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Highlights
- News Corp shares rose nearly 5%, reaching a 52-week high following strong quarterly results.
- Revenue increased by 5% to US$2.24 billion, with EBITDA rising 20% and net income up 58%.
- The company signed a deal to sell Foxtel, focusing on simplifying its business and targeting long-term growth.
News Corporation (ASX:NWS) saw its shares jump nearly 5% in morning trade on Thursday, reaching a 52-week high of $55.79. The media giant's stock rose sharply after the company released its impressive quarterly earnings before the market opened. Investors were encouraged by the strong performance across several key segments.
Key Highlights from the Quarterly Report:
- Revenue Increase: News Corp reported a 5% increase in revenue, totaling US$2.24 billion for the quarter.
- EBITDA Growth: Segment EBITDA surged 20%, reaching US$478 million.
- Net Income Boost: Net income from continuing operations climbed 58%, reaching US$306 million.
Strong Performance Across Segments The media company’s quarterly results were largely driven by robust performances in its Digital Real Estate Services, Book Publishing, and Dow Jones segments.
Notably, REA Group Ltd (ASX:REA), which is 61.4% owned by News Corp, posted record quarterly revenues of US$343 million. The growth was attributed to favorable conditions in the Australian residential market. In addition, Dow Jones achieved record revenues of US$600 million, bolstered by an 11% increase in Risk & Compliance revenue and a 10% rise in Dow Jones Energy. Meanwhile, Book Publishing revenues grew by 8%, and Segment EBITDA increased 19%, fueled by strong sales in both physical and digital books.
Divestiture of Foxtel In another strategic move, News Corp announced it had signed an agreement to sell Foxtel to DAZN for an enterprise value of A$3.4 billion. As part of this transaction, Foxtel is now classified as a discontinued operation. The company believes that this sale will streamline its operations, allowing it to focus on its core growth areas and enhance long-term shareholder value.
CEO’s Remarks Robert Thomson, CEO of News Corp, expressed satisfaction with the results, highlighting the company's successful quarter both in terms of revenue growth and profitability. He emphasized the continued expansion of the three pillars of growth—Digital Real Estate, Dow Jones, and Book Publishing—alongside effective cost discipline and digital advancements in the News Media segment. Thomson also noted that the company's overall margin had improved compared to the previous year.
