In a strategic move to enhance shareholder value, News Corporation (ticker: NWS) has announced an “other buy-back” program authorized to repurchase up to an aggregate of US$1 billion of its Nasdaq-listed Class A and Class B common stock. This buyback was notified on June 18, 2025, under the ASX issuer code NWS, indicating the company’s commitment to returning capital to its investors in an environment marked by economic uncertainty and evolving market dynamics.
The buyback program is designed to be flexible, with repurchases happening opportunistically based on market conditions and stock price, reflecting management’s conviction in the intrinsic value of the company’s shares. As of June 17, 2025, News Corp has purchased approximately US$686 million worth of shares, acquiring over 22 million securities in recent buyback activities.
This capital allocation decision aligns with News Corp’s broader strategy to optimize shareholder returns in light of its fiscal 2024 financial performance. The company reported total revenues of \(10.085 billion and net income of \)266 million for FY 2024, demonstrating modest profitability with a net profit margin of approximately 2.64%. Notably, News Corp carries a debt to equity ratio of 2.69, indicating leverage that needs careful management. The return on equity (ROE) for FY 2024 stands at 4.36%, underscoring a cautious but positive return to shareholders amid challenging industry conditions.
Buybacks like this function to reduce the total shares outstanding, potentially increasing earnings per share (EPS) and enhancing stock price valuation, a critical consideration in an industry facing competitive pressures and economic uncertainty. Given the scale of this buyback program relative to the company’s outstanding securities (around 375 million shares class A), it signifies a substantial capital return effort by News Corp.
Historically, News Corp’s management has emphasized efficient capital allocation strategies, including both organic growth and shareholder returns, as discussed in previous earnings calls. They have noted the importance of balancing growth initiatives with debt management and shareholder distributions to sustain long-term company health.
This latest buyback initiative further demonstrates News Corp’s confidence in its future prospects, leveraging a strategic capital return to bolster investor confidence while managing leverage prudently. Investors should monitor how this program continues to impact earnings metrics and share price dynamics.
For further details, the full official notification is available at the SEC archives: News Corp 8-K Buyback Notification.
Tags: NWS, News Corporation, Q2 2025, Share Buyback Program, Capital Allocation Strategy, Financial Leverage