News Corp (NWS) Q2 2025 earnings summary

Executive summary

• Revenue from continuing operations grew 5% year-over-year to $2.24 billion for the quarter, led by Digital Real Estate Services, Book Publishing, and Dow Jones, while profitability rose 20% to $478 million and net income from continuing operations increased 58% to $306 million.

• EPS from continuing operations was $0.40, up from $0.28 in the prior year, and overall margin improved from 18.7% to 21.4%.

• The sale of Foxtel to DAZN for $3.4 billion marks a major portfolio simplification, with proceeds expected to strengthen the balance sheet, repay $574 million in shareholder loans, and News Corp retaining a 6% stake in DAZN.

• Foxtel's results are now classified as discontinued operations, with the Subscription Video Services segment dissolved.

• Credit ratings were upgraded to investment grade by S&P Global and Moody's following the Foxtel deal announcement.

Financial highlights

• Total segment EBITDA rose 20% year-over-year to $478 million for the quarter, with all major segments showing growth.

• Adjusted revenues increased 4% year-over-year, with currency impacts accounting for the difference from reported figures.

• Adjusted EPS from continuing operations was $0.33, up from $0.27 in the prior year.

• Free cash flow for the six months ended December 31, 2024, was $121 million, up from $97 million year-over-year.

• Cash and cash equivalents stood at $1.8 billion as of December 31, 2024.

Outlook and guidance

• Year-over-year growth is expected to accelerate in the second half, especially at Dow Jones, driven by digital circulation and B2B products.

• Currency translation is anticipated to be a headwind in the second half due to FX rates.

• The Foxtel sale is expected to close in the second half of fiscal 2025, with anticipated repayment of shareholder loans and a minority equity interest in DAZN.

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

• Management remains focused on digital growth, cost discipline, and leveraging AI partnerships.