News Corp (NWS) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenues rose 6% year-over-year to nearly $2.6 billion, led by Digital Real Estate Services, Book Publishing, and Dow Jones, with segment EBITDA up 11% to a record $380 million.

• Net income for the quarter was $71 million, reversing a $32 million loss in the prior year; full-year net income was $354 million, up 89%.

• Fiscal 2024 was the second-best year on record, with profitability up 8% to $1.54 billion, driven by growth in book publishing, digital real estate services, and Dow Jones.

• Strategic focus remains on digital transformation, cost efficiencies, and maximizing shareholder value, including ongoing portfolio review and consideration of third-party interest in Foxtel.

• Announced a multi-year global partnership with OpenAI and began legal action against unauthorized AI content use.

Financial highlights

• Adjusted revenues and segment EBITDA for Q4 rose 6% and 13% year-over-year, respectively.

• Q4 EPS was $0.09, up from a $0.01 loss last year; adjusted EPS was $0.17, up from $0.14.

• Full-year revenues grew 2% to $10.09 billion, with Adjusted Revenues also up 2%.

• Free cash flow for the year was $602 million, up from $593 million.

• Dividend declared at $0.10 per share, payable October 9, 2024.

Outlook and guidance

• Expect improvements in fiscal 2025, with digital real estate benefiting from higher listing volumes and price increases.

• Move to continue tech and product investments, anticipating revenue growth as interest rates fall.

• Subscription Video Services to scale streaming and retain high-value broadcast customers; Hubbl investment to moderate.

• Dow Jones to focus on B2B growth and digital subscription pricing; Book Publishing expects further, but more modest, profit improvements.

• News Media to emphasize digital transition, cost efficiencies, and new revenue from OpenAI partnerships.