
improvement compared to a net loss of $(15) million in the prior
year. The improvement was driven by higher Total Segment EBITDA, as
discussed below, higher tax benefit, which includes a $149 million
tax benefit from an adjustment to valuation allowances, lower
equity losses of affiliates and lower impairment and restructuring
charges, partially offset by lower Other, net and higher interest
expense.
The Company reported fourth quarter Total Segment EBITDA of $315
million, a 50% increase compared to $210 million in the prior year,
primarily due to higher revenues, as discussed above, and lower
costs in the Other segment due to lower employee costs driven by
stock price performance and lower non-recurring legal settlement
costs. The growth was partially offset by higher costs at the Dow
Jones, Digital Real Estate Services and Book Publishing segments,
which include the increase in costs related to the recent
acquisitions and the $14 million negative impact from a valuation
adjustment related to expected trail commissions at REA Group’s
financial services business. The growth was also partially offset
by a $20 million negative impact from foreign currency
fluctuations. The results also include $20 million of one-time
legal costs related to the settlement with Insignia recognized in
the fourth quarter of fiscal 2022. Adjusted Total Segment EBITDA
increased 34%.
Net income (loss) per share attributable to News Corporation
stockholders was $0.19 as compared to $(0.02) in the prior
year.
Adjusted EPS were $0.37 compared to $0.16 in the prior year.
SEGMENT REVIEW
The Company’s full year and fourth quarter ended June 30, 2022
included an additional week (53 weeks and 14 weeks, respectively)
compared with the full year and fourth quarter ended June 30, 2021
(52 weeks and 13 weeks, respectively).
For the three months ended June
30,
For the fiscal years ended June
30,
2022
2021
% Change
2022
2021
% Change
(in millions)
Better/
(Worse)
(in millions)
Better/
(Worse)
Revenues:
Digital Real Estate Services
$
443
$
413
7
%
$
1,741
$
1,393
25
%
Subscription Video Services
524
542
(3
)%
2,026
2,072
(2
)%
Dow Jones
565
449
26
%
2,004
1,702
18
%
Book Publishing
513
493
4
%
2,191
1,985
10
%
News Media
629
595
6
%
2,423
2,205
10
%
Other
—
—
—
%
—
1
(100
)%
Total Revenues
$
2,674
$
2,492
7
%
$
10,385
$
9,358
11
%
Segment EBITDA:
Digital Real Estate Services
$
121
$
136
(11
)%
$
574
$
514
12
%
Subscription Video Services
81
66
23
%
360
359
—
%
Dow Jones
106
69
54
%
433
332
30
%
Book Publishing
47
48
(2
)%
306
303
1
%
News Media
33
—
**
217
52
**
Other
(73
)
(109
)
33
%
(221
)
(287
)
23
%
Total Segment EBITDA
$
315
$
210
50
%
$
1,669
$
1,273
31
%
** - Not meaningful
Digital Real Estate Services
Full Year Segment Results
Fiscal 2022 full year revenues increased $348 million, or 25%,
compared to the prior year, due to strong performances at REA Group
and Move and the acquisitions of Mortgage Choice and REA India,
partially offset by a $29 million, or 2%, negative impact from
foreign currency fluctuations. Segment EBITDA for fiscal 2022
increased $60 million, or 12%, compared to the prior year,
primarily due to the higher revenues, partially offset by increased
expenses due to REA Group’s acquisitions of Mortgage Choice and REA
India, higher employee costs at both Move and REA Group, increased
marketing costs at Move, a $14 million negative impact from a
valuation adjustment related to expected trail commissions at REA
Group’s financial services business and a $12 million, or 2%,
negative impact from foreign currency fluctuations. Adjusted
Revenues and Adjusted Segment EBITDA (as defined in Note 2), which
do not exclude the impact from the additional week, increased 17%
and 16%, respectively.
In the fiscal year, REA Group’s revenues increased $277 million,
or 37%, to $1.03 billion, driven by higher financial services
revenues, primarily due to the $143 million contribution from the
acquisition of Mortgage Choice, higher Australian residential depth
revenues and an $18 million contribution from the acquisition of
REA India. The growth was partially offset by a $29 million, or 4%,
negative impact from foreign currency fluctuations and a $22
million negative impact from a valuation adjustment related to
expected trail commissions at REA Group’s financial services
business. Move’s revenues in the fiscal year increased $71 million,
or 11%, to $712 million, primarily due to higher real estate
revenues, partially offset by the sale of Top Producer. Move’s real
estate revenues, which represented 86% of total Move revenues, grew
14%, primarily due to growth in both the traditional lead
generation product and the referral model.
Fourth Quarter Segment Results
Revenues in the quarter increased $30 million, or 7%, compared
to the prior year, despite very difficult prior year comparisons.
Growth was due to higher revenues at REA Group and Move, which
includes the acquisition of Mortgage Choice and a $14 million
benefit from the additional week in the quarter, partially offset
by a $20 million, or 5%, negative impact from foreign currency
fluctuations. Segment EBITDA in the quarter declined $15 million,
or 11%, compared to the prior year, primarily due to an increase in
expenses associated with the acquisition of Mortgage Choice, higher
employee costs at both Move and REA Group, a $14 million negative
impact from a valuation adjustment related to expected trail
commissions at REA Group’s financial services business and an $8
million, or 6%, negative impact from foreign currency fluctuations.
Adjusted Revenues and Adjusted Segment EBITDA, increased 7% and
decreased 1%, respectively.
In the quarter, revenues at REA Group increased $23 million, or
10%, to $250 million, driven by higher financial services revenues,
primarily due to the $21 million contribution from the acquisition
of Mortgage Choice, and higher Australian residential depth
revenues due to price increases, strong national listings and
favorable depth penetration and product mix. The growth was
partially offset by a $22 million negative impact from a valuation
adjustment related to expected trail commissions at REA Group’s
financial services business and a $20 million, or 9%, negative
impact from foreign currency fluctuations. Australian national
residential buy listing volumes in the quarter increased 2%
compared to the prior year, with listings in Sydney and Melbourne
down 8% and 5%, respectively.
Move’s revenues in the quarter increased $7 million, or 4%, to
$193 million, primarily as a result of higher real estate revenues
despite very difficult prior year comparisons. Real estate
revenues, which represented 84% of total Move revenues, increased
$4 million, or 3%, due to a $14 million benefit from the additional
week in the quarter. The referral model, which generated 31% of
total Move revenues in the quarter compared to 30% in the prior
year, benefited from the continued increase in average home values,
offset by lower transaction volume. Revenues from the traditional
lead generation product were flat as the higher contribution from
the Market VIP℠ product was offset by the impact from lower lead
volume. Based on Move’s internal data, average monthly unique users
of Realtor.com®’s web and mobile sites for the fiscal fourth
quarter declined 13% year-over-year to approximately 93 million but
remain 16% higher than the fiscal 2020 comparable period. Lead
volume declined 39% in the quarter, reflecting continued
deceleration in home sales and ongoing inventory constraints
compared to historical trends across the industry.
Subscription Video Services
Full Year Segment Results
Fiscal 2022 full year revenues declined $46 million, or 2%,
compared with the prior year, due to a $61 million, or 3%, negative
impact from foreign currency fluctuations, as higher streaming
revenues, primarily from Kayo and BINGE, and higher advertising
revenues more than offset the revenue declines from the residential
broadcast product. Foxtel Group streaming subscription revenues
represented approximately 20% of total circulation and subscription
revenues in the fiscal year compared to 14% in the prior year.
Adjusted Revenues increased 1% compared to the prior year.
Segment EBITDA for fiscal 2022 was flat compared to the prior
year, reflecting an $8 million, or 3%, negative impact from foreign
currency fluctuations. Total expenses for the year were relatively
flat compared to the prior year as higher sports and entertainment
programming costs due to increased content availability, higher
technology costs and higher investment spending on streaming
products were offset by the absence of the $57 million negative
impact seen in the first half of fiscal 2021 from the recognition
of sports programming rights and production costs deferred from the
fourth quarter of fiscal 2020. Adjusted Segment EBITDA increased
3%.
Fourth Quarter Segment Results
Revenues in the quarter decreased $18 million, or 3%, compared
with the prior year, primarily due to a $42 million, or 7%,
negative impact from foreign currency fluctuations, partially
offset by higher revenues from Kayo and BINGE, which more than
offset the revenue declines from the residential broadcast product,
as well as higher advertising revenues. Foxtel Group streaming
subscription revenues represented approximately 23% of total
circulation and subscription revenues in the quarter, compared to
16% in the prior year. Adjusted Revenues increased 4% compared to
the prior year.
As of June 30, 2022, Foxtel’s total closing paid subscribers
were 4.4 million, a 13% increase compared to the prior year,
primarily due to the growth in BINGE and Kayo subscribers,
partially offset by lower residential broadcast subscribers.
Broadcast subscriber churn in the quarter improved to 13.8% from
17.1% in the prior year. Broadcast ARPU for the quarter increased
2% year-over-year to A$83 (US$59).
As of June 30,
2022
2021
(in 000’s)
Broadcast Subscribers
Residential
1,481
1,651
Commercial
242
234
Streaming Subscribers (Total (Paid))
Kayo
1,312 (1,293 paid
)
1,079 (1,054 paid
)
BINGE
1,263 (1,192 paid
)
827 (733 paid
)
Foxtel Now
201 (194 paid
)
228 (219 paid
)
Total Subscribers, including Flash (Total
(Paid))
4,529 (4,413 paid
)
4,019 (3,891 paid
)
Segment EBITDA in the quarter increased $15 million, or 23%,
compared to the prior year, primarily due to the absence of
one-time costs mainly related to a specific promotional activity
for iQ3 and iQ4 in the prior year and lower BINGE marketing costs,
partially offset by higher entertainment and sports programming
rights costs driven by increased content availability and a $6
million, or 9%, negative impact from foreign currency fluctuations.
Adjusted Segment EBITDA increased 32%.
Dow Jones
Full Year Segment Results
Fiscal 2022 full year revenues increased $302 million, or 18%,
compared to the prior year, which reflects the growth in
circulation and subscription revenues from the acquisitions of
Investor’s Business Daily (“IBD”), OPIS and CMA, as well as
continued digital subscription gains and growth in Risk &
Compliance products. Dow Jones had its highest advertising revenues
since fiscal 2017, which also contributed to the revenue growth.
Adjusted Revenues increased 11% compared to the prior year. Digital
revenues at Dow Jones represented 75% of total revenues compared to
72% in the prior year.
Circulation and subscription revenues increased $220 million, or
17%, which includes $59 million, $47 million and $6 million of
higher contributions from the acquisitions of IBD, OPIS and CMA,
respectively, a $31 million benefit from the additional week and a
$10 million, or 1%, negative impact from foreign currency
fluctuations. Circulation revenues grew 15%, reflecting the
acquisition of IBD and continued strong growth in digital-only
subscriptions at The Wall Street Journal and Barron’s. Professional
information business revenues grew 21%, driven by the acquisition
of OPIS as well as 18% growth in Risk & Compliance products,
which reached over $225 million in revenues in fiscal 2022. Digital
circulation revenues accounted for 67% of circulation revenues for
the year, compared to 64% in the prior year.
Advertising revenue increased $76 million, or 20%, the highest
growth rate since Dow Jones’ acquisition, primarily due to a 22%
increase in digital advertising and a 19% increase in print
advertising. Digital advertising revenues accounted for 59% of
total advertising revenues for the year, compared to 58% in the
prior year.
Segment EBITDA for fiscal 2022 increased $101 million, or 30%,
compared to the prior year, primarily due to higher revenues, as
noted above, partially offset by higher employee costs and higher
costs related to the OPIS and CMA acquisitions, including $25
million of transaction costs. Adjusted Segment EBITDA increased
25%.
Fourth Quarter Segment Results
Revenues in the quarter increased $116 million, or 26%, compared
to the prior year, which includes the contributions from the
acquisitions of OPIS, IBD and CMA. The CMA acquisition closed on
June 1, 2022. The growth was also driven by the $40 million benefit
from the additional week, the growth in circulation and
subscription revenues from continued digital subscription gains and
higher advertising revenues. Digital revenues at Dow Jones in the
quarter represented 76% of total revenues compared to 72% in the
prior year. Adjusted Revenues increased 16%.
Circulation and subscription revenues increased $97 million, or
29%, which includes $43 million from the acquisitions of OPIS and
CMA and $31 million from the additional week, partially offset by
an $8 million, or 2%, negative impact from foreign currency
fluctuations. Circulation revenues grew 17%, reflecting a $17
million benefit from the additional week, the continued strong
growth in digital-only subscriptions for Dow Jones’ consumer
products and the acquisition of IBD. Professional information
business revenues grew 47%, reflecting the acquisitions of OPIS and
CMA and a $14 million benefit from the additional week. Revenues
from Risk & Compliance products grew 19% in the quarter.
Digital circulation revenues accounted for 68% of circulation
revenues for the quarter, compared to 65% in the prior year
period.
During the quarter, total average subscriptions to Dow Jones’
consumer products reached approximately 4.9 million, a 9% increase
compared to the prior year. Digital-only subscriptions to Dow
Jones’ consumer products grew 14%. Subscriptions to The Wall Street
Journal grew 8% compared to the prior year, to over 3.7 million
average subscriptions in the quarter. Digital-only subscriptions to
The Wall Street Journal grew 14% to approximately 3.1 million
average subscriptions in the quarter, and represented 83% of its
total subscriptions.
For the three months ended
June 30,
2022
2021
% Change
(in thousands, except %)
Better/(Worse)
The Wall Street Journal
Digital-only subscriptions
3,095
2,722
14%
Total subscriptions
3,749
3,456
8%
Barron’s Group
Digital-only subscriptions
848
700
21%
Total subscriptions
1,038
920
13%
Total Consumer
Digital-only subscriptions
4,029
3,522
14%
Total subscriptions
4,898
4,502
9%
Advertising revenue increased $13 million, or 13%, including a
$9 million benefit from the additional week. In the quarter,
digital advertising revenues grew 16% and print advertising
revenues grew 9%. Digital advertising accounted for 58% of total
advertising revenues in the quarter, compared to 56% in the prior
year period.
Segment EBITDA for the quarter increased $37 million, or 54%,
including the $16 million contribution from the acquisitions of
OPIS, IBD and CMA. The growth was primarily due to higher revenues,
as discussed above, partially offset by an increase in overall
expenses, including higher compensation costs, mostly due to the
acquisitions of OPIS and CMA, as well as higher sales and marketing
costs. Adjusted Segment EBITDA increased 30%.
Book Publishing
Full Year Segment Results
Fiscal 2022 full year revenues increased $206 million, or 10%,
compared to the prior year, reflecting a $149 million contribution
from the acquisition of HMH, higher book sales in the U.K., strong
frontlist sales in General books, including Twelve and a Half by
Gary Vaynerchuk, The Storyteller by Dave Grohl, Pioneer Woman
Cooks: Super Easy! by Ree Drummond and The Stranger in the Lifeboat
by Mitch Albom, and a $20 million benefit from the additional week.
Revenue growth was partially offset by the $16 million impact from
lower sales of the Bridgerton series and a $14 million, or 1%,
negative impact from foreign currency fluctuations. Adjusted
Revenues increased 3% compared to the prior year. Digital sales
increased 4% compared to the prior year, driven by continued growth
in downloadable audiobook sales, partially offset by lower e-book
sales. Digital sales represented 21% of Consumer revenues for the
year.
Segment EBITDA for fiscal 2022 increased $3 million, or 1%, from
the prior year primarily due to higher revenues, as discussed
above, largely offset by higher manufacturing and freight costs due
to higher sales volumes, the mix of titles and the impact from
ongoing supply chain and inflationary pressures. Adjusted Segment
EBITDA decreased 6%.
Fourth Quarter Segment Results
Revenues in the quarter increased $20 million, or 4%, compared
to the prior year, reflecting a $20 million benefit from the
additional week in the quarter and a $14 million contribution from
the acquisition of HMH, partially offset by a $16 million, or 3%,
negative impact from foreign currency fluctuations. Revenue growth
was also driven by higher frontlist sales in General books,
including Finding Me by Viola Davis and The Mothers and Daughters
of the Bible Speak by Shannon Bream, partially offset by lower
sales of the series of Bridgerton titles by Julia Quinn and lower
sales of foreign language and Christian books. Adjusted Revenues
increased 4% compared to the prior year. Digital sales increased 9%
compared to the prior year, primarily due to growth in downloadable
audiobook sales. Digital sales represented 24% of Consumer revenues
for the quarter.
Segment EBITDA for the quarter decreased $1 million, or 2%,
compared to the prior year, primarily due to the increase in
manufacturing and freight costs due to higher sales volumes, the
mix of titles and the impact from ongoing supply chain and
inflationary pressures, partially offset by higher revenues, as
discussed above. Adjusted Segment EBITDA declined 6%.
News Media
Full Year Segment Results
Fiscal 2022 full year revenues increased $218 million, or 10%,
compared to the prior year, which includes a $47 million, or 2%,
negative impact from foreign currency fluctuations. Within the
segment, revenues at News Corp Australia increased 9% and revenues
at News UK increased 7%. The New York Post and Wireless Group also
saw higher revenues during the fiscal year. Adjusted Revenues for
the segment increased 12% compared to the prior year.
Circulation and subscription revenues increased $83 million, or
8%, compared to the prior year, primarily due to higher content
licensing revenues, digital subscriber growth and cover price
increases, partially offset by print volume declines and a $22
million, or 2%, negative impact from foreign currency fluctuations.
Advertising revenues increased $120 million, or 14%, compared to
the prior year, driven by growth in digital advertising across the
businesses and the recovery of print advertising, predominantly in
the U.K., partially offset by a $20 million, or 2%, negative impact
from foreign currency fluctuations.
Segment EBITDA for fiscal 2022 increased $165 million compared
to the prior year, driven by higher revenues, as discussed above.
News Corp Australia and News UK contributed $109 million and $54
million, respectively, to the Segment EBITDA growth and Wireless
Group and the New York Post were also positive contributors. The
growth was partially offset by higher costs related to TalkTV,
which launched in April 2022. Adjusted Segment EBITDA increased
$166 million compared to the prior year.
Fourth Quarter Segment Results
Revenues in the quarter increased $34 million, or 6%, as
compared to the prior year. The results include a $36 million
benefit from the additional week in the quarter, which was more
than offset by a $53 million, or 9%, negative impact from foreign
currency fluctuations. The growth was driven by higher advertising
and circulation and subscription revenues. Within the segment,
revenues at News Corp Australia increased 6% and revenues at News
UK were flat as both were impacted by negative foreign currency
fluctuations. Adjusted Revenues for the segment increased 14%
compared to the prior year.
Circulation and subscription revenues increased $8 million, or
3%, compared to the prior year. The results include a $19 million
benefit from the additional week in the quarter, which was more
than offset by a $26 million, or 9%, negative impact from foreign
currency fluctuations. The remainder of the growth was driven by
higher content licensing revenues, primarily at News Corp
Australia, cover price increases and digital subscriber growth.
Advertising revenues increased $19 million, or 8%, compared to
the prior year. The results include a $15 million benefit from the
additional week in the quarter, which was more than offset by a $21
million, or 9%, negative impact from foreign currency fluctuations.
The improvement was also driven by growth in digital advertising
across the businesses.
In the quarter, Segment EBITDA increased $33 million compared to
the prior year, reflecting higher revenues, as discussed above.
News Corp Australia and News UK contributed $23 million and $16
million, respectively, to the Segment EBITDA growth and the New
York Post and Wireless Group were also positive contributors. The
growth was partially offset by over $20 million of higher costs
related to TalkTV and other digital initiatives and a $5 million
negative impact from foreign currency fluctuations. Adjusted
Segment EBITDA was $37 million.
Digital revenues represented 35% of News Media segment revenues
in the quarter, compared to 32% in the prior year, and represented
33% of the combined revenues of the newspaper mastheads. Digital
subscribers and users across key properties within the News Media
segment are summarized below:
- Closing digital subscribers at News Corp Australia as of June
30, 2022 were 964,000 (882,000 for news mastheads), compared to
859,000 (810,000 for news mastheads) in the prior year (Source:
Internal data)
- The Times and Sunday Times closing digital subscribers,
including the Times Literary Supplement, as of June 30, 2022 were
445,000, compared to 374,000 in the prior year (Source: Internal
data)
- The Sun’s digital offering reached approximately 165 million
global monthly unique users in June 2022, compared to 124 million
in the prior year (Source: Google Analytics)
- New York Post’s digital network reached approximately 198
million unique users in June 2022, compared to 123 million in the
prior year (Source: Google Analytics)
CASH FLOW
The following table presents a reconciliation of net cash
provided by operating activities to free cash flow available to
News Corporation:
For the fiscal years ended June
30,
2022
2021
(in millions)
Net cash provided by operating
activities
$
1,354
$
1,237
Less: Capital expenditures
(499
)
(390
)
855
847
Less: REA Group free cash flow
(279
)
(185
)
Plus: Cash dividends received from REA
Group
87
69
Free cash flow available to News
Corporation
$
663
$
731
Net cash provided by operating activities of $1,354 million for
the fiscal year ended June 30, 2022 increased $117 million compared
to $1,237 million in the prior year, primarily due to higher Total
Segment EBITDA, as noted above, partially offset by higher working
capital, driven by higher employee bonus and equity-based
compensation payments, payments related to one-time legal
settlement costs and higher inventory purchases, and $41 million in
higher interest payments.
Free cash flow available to News Corporation in the fiscal year
ended June 30, 2022 was $663 million compared to $731 million in
the prior year. The decline was primarily due to higher capital
expenditures and higher REA Group free cash flow, partially offset
by higher cash provided by operating activities, as mentioned
above, and higher dividends received from REA Group. Foxtel’s
capital expenditures for fiscal 2022 were $189 million compared to
$139 million in the prior year.
Free cash flow available to News Corporation is a non-GAAP
financial measure defined as net cash provided by operating
activities, less capital expenditures (“free cash flow”), less REA
Group free cash flow, plus cash dividends received from REA
Group.
The Company considers free cash flow available to News
Corporation to provide useful information to management and
investors about the amount of cash that is available to be used to
strengthen the Company’s balance sheet and for strategic
opportunities including, among others, investing in the Company’s
business, strategic acquisitions, dividend payouts and repurchasing
stock. The Company believes excluding REA Group’s free cash flow
and including dividends received from REA Group provides users of
its consolidated financial statements with a measure of the amount
of cash flow that is readily available to the Company, as REA Group
is a separately listed public company in Australia and must declare
a dividend in order for the Company to have access to its share of
REA Group’s cash balance. The Company believes free cash flow
available to News Corporation provides a more conservative view of
the Company’s free cash flow because this presentation includes
only that amount of cash the Company actually receives from REA
Group, which has generally been lower than the Company’s unadjusted
free cash flow. A limitation of free cash flow available to News
Corporation is that it does not represent the total increase or
decrease in the cash balance for the period. Management compensates
for the limitation of free cash flow available to News Corporation
by also relying on the net change in cash and cash equivalents as
presented in the Company’s consolidated statements of cash flows
prepared in accordance with GAAP which incorporates all cash
movements during the period.
OTHER ITEMS
Dividends
The Company today declared a semi-annual cash dividend of $0.10
per share for Class A Common Stock and Class B Common Stock. This
dividend is payable on October 12, 2022 to stockholders of record
as of September 14, 2022.
COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION
Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment
EBITDA, Adjusted Segment EBITDA, adjusted net income attributable
to News Corporation stockholders, Adjusted EPS and free cash flow
available to News Corporation are non-GAAP financial measures
contained in this earnings release. The Company believes these
measures are important tools for investors and analysts to use in
assessing the Company’s underlying business performance and to
provide for more meaningful comparisons of the Company’s operating
performance between periods. These measures also allow investors
and analysts to view the Company’s business from the same
perspective as Company management. These non-GAAP measures may be
different than similar measures used by other companies and should
be considered in addition to, not as a substitute for, measures of
financial performance calculated in accordance with GAAP.
Reconciliations for the differences between non-GAAP measures used
in this earnings release and comparable financial measures
calculated in accordance with U.S. GAAP are included in Notes 1, 2
and 3 and the reconciliation of net cash provided by operating
activities to free cash flow available to News Corporation is
included above.
Conference call
News Corporation’s earnings conference call can be heard live at
5:00pm EDT on August 8, 2022. To listen to the call, please visit
http://investors.newscorp.com.
Cautionary Statement Concerning Forward-Looking
Statements
This document contains certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, but are not
limited to, statements regarding trends and uncertainties affecting
the Company’s business, results of operations and financial
condition, the Company’s strategy and strategic initiatives,
including potential acquisitions, investments and dispositions, and
the outcome of contingencies such as litigation and investigations.
These statements are based on management’s views and assumptions
regarding future events and business performance as of the time the
statements are made. Actual results may differ materially from
these expectations due to the risks, uncertainties and other
factors described in the Company’s filings with the Securities and
Exchange Commission. More detailed information about factors that
could affect future results is contained in our filings with the
Securities and Exchange Commission. The “forward-looking
statements” included in this document are made only as of the date
of this document and we do not have and do not undertake any
obligation to publicly update any “forward-looking statements” to
reflect subsequent events or circumstances, and we expressly
disclaim any such obligation, except as required by law or
regulation.
About News Corporation
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global,
diversified media and information services company focused on
creating and distributing authoritative and engaging content and
other products and services. The company comprises businesses
across a range of media, including: digital real estate services,
subscription video services in Australia, news and information
services and book publishing. Headquartered in New York, News Corp
operates primarily in the United States, Australia, and the United
Kingdom, and its content and other products and services are
distributed and consumed worldwide. More information is available
at: www.newscorp.com.
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited; in millions,
except per share amounts)
For the three months ended June
30,
For the fiscal years ended June
30,
2022
2021
2022
2021
Revenues:
Circulation and subscription
$
1,177
$
1,098
$
4,425
$
4,206
Advertising
479
440
1,821
1,594
Consumer
491
472
2,106
1,908
Real estate
359
346
1,347
1,153
Other
168
136
686
497
Total Revenues
2,674
2,492
10,385
9,358
Operating expenses
(1,355
)
(1,283
)
(5,124
)
(4,831
)
Selling, general and administrative
(1,004
)
(999
)
(3,592
)
(3,254
)
Depreciation and amortization
(183
)
(176
)
(688
)
(680
)
Impairment and restructuring charges
(27
)
(75
)
(109
)
(168
)
Equity losses of affiliates
(3
)
(56
)
(13
)
(65
)
Interest expense, net
(31
)
(21
)
(99
)
(53
)
Other, net
(91
)
11
52
143
(Loss) income before income tax
expense
(20
)
(107
)
812
450
Income tax benefit (expense)
147
92
(52
)
(61
)
Net income (loss)
127
(15
)
760
389
Less: Net (income) loss attributable to
noncontrolling interests
(17
)
1
(137
)
(59
)
Net income (loss) attributable to News
Corporation stockholders
$
110
$
(14
)
$
623
$
330
Weighted average shares outstanding
Basic
586
591
590
590
Diluted
589
591
593
593
Net income (loss) attributable to News
Corporation stockholders per share
Basic
$
0.19
$
(0.02
)
$
1.06
$
0.56
Diluted
$
0.19
$
(0.02
)
$
1.05
$
0.56
NEWS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in
millions)
As of June 30, 2022
As of June 30, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
1,822
$
2,236
Receivables, net
1,502
1,498
Inventory, net
311
253
Other current assets
458
469
Total current assets
4,093
4,456
Non-current assets:
Investments
488
351
Property, plant and equipment, net
2,103
2,272
Operating lease right-of-use assets
891
1,035
Intangible assets, net
2,671
2,179
Goodwill
5,169
4,653
Deferred income tax assets
422
378
Other non-current assets
1,384
1,447
Total assets
$
17,221
$
16,771
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
411
$
321
Accrued expenses
1,236
1,339
Deferred revenue
604
473
Current borrowings
293
28
Other current liabilities
975
1,073
Total current liabilities
3,519
3,234
Non-current liabilities:
Borrowings
2,776
2,285
Retirement benefit obligations
155
211
Deferred income tax liabilities
198
260
Operating lease liabilities
947
1,116
Other non-current liabilities
483
519
Equity:
Class A common stock
4
4
Class B common stock
2
2
Additional paid-in capital
11,779
12,057
Accumulated deficit
(2,293
)
(2,911
)
Accumulated other comprehensive loss
(1,270
)
(941
)
Total News Corporation stockholders'
equity
8,222
8,211
Noncontrolling interests
921
935
Total equity
9,143
9,146
Total liabilities and equity
$
17,221
$
16,771
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited; in
millions)
For the fiscal years ended June
30,
2022
2021
Operating activities:
Net income
$
760
$
389
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
688
680
Operating lease expense
125
128
Equity losses of affiliates
13
65
Cash distributions received from
affiliates
23
15
Impairment charges
15
—
Other, net
(52
)
(143
)
Deferred income taxes and taxes
payable
(125
)
(100
)
Change in operating assets and
liabilities, net of acquisitions:
Receivables and other assets
(51
)
(166
)
Inventories, net
(87
)
6
Accounts payable and other liabilities
45
363
Net cash provided by operating
activities
1,354
1,237
Investing activities:
Capital expenditures
(499
)
(390
)
Acquisitions, net of cash acquired
(1,501
)
(886
)
Investments in equity affiliates and
other
(71
)
(26
)
Other investments
(41
)
(13
)
Proceeds from property, plant and
equipment and other asset dispositions
3
24
Other, net
33
(1
)
Net cash used in investing activities
(2,076
)
(1,292
)
Financing activities:
Borrowings
1,690
1,515
Repayment of borrowings
(838
)
(557
)
Repurchase of shares
(179
)
—
Dividends paid
(175
)
(163
)
Other, net
(94
)
(96
)
Net cash provided by financing
activities
404
699
Net change in cash and cash
equivalents
(318
)
644
Cash and cash equivalents, beginning of
year
2,236
1,517
Exchange movement on opening cash
balance
(96
)
75
Cash and cash equivalents, end of year
$
1,822
$
2,236
NOTE 1 – TOTAL SEGMENT EBITDA
Segment EBITDA is defined as revenues less operating expenses
and selling, general and administrative expenses. Segment EBITDA
does not include: depreciation and amortization, impairment and
restructuring charges, equity losses of affiliates, interest
(expense) income, net, other, net and income tax (expense) benefit.
Management believes that Segment EBITDA is an appropriate measure
for evaluating the operating performance of the Company’s business
segments because it is the primary measure used by the Company’s
chief operating decision maker to evaluate the performance of and
allocate resources within the Company’s businesses. Segment EBITDA
provides management, investors and equity analysts with a measure
to analyze the operating performance of each of the Company’s
business segments and its enterprise value against historical data
and competitors’ data, although historical results may not be
indicative of future results (as operating performance is highly
contingent on many factors, including customer tastes and
preferences).
Total Segment EBITDA is a non-GAAP measure and should be
considered in addition to, not as a substitute for, net income
(loss), cash flow and other measures of financial performance
reported in accordance with GAAP. In addition, this measure does
not reflect cash available to fund requirements and excludes items,
such as depreciation and amortization and impairment and
restructuring charges, which are significant components in
assessing the Company’s financial performance. The Company believes
that the presentation of Total Segment EBITDA provides useful
information regarding the Company’s operations and other factors
that affect the Company’s reported results. Specifically, the
Company believes that by excluding certain one-time or non-cash
items such as impairment and restructuring charges and depreciation
and amortization, as well as potential distortions between periods
caused by factors such as financing and capital structures and
changes in tax positions or regimes, the Company provides users of
its consolidated financial statements with insight into both its
core operations as well as the factors that affect reported results
between periods but which the Company believes are not
representative of its core business. As a result, users of the
Company’s consolidated financial statements are better able to
evaluate changes in the core operating results of the Company
across different periods. The following tables reconcile net income
(loss) to Total Segment EBITDA for the three months and fiscal
years ended June 30, 2022 and 2021:
For the three months ended June
30,
2022
2021
Change
% Change
(in millions)
Net income (loss)
$
127
$
(15
)
$
142
**
Add:
Income tax benefit
(147
)
(92
)
(55
)
(60
)%
Other, net
91
(11
)
102
**
Interest expense, net
31
21
10
48
%
Equity losses of affiliates
3
56
(53
)
(95
)%
Impairment and restructuring charges
27
75
(48
)
(64
)%
Depreciation and amortization
183
176
7
4
%
Total Segment EBITDA
$
315
$
210
$
105
50
%
** - Not meaningful
For the fiscal years ended June
30,
2022
2021
Change
% Change
(in millions)
Net income
$
760
$
389
$
371
95
%
Add:
Income tax expense
52
61
(9
)
(15
)%
Other, net
(52
)
(143
)
91
64
%
Interest expense, net
99
53
46
87
%
Equity losses of affiliates
13
65
(52
)
(80
)%
Impairment and restructuring charges
109
168
(59
)
(35
)%
Depreciation and amortization
688
680
8
1
%
Total Segment EBITDA
$
1,669
$
1,273
$
396
31
%
NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND
ADJUSTED SEGMENT EBITDA
The Company uses revenues, Total Segment EBITDA and Segment
EBITDA excluding the impact of acquisitions, divestitures, fees and
costs, net of indemnification, related to the claims and
investigations arising out of certain conduct at The News of the
World (the “U.K. Newspaper Matters”), charges for other
significant, non-ordinary course legal or regulatory matters
(“litigation charges”) and foreign currency fluctuations (“Adjusted
Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment
EBITDA,” respectively) to evaluate the performance of the Company’s
core business operations exclusive of certain items that impact the
comparability of results from period to period such as the
unpredictability and volatility of currency fluctuations. The
Company calculates the impact of foreign currency fluctuations for
businesses reporting in currencies other than the U.S. dollar by
multiplying the results for each quarter in the current period by
the difference between the average exchange rate for that quarter
and the average exchange rate in effect during the corresponding
quarter of the prior year and totaling the impact for all quarters
in the current period.
The calculation of Adjusted Revenues, Adjusted Total Segment
EBITDA and Adjusted Segment EBITDA may not be comparable to
similarly titled measures reported by other companies, since
companies and investors may differ as to what type of events
warrant adjustment. Adjusted Revenues, Adjusted Total Segment
EBITDA and Adjusted Segment EBITDA are not measures of performance
under generally accepted accounting principles and should not be
construed as substitutes for amounts determined under GAAP as
measures of performance. However, management uses these measures in
comparing the Company’s historical performance and believes that
they provide meaningful and comparable information to investors to
assist in their analysis of our performance relative to prior
periods and our competitors.
The following tables reconcile reported revenues and reported
Total Segment EBITDA to Adjusted Revenues and Adjusted Total
Segment EBITDA for the three months and fiscal years ended June 30,
2022 and 2021:
Revenues
Total Segment EBITDA
For the three months ended June
30,
For the three months ended June
30,
2022
2021
Difference
2022
2021
Difference
(in millions)
(in millions)
As reported
$
2,674
$
2,492
$
182
$
315
$
210
$
105
Impact of acquisitions
(91
)
—
(91
)
(4
)
9
(13
)
Impact of divestitures
—
(3
)
3
—
2
(2
)
Impact of foreign currency
fluctuations
139
—
139
20
—
20
Net impact of U.K. Newspaper Matters
—
—
—
2
2
—
Impact of litigation charges
—
—
—
20
40
(20
)
As adjusted
$
2,722
$
2,489
$
233
$
353
$
263
$
90
Revenues
Total Segment EBITDA
For the fiscal years ended June
30,
For the fiscal years ended June
30,
2022
2021
Difference
2022
2021
Difference
(in millions)
(in millions)
As reported
$
10,385
$
9,358
$
1,027
$
1,669
$
1,273
$
396
Impact of acquisitions
(445
)
—
(445
)
(15
)
15
(30
)
Impact of divestitures
(1
)
(26
)
25
5
4
1
Impact of foreign currency
fluctuations
161
—
161
24
—
24
Net impact of U.K. Newspaper Matters
—
—
—
11
10
1
Impact of litigation charges
—
—
—
20
40
(20
)
As adjusted
$
10,100
$
9,332
$
768
$
1,714
$
1,342
$
372
Foreign Exchange Rates
Average foreign exchange rates used in the calculation of the
impact of foreign currency fluctuations for each of the three month
periods in the fiscal years ended June 30, 2022 and 2021 are as
follows:
Fiscal Year 2022
Q1
Q2
Q3
Q4
U.S. Dollar per Australian Dollar
$0.74
$0.73
$0.72
$0.72
U.S. Dollar per British Pound Sterling
$1.38
$1.35
$1.34
$1.26
Fiscal Year 2021
Q1
Q2
Q3
Q4
U.S. Dollar per Australian Dollar
$0.71
$0.73
$0.77
$0.77
U.S. Dollar per British Pound Sterling
$1.29
$1.32
$1.38
$1.40
Adjusted Revenues and Adjusted Segment EBITDA by segment for the
three months and fiscal years ended June 30, 2022 and 2021 are as
follows:
For the three months ended June
30,
2022
2021
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services
$
440
$
410
7
%
Subscription Video Services
566
542
4
%
Dow Jones
523
449
16
%
Book Publishing
514
493
4
%
News Media
679
595
14
%
Other
—
—
—
%
Adjusted Total Revenues
$
2,722
$
2,489
9
%
Adjusted Segment EBITDA:
Digital Real Estate Services
$
142
$
144
(1
)%
Subscription Video Services
87
66
32
%
Dow Jones
92
71
30
%
Book Publishing
46
49
(6
)%
News Media
37
—
**
Other
(51
)
(67
)
24
%
Adjusted Total Segment EBITDA
$
353
$
263
34
%
For the fiscal years ended June
30,
2022
2021
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services
$
1,602
$
1,368
17
%
Subscription Video Services
2,087
2,072
1
%
Dow Jones
1,896
1,702
11
%
Book Publishing
2,052
1,985
3
%
News Media
2,463
2,205
12
%
Other
—
—
—
%
Adjusted Total Revenues
$
10,100
$
9,332
8
%
Adjusted Segment EBITDA:
Digital Real Estate Services
$
615
$
529
16
%
Subscription Video Services
368
359
3
%
Dow Jones
417
334
25
%
Book Publishing
286
304
(6
)%
News Media
218
52
**
Other
(190
)
(236
)
19
%
Adjusted Total Segment EBITDA
$
1,714
$
1,342
28
%
** - Not meaningful
The following tables reconcile reported revenues and Segment
EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA
by segment for the three months ended June 30, 2022 and 2021.
For the three months ended June
30, 2022
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
Impact of litigation charges
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
443
$
(23
)
$
—
$
20
$
—
$
—
$
440
Subscription Video Services
524
—
—
42
—
—
566
Dow Jones
565
(50
)
—
8
—
—
523
Book Publishing
513
(15
)
—
16
—
—
514
News Media
629
(3
)
—
53
—
—
679
Other
—
—
—
—
—
—
—
Total Revenues
$
2,674
$
(91
)
$
—
$
139
$
—
$
—
$
2,722
Segment EBITDA:
Digital Real Estate Services
$
121
$
13
$
—
$
8
$
—
$
—
$
142
Subscription Video Services
81
—
—
6
—
—
87
Dow Jones
106
(14
)
—
—
—
—
92
Book Publishing
47
(2
)
—
1
—
—
46
News Media
33
(1
)
—
5
—
—
37
Other
(73
)
—
—
—
2
20
(51
)
Total Segment EBITDA
$
315
$
(4
)
$
—
$
20
$
2
$
20
$
353
For the three months ended June
30, 2021
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
Impact of litigation charges
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
413
$
—
$
(3
)
$
—
$
—
$
—
$
410
Subscription Video Services
542
—
—
—
—
—
542
Dow Jones
449
—
—
—
—
—
449
Book Publishing
493
—
—
—
—
—
493
News Media
595
—
—
—
—
—
595
Other
—
—
—
—
—
—
—
Total Revenues
$
2,492
$
—
$
(3
)
$
—
$
—
$
—
$
2,489
Segment EBITDA:
Digital Real Estate Services
$
136
$
6
$
2
$
—
$
—
$
—
$
144
Subscription Video Services
66
—
—
—
—
—
66
Dow Jones
69
2
—
—
—
—
71
Book Publishing
48
1
—
—
—
—
49
News Media
—
—
—
—
—
—
—
Other
(109
)
—
—
—
2
40
(67
)
Total Segment EBITDA
$
210
$
9
$
2
$
—
$
2
$
40
$
263
The following tables reconcile reported revenues and Segment
EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA
by segment for the fiscal years ended June 30, 2022 and 2021.
For the fiscal year ended June
30, 2022
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
Impact of litigation charges
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
1,741
$
(167
)
$
(1
)
$
29
$
—
$
—
$
1,602
Subscription Video Services
2,026
—
—
61
—
—
2,087
Dow Jones
2,004
(118
)
—
10
—
—
1,896
Book Publishing
2,191
(153
)
—
14
—
—
2,052
News Media
2,423
(7
)
—
47
—
—
2,463
Other
—
—
—
—
—
—
—
Total Revenues
$
10,385
$
(445
)
$
(1
)
$
161
$
—
$
—
$
10,100
Segment EBITDA:
Digital Real Estate Services
$
574
$
24
$
5
$
12
$
—
$
—
$
615
Subscription Video Services
360
—
—
8
—
—
368
Dow Jones
433
(17
)
—
1
—
—
417
Book Publishing
306
(21
)
—
1
—
—
286
News Media
217
(1
)
—
2
—
—
218
Other
(221
)
—
—
—
11
20
(190
)
Total Segment EBITDA
$
1,669
$
(15
)
$
5
$
24
$
11
$
20
$
1,714
For the fiscal year ended June
30, 2021
As Reported
Impact of Acquisitions
Impact of Divestitures
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
Impact of litigation charges
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
1,393
$
—
$
(25
)
$
—
$
—
$
—
$
1,368
Subscription Video Services
2,072
—
—
—
—
—
2,072
Dow Jones
1,702
—
—
—
—
—
1,702
Book Publishing
1,985
—
—
—
—
—
1,985
News Media
2,205
—
—
—
—
—
2,205
Other
1
—
(1
)
—
—
—
—
Total Revenues
$
9,358
$
—
$
(26
)
$
—
$
—
$
—
$
9,332
Segment EBITDA:
Digital Real Estate Services
$
514
$
12
$
3
$
—
$
—
$
—
$
529
Subscription Video Services
359
—
—
—
—
—
359
Dow Jones
332
2
—
—
—
—
334
Book Publishing
303
1
—
—
—
—
304
News Media
52
—
—
—
—
—
52
Other
(287
)
—
1
—
10
40
(236
)
Total Segment EBITDA
$
1,273
$
15
$
4
$
—
$
10
$
40
$
1,342
NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS
CORPORATION STOCKHOLDERS AND ADJUSTED EPS
The Company uses net income (loss) attributable to News
Corporation stockholders and diluted earnings per share (“EPS”)
excluding expenses related to U.K. Newspaper Matters, charges for
other significant, non-ordinary course legal or regulatory matters
(“litigation charges”), impairment and restructuring charges and
“Other, net”, net of tax, recognized by the Company or its equity
method investees, as well as the settlement of certain
pre-Separation tax matters (“adjusted net income (loss)
attributable to News Corporation stockholders” and “adjusted EPS,”
respectively), to evaluate the performance of the Company’s
operations exclusive of certain items that impact the comparability
of results from period to period, as well as certain
non-operational items. The calculation of adjusted net income
(loss) attributable to News Corporation stockholders and adjusted
EPS may not be comparable to similarly titled measures reported by
other companies, since companies and investors may differ as to
what type of events warrant adjustment. Adjusted net income (loss)
attributable to News Corporation stockholders and adjusted EPS are
not measures of performance under generally accepted accounting
principles and should not be construed as substitutes for
consolidated net income (loss) attributable to News Corporation
stockholders and net income (loss) per share as determined under
GAAP as a measure of performance. However, management uses these
measures in comparing the Company’s historical performance and
believes that they provide meaningful and comparable information to
investors to assist in their analysis of our performance relative
to prior periods and our competitors.
The following tables reconcile reported net income (loss)
attributable to News Corporation stockholders and reported diluted
EPS to adjusted net income attributable to News Corporation
stockholders and adjusted EPS for the three months and fiscal years
ended June 30, 2022 and 2021.
For the three months ended June
30, 2022
For the three months ended June
30, 2021
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net (loss) income attributable to
stockholders
EPS
Net income (loss)
$
127
$
(15
)
Less: Net (income) loss attributable to
noncontrolling interests
(17
)
1
Net income (loss) attributable to News
Corporation stockholders
$
110
$
0.19
$
(14
)
$
(0.02
)
U.K. Newspaper Matters
2
—
2
—
Litigation charges
20
0.03
40
0.07
Impairment and restructuring charges
27
0.05
75
0.13
Equity losses of affiliates(a)
—
—
54
0.09
Other, net
91
0.15
(11
)
(0.02
)
Tax impact on items above
(30
)
(0.05
)
(39
)
(0.07
)
Impact of noncontrolling interest on items
above
(2
)
—
(13
)
(0.02
)
As adjusted
$
218
$
0.37
$
94
$
0.16
(a)
During the three months ended June 30,
2021, the Company recognized a $54 million non-cash write-down of
Foxtel’s investment in Nickelodeon Australia Joint Venture.
For the fiscal year ended June
30, 2022
For the fiscal year ended June
30, 2021
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net income attributable to
stockholders
EPS
Net income
$
760
$
389
Less: Net income attributable to
noncontrolling interests
(137
)
(59
)
Net income attributable to News
Corporation stockholders
$
623
$
1.05
$
330
$
0.56
U.K. Newspaper Matters
11
0.02
10
0.02
Litigation charges
20
0.03
40
0.07
Impairment and restructuring
charges(a)
109
0.18
168
0.28
Equity losses of affiliates(b)
3
0.01
54
0.09
Other, net
(52
)
(0.09
)
(143
)
(0.24
)
Tax impact on items above
(45
)
(0.08
)
(47
)
(0.08
)
Impact of noncontrolling interest on items
above
43
0.08
(15
)
(0.03
)
As adjusted
$
712
$
1.20
$
397
$
0.67
(a)
During the fiscal year ended June 30,
2022, the Company recognized a non-cash impairment charge of $15
million related to the write-down of fixed assets associated with
the shutdown and anticipated sale of certain U.S. printing
facilities at the Dow Jones segment.
(b)
During the fiscal year ended June 30,
2021, the Company recognized a $54 million non-cash write-down of
Foxtel’s investment in Nickelodeon Australia Joint Venture.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220808005724/en/
Investor Relations Michael Florin
212-416-3363 mflorin@newscorp.com Leslie Kim 212-416-4529
lkim@newscorp.com Corporate
Communications Jim Kennedy 212-416-4064
jkennedy@newscorp.com
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