News Corp (ASX:NWS) shares up 5% on robust FY22 results

August 09, 2022 01:47 PM AEST | By Bhawna Gupta

News Corp (ASX:NWS) shares up 5% on robust FY22 results — Image source: © Pepephotos | Megapixl.com

A look at FY22 results

News Corp reported total revenues for the full fiscal year of 2022 of US$10.39 billion, an increase of 11% over the US$9.36 billion reported in the prior year.

The company recorded this increase due to growth in all revenue lines, including contributions from recent acquisitions, jump in digital subscriptions and increase in digital advertising revenues. A negative impact from changes in foreign currencies of US$161 million, or 2%, countered some of the growth.

Compared to the previous year's US$389 million net income, the entire year's net income was US$760 million, an increase of 95%.

In comparison to the previous year, total segment EBITDA increased by 31% to US$1.67 billion, demonstrating higher performance across all sectors, particularly in the News Media and Dow Jones segments

Diluted net income per share attributable to shareholders of News Corporation increased to US$1.05 from US$0.56 the year before. As shown in Note 3, adjusted diluted EPS came to US$1.20 from US$0.67 the year before.

Highlights of 4QFY22 results

News Corp reported revenues of US$2.67 billion in the fourth quarter of FY22, a 7% jump as compared to US$2.49 billion in the prior year period.

This reflects strength in all revenue lines, including the impact of recent acquisitions, particularly OPIS and Base Chemicals, and a US$110 million benefit from the extra week in the quarter, which was partially offset by a US$139 million negative impact from foreign currencies. Revenues after adjustments rose 9%.

In comparison to a net loss of US$15 million the year before, the quarter's net income of US$127 million was significantly improved.

News Corp announced fourth quarter Total Segment EBITDA of US$315 million, up 50% from US$210 million in the preceding year, mainly due to greater revenues.

In comparison to the prior year, net income (loss) per share attributable to shareholders of News Corporation increased to US$0.19 from US$(0.02) per share. The adjusted EPS was US$0.37, up from US$0.16 the year before.

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