News Corp (NWS) Q4 2022 earnings summary

Executive summary

• FY22 delivered record revenue and profitability; revenues rose 11% to $10.385B and Total Segment EBITDA increased 31% to $1.669B.

• Reported net income was $760M, net income attributable to shareholders was $623M, and diluted EPS was $1.05 versus $0.56 in FY21.

• Digital Real Estate Services, Dow Jones and Book Publishing posted record results; operating cash flow reached $1.354B, above the prior-year record of $1.237B.

Financial highlights

• Revenue increased $1.027B YoY; circulation and subscription rose 5% to $4.425B, advertising rose 14% to $1.821B, and real estate revenue rose 17% to $1.347B.

• Operating expenses rose 6% to $5.124B and SG&A rose 10% to $3.592B, reflecting acquisitions, labor, marketing, publishing freight and TalkTV costs.

• Income before tax was $812M versus $450M; net income increased 95% to $760M, supported by higher Segment EBITDA and lower impairment/restructuring charges and affiliate losses.

• Cash from operations was $1.354B; investing used $2.076B, including $1.501B for acquisitions and $499M in capital expenditures.

Outlook and guidance

• Management expressed confidence in the businesses’ prospects, citing a strong balance sheet, cash generation and opportunities for further investment; no specific numerical FY23 forecast was stated.

• Inflation, higher interest rates and housing-market changes are expected to pressure real-estate lead and transaction volumes and adjacent businesses in the near term.

• Publishing manufacturing and freight cost pressure is expected to continue near term; labor-market competition is also expected to keep lifting costs.

• Foxtel planned to migrate all broadcast subscribers to satellite or internet delivery by June 2023.