News Corp (NWS) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter revenue of $2.58 billion, up 3% year-over-year, led by Digital Real Estate Services, Book Publishing, and Dow Jones segments, despite challenging macroeconomic conditions and ongoing digital transformation.

• Net income rose to $144 million from $58 million a year ago; EPS increased to $0.21 from $0.05; Adjusted EPS was $0.21 compared to $0.16.

• Segment EBITDA reached a record $415 million, up 14% year-over-year, with improvements in most segments except Subscription Video Services.

• Recurring circulation and subscription revenues expanded, reducing reliance on volatile advertising markets.

• Transformation efforts, digital-first strategy, and disciplined cost management drove results.

Financial highlights

• Total revenues: $2.58 billion, up 3% year-over-year, with a $35 million positive impact from foreign currency.

• Net income was $144 million, up from $58 million, driven by higher EBITDA and lower impairment/restructuring charges.

• Segment EBITDA: $415 million, up from $364 million; Adjusted EBITDA up 12%.

• Free cash flow improved to $(31) million from $(179) million, reflecting higher operating cash flow and lower capex.

• Operating expenses decreased 1% to $1.26 billion; selling, general and administrative expenses increased 4% to $899 million.

Outlook and guidance

• Management expects liquidity needs to be met for at least the next twelve months through cash on hand, operations, and access to credit markets.

• Expect continued improvements across the portfolio, with Dow Jones focusing on B2B growth and digital subscription pricing step-ups, weighted to the second half.

• Digital real estate expects further listing growth in Australia and revenue improvements at Realtor.com as interest rates decline.

• Book publishing profit improvements anticipated in 2025, but at a more modest rate.

• Strategic review of Foxtel Group ongoing with no assurance of outcome or timing.