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, with profitability of $415 million, up 14% year-over-year.

• 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.

• Profit margin improved to 16.1% from 14.6% last year.

• Growth achieved despite challenging macroeconomic conditions and ongoing digital transformation.

• Transformation efforts, digital-first strategy, and disciplined cost initiatives underpinned results.

Financial highlights

• Total segment EBITDA reached $415 million, up 14% year-over-year; adjusted EBITDA up 12%.

• Adjusted revenues rose 2% year-over-year.

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

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

• Net cash provided by operating activities was $64 million, up from $(55) million last year.

Outlook and guidance

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

• Management continues to assess strategic and financial options for the Foxtel Group, with no assurance of timing or outcome.

• 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.

• Cautionary statements highlight risks from macroeconomic trends, litigation, and regulatory uncertainties.