News Corporation Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
News Corporation Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results
News Corporation ("News Corp" or the "Company") has announced its financial results for the fourth quarter and full fiscal year ending June 30, 2024.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | YoY % Change | Q3 FY2024 | QoQ % Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue | $2.58B | $2.43B | 6% | $2.49B | 3.6% | $2.49B |
| Net Income | $71M | $(32)M | - | $54M | 31.5% | - |
| Earnings Per Share (EPS) | $0.09 | $(0.01) | - | $0.07 | 28.6% | $0.16 |
| Adjusted EPS | $0.17 | $0.14 | 21.4% | $0.12 | 41.7% | - |
Interpretation: For the fourth quarter, News Corp reported strong growth with a 6% increase in total revenue year-over-year and a significant improvement in net income, swinging from a loss of $32 million to a profit of $71 million. Adjusted EPS exceeded expectations, emphasizing improved profitability despite a slight miss on consensus EPS estimates of $0.16.
Segment Performance
| Segment | Q4 Revenue | YoY % Change | Segment EBITDA | YoY % Change |
|---|---|---|---|---|
| Digital Real Estate Services | $305M | 37% | $27M | 25% |
| Subscription Video Services | $506M | 1% | $74M | -5% |
| Dow Jones | $529M | 4% | $134M | 3% |
| Book Publishing | $505M | 15% | $57M | 257% |
| News Media | $494M | -5% | $28M | -65% |
Interpretation: The Digital Real Estate Services segment showed exceptional performance with a 37% rise in revenue, predominantly driven by robust results at REA Group. Book Publishing also performed strongly with a significant EBITDA increase due to higher book sales and improved returns. Subscription Video Services saw marginal revenue growth while grappling with increased costs related to the launch of Hubbl. The News Media segment faced challenges, reporting a 5% revenue decline.
Dividends and Share Repurchase Program
News Corp declared a semi-annual cash dividend of $0.10 per share for Class A and Class B Common Stock, payable on October 9, 2024, to stockholders of record as of September 11, 2024.
Forward Guidance
The company did not provide specific forward guidance but emphasized its strategic focus on ensuring long-term growth and maximizing returns for shareholders. This includes reviewing options for the Foxtel Group amid third-party interest.
Executive Comments
Chief Executive Robert Thomson highlighted the company's robust earnings growth and strategic initiatives to position News Corp for success in the AI age. He praised the landmark agreement with OpenAI and expressed confidence in the company's long-term prospects.
Stock Price Movement
Following the earnings release, News Corp's stock price saw a positive change of approximately 2.9%.
This comprehensive performance indicates that News Corp is effectively leveraging growth opportunities in key segments while navigating challenges in others. The company’s strategic investments and partnerships, particularly in AI, underscore its forward-looking approach.
