News Corporation Reports Solid Financial Performance in Fiscal 2025 Third Quarter
Who: News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV), a global diversified media and information services company.
What: Released its third quarter fiscal 2025 financial results, showcasing revenue growth, strong profitability, strategic business moves, and operational highlights.
When: Financial results for the three months ended March 31, 2025.
Where: Primarily operating in the United States, Australia, and the United Kingdom.
Key Financial Highlights: - Total revenues reached \(2.01 billion, increasing 1% compared to \)1.99 billion in the prior year quarter. - Net income from continuing operations soared 67% to \(107 million from \)64 million the previous year. - Total Segment EBITDA grew by 12% to \(290 million versus \)259 million last year. - Reported earnings per share (EPS) from continuing operations doubled to \(0.14, while adjusted EPS rose to \)0.17 from $0.13.
Business Segment Performance: 1. Dow Jones - Revenues increased 6% year-over-year to $575 million, driven by improved circulation and subscription revenues. - Digital revenues comprised 82% of segment revenues, with a notable 11% growth in Risk & Compliance and 10% in Dow Jones Energy. - Digital-only subscriptions grew 9% to over 5.5 million, with The Wall Street Journal digital subscriptions up 5% to 3.9 million.
Digital Real Estate Services
Revenues rose 5% to $406 million, supported by strong Australian residential sales and growth at REA Group.
Segment EBITDA surged 19% to $124 million.
Book Publishing
Revenues increased 2% to $514 million, aided by audiobook sales and recent acquisition benefits.
News Media
Revenues declined 8% to $514 million primarily due to lower advertising sales and subscription revenues.
Despite revenue decline, segment EBITDA increased 22% driven by cost efficiency initiatives.
Corporate and Strategic Highlights: - Successful completion of the sale of Foxtel Group to DAZN, strengthening the balance sheet and providing approximately a 6% equity stake in DAZN. - Free cash flow improved to \(539 million for the nine months ended March 31, 2025, up 13.5% from \)475 million last year.
Financial Statement Impact and Forward Outlook: The stronger EBITDA growth and robust net income improvement demonstration the effective execution of strategic initiatives, including digital transformation and cost discipline. The disposal of Foxtel reduced liabilities related to shareholder loans by A\(592 million (\)395 million approx.) and shifted focus towards higher return businesses.
The company continues to invest in its core segments, particularly in digital subscriptions at Dow Jones and digital real estate services. The 7% increase in total average subscriptions to Dow Jones consumer products to over 6.1 million underscores sustained demand for quality digital content amid increasing competition and AI influence.
Comments from Management: CEO Robert Thomson emphasized, “Net income from continuing operations rose 67% benefiting from a 12% increase in Total Segment EBITDA to \(290 million, as revenue reached \)2 billion despite challenging currency headwinds and macroeconomic uncertainty. The completion of the Foxtel sale marked a significant moment, strengthening our balance sheet and driving shareholder value.”
He further highlighted the critical role of quality journalism in today’s environment: “The currency of credibility will become even more crucial as AI continues its exponential growth and inevitably blurs the lines between the actual and the anthropomorphic.”
Context from Previous Earnings Calls: Consistent with prior quarters, News Corp has prioritized digital growth and operational realignment. This quarter’s results affirm the successful strategy of growing subscription and professional information services alongside pragmatic cost management.
SEO Keyword Integration: News Corporation fiscal 2025 third quarter results, News Corp Q3 revenue growth, Dow Jones subscription statistics 2025, Digital Real Estate Services revenue, Foxtel sale impact, News Media revenue decline 2025, corporate financial performance News Corp, AI impact on journalism, News Corp earnings May 2025.
Conclusion: News Corporation’s Q3 FY 2025 results illustrate the company’s resilience and strategic direction amid macroeconomic challenges. The combination of significant EBITDA growth, subscription increases, and strategic asset sales positions the company well for sustainable growth.
For detailed financial figures and full report, see the source document: https://sec.gov/Archives/edgar/data/1564708/000156470825000251/release-q3fy2025.htm
Tags: News Corporation, Fiscal 2025 Q3 Results, Digital Media Growth, Dow Jones, Corporate Finance