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 was agreed, with Foxtel's results now classified as discontinued operations and News Corp retaining a 6% stake in DAZN.

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

• Digital transformation and cost discipline contributed to margin improvement.

Financial highlights

• Segment EBITDA increased 20% to $478 million for the quarter, with all major segments showing growth.

• Adjusted revenues rose 4% year-over-year, with adjusted total segment EBITDA up 20%.

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

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

• Declared semi-annual cash dividend of $0.10 per share for Class A and B stock.

Outlook and guidance

• Year-over-year growth is expected to accelerate in the second half, especially at Dow Jones, with seasonality and dynamic pricing contributing.

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

• Book publishing profit growth is expected to moderate due to tough prior year comparisons and frontlist phasing.

• News Media faces a more challenging second half due to advertising conditions and Forex headwinds.

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