On August 8, 2024, News Corp (NWSA, Financial) released its 8-K filing for the fourth quarter and full fiscal year 2024. News Corp, a diversified media conglomerate with significant presence in the US, the UK, and Australia, reported robust financial results, surpassing analyst estimates for both revenue and earnings per share (EPS).
Company Overview
News Corporation is a diversified media conglomerate with significant presence in the US, the UK, and Australia. Key mastheads include The Wall Street Journal, Barron's, New York Post, The Times, The Sun, The Australian, Herald Sun, and The Daily Telegraph. The company also has a strong presence in the Australian subscription video market through 65%-owned Foxtel, and streaming platforms such as sport-focused Kayo and entertainment-focused Binge. Its 61%-owned REA Group is the dominant property listings business in Australia. In addition, it owns Harper Collins, one of the biggest book publishers in the world, and has a sizable US digital property advertising business, Move.
Q4 FY2024 Financial Highlights
News Corp reported fourth-quarter revenues of $2.58 billion, a 6% increase compared to $2.43 billion in the prior year, driven by growth in the Digital Real Estate Services, Book Publishing, and Dow Jones segments. Net income for the quarter was $71 million, a significant improvement from a net loss of $(32) million in the prior year. Total Segment EBITDA reached $380 million, an 11% increase compared to $341 million in the prior year.
Performance Analysis
For the quarter, reported EPS were $0.09, matching the analyst estimate, while adjusted EPS were $0.17, compared to $0.14 in the prior year. The company's performance was bolstered by strong contributions from the Book Publishing segment and REA Group, despite challenges in the News Media segment.
Segment Performance
Digital Real Estate Services: Revenues increased by 21% to $448 million, driven by strong performance at REA Group. Segment EBITDA increased by 25% to $135 million.
Subscription Video Services: Revenues were $506 million, a 1% increase compared to the prior year. Segment EBITDA decreased by 5% to $74 million due to launch costs for Hubbl.
Dow Jones: Revenues increased by 4% to $566 million, driven by growth in circulation and subscription revenues. Segment EBITDA increased by 3% to $137 million.
Book Publishing: Revenues grew by 15% to $512 million, with Segment EBITDA increasing significantly to $57 million from $16 million in the prior year.
News Media: Revenues decreased by 5% to $545 million, with Segment EBITDA falling by 38% to $28 million due to lower contributions from News Corp Australia.
Full Year FY2024 Financial Highlights
For the full fiscal year 2024, News Corp reported total revenues of $10.09 billion, a 2% increase compared to $9.88 billion in the prior year. Net income for the full year was $354 million, an 89% increase compared to $187 million in the prior year. Total Segment EBITDA for the full year was $1.54 billion, an 8% increase compared to $1.42 billion in the prior year.
Key Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | % Change |
|---|---|---|---|
| Revenue | $2.58 billion | $2.43 billion | 6% |
| Net Income | $71 million | $(32) million | N/A |
| Total Segment EBITDA | $380 million | $341 million | 11% |
| Reported EPS | $0.09 | $(0.01) | N/A |
| Adjusted EPS | $0.17 | $0.14 | 21% |
Commentary
"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," said Chief Executive Robert Thomson.
Conclusion
News Corp's strong performance in Q4 FY2024 and the full fiscal year highlights the company's resilience and strategic growth in key segments. The company's ability to surpass analyst estimates for revenue and EPS underscores its robust operational execution and strategic initiatives. Investors and analysts will be closely watching News Corp's continued performance and strategic moves in the coming quarters.
Explore the complete 8-K earnings release (here) from News Corp for further details.
