FISCAL 2024 FOURTH QUARTER AND FULL
YEAR KEY FINANCIAL HIGHLIGHTS
- Fourth quarter revenues were $2.58 billion, a 6% increase
compared to $2.43 billion in the prior year, driven by growth at
the Digital Real Estate Services, Book Publishing and Dow Jones
segments
- Net income in the quarter was $71 million, a significant
improvement compared to a net loss of $(32) million in the prior
year
- Total Segment EBITDA was the highest for a fourth quarter
since separation at $380 million, compared to $341 million in the
prior year
- In the quarter, reported EPS were $0.09 as compared to
$(0.01) in the prior year - Adjusted EPS were $0.17 compared to
$0.14 in the prior year
- At the Dow Jones segment, for the quarter and full fiscal
year, the professional information business was the largest
contributor to segment profitability driven by robust revenue
growth at Risk & Compliance and Dow Jones Energy
- Book Publishing revenues grew 15% in the quarter, while
Segment EBITDA increased $41 million, driven by higher physical and
digital book sales combined with improved return rates. Digital
audiobooks revenue was larger than e-books revenue for the first
time this quarter
- REA Group posted exceptional results for the quarter, with
revenues of $305 million, a 37% increase compared to the prior
year, primarily driven by robust Australian residential performance
and higher financial services revenue
- At the Subscription Video Services segment, Foxtel Group saw
strong streaming performance, with both Kayo and BINGE achieving
record paying subscribers, and ended the fiscal year at over 3.2
million total paying streaming subscribers
- Announced landmark multi-year global partnership with
OpenAI
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, 2024.
Commenting on the results, Chief Executive Robert Thomson
said:
“Fiscal 2024 was an outstanding year for News Corp, as we not
only delivered robust earnings growth and created substantial
shareholder value, but took a significant step to prepare the
Company to prosper in the AI age.
Our landmark agreement with OpenAI is not only expected to be
lucrative, but will enable us to work closely with a trusted,
pre-eminent partner to fashion a future for professional journalism
and for provenance. Meanwhile, we have begun to take legal steps
against AI aggressors, the egregious aggregators, who are predatory
in the confiscation of our content. ‘Open source’ can never be a
justification for ‘open slather.’
For the quarter, revenues grew 6 percent to almost $2.6 billion,
while net income improved significantly and profitability advanced
by 11 percent to a fourth quarter record. Our core pillars of
growth - Book Publishing, Digital Real Estate Services and Dow
Jones - inspired the increasing profitability, and their strength
augurs well for Fiscal 2025.
We are confident in the Company’s long-term prospects and are
continuing to review our portfolio with a focus on maximizing
returns for shareholders. That review has coincided recently with
third-party interest in a potential transaction involving the
Foxtel Group, which has been positively transformed in recent
years. We are evaluating options for the business with our advisors
in light of that external interest.
I would like to express our sincere gratitude to all who
contributed to the emancipation of Evan Gershkovich. His freedom
was made possible by the concerted efforts of concerned, principled
people who recognized that his incarceration was unjust and
immoral. Many thanks to our leaders at Dow Jones and News Corp, who
campaigned vigorously for Evan, and to the U.S. Government and
other enlightened Governments, whose divine interventions played a
pivotal role in his release.”
FOURTH QUARTER RESULTS
The Company reported fiscal 2024 fourth quarter total revenues
of $2.58 billion, a 6% increase compared to $2.43 billion in the
prior year period, primarily driven by higher Australian
residential revenues at REA Group, higher physical and digital book
sales combined with lower return rates at the Book Publishing
segment and continued growth in the professional information
business at the Dow Jones segment. The increase was partly offset
by lower advertising and circulation and subscription revenues at
the News Media segment, in addition to a $15 million, or 1%,
negative impact from foreign currency fluctuations. Adjusted
Revenues (which excludes the foreign currency impact, acquisitions
and divestitures as defined in Note 2) increased 6% compared to the
prior year.
Net income for the quarter was $71 million, a $103 million
increase compared to a net loss of $(32) million in the prior year,
primarily driven by improved losses from equity affiliates due to
the absence of a non-cash write-down of REA Group’s investment in
PropertyGuru in the prior year, higher Total Segment EBITDA and
lower impairment and restructuring charges. These impacts were
partially offset by higher income tax expense and lower Other,
net.
The Company reported fourth quarter Total Segment EBITDA of $380
million, an 11% increase compared to $341 million in the prior year
primarily due to strong contributions from the Book Publishing
segment and REA Group. The increase was partly offset by Hubbl
launch costs at Foxtel Group and lower contributions from the News
Media segment and Move. Adjusted Total Segment EBITDA (as defined
in Note 2) increased 13%.
Net income (loss) per share attributable to News Corporation
stockholders was $0.09 as compared to $(0.01) in the prior
year.
Adjusted EPS (as defined in Note 3) were $0.17 compared to $0.14
in the prior year.
FULL YEAR RESULTS
The Company reported fiscal 2024 full year total revenues of
$10.09 billion, a 2% increase compared to $9.88 billion in the
prior year, driven by higher Australian residential revenues at REA
Group, improved returns combined with higher digital sales at the
Book Publishing segment and continued growth in the professional
information business at the Dow Jones segment. The increase was
partly offset by lower advertising revenues at the News Media
segment and lower revenues at Move due to ongoing challenging
housing market conditions in the U.S., in addition to a $37 million
negative impact from foreign currency fluctuations. Adjusted
Revenues increased 2%.
Net income for the full year was $354 million, a $167 million,
or 89%, increase compared to $187 million in the prior year. The
increase was primarily driven by improved losses from equity
affiliates due to the absence of a non-cash write-down of REA
Group’s investment in PropertyGuru in the prior year and higher
Total Segment EBITDA. These impacts were partially offset by higher
income tax expense and lower Other, net.
Total Segment EBITDA for the full year was $1.54 billion, a $119
million, or 8%, increase compared to $1.42 billion in the prior
year primarily driven by improved performance at REA Group and the
Book Publishing and Dow Jones segments primarily as a result of
higher revenues, as discussed above, in addition to gross cost
savings related to the announced 5% headcount reduction initiative
and savings due to lower production costs at News UK and Book
Publishing. The increase was partially offset by higher costs
related to the launch of Hubbl and higher sports programming rights
costs due to contractual increases at the Subscription Video
Services segment, higher employee costs at the Book Publishing
segment and REA Group, increased marketing costs at Move, increased
technology and marketing costs at the Dow Jones segment and a $17
million, or 2%, negative impact from foreign currency fluctuations.
Adjusted Total Segment EBITDA increased 8%.
Diluted net income per share attributable to News Corporation
stockholders was $0.46 as compared to $0.26 in the prior year.
Adjusted diluted EPS were $0.70 compared to $0.49 in the prior
year.
SEGMENT REVIEW
For the three months ended June
30,
For the fiscal years ended June
30,
2024
2023
% Change
2024
2023
% Change
(in millions)
Better/
(Worse)
(in millions)
Better/
(Worse)
Revenues:
Digital Real Estate Services
$
448
$
369
21
%
$
1,658
$
1,539
8
%
Subscription Video Services
506
501
1
%
1,917
1,942
(1
)%
Dow Jones
566
546
4
%
2,231
2,153
4
%
Book Publishing
512
446
15
%
2,093
1,979
6
%
News Media
545
571
(5
)%
2,186
2,266
(4
)%
Other
—
—
—
%
—
—
—
%
Total Revenues
$
2,577
$
2,433
6
%
$
10,085
$
9,879
2
%
Segment EBITDA:
Digital Real Estate Services
$
135
$
108
25
%
$
508
$
457
11
%
Subscription Video Services
74
78
(5
)%
310
347
(11
)%
Dow Jones
137
133
3
%
542
494
10
%
Book Publishing
57
16
256
%
269
167
61
%
News Media
28
45
(38
)%
120
156
(23
)%
Other
(51
)
(39
)
(31
)%
(210
)
(201
)
(4
)%
Total Segment EBITDA
$
380
$
341
11
%
$
1,539
$
1,420
8
%
Digital Real Estate Services
Fourth Quarter Segment Results
Revenues in the quarter increased $79 million, or 21%, compared
to the prior year, driven by strong performance at REA Group.
Segment EBITDA in the quarter increased $27 million, or 25%,
compared to the prior year, including a $2 million, or 2%, negative
impact from foreign currency fluctuations, due to higher
contribution from REA Group partly offset by $11 million in
increased costs at Move primarily driven by higher marketing spend.
Adjusted Revenues and Adjusted Segment EBITDA (as defined in Note
2) increased 21% and 28%, respectively.
In the quarter, revenues at REA Group increased $82 million, or
37%, to $305 million, primarily driven by higher Australian
residential revenues due to price increases, increased depth
penetration, favorable geographic mix and an increase in national
listings, higher financial services revenue, which includes the
benefit from the absence of a negative valuation adjustment related
to expected future trail commissions in the prior year, and higher
revenue from REA India. The increase was slightly offset by a $4
million, or 2%, negative impact from foreign currency fluctuations.
Australian national residential buy listing volumes in the quarter
increased 16% compared to the prior year, with listings in Sydney
and Melbourne up 26% and 32%, respectively.
Move’s revenues in the quarter decreased $3 million, or 2%, to
$143 million, primarily as a result of lower real estate revenues.
Real estate revenues, which represented 80% of total Move revenues,
decreased 2%, driven by the ongoing impact of the macroeconomic
environment on the housing market, including higher mortgage rates,
which led to lower transaction volumes. Revenues from the referral
model, which includes the ReadyConnect Concierge℠ product, and the
core lead generation product decreased due to these factors. The
decline was partially offset by strong growth in seller, new homes
and rentals including the partnership with Zillow. Based on Move’s
internal data, average monthly unique users of Realtor.com®’s web
and mobile sites for the fiscal fourth quarter was flat compared to
the prior year at 74 million. Lead volume was flat year over year
as it continues to be impacted by high mortgage rates.
Full Year Segment Results
Fiscal 2024 full year revenues increased $119 million, or 8%,
compared to the prior year, primarily due to the strong performance
from REA Group, partly offset by lower revenues at Move and a $28
million, or 2%, negative impact from foreign currency fluctuations.
Segment EBITDA for fiscal 2024 increased $51 million, or 11%,
compared to the prior year, primarily due to the higher revenues,
partially offset by higher employee costs and broker commissions at
REA Group, higher REA India costs, a $13 million, or 3%, negative
impact from foreign currency fluctuations and slightly higher costs
at Move. Adjusted Revenues and Adjusted Segment EBITDA increased 9%
and 15%, respectively.
In the fiscal year, REA Group’s revenues increased $177 million,
or 19%, to $1.11 billion, primarily driven by higher Australian
residential revenues due to price increases, increased depth
penetration, favorable geographic mix and an increase in national
listings, higher financial services revenue, which includes the
benefit from the absence of a negative valuation adjustment related
to expected future trail commissions in the prior year, and higher
revenues from REA India, partially offset by a $28 million, or 3%,
negative impact from foreign currency fluctuations.
Move’s revenues in the fiscal year decreased $58 million, or
10%, to $544 million, primarily due to lower real estate revenues.
Move’s real estate revenues, which represented 80% of total Move
revenues, declined 11%, primarily due to declines in both the
referral model and the core lead generation product, partially
offset by revenue growth in seller, new homes and rentals through
the partnership with Zillow. The market downturn resulted in lower
lead volumes, which decreased 3%, and lower transaction
volumes.
Subscription Video Services
Fourth Quarter Segment Results
Revenues of $506 million in the quarter increased $5 million, or
1%, compared with the prior year, primarily driven by higher
revenues from Kayo and BINGE from increases in both volume and
pricing, mostly offset by the impact from fewer residential
broadcast subscribers and a $7 million, or 1%, negative impact from
foreign currency fluctuations. Adjusted Revenues of $513 million
increased 2% compared to the prior year. Foxtel Group streaming
subscription revenues represented 32% of total circulation and
subscription revenues in the quarter, as compared to 29% in the
prior year.
As of June 30, 2024, Foxtel’s total closing paid subscribers
were nearly 4.7 million, a 1% increase compared to the prior year,
driven by growth in Kayo and BINGE subscribers, partly offset by
fewer residential broadcast subscribers. Broadcast subscriber churn
in the quarter was 11.7% compared to 11.1% in the prior year partly
driven by the price and packaging simplification. Broadcast ARPU
for the quarter increased 6% year-over-year to A$90 (US$59).
As of June 30,
2024
2023
(in 000's)
Broadcast Subscribers
Residential
1,210
1,341
Commercial
242
233
Streaming Subscribers - Total (Paid)
Kayo
1,606 (1,550)
1,411 (1,401)
BINGE
1,552 (1,529)
1,541 (1,487)
Foxtel Now
147 (142)
177 (170)
Total Subscribers - Total (Paid)
4,776 (4,690)
4,723 (4,650)
Segment EBITDA of $74 million in the quarter decreased $4
million, or 5%, compared with the prior year, primarily due to $28
million of Hubbl launch costs, partially offset by lower
entertainment programming rights and transmission costs and the
higher revenues discussed above. Adjusted Segment EBITDA decreased
4%.
Full Year Segment Results
Fiscal 2024 full year revenues declined $25 million, or 1%,
compared with the prior year, due to a $52 million, or 2%, negative
impact from foreign currency fluctuations. Adjusted Revenues
increased 1% compared to the prior year. Higher streaming revenues,
primarily from Kayo and BINGE, and higher advertising revenues more
than offset the revenue declines from lower residential broadcast
subscribers. Foxtel Group streaming subscription revenues
represented approximately 30% of total circulation and subscription
revenues in the fiscal year compared to 27% in the prior year.
Segment EBITDA for fiscal 2024 decreased $37 million, or 11%,
compared to the prior year, primarily due to $51 million of costs
related to the launch of Hubbl, higher sports programming costs due
to contractual increases and the $9 million, or 3%, negative impact
from foreign currency fluctuations, partly offset by the revenue
drivers discussed above and declines in other costs including lower
technology, entertainment programming rights and marketing.
Adjusted Segment EBITDA decreased 8%.
Dow Jones
Fourth Quarter Segment Results
Revenues in the quarter increased $20 million, or 4%, compared
to the prior year, driven by growth in circulation and subscription
revenues underpinned by the professional information business.
Digital revenues at Dow Jones in the quarter represented 81% of
total revenues compared to 79% in the prior year. Adjusted Revenues
increased 4%.
Circulation and subscription revenues increased $17 million, or
4%, primarily driven by an 8% increase in professional information
business revenues, led by 12% growth in Risk & Compliance
revenues to $76 million and 14% growth in Dow Jones Energy revenues
to $65 million. Circulation revenues increased 1% compared to the
prior year, as the continued growth in digital-only subscriptions
was mostly offset by lower print volume. Digital circulation
revenues accounted for 71% of circulation revenues for the quarter,
compared to 70% in the prior year.
During the fourth quarter, total average subscriptions to Dow
Jones’ consumer products were over 5.8 million, an 11% increase
compared to the prior year. Digital-only subscriptions to Dow
Jones’ consumer products grew 16% to over 5.2 million. Total
subscriptions to The Wall Street Journal grew 7% compared to the
prior year, to nearly 4.3 million average subscriptions in the
quarter. Digital-only subscriptions to The Wall Street Journal grew
11% to almost 3.8 million average subscriptions in the quarter, and
represented 89% of total Wall Street Journal subscriptions.
For the three months ended
June 30,
2024
2023
% Change
(in thousands, except %)
Better/(Worse)
The Wall Street Journal
Digital-only subscriptions
3,788
3,406
11 %
Total subscriptions
4,256
3,966
7 %
Barron’s Group
Digital-only subscriptions
1,290
1,018
27 %
Total subscriptions
1,419
1,168
21 %
Total Consumer
Digital-only subscriptions
5,226
4,510
16 %
Total subscriptions
5,842
5,242
11 %
Advertising revenues increased $2 million, or 2%, primarily due
to 12% growth in digital advertising revenues, partly offset by a
13% decline in print advertising revenues. Digital advertising
accounted for 66% of total advertising revenues in the quarter,
compared to 60% in the prior year.
Segment EBITDA for the quarter increased $4 million, or 3%,
primarily as a result of the higher revenues discussed above,
partially offset by higher marketing costs and higher employee
costs, which includes a retroactive payment related to the
ratification of a new union agreement. Adjusted Segment EBITDA
increased 3%.
Full Year Segment Results
Fiscal 2024 full year revenues increased $78 million, or 4%,
compared to the prior year, primarily driven by growth in
professional information business revenues and a $7 million, or 1%,
positive impact from foreign currency fluctuations. Adjusted
Revenues grew 3% compared to the prior year. Digital revenues at
Dow Jones represented 80% of total revenues for the year compared
to 78% in the prior year.
Circulation and subscription revenues increased $82 million, or
5%, which includes a $7 million, or 1%, positive impact from
foreign currency fluctuations. Professional information business
revenues grew 11%, driven by 16% growth in Risk & Compliance
products, which reached nearly $300 million in revenues in fiscal
2024, and 16% growth in Dow Jones Energy. Circulation revenues grew
1% compared to the prior year, reflecting continued strong growth
in digital-only subscriptions at The Wall Street Journal, offset by
lower print volumes. Digital circulation revenues accounted for 71%
of circulation revenues for the year, compared to 69% in the prior
year.
Advertising revenue decreased $8 million, or 2%, primarily due
to a 10% decrease in print advertising, partly offset by a 4%
increase in digital advertising. Digital advertising revenues
accounted for 64% of total advertising revenues for the year,
compared to 61% in the prior year.
Segment EBITDA for fiscal 2024 increased $48 million, or 10%,
compared to the prior year, primarily due to higher revenues, as
noted above, and lower newsprint, production and distribution
costs, partially offset by higher technology and marketing costs.
Adjusted Segment EBITDA increased 10%.
Book Publishing
Fourth Quarter Segment Results
Revenues in the quarter increased $66 million, or 15%, compared
to the prior year, primarily driven by higher physical and digital
book sales and improved returns. Key titles in the quarter included
The Bridgerton Series by Julia Quinn, The Midnight Feast by Lucy
Foley and When the Moon Hatched by Sarah A. Parker. Bible sales
were also strong. Adjusted Revenues increased 15%.
Digital sales increased 12% compared to the prior year, driven
by 28% growth from audiobook sales, which benefited from the
continued contribution from the new Spotify partnership and strong
market conditions. Digital sales represented 24% of Consumer
revenues for the quarter compared to 25% in the prior year with
audiobooks, for the first time, accounting for more than half of
digital revenues for the quarter. Backlist sales represented
approximately 62% of Consumer revenues in the quarter compared to
59% in the prior year.
Segment EBITDA for the quarter increased $41 million, to $57
million compared to $16 million in the prior year, primarily due to
the higher revenues discussed above and lower manufacturing costs
driven by product mix, partially offset by higher employee
costs.
Full Year Segment Results
Fiscal 2024 full year revenues increased $114 million, or 6%,
compared to the prior year, primarily due to improved returns in
the U.S. driven by recovering consumer demand industry-wide and the
absence of the impact of Amazon’s reset of its inventory levels and
rightsizing of its warehouse footprint in the prior year, as well
as higher digital book sales and a $16 million, or 1%, positive
impact from foreign currency fluctuations. These improvements were
partially offset by lower physical book sales. Adjusted Revenues
increased 5% compared to the prior year. Digital sales increased 9%
compared to the prior year, driven by 18% growth in audiobooks,
which benefited from strong market growth, including the
contribution from the new Spotify partnership. Digital sales
represented 23% of Consumer revenues for the year compared to 22%
in the prior year. Backlist sales represented approximately 61% of
Consumer revenues in the year compared to 60% in the prior
year.
Segment EBITDA for fiscal 2024 increased $102 million, or 61%,
from the prior year primarily due to higher revenues, as discussed
above, and lower manufacturing, freight and distribution costs
driven by product mix and the absence of prior year supply chain
challenges and inventory and inflationary pressures, partially
offset by higher employee costs. Adjusted Segment EBITDA increased
59%.
News Media
Fourth Quarter Segment Results
Revenues in the quarter decreased $26 million, or 5%, as
compared to the prior year, primarily driven by lower advertising
revenues and lower circulation and subscription revenues. Within
the segment, revenues at News Corp Australia decreased 5%, driven
by lower circulation and subscription revenues, and included a $4
million, or 1%, negative impact from foreign currency fluctuations,
while News UK revenues decreased 5% driven by lower advertising
revenues. Adjusted Revenues for the segment decreased 4% compared
to the prior year.
Circulation and subscription revenues decreased $9 million, or
3%, compared to the prior year, primarily due to lower print
volumes and lower digital circulation and subscription revenue at
News Corp Australia due to the expiration of the Meta content
licensing deal, partially offset by price increases and digital
subscriber growth at News UK.
Advertising revenues decreased $11 million, or 5%, compared to
the prior year, primarily due to lower print advertising at News UK
and News Corp Australia and lower digital advertising mainly driven
by a decline in traffic at some mastheads due to platform-related
changes, partly offset by growth in digital advertising at Wireless
Group.
In the quarter, Segment EBITDA decreased $17 million, or 38%,
compared to the prior year, driven by lower contribution from News
Corp Australia. Adjusted Segment EBITDA decreased 38%.
Digital revenues represented 37% of News Media segment revenues
in the quarter, compared to 36% in the prior year, and represented
35% 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, 2024 were 1,117,000 (968,000 for news mastheads), compared to
1,059,000 (943,000 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, 2024 were
594,000, compared to 565,000 in the prior year (Source: Internal
data).
- The Sun’s digital offering reached 112 million global monthly
unique users in June 2024, compared to 159 million in the prior
year (Source: Meta Pixel)
- New York Post’s digital network reached 117 million unique
users in June 2024, compared to 145 million in the prior year
(Source: Google Analytics)
Full Year Segment Results
Fiscal 2024 full year revenues decreased $80 million, or 4%,
compared to the prior year, which includes a $20 million positive
impact from foreign currency fluctuations. Within the segment,
revenues at News Corp Australia decreased 7%, driven by lower
advertising and a $25 million, or 3%, negative impact from foreign
currency fluctuations, while revenues at News UK were flat,
reflecting a $39 million, or 5%, positive impact from foreign
currency fluctuations. In constant currency, News UK revenues were
down 5%. Adjusted Revenues for the segment decreased 4% compared to
the prior year.
Circulation and subscription revenues increased $10 million, or
1%, compared to the prior year, primarily due to a $15 million, or
1%, positive impact from foreign currency fluctuations, as cover
price increases and digital subscriber growth were more than offset
by print volume declines.
Advertising revenues decreased $73 million, or 8%, compared to
the prior year, driven by lower print and digital advertising at
both News Corp Australia and News UK.
Segment EBITDA for fiscal 2024 decreased $36 million, or 23%,
compared to the prior year, which includes $6 million of one-time
costs at News UK pertaining to the combination of printing
operations with DMG Media. The decrease is primarily due to the
lower contribution from News Corp Australia. Adjusted Segment
EBITDA decreased 24% compared to the prior year.
CASH FLOW
The following table presents a reconciliation of net cash
provided by operating activities to free cash flow:
For the fiscal years ended June
30,
2024
2023
(in millions)
Net cash provided by operating
activities
$
1,098
$
1,092
Less: Capital expenditures
(496
)
(499
)
Free cash flow
$
602
$
593
Net cash provided by operating activities of $1,098 million for
the fiscal year ended June 30, 2024 was $6 million higher than
$1,092 million in the prior year, primarily due to higher Total
Segment EBITDA, as noted above, largely offset by higher working
capital and higher restructuring payments.
Free cash flow in the fiscal year ended June 30, 2024 was $602
million compared to $593 million in the prior year. The improvement
in free cash flow was primarily due to higher cash provided by
operating activities, as mentioned above. Foxtel’s capital
expenditures for the fiscal year ended June 30, 2024 were $139
million compared to $152 million in the prior year.
Free cash flow is a non-GAAP financial measure. Free cash flow
is defined as net cash provided by (used in) operating activities,
less capital expenditures. Free cash flow may not be comparable to
similarly titled measures reported by other companies, since
companies and investors may differ as to what items should be
included in the calculation of free cash flow.
Free cash flow does not represent the total increase or decrease
in the cash balance for the period and should be considered in
addition to, not as a substitute for, 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. The Company
believes free cash flow provides useful information to management
and investors about the Company’s liquidity and cash flow
trends.
OTHER ITEMS
Dividends
The Company declared today 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 9, 2024 to stockholders of record as
of September 11, 2024.
Strategic Review
In response to third party interest, the Company is assessing
strategic and financial options for the Foxtel Group, including its
capital structure and assets. There is no assurance regarding the
timing of any action or transaction, nor that the strategic review
will result in a transaction or other strategic change.
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, constant currency
revenues and free cash flow 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,
3 and 4 and the reconciliation of net cash provided by operating
activities to free cash flow is included above.
Conference call
News Corporation’s earnings conference call can be heard live at
5:00 p.m. EDT on August 8, 2024. 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, the
Company’s cost savings initiatives 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,
2024
2023
2024
2023
Revenues:
Circulation and subscription
$
1,140
$
1,129
$
4,509
$
4,447
Advertising
420
424
1,607
1,687
Consumer
487
425
2,000
1,899
Real estate
345
293
1,284
1,189
Other
185
162
685
657
Total Revenues
2,577
2,433
10,085
9,879
Operating expenses
(1,261
)
(1,271
)
(5,053
)
(5,124
)
Selling, general and administrative
(936
)
(821
)
(3,493
)
(3,335
)
Depreciation and amortization
(192
)
(178
)
(734
)
(714
)
Impairment and restructuring charges
(52
)
(85
)
(138
)
(150
)
Equity losses of affiliates
(1
)
(84
)
(6
)
(127
)
Interest expense, net
(18
)
(22
)
(85
)
(100
)
Other, net
(7
)
11
(30
)
1
Income (loss) before income tax
expense
110
(17
)
546
330
Income tax expense
(39
)
(15
)
(192
)
(143
)
Net income (loss)
71
(32
)
354
187
Net (income) loss attributable to
noncontrolling interests
(21
)
24
(88
)
(38
)
Net income (loss) attributable to News
Corporation stockholders
$
50
$
(8
)
$
266
$
149
Weighted average shares outstanding:
Basic
570
573
571
576
Diluted
573
573
574
579
Net income (loss) attributable to News
Corporation stockholders per share:
Basic
$
0.09
$
(0.01
)
$
0.47
$
0.26
Diluted
$
0.09
$
(0.01
)
$
0.46
$
0.26
NEWS CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited; in
millions)
As of June 30, 2024
As of June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,960
$
1,833
Receivables, net
1,503
1,425
Inventory, net
296
311
Other current assets
613
484
Total current assets
4,372
4,053
Non-current assets:
Investments
430
427
Property, plant and equipment, net
1,914
2,042
Operating lease right-of-use assets
958
1,036
Intangible assets, net
2,322
2,489
Goodwill
5,186
5,140
Deferred income tax assets, net
332
393
Other non-current assets
1,170
1,341
Total assets
$
16,684
$
16,921
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
314
$
440
Accrued expenses
1,231
1,123
Deferred revenue
551
622
Current borrowings
54
27
Other current liabilities
905
953
Total current liabilities
3,055
3,165
Non-current liabilities:
Borrowings
2,855
2,940
Retirement benefit obligations
125
134
Deferred income tax liabilities, net
119
163
Operating lease liabilities
1,027
1,128
Other non-current liabilities
492
446
Commitments and contingencies
Equity:
Class A common stock
4
4
Class B common stock
2
2
Additional paid-in capital
11,254
11,449
Accumulated deficit
(1,889
)
(2,144
)
Accumulated other comprehensive loss
(1,251
)
(1,247
)
Total News Corporation stockholders'
equity
8,120
8,064
Noncontrolling interests
891
881
Total equity
9,011
8,945
Total liabilities and equity
$
16,684
$
16,921
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in
millions)
For the fiscal years ended June
30,
2024
2023
Operating activities:
Net income
$
354
$
187
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
734
714
Operating lease expense
96
109
Equity losses of affiliates
6
127
Impairment charges
44
25
Deferred income taxes
17
6
Other, net
34
6
Change in operating assets and
liabilities, net of acquisitions:
Receivables and other assets
(120
)
(146
)
Inventories, net
54
(2
)
Accounts payable and other liabilities
(121
)
66
Net cash provided by operating
activities
1,098
1,092
Investing activities:
Capital expenditures
(496
)
(499
)
Proceeds from sales of property, plant and
equipment
—
37
Acquisitions, net of cash acquired
(38
)
(17
)
Purchases of investments in equity
affiliates and other
(96
)
(124
)
Proceeds from sales of investments in
equity affiliates and other
81
50
Other, net
25
(21
)
Net cash used in investing activities
(524
)
(574
)
Financing activities:
Borrowings
1,268
514
Repayment of borrowings
(1,375
)
(589
)
Repurchase of shares
(117
)
(243
)
Dividends paid
(172
)
(174
)
Other, net
(45
)
(9
)
Net cash used in financing activities
(441
)
(501
)
Net change in cash and cash
equivalents
133
17
Cash and cash equivalents, beginning of
year
1,833
1,822
Effect of exchange rate changes on cash
and cash equivalents
(6
)
(6
)
Cash and cash equivalents, end of year
$
1,960
$
1,833
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, 2024 and 2023:
For the three months ended June
30,
2024
2023
Change
% Change
(in millions)
Net income (loss)
$
71
$
(32
)
$
103
**
Add:
Income tax expense
39
15
24
160
%
Other, net
7
(11
)
18
**
Interest expense, net
18
22
(4
)
(18
)%
Equity losses of affiliates
1
84
(83
)
(99
)%
Impairment and restructuring charges
52
85
(33
)
(39
)%
Depreciation and amortization
192
178
14
8
%
Total Segment EBITDA
$
380
$
341
$
39
11
%
For the fiscal years ended June
30,
2024
2023
Change
% Change
(in millions)
Net income
$
354
$
187
$
167
89
%
Add:
Income tax expense
192
143
49
34
%
Other, net
30
(1
)
31
**
Interest expense, net
85
100
(15
)
(15
)%
Equity losses of affiliates
6
127
(121
)
(95
)%
Impairment and restructuring charges
138
150
(12
)
(8
)%
Depreciation and amortization
734
714
20
3
%
Total Segment EBITDA
$
1,539
$
1,420
$
119
8
%
**Not meaningful
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,
2024 and 2023:
Revenues
Total Segment EBITDA
For the three months ended June
30,
For the three months ended June
30,
2024
2023
Difference
2024
2023
Difference
(in millions)
(in millions)
As reported
$
2,577
$
2,433
$
144
$
380
$
341
$
39
Impact of acquisitions
(5
)
—
(5
)
1
(3
)
4
Impact of foreign currency
fluctuations
15
—
15
3
—
3
Net impact of U.K. Newspaper Matters
—
—
—
1
3
(2
)
As adjusted
$
2,587
$
2,433
$
154
$
385
$
341
$
44
Revenues
Total Segment EBITDA
For the fiscal years ended June
30,
For the fiscal years ended June
30,
2024
2023
Difference
2024
2023
Difference
(in millions)
(in millions)
As reported
$
10,085
$
9,879
$
206
$
1,539
$
1,420
$
119
Impact of acquisitions
(21
)
—
(21
)
1
7
(6
)
Impact of foreign currency
fluctuations
37
—
37
17
—
17
Net impact of U.K. Newspaper Matters
—
—
—
8
16
(8
)
As adjusted
$
10,101
$
9,879
$
222
$
1,565
$
1,443
$
122
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, 2024 and 2023 are as
follows:
Fiscal Year 2024
Q1
Q2
Q3
Q4
U.S. Dollar per Australian Dollar
$0.65
$0.65
$0.66
$0.66
U.S. Dollar per British Pound Sterling
$1.27
$1.24
$1.27
$1.26
Fiscal Year 2023
Q1
Q2
Q3
Q4
U.S. Dollar per Australian Dollar
$0.68
$0.66
$0.68
$0.67
U.S. Dollar per British Pound Sterling
$1.17
$1.17
$1.22
$1.25
Adjusted Revenues and Adjusted Segment EBITDA by segment for the
three months and fiscal years ended June 30, 2024 and 2023 are as
follows:
For the three months ended June
30,
2024
2023
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services
$
447
$
369
21
%
Subscription Video Services
513
501
2
%
Dow Jones
567
546
4
%
Book Publishing
512
446
15
%
News Media
548
571
(4
)%
Other
—
—
—
%
Adjusted Total Revenues
$
2,587
$
2,433
6
%
Adjusted Segment EBITDA:
Digital Real Estate Services
$
138
$
108
28
%
Subscription Video Services
75
78
(4
)%
Dow Jones
137
133
3
%
Book Publishing
57
16
256
%
News Media
28
45
(38
)%
Other
(50
)
(39
)
(28
)%
Adjusted Total Segment EBITDA
$
385
$
341
13
%
For the fiscal years ended June
30,
2024
2023
% Change
(in millions)
Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services
$
1,671
$
1,539
9
%
Subscription Video Services
1,969
1,942
1
%
Dow Jones
2,224
2,153
3
%
Book Publishing
2,071
1,979
5
%
News Media
2,166
2,266
(4
)%
Other
—
—
—
%
Adjusted Total Revenues
$
10,101
$
9,879
2
%
Adjusted Segment EBITDA:
Digital Real Estate Services
$
524
$
457
15
%
Subscription Video Services
319
347
(8
)%
Dow Jones
541
494
10
%
Book Publishing
265
167
59
%
News Media
118
156
(24
)%
Other
(202
)
(178
)
(13
)%
Adjusted Total Segment EBITDA
$
1,565
$
1,443
8
%
The following tables reconcile reported revenues and Segment
EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA
by segment for the three months and fiscal years ended June 30,
2024 and 2023:
For the three months ended June
30, 2024
As Reported
Impact of Acquisitions
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
448
$
(5
)
$
4
$
—
$
447
Subscription Video Services
506
—
7
—
513
Dow Jones
566
—
1
—
567
Book Publishing
512
—
—
—
512
News Media
545
—
3
—
548
Other
—
—
—
—
—
Total Revenues
$
2,577
$
(5
)
$
15
$
—
$
2,587
Segment EBITDA:
Digital Real Estate Services
$
135
$
1
$
2
$
—
$
138
Subscription Video Services
74
—
1
—
75
Dow Jones
137
—
—
—
137
Book Publishing
57
—
—
—
57
News Media
28
—
—
—
28
Other
(51
)
—
—
1
(50
)
Total Segment EBITDA
$
380
$
1
$
3
$
1
$
385
For the three months ended June
30, 2023
As Reported
Impact of Acquisitions
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
369
$
—
$
—
$
—
$
369
Subscription Video Services
501
—
—
—
501
Dow Jones
546
—
—
—
546
Book Publishing
446
—
—
—
446
News Media
571
—
—
—
571
Other
—
—
—
—
—
Total Revenues
$
2,433
$
—
$
—
$
—
$
2,433
Segment EBITDA:
Digital Real Estate Services
$
108
$
—
$
—
$
—
$
108
Subscription Video Services
78
—
—
—
78
Dow Jones
133
—
—
—
133
Book Publishing
16
—
—
—
16
News Media
45
—
—
—
45
Other
(39
)
(3
)
—
3
(39
)
Total Segment EBITDA
$
341
$
(3
)
$
—
$
3
$
341
For the fiscal year ended June
30, 2024
As Reported
Impact of Acquisitions
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
1,658
$
(15
)
$
28
$
—
$
1,671
Subscription Video Services
1,917
—
52
—
1,969
Dow Jones
2,231
—
(7
)
—
2,224
Book Publishing
2,093
(6
)
(16
)
—
2,071
News Media
2,186
—
(20
)
—
2,166
Other
—
—
—
—
—
Total Revenues
$
10,085
$
(21
)
$
37
$
—
$
10,101
Segment EBITDA:
Digital Real Estate Services
$
508
$
3
$
13
$
—
$
524
Subscription Video Services
310
—
9
—
319
Dow Jones
542
—
(1
)
—
541
Book Publishing
269
(2
)
(2
)
—
265
News Media
120
—
(2
)
—
118
Other
(210
)
—
—
8
(202
)
Total Segment EBITDA
$
1,539
$
1
$
17
$
8
$
1,565
For the fiscal year ended June
30, 2023
As Reported
Impact of Acquisitions
Impact of Foreign Currency
Fluctuations
Net Impact of U.K. Newspaper
Matters
As Adjusted
(in millions)
Revenues:
Digital Real Estate Services
$
1,539
$
—
$
—
$
—
$
1,539
Subscription Video Services
1,942
—
—
—
1,942
Dow Jones
2,153
—
—
—
2,153
Book Publishing
1,979
—
—
—
1,979
News Media
2,266
—
—
—
2,266
Other
—
—
—
—
—
Total Revenues
$
9,879
$
—
$
—
$
—
$
9,879
Segment EBITDA:
Digital Real Estate Services
$
457
$
—
$
—
$
—
$
457
Subscription Video Services
347
—
—
—
347
Dow Jones
494
—
—
—
494
Book Publishing
167
—
—
—
167
News Media
156
—
—
—
156
Other
(201
)
7
—
16
(178
)
Total Segment EBITDA
$
1,420
$
7
$
—
$
16
$
1,443
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, 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, 2024 and 2023:
For the three months ended June
30, 2024
For the three months ended June
30, 2023
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net (loss) income attributable to
stockholders
EPS
Net income (loss)
$
71
$
(32
)
Net (income) loss attributable to
noncontrolling interests
(21
)
24
Net income (loss) attributable to News
Corporation stockholders
$
50
$
0.09
$
(8
)
$
(0.01
)
U.K. Newspaper Matters
1
—
3
—
Impairment and restructuring
charges(a)
52
0.09
85
0.15
Equity losses of affiliates(b)
—
—
81
0.14
Other, net
7
0.01
(11
)
(0.02
)
Tax impact on items above
(11
)
(0.02
)
(37
)
(0.06
)
Impact of noncontrolling interest on items
above
—
—
(35
)
(0.06
)
As adjusted
$
99
$
0.17
$
78
$
0.14
(a)
During the three months ended June 30,
2024, the Company recognized non-cash impairment charges of $20
million primarily related to the impairment of an indefinite-lived
intangible asset and goodwill during the Company’s annual
impairment assessment.
During the three months ended June 30,
2023, the Company recognized non-cash impairment charges of $25
million related to the impairment of certain indefinite-lived
intangible assets during the Company’s annual impairment
assessment.
(b)
During the three months ended June 30,
2023, the Company recognized a non-cash write-down of REA Group’s
investment in PropertyGuru of approximately $81 million.
For the fiscal year ended June
30, 2024
For the fiscal year ended June
30, 2023
(in millions, except per share data)
Net income attributable to
stockholders
EPS
Net income attributable to
stockholders
EPS
Net income
$
354
$
187
Less: Net income attributable to
noncontrolling interests
(88
)
(38
)
Net income attributable to News
Corporation stockholders
$
266
$
0.46
$
149
$
0.26
U.K. Newspaper Matters
8
0.02
16
0.02
Impairment and restructuring charges
(a)
138
0.24
150
0.26
Equity losses of affiliates (b)
—
—
81
0.14
Other, net
30
0.05
(1
)
—
Tax impact on items above
(41
)
(0.07
)
(76
)
(0.13
)
Impact of noncontrolling interest on items
above
2
—
(36
)
(0.06
)
As adjusted
$
403
$
0.70
$
283
$
0.49
(a)
During the fiscal year ended June 30,
2024, the Company recognized non-cash impairment charges of $44
million primarily related to the write-down of fixed assets
associated with the proposed combination of certain U.K. printing
operations with those of a third party and the impairment of an
indefinite-lived intangible asset and goodwill during the Company’s
annual impairment assessment.
During the fiscal year ended June 30,
2023, the Company recognized non-cash impairment charges of $25
million related to the impairment of certain indefinite-lived
intangible assets during the Company’s annual impairment
assessment.
(b)
During the fiscal year ended June 30,
2023, the Company recognized a non-cash write-down of REA Group’s
investment in PropertyGuru of approximately $81 million.
NOTE 4 – CONSTANT CURRENCY REVENUES
The Company believes that the presentation of revenues excluding
the impact of foreign currency fluctuations (“constant currency
revenues”) provides useful information regarding the performance of
the Company’s core business operations exclusive of distortions
between periods caused by the unpredictability and volatility of
currency fluctuations. The Company calculates the impact of foreign
currency fluctuations for businesses reporting in currencies other
than the U.S. dollar as described in Note 2.
Constant currency revenues are not measures of performance under
generally accepted accounting principles and should not be
construed as substitutes for revenues as determined under GAAP as
measures of performance. However, management uses these measures in
comparing the Company’s historical performance and believes that
they provide meaningful and comparable information to investors to
assist in their analysis of our performance relative to prior
periods and our competitors.
The following tables reconcile reported revenues to constant
currency revenues for the three months and fiscal year ended June
30, 2024:
Q4 Fiscal 2023
Q4 Fiscal 2024
FX impact
Q4 Fiscal 2024 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Consolidated results:
Circulation and subscription
$
1,129
$
1,140
$
(7
)
$
1,147
1
%
2
%
Advertising
424
420
(3
)
423
(1
)%
—
%
Consumer
425
487
—
487
15
%
15
%
Real estate
293
345
(4
)
349
18
%
19
%
Other
162
185
(1
)
186
14
%
15
%
Total revenues
$
2,433
$
2,577
$
(15
)
$
2,592
6
%
7
%
Digital Real Estate Services:
Circulation and subscription
$
3
$
2
$
—
$
2
(33
)%
(33
)%
Advertising
37
37
—
$
37
—
%
—
%
Real estate
293
345
(4
)
$
349
18
%
19
%
Other
36
64
—
$
64
78
%
78
%
Total Digital Real Estate Services segment
revenues
$
369
$
448
$
(4
)
$
452
21
%
22
%
REA Group revenues
$
223
$
305
$
(4
)
$
309
37
%
39
%
Subscription Video Services:
Circulation and subscription
$
422
$
426
$
(6
)
$
432
1
%
2
%
Advertising
67
72
(1
)
$
73
7
%
9
%
Other
12
8
—
$
8
(33
)%
(33
)%
Total Subscription Video Services segment
revenues
$
501
$
506
$
(7
)
$
513
1
%
2
%
Q4 Fiscal 2023
Q4 Fiscal 2024
FX impact
Q4 Fiscal 2024 constant
currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Dow Jones:
Circulation and subscription
$
432
$
449
$
(1
)
$
450
4
%
4
%
Advertising
100
102
—
$
102
2
%
2
%
Other
14
15
—
$
15
7
%
7
%
Total Dow Jones segment revenues
$
546
$
566
$
(1
)
$
567
4
%
4
%
Book Publishing:
Consumer
425
487
—
$
487
15
%
15
%
Other
21
25
—
$
25
19
%
19
%
Total Book Publishing segment revenues
$
446
$
512
$
—
$
512
15
%
15
%
News Media:
Circulation and subscription
$
272
$
263
$
—
$
263
(3
)%
(3
)%
Advertising
220
209
(2
)
$
211
(5
)%
(4
)%
Other
79
73
(1
)
$
74
(8
)%
(6
)%
Total News Media segment revenues
$
571
$
545
$
(3
)
$
548
(5
)%
(4
)%
News UK
Circulation and subscription
$
138
$
140
$
1
$
139
1
%
1
%
Advertising
72
63
—
$
63
(13
)%
(13
)%
Other
29
25
—
$
25
(14
)%
(14
)%
Total News UK revenues
$
239
$
228
$
1
$
227
(5
)%
(5
)%
News Corp Australia
Circulation and subscription
$
109
$
101
$
(1
)
$
102
(7
)%
(6
)%
Advertising
96
94
(2
)
$
96
(2
)%
—
%
Other
44
41
(1
)
$
42
(7
)%
(5
)%
Total News Corp Australia revenues
$
249
$
236
$
(4
)
$
240
(5
)%
(4
)%
Fiscal 2023
Fiscal 2024
FX impact
Fiscal 2024 constant currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
Consolidated results:
Circulation and subscription
$
4,447
$
4,509
$
(23
)
$
4,532
1
%
2
%
Advertising
1,687
1,607
(2
)
1,609
(5
)%
(5
)%
Consumer
1,899
2,000
16
1,984
5
%
4
%
Real estate
1,189
1,284
(22
)
1,306
8
%
10
%
Other
657
685
(6
)
691
4
%
5
%
Total revenues
$
9,879
$
10,085
$
(37
)
$
10,122
2
%
2
%
Digital Real Estate Services:
Circulation and subscription
$
12
$
10
$
—
$
10
(17
)%
(17
)%
Advertising
140
136
(1
)
$
137
(3
)%
(2
)%
Real estate
1,189
1,284
(22
)
$
1,306
8
%
10
%
Other
198
228
(5
)
$
233
15
%
18
%
Total Digital Real Estate Services segment
revenues
$
1,539
$
1,658
$
(28
)
$
1,686
8
%
10
%
REA Group revenues
$
937
$
1,114
$
(28
)
$
1,142
19
%
22
%
Subscription Video Services:
Circulation and subscription
$
1,671
$
1,643
$
(45
)
$
1,688
(2
)%
1
%
Advertising
227
232
(6
)
$
238
2
%
5
%
Other
44
42
(1
)
$
43
(5
)%
(2
)%
Total Subscription Video Services segment
revenues
$
1,942
$
1,917
$
(52
)
$
1,969
(1
)%
1
%
Dow Jones:
Circulation and subscription
$
1,689
$
1,771
$
7
$
1,764
5
%
4
%
Advertising
413
405
—
$
405
(2
)%
(2
)%
Other
51
55
—
$
55
8
%
8
%
Total Dow Jones segment revenues
$
2,153
$
2,231
$
7
$
2,224
4
%
3
%
Book Publishing:
Consumer
1,899
2,000
16
$
1,984
5
%
4
%
Other
80
93
—
$
93
16
%
16
%
Total Book Publishing segment revenues
$
1,979
$
2,093
$
16
$
2,077
6
%
5
%
Fiscal 2023
Fiscal 2024
FX impact
Fiscal 2024 constant currency
% Change - reported
% Change - constant currency
($ in millions)
Better/(Worse)
News Media:
Circulation and subscription
$
1,075
$
1,085
$
15
$
1,070
1
%
—
%
Advertising
907
834
5
$
829
(8
)%
(9
)%
Other
284
267
—
$
267
(6
)%
(6
)%
Total News Media segment revenues
$
2,266
$
2,186
$
20
$
2,166
(4
)%
(4
)%
News UK
Circulation and subscription
$
536
$
569
$
25
$
544
6
%
1
%
Advertising
288
262
10
$
252
(9
)%
(13
)%
Other
109
98
4
$
94
(10
)%
(14
)%
Total News UK revenues
$
933
$
929
$
39
$
890
—
%
(5
)%
News Corp Australia
Circulation and subscription
$
440
$
419
$
(11
)
$
430
(5
)%
(2
)%
Advertising
412
366
(10
)
$
376
(11
)%
(9
)%
Other
146
144
(4
)
$
148
(1
)%
1
%
Total News Corp Australia revenues
$
998
$
929
$
(25
)
$
954
(7
)%
(4
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808836523/en/
Investor Relations Michael Florin
212-416-3363 mflorin@newscorp.com
Anthony Rudolf 212-416-3040 arudolf@newscorp.com
Corporate Communications Arthur
Bochner 646-422-9671 abochner@newscorp.com
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