News Corporation Reports Fourth Quarter and Full Year Results for Fiscal 2023
FISCAL 2023 FOURTH QUARTER AND FULL YEAR KEY FINANCIAL HIGHLIGHTS
-
Fourth quarter revenues were
, compared to$2.43 billion in the prior year, reflecting the absence of the extra week in the prior year and the negative impact from foreign currency fluctuations$2.67 billion -
Net loss in the quarter was
, inclusive of$(32) million related to higher non-cash write- downs and restructuring charges, compared to net income of$166 million in the prior year, which included a$127 million tax benefit$149 million -
Fourth quarter Total Segment EBITDA was
, compared to$341 million in the prior year$315 million -
Digital revenues accounted for over
50% of total revenues for the full year, marking a key inflection point in the transformation of the Company -
The success of the Professional Information Business has transformed Dow Jones. Segment EBITDA rose
25% for the fourth quarter and14% for the full year, bolstered by the addition of CMA and OPIS and robust growth in Risk & Compliance revenues - At the Subscription Video Services Segment, Foxtel Group saw streaming revenue growth more than offset broadcast declines for the fourth quarter and full year, as total paid streaming subscribers reached nearly 3.1 million
- Foxtel Group is nearing completion of its external debt refinancing which is expected to provide a pathway for repayment of News Corp’s shareholder loans
Commenting on the results, Chief Executive Robert Thomson said:
“News Corp's Fiscal 2023 results highlighted the durability and depth of our revenue streams and the impact of stringent cost controls as we navigated challenging macro conditions, supply chain pressures and currency headwinds. We achieved full year Fiscal 2023 revenues of
For the first time, digital accounted for over
Dow Jones posted its highest profitability for both the quarter and the full year since we acquired the company - helped, in particular, by impressive results in the burgeoning professional information business. Not only has Dow Jones doubled its profitability over the past four years but it is also nearing a landmark moment with our lucrative B2B offerings expected to be the largest contributor to profitability in Fiscal 2024 and a key driver of future growth.
At Subscription Video Services, while revenues and profit were impacted by foreign currency headwinds, we achieved growth for the fourth quarter and full year on an adjusted basis – a remarkable turnaround from the recent past and a tribute to the team in
FOURTH QUARTER RESULTS
The Company reported fiscal 2023 fourth quarter total revenues of
Net loss for the quarter was
The Company reported fourth quarter Total Segment EBITDA of
Net (loss) income per share attributable to News Corporation stockholders was
Adjusted EPS (as defined in Note 3) were
FULL YEAR RESULTS
The Company reported fiscal 2023 full year total revenues of
Net income for the full year was
Total Segment EBITDA for the full year was
Diluted net income per share attributable to News Corporation stockholders was
Adjusted diluted EPS were
SEGMENT REVIEW
|
For the three months ended June 30, |
For the fiscal years ended June 30, |
||||||||||||||||||||
|
|
% |
|
|
% |
|||||||||||||||||
2023 |
2022 |
Change |
2023 |
2022 |
Change |
|||||||||||||||||
(in millions) |
Better/ (Worse) |
(in millions) |
Better/ (Worse) |
|||||||||||||||||||
Revenues: |
|
|
|
|
|
|
||||||||||||||||
Digital Real Estate Services |
$ |
369 |
|
$ |
443 |
|
(17 |
)% |
$ |
1,539 |
|
$ |
1,741 |
|
(12 |
)% |
||||||
Subscription Video Services |
|
501 |
|
|
524 |
|
(4 |
)% |
|
1,942 |
|
|
2,026 |
|
(4 |
)% |
||||||
Dow Jones |
|
546 |
|
|
565 |
|
(3 |
)% |
|
2,153 |
|
|
2,004 |
|
7 |
% |
||||||
Book Publishing |
|
446 |
|
|
513 |
|
(13 |
)% |
|
1,979 |
|
|
2,191 |
|
(10 |
)% |
||||||
News Media |
|
571 |
|
|
629 |
|
(9 |
)% |
|
2,266 |
|
|
2,423 |
|
(6 |
)% |
||||||
Other |
|
— |
|
|
— |
|
— |
% |
|
— |
|
|
— |
|
— |
% |
||||||
Total Revenues |
$ |
2,433 |
|
$ |
2,674 |
|
(9 |
)% |
$ |
9,879 |
|
$ |
10,385 |
|
(5 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Segment EBITDA: |
|
|
|
|
|
|
||||||||||||||||
Digital Real Estate Services |
$ |
108 |
|
$ |
121 |
|
(11 |
)% |
$ |
457 |
|
$ |
574 |
|
(20 |
)% |
||||||
Subscription Video Services |
|
78 |
|
|
81 |
|
(4 |
)% |
|
347 |
|
|
360 |
|
(4 |
)% |
||||||
Dow Jones |
|
133 |
|
|
106 |
|
25 |
% |
|
494 |
|
|
433 |
|
14 |
% |
||||||
Book Publishing |
|
16 |
|
|
47 |
|
(66 |
)% |
|
167 |
|
|
306 |
|
(45 |
)% |
||||||
News Media |
|
45 |
|
|
33 |
|
36 |
% |
|
156 |
|
|
217 |
|
(28 |
)% |
||||||
Other |
|
(39 |
) |
|
(73 |
) |
47 |
% |
|
(201 |
) |
|
(221 |
) |
9 |
% |
||||||
Total Segment EBITDA |
$ |
341 |
|
$ |
315 |
|
8 |
% |
$ |
1,420 |
|
$ |
1,669 |
|
(15 |
)% |
Digital Real Estate Services
Fourth Quarter Segment Results
Revenues in the quarter decreased
In the quarter, revenues at REA Group decreased
Move’s revenues in the quarter decreased
Full Year Segment Results
Fiscal 2023 full year revenues decreased
In the fiscal year, REA Group’s revenues decreased
Subscription Video Services
Fourth Quarter Segment Results
Revenues of
As of June 30, 2023, Foxtel’s total closing paid subscribers were over 4.6 million, a
|
As of June 30, |
|||
|
2023 |
|
2022 |
|
|
(in 000's) |
|||
Broadcast Subscribers |
|
|
||
Residential |
1,341 |
1,481 |
||
Commercial |
233 |
242 |
||
Streaming Subscribers (Total (Paid)) |
|
|
||
Kayo |
1,411 (1,401 paid) |
1,312 (1,293 paid) |
||
BINGE |
1,541 (1,487 paid) |
1,263 (1,192 paid) |
||
Foxtel Now |
177 (170 paid) |
201 (194 paid) |
||
|
|
|
||
Total Subscribers (Total (Paid)) |
4,723 (4,650 paid) |
4,529 (4,413 paid) |
Segment EBITDA of
Full Year Segment Results
Fiscal 2023 full year revenues declined
Segment EBITDA for fiscal 2023 decreased
Dow Jones
Fourth Quarter Segment Results
Revenues in the quarter decreased
Circulation and subscription revenues decreased
During the fourth quarter, total average subscriptions to Dow Jones’ consumer products reached over 5.2 million, a
For the three months ended June 30, |
||||||
|
2023 |
|
2022 |
|
% Change |
|
(in thousands, except %) |
|
|
|
|
Better/(Worse) |
|
The Wall Street Journal |
|
|
|
|||
Digital-only subscriptions |
3,406 |
3,095 |
10 % |
|||
Total subscriptions |
3,966 |
3,749 |
6 % |
|||
Barron’s Group |
|
|
|
|||
Digital-only subscriptions |
1,018 |
848 |
20 % |
|||
Total subscriptions |
1,168 |
1,038 |
13 % |
|||
Total Consumer |
|
|
|
|||
Digital-only subscriptions |
4,510 |
4,029 |
12 % |
|||
Total subscriptions |
5,242 |
4,898 |
7 % |
Advertising revenues decreased
Segment EBITDA for the quarter increased
Full Year Segment Results
Fiscal 2023 full year revenues increased
Circulation and subscription revenues increased
Advertising revenue decreased
Segment EBITDA for fiscal 2023 increased
Book Publishing
Fourth Quarter Segment Results
Revenues in the quarter decreased
Segment EBITDA for the quarter decreased
Full Year Segment Results
Fiscal 2023 full year revenues decreased
Segment EBITDA for fiscal 2023 decreased
News Media
Fourth Quarter Segment Results
Revenues in the quarter decreased
Circulation and subscription revenues decreased
Advertising revenues decreased
In the quarter, Segment EBITDA increased
Digital revenues represented
- Closing digital subscribers at News Corp Australia as of June 30, 2023 were 1,059,000 (943,000 for news mastheads), compared to 964,000 (882,000 for news mastheads) in the prior year (Source: Internal data)
-
The Times and Sunday Times closing digital subscribers, including the Times Literary Supplement, as of June 30, 2023 were 565,000, compared to 508,000 in the prior year (Source: Internal data). During the fourth quarter of fiscal 2023, News
UK updated its methodology for counting subscribers receiving a print and digital bundle to begin allocating these subscribers between print and digital based on the number of print copies served during the week instead of wholly to print. This change resulted in a 59,000 and 63,000 increase to the closing digital subscriber number at June 30, 2023 and 2022, respectively - The Sun’s digital offering reached 159 million global monthly unique users in June 2023 (Source: Meta Pixel; prior year comparable statistic unavailable due to source change)
- New York Post’s digital network reached 145 million unique users in June 2023, compared to 198 million in the prior year (Source: Google Analytics)
Full Year Segment Results
Fiscal 2023 full year revenues decreased
Circulation and subscription revenues decreased
Segment EBITDA for fiscal 2023 decreased
CASH FLOW
The following table presents a reconciliation of net cash provided by operating activities to free cash flow and free cash flow available to News Corporation:
For the fiscal years ended June 30, |
||||||||
|
2023 |
|
|
|
2022 |
|
||
(in millions) |
||||||||
Net cash provided by operating activities |
$ |
1,092 |
|
$ |
1,354 |
|
||
Less: Capital expenditures |
|
(499 |
) |
|
(499 |
) |
||
Free cash flow |
|
593 |
|
|
855 |
|
||
Less: REA Group free cash flow |
|
(234 |
) |
|
(279 |
) |
||
Plus: Cash dividends received from REA Group |
|
91 |
|
|
87 |
|
||
Free cash flow available to News Corporation |
$ |
450 |
|
$ |
663 |
|
Net cash provided by operating activities of
Free cash flow in the fiscal year ended June 30, 2023 was
Free cash flow and free cash flow available to News Corporation are non-GAAP financial measures. Free cash flow is defined as net cash provided by operating activities, less capital expenditures, and free cash flow available to News Corporation is defined as free cash flow, less REA Group free cash flow, plus cash dividends received from REA Group.
The Company believes free cash flow provides useful information to management and investors about the Company’s liquidity and cash flow trends. The Company believes free cash flow available to News Corporation, which adjusts free cash flow to exclude REA Group’s free cash flow and include dividends received from REA Group, provides management and investors with a measure of the amount of cash flow that is readily available to the Company, as REA Group is a separately listed public company in
OTHER ITEMS
Dividends
The Company declared today a semi-annual cash dividend of
COMPARISON OF NON-GAAP TO
Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted Segment EBITDA, adjusted net income attributable to News Corporation stockholders, Adjusted EPS, constant currency revenues, free cash flow and free cash flow available to News Corporation are non-GAAP financial measures contained in this earnings release. The Company believes these measures are important tools for investors and analysts to use in assessing the Company’s underlying business performance and to provide for more meaningful comparisons of the Company’s operating performance between periods. These measures also allow investors and analysts to view the Company’s business from the same perspective as Company management. These non- GAAP measures may be different than similar measures used by other companies and should be considered in addition to, not as a substitute for, measures of financial performance calculated in accordance with GAAP. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with
Conference call
News Corporation’s earnings conference call can be heard live at 5:00 p.m. EDT on August 10, 2023. To listen to the call, please visit http://investors.newscorp.com.
Cautionary Statement Concerning Forward-Looking Statements
This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends and uncertainties affecting the Company’s business, results of operations and financial condition, the Company’s strategy and strategic initiatives, including potential acquisitions, investments and dispositions, the Company’s cost savings initiatives, including announced headcount reductions, and the outcome of contingencies such as litigation and investigations. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to the risks, uncertainties and other factors described in the Company’s filings with the Securities and Exchange Commission. More detailed information about factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The “forward- looking statements” included in this document are made only as of the date of this document and we do not have and do not undertake any obligation to publicly update any “forward-looking statements” to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation.
About News Corporation
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: digital real estate services, subscription video services in
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in millions, except per share amounts) |
||||||||||||||||
For the three months ended June 30, |
|
For the fiscal years ended June 30, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenues: |
|
|
|
|
||||||||||||
Circulation and subscription |
$ |
1,129 |
|
$ |
1,177 |
|
$ |
4,447 |
|
$ |
4,425 |
|
||||
Advertising |
|
424 |
|
|
479 |
|
|
1,687 |
|
|
1,821 |
|
||||
Consumer |
|
425 |
|
|
491 |
|
|
1,899 |
|
|
2,106 |
|
||||
Real estate |
|
293 |
|
|
359 |
|
|
1,189 |
|
|
1,347 |
|
||||
Other |
|
162 |
|
|
168 |
|
|
657 |
|
|
686 |
|
||||
Total Revenues |
|
2,433 |
|
|
2,674 |
|
|
9,879 |
|
|
10,385 |
|
||||
Operating expenses |
|
(1,271 |
) |
|
(1,355 |
) |
|
(5,124 |
) |
|
(5,124 |
) |
||||
Selling, general and administrative |
|
(821 |
) |
|
(1,004 |
) |
|
(3,335 |
) |
|
(3,592 |
) |
||||
Depreciation and amortization |
|
(178 |
) |
|
(183 |
) |
|
(714 |
) |
|
(688 |
) |
||||
Impairment and restructuring charges |
|
(85 |
) |
|
(27 |
) |
|
(150 |
) |
|
(109 |
) |
||||
Equity losses of affiliates |
|
(84 |
) |
|
(3 |
) |
|
(127 |
) |
|
(13 |
) |
||||
Interest expense, net |
|
(22 |
) |
|
(31 |
) |
|
(100 |
) |
|
(99 |
) |
||||
Other, net |
|
11 |
|
|
(91 |
) |
|
1 |
|
|
52 |
|
||||
(Loss) income before income tax (expense) benefit |
|
(17 |
) |
|
(20 |
) |
|
330 |
|
|
812 |
|
||||
Income tax (expense) benefit |
|
(15 |
) |
|
147 |
|
|
(143 |
) |
|
(52 |
) |
||||
Net (loss) income |
|
(32 |
) |
|
127 |
|
|
187 |
|
|
760 |
|
||||
Less: Net loss (income) attributable to noncontrolling interests |
24 |
(17 |
) |
(38 |
) |
(137 |
) |
|||||||||
Net (loss) income attributable to News Corporation stockholders |
$ |
(8 |
) |
$ |
110 |
|
$ |
149 |
|
$ |
623 |
|
||||
Weighted average shares outstanding: |
|
|
|
|
||||||||||||
Basic |
|
573 |
|
|
586 |
|
|
576 |
|
|
590 |
|
||||
Diluted |
|
573 |
|
|
589 |
|
|
579 |
|
|
593 |
|
||||
Net (loss) income attributable to News Corporation stockholders per share: |
||||||||||||||||
Basic |
$ |
(0.01 |
) |
$ |
0.19 |
|
$ |
0.26 |
|
$ |
1.06 |
|
||||
Diluted |
$ |
(0.01 |
) |
$ |
0.19 |
|
$ |
0.26 |
|
$ |
1.05 |
|
||||
NEWS CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited; in millions) |
||||||||
|
As of June 30, 2023 |
As of June 30, 2022 |
||||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
1,833 |
|
$ |
1,822 |
|
||
Receivables, net |
|
|
1,425 |
|
|
1,502 |
|
|
Inventory, net |
|
|
311 |
|
|
311 |
|
|
Other current assets |
|
|
484 |
|
|
458 |
|
|
Total current assets |
|
|
4,053 |
|
|
4,093 |
|
|
|
|
|
|
|||||
Non-current assets: |
|
|
|
|||||
Investments |
|
|
427 |
|
|
488 |
|
|
Property, plant and equipment, net |
|
|
2,042 |
|
|
2,103 |
|
|
Operating lease right-of-use assets |
|
|
1,036 |
|
|
891 |
|
|
Intangible assets, net |
|
|
2,489 |
|
|
2,671 |
|
|
Goodwill |
|
|
5,140 |
|
|
5,169 |
|
|
Deferred income tax assets |
|
|
393 |
|
|
422 |
|
|
Other non-current assets |
|
|
1,341 |
|
|
1,384 |
|
|
Total assets |
$ |
16,921 |
|
$ |
17,221 |
|
||
|
|
|
|
|||||
LIABILITIES AND EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
440 |
|
$ |
411 |
|
||
Accrued expenses |
|
|
1,123 |
|
|
1,236 |
|
|
Deferred revenue |
|
|
622 |
|
|
604 |
|
|
Current borrowings |
|
|
347 |
|
|
293 |
|
|
Other current liabilities |
|
|
953 |
|
|
975 |
|
|
Total current liabilities |
|
|
3,485 |
|
|
3,519 |
|
|
|
|
|
|
|||||
Non-current liabilities: |
|
|
|
|||||
Borrowings |
|
|
2,620 |
|
|
2,776 |
|
|
Retirement benefit obligations |
|
|
134 |
|
|
155 |
|
|
Deferred income tax liabilities |
|
|
163 |
|
|
198 |
|
|
Operating lease liabilities |
|
|
1,128 |
|
|
947 |
|
|
Other non-current liabilities |
|
|
446 |
|
|
483 |
|
|
Commitments and contingencies |
|
|
|
|||||
Equity: |
|
|
|
|||||
Class A common stock |
|
|
4 |
|
|
4 |
|
|
Class B common stock |
|
|
2 |
|
|
2 |
|
|
Additional paid-in capital |
|
|
11,449 |
|
|
11,779 |
|
|
Accumulated deficit |
|
|
(2,144 |
) |
|
(2,293 |
) |
|
Accumulated other comprehensive loss |
|
|
(1,247 |
) |
|
(1,270 |
) |
|
Total News Corporation stockholders' equity |
|
|
8,064 |
|
|
8,222 |
|
|
Noncontrolling interests |
|
|
881 |
|
|
921 |
|
|
Total equity |
|
|
8,945 |
|
|
9,143 |
|
|
Total liabilities and equity |
$ |
16,921 |
|
$ |
17,221 |
|
||
NEWS CORPORATION
NCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions) |
||||||||
For the fiscal years ended June 30, |
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Operating activities: |
|
|
||||||
Net income |
$ |
187 |
|
$ |
760 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||||
Depreciation and amortization |
|
714 |
|
|
688 |
|
||
Operating lease expense |
|
109 |
|
|
125 |
|
||
Equity losses of affiliates |
|
127 |
|
|
13 |
|
||
Cash distributions received from affiliates |
|
7 |
|
|
23 |
|
||
Impairment charges |
|
25 |
|
|
15 |
|
||
Other, net |
|
(1 |
) |
|
(52 |
) |
||
Deferred income taxes and taxes payable |
|
6 |
|
|
(125 |
) |
||
Change in operating assets and liabilities, net of acquisitions: |
|
|
||||||
Receivables and other assets |
|
(146 |
) |
|
(51 |
) |
||
Inventories, net |
|
(2 |
) |
|
(87 |
) |
||
Accounts payable and other liabilities |
|
66 |
|
|
45 |
|
||
Net cash provided by operating activities |
|
1,092 |
|
|
1,354 |
|
||
Investing activities: |
|
|
||||||
Capital expenditures |
|
(499 |
) |
|
(499 |
) |
||
Acquisitions, net of cash acquired |
|
(17 |
) |
|
(1,501 |
) |
||
Investments in equity affiliates |
|
(43 |
) |
|
(71 |
) |
||
Other investments |
|
(60 |
) |
|
(41 |
) |
||
Proceeds from property, plant and equipment and other asset dispositions |
|
66 |
|
|
3 |
|
||
Other, net |
|
(21 |
) |
|
33 |
|
||
Net cash used in investing activities |
|
(574 |
) |
|
(2,076 |
) |
||
Financing activities: |
|
|
||||||
Borrowings |
|
514 |
|
|
1,690 |
|
||
Repayment of borrowings |
|
(589 |
) |
|
(838 |
) |
||
Repurchase of shares |
|
(243 |
) |
|
(179 |
) |
||
Dividends paid |
|
(174 |
) |
|
(175 |
) |
||
Other, net |
|
(9 |
) |
|
(94 |
) |
||
Net cash (used in) provided by financing activities |
|
(501 |
) |
|
404 |
|
||
Net change in cash and cash equivalents |
|
17 |
|
|
(318 |
) |
||
Cash and cash equivalents, beginning of year |
|
1,822 |
|
|
2,236 |
|
||
Exchange movement on opening cash balance |
|
(6 |
) |
|
(96 |
) |
||
Cash and cash equivalents, end of year |
$ |
1,833 |
|
$ |
1,822 |
|||
NOTE 1 – TOTAL SEGMENT EBITDA
Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).
Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss), cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods. The following tables reconcile net (loss) income to Total Segment EBITDA for the three months and fiscal years ended June 30, 2023 and 2022:
For the three months ended June 30, |
|||||||||||||||
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
|||||
|
|
(in millions) |
|
|
|
|
|||||||||
Net (loss) income |
$ |
(32 |
) |
|
$ |
127 |
|
|
$ |
(159 |
) |
|
** |
||
Add: |
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
15 |
|
|
|
(147 |
) |
|
|
162 |
|
|
** |
||
Other, net |
|
(11 |
) |
|
|
91 |
|
|
|
(102 |
) |
|
** |
||
Interest expense, net |
|
22 |
|
|
|
31 |
|
|
|
(9 |
) |
|
(29 |
)% |
|
Equity losses of affiliates |
|
84 |
|
|
|
3 |
|
|
|
81 |
|
|
** |
||
Impairment and restructuring charges |
|
85 |
|
|
|
27 |
|
|
|
58 |
|
|
** |
||
Depreciation and amortization |
|
178 |
|
|
|
183 |
|
|
|
(5 |
) |
|
(3 |
)% |
|
Total Segment EBITDA |
$ |
341 |
|
|
$ |
315 |
|
|
$ |
26 |
|
|
8 |
% |
|
** - Not meaningful |
For the fiscal years ended June 30, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
|||
|
|
(in millions) |
|
|
|
|
||||||||
Net income |
$ |
187 |
|
$ |
760 |
|
$ |
(573 |
) |
(75 |
)% |
|||
Add: |
|
|
|
|
||||||||||
Income tax expense |
|
143 |
|
|
52 |
|
|
91 |
|
** |
||||
Other, net |
|
(1 |
) |
|
(52 |
) |
|
51 |
|
98 |
% |
|||
Interest expense, net |
|
100 |
|
|
99 |
|
|
1 |
|
1 |
% |
|||
Equity losses of affiliates |
|
127 |
|
|
13 |
|
|
114 |
|
** |
||||
Impairment and restructuring charges |
|
150 |
|
|
109 |
|
|
41 |
|
38 |
% |
|||
Depreciation and amortization |
|
714 |
|
|
688 |
|
|
26 |
|
4 |
% |
|||
Total Segment EBITDA |
$ |
1,420 |
|
$ |
1,669 |
|
$ |
(249 |
) |
(15 |
)% |
|||
** - Not meaningful |
NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA
The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”), charges for other significant, non-ordinary course legal or regulatory matters (“litigation charges”) and foreign currency fluctuations (“Adjusted Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment EBITDA,” respectively) to evaluate the performance of the Company’s core business operations exclusive of certain items that impact the comparability of results from period to period such as the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the
The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for amounts determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following tables reconcile reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three months and fiscal years ended June 30, 2023 and 2022:
|
Revenues |
|
|
Total Segment EBITDA |
|||||||||||||||||||
For the three months ended June 30, |
|
|
For the three months ended June 30, |
||||||||||||||||||||
|
2023 |
|
|
|
2022 |
|
Difference |
|
|
|
2023 |
|
|
|
2022 |
|
Difference |
||||||
(in millions) |
(in millions) |
||||||||||||||||||||||
As reported |
$ |
2,433 |
|
$ |
2,674 |
$ |
(241 |
) |
$ |
341 |
|
$ |
315 |
$ |
26 |
|
|||||||
Impact of acquisitions |
|
(19 |
) |
|
— |
|
(19 |
) |
|
(10 |
) |
|
3 |
|
(13 |
) |
|||||||
Impact of divestitures |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|||||||
Impact of foreign currency fluctuations |
|
72 |
|
|
— |
|
72 |
|
|
14 |
|
|
— |
|
14 |
|
|||||||
Impact of litigation charges |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
20 |
|
(20 |
) |
|||||||
Net impact of |
|
— |
|
|
— |
|
— |
|
|
3 |
|
|
2 |
|
1 |
|
|||||||
As adjusted |
$ |
2,486 |
$ |
2,674 |
$ |
(188 |
) |
$ |
348 |
$ |
340 |
$ |
8 |
||||||||||
|
Revenues |
|
|
Total Segment EBITDA |
||||||||||||||||||||
|
For the fiscal years ended June 30, |
|
|
For the fiscal years ended June 30, |
||||||||||||||||||||
|
2023 |
|
|
|
2022 |
|
|
Difference |
|
|
|
2023 |
|
|
|
2022 |
|
Difference |
||||||
(in millions) |
(in millions) |
|||||||||||||||||||||||
As reported |
$ |
9,879 |
|
$ |
10,385 |
|
$ |
(506 |
) |
$ |
1,420 |
|
$ |
1,669 |
$ |
(249 |
) |
|||||||
Impact of acquisitions |
|
(196 |
) |
|
— |
|
|
(196 |
) |
|
(57 |
) |
|
18 |
|
(75 |
) |
|||||||
Impact of divestitures |
|
— |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
5 |
|
(5 |
) |
|||||||
Impact of foreign currency fluctuations |
|
494 |
|
|
— |
|
|
494 |
|
|
80 |
|
|
— |
|
80 |
|
|||||||
Impact of litigation charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20 |
|
(20 |
) |
|||||||
Net impact of |
|
— |
|
|
— |
|
|
— |
|
|
16 |
|
|
11 |
|
5 |
|
|||||||
As adjusted |
$ |
10,177 |
|
$ |
10,384 |
|
$ |
(207 |
) |
$ |
1,459 |
|
$ |
1,723 |
$ |
(264 |
) |
Foreign Exchange Rates
Average foreign exchange rates used in the calculation of the impact of foreign currency fluctuations for each of the three month periods in the fiscal years ended June 30, 2023 and 2022 are as follows:
|
Fiscal Year 2023 |
|||||||
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fiscal Year 2022 |
|||||||
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months and fiscal years ended June 30, 2023 and 2022 are as follows:
For the three months ended June 30, |
|||||||||||
|
2023 |
|
|
|
2022 |
|
|
% Change |
|||
(in millions) |
Better/(Worse) |
||||||||||
Adjusted Revenues: |
|||||||||||
Digital Real Estate Services |
$ |
383 |
|
$ |
443 |
|
(14 |
)% |
|||
Subscription Video Services |
|
538 |
|
|
524 |
|
3 |
% |
|||
Dow Jones |
|
532 |
|
|
565 |
|
(6 |
)% |
|||
Book Publishing |
|
446 |
|
|
513 |
|
(13 |
)% |
|||
News Media |
|
587 |
|
|
629 |
|
(7 |
)% |
|||
Other |
|
— |
|
|
— |
|
— |
% |
|||
Adjusted Total Revenues |
$ |
2,486 |
|
$ |
2,674 |
|
(7 |
)% |
|||
|
|
|
|
||||||||
Adjusted Segment EBITDA: |
|
|
|
||||||||
Digital Real Estate Services |
$ |
115 |
|
$ |
121 |
|
(5 |
)% |
|||
Subscription Video Services |
|
84 |
|
|
81 |
|
4 |
% |
|||
Dow Jones |
|
127 |
|
|
109 |
|
17 |
% |
|||
Book Publishing |
|
14 |
|
|
47 |
|
(70 |
)% |
|||
News Media |
|
47 |
|
|
33 |
|
42 |
% |
|||
Other |
|
(39 |
) |
|
(51 |
) |
24 |
% |
|||
Adjusted Total Segment EBITDA |
$ |
348 |
|
$ |
340 |
|
2 |
% |
For the fiscal years ended June 30, |
|||||||||||
|
2023 |
|
|
|
2022 |
|
|
% Change |
|||
(in millions) |
Better/(Worse) |
||||||||||
Adjusted Revenues: |
|||||||||||
Digital Real Estate Services |
$ |
1,603 |
|
$ |
1,740 |
|
(8 |
)% |
|||
Subscription Video Services |
|
2,099 |
|
|
2,026 |
|
4 |
% |
|||
Dow Jones |
|
2,006 |
|
|
2,004 |
|
— |
% |
|||
Book Publishing |
|
2,026 |
|
|
2,191 |
|
(8 |
)% |
|||
News Media |
|
2,443 |
|
|
2,423 |
|
1 |
% |
|||
Other |
|
— |
|
|
— |
|
— |
% |
|||
Adjusted Total Revenues |
$ |
10,177 |
|
$ |
10,384 |
|
(2 |
)% |
|||
|
|
|
|
||||||||
Adjusted Segment EBITDA: |
|
|
|
||||||||
Digital Real Estate Services |
$ |
491 |
|
$ |
579 |
|
(15 |
)% |
|||
Subscription Video Services |
|
376 |
|
|
360 |
|
4 |
% |
|||
Dow Jones |
|
434 |
|
|
451 |
|
(4 |
)% |
|||
Book Publishing |
|
170 |
|
|
306 |
|
(44 |
)% |
|||
News Media |
|
166 |
|
|
217 |
|
(24 |
)% |
|||
Other |
|
(178 |
) |
|
(190 |
) |
6 |
% |
|||
Adjusted Total Segment EBITDA |
$ |
1,459 |
|
$ |
1,723 |
|
(15 |
)% |
The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months ended June 30, 2023 and 2022:
For the three months ended June 30, 2023 |
|||||||||||||||||||||||||
|
As Reported |
|
Impact of Acquisitions |
|
Impact of Divestitures |
|
Impact of Foreign Currency Fluctuations |
|
Impact of Litigation Charges |
|
Net Impact of |
|
As Adjusted |
||||||||||||
(in millions) |
|||||||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||||||||||||
Digital Real Estate Services |
$ |
369 |
|
$ |
(1 |
) |
$ |
— |
$ |
15 |
|
$ |
— |
$ |
— |
$ |
383 |
|
|||||||
Subscription Video Services |
|
501 |
|
|
— |
|
|
— |
|
37 |
|
|
— |
|
— |
|
538 |
|
|||||||
Dow Jones |
|
546 |
|
|
(13 |
) |
|
— |
|
(1 |
) |
|
— |
|
— |
|
532 |
|
|||||||
Book Publishing |
|
446 |
|
|
(3 |
) |
|
— |
|
3 |
|
|
— |
|
— |
|
446 |
|
|||||||
News Media |
|
571 |
|
|
(2 |
) |
|
— |
|
18 |
|
|
— |
|
— |
|
587 |
|
|||||||
Other |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
|||||||
Total Revenues |
$ |
2,433 |
|
$ |
(19 |
) |
$ |
— |
$ |
72 |
|
$ |
— |
$ |
— |
$ |
2,486 |
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Segment EBITDA: |
|
|
|
|
|
|
|
||||||||||||||||||
Digital Real Estate Services |
$ |
108 |
|
$ |
— |
|
$ |
— |
$ |
7 |
|
$ |
— |
$ |
— |
$ |
115 |
|
|||||||
Subscription Video Services |
|
78 |
|
|
— |
|
|
— |
|
6 |
|
|
— |
|
— |
|
84 |
|
|||||||
Dow Jones |
|
133 |
|
|
(5 |
) |
|
— |
|
(1 |
) |
|
— |
|
— |
|
127 |
|
|||||||
Book Publishing |
|
16 |
|
|
(2 |
) |
|
— |
|
— |
|
|
— |
|
— |
|
14 |
|
|||||||
News Media |
|
45 |
|
|
— |
|
|
— |
|
2 |
|
|
— |
|
— |
|
47 |
|
|||||||
Other |
|
(39 |
) |
|
(3 |
) |
|
— |
|
— |
|
|
— |
|
3 |
|
(39 |
) |
|||||||
Total Segment EBITDA |
$ |
341 |
|
$ |
(10 |
) |
$ |
— |
$ |
14 |
|
$ |
— |
$ |
3 |
$ |
348 |
|
For the three months ended June 30, 2022 |
|||||||||||||||||||||||
|
As Reported |
|
Impact of Acquisitions |
|
Impact of Divestitures |
|
Impact of Foreign Currency Fluctuations |
|
Impact of Litigation Charges |
|
Net Impact of |
|
As Adjusted |
||||||||||
(in millions) |
|||||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||||||||||
Digital Real Estate Services |
$ |
443 |
|
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
443 |
|
|||||||
Subscription Video Services |
|
524 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
524 |
|
|||||||
Dow Jones |
|
565 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
565 |
|
|||||||
Book Publishing |
|
513 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
513 |
|
|||||||
News Media |
|
629 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
629 |
|
|||||||
Other |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||
Total Revenues |
$ |
2,674 |
|
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
2,674 |
|
|||||||
|
|||||||||||||||||||||||
Segment EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Digital Real Estate Services |
$ |
121 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
121 |
|||||||||
Subscription Video Services |
81 |
|
— |
— |
— |
— |
— |
81 |
|
||||||||||||||
Dow Jones |
106 |
|
3 |
— |
— |
— |
— |
109 |
|
||||||||||||||
Book Publishing |
47 |
|
— |
— |
— |
— |
— |
47 |
|
||||||||||||||
News Media |
33 |
|
— |
— |
— |
— |
— |
33 |
|
||||||||||||||
Other |
(73 |
) |
— |
— |
— |
20 |
2 |
(51 |
) |
||||||||||||||
Total Segment EBITDA |
$ |
315 |
|
$ |
3 |
$ |
— |
$ |
— |
$ |
20 |
$ |
2 |
$ |
340 |
|
The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the fiscal years ended June 30, 2023 and 2022:
For the fiscal year ended June 30, 2023 |
|||||||||||||||||||||||||
|
As Reported |
|
Impact of Acquisitions |
|
Impact of Divestitures |
|
Impact of Foreign Currency Fluctuations |
|
Impact of Litigation Charges |
|
Net Impact of |
|
As Adjusted |
||||||||||||
(in millions) |
|||||||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||||||||||||
Digital Real Estate Services |
$ |
1,539 |
$ |
(10 |
) |
$ |
— |
$ |
74 |
|
$ |
— |
|
$ |
— |
$ |
1,603 |
|
|||||||
Subscription Video Services |
|
1,942 |
|
|
— |
|
|
— |
|
157 |
|
|
— |
|
— |
|
|
2,099 |
|
||||||
Dow Jones |
|
2,153 |
|
|
(165 |
) |
|
— |
|
18 |
|
|
— |
|
— |
|
2,006 |
|
|||||||
Book Publishing |
|
1,979 |
|
|
|
(11 |
) |
|
— |
|
|
58 |
|
|
— |
|
— |
|
|
2,026 |
|
||||
News Media |
|
2,266 |
|
|
|
(10 |
) |
|
|
— |
|
187 |
|
|
— |
|
|
— |
|
|
2,443 |
|
|||
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
||
Total Revenues |
$ |
9,879 |
|
|
$ |
(196 |
) |
|
$ |
— |
|
$ |
494 |
|
|
$ |
— |
|
$ |
— |
|
$ |
10,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Digital Real Estate Services |
$ |
457 |
|
$ |
— |
|
$ |
— |
$ |
34 |
|
$ |
— |
|
$ |
— |
|
$ |
491 |
|
|||||
Subscription Video Services |
|
347 |
|
|
|
— |
|
|
|
— |
|
29 |
|
|
— |
|
|
— |
|
|
376 |
|
|||
Dow Jones |
|
494 |
|
|
|
(59 |
) |
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
434 |
|
|
Book Publishing |
|
167 |
|
|
|
(2 |
) |
|
|
— |
|
|
5 |
|
|
— |
|
|
— |
|
|
170 |
|
||
News Media |
|
156 |
|
|
|
(3 |
) |
|
|
— |
|
|
13 |
|
|
|
— |
|
|
— |
|
|
166 |
|
|
Other |
|
(201 |
) |
|
|
7 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
16 |
|
|
(178 |
) |
|
Total Segment EBITDA |
$ |
1,420 |
|
$ |
(57 |
) |
$ |
— |
|
$ |
80 |
|
$ |
— |
|
$ |
16 |
|
$ |
1,459 |
|
For the fiscal year ended June 30, 2022 |
||||||||||||||||||||||||
|
As Reported |
|
Impact of Acquisitions |
|
Impact of Divestitures |
|
Impact of Foreign Currency Fluctuations |
|
Impact of Litigation Charges |
|
Net Impact of |
|
As Adjusted |
|||||||||||
(in millions) |
||||||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|||||||||||||||||
Digital Real Estate Services |
$ |
1,741 |
|
$ |
— |
$ |
(1 |
) |
$ |
— |
$ |
— |
$ |
— |
$ |
1,740 |
|
|||||||
Subscription Video Services |
|
2,026 |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
2,026 |
|
|||||||
Dow Jones |
|
2,004 |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
2,004 |
|
|||||||
Book Publishing |
|
2,191 |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
2,191 |
|
|||||||
News Media |
|
2,423 |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
2,423 |
|
|||||||
Other |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|||||||
Total Revenues |
$ |
10,385 |
|
$ |
— |
$ |
(1 |
) |
$ |
— |
$ |
— |
$ |
— |
$ |
10,384 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment EBITDA: |
||||||||||||||||||||||||
Digital Real Estate Services |
$ |
574 |
|
|
$ |
— |
|
$ |
5 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
579 |
|
|
Subscription Video Services |
360 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
360 |
|
||
Dow Jones |
433 |
|
|
|
18 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
451 |
|
||
Book Publishing |
306 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
306 |
|
||
News Media |
217 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
217 |
|
||
Other |
(221 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
20 |
|
|
11 |
|
|
(190 |
) |
||
Total Segment EBITDA |
$ |
1,669 |
|
|
$ |
18 |
|
$ |
5 |
|
|
$ |
— |
|
$ |
20 |
|
$ |
11 |
|
$ |
1,723 |
|
NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION STOCKHOLDERS AND ADJUSTED EPS
The Company uses net income (loss) attributable to News Corporation stockholders and diluted earnings per share (“EPS”) excluding expenses related to
The following tables reconcile reported net (loss) income attributable to News Corporation stockholders and reported diluted EPS to adjusted net income attributable to News Corporation stockholders and adjusted EPS for the three months and fiscal years ended June 30, 2023 and 2022:
For the three months ended
|
|
For the three months ended
|
||||||||||||||
(in millions, except per share data) |
Net (loss) income attributable to stockholders |
|
EPS |
|
Net income attributable to stockholders |
|
EPS |
|||||||||
Net (loss) income |
$ |
(32 |
) |
|
$ |
127 |
|
|
||||||||
Less: Net loss (income) attributable to noncontrolling interests |
|
24 |
|
|
|
(17 |
) |
|
||||||||
Net (loss) income attributable to News Corporation stockholders |
$ |
(8 |
) |
$ |
(0.01 |
) |
$ |
110 |
|
$ |
0.19 |
|
||||
|
|
3 |
|
|
— |
|
|
2 |
|
|
— |
|
||||
Litigation charges |
|
— |
|
|
— |
|
|
20 |
|
|
0.03 |
|
||||
Impairment and restructuring charges (a) |
|
85 |
|
|
0.15 |
|
|
27 |
|
|
0.05 |
|
||||
Equity losses of affiliates (b) |
|
81 |
|
|
0.14 |
|
|
— |
|
|
— |
|
||||
Other, net |
|
(11 |
) |
|
(0.02 |
) |
|
91 |
|
|
0.15 |
|
||||
Tax impact on items above |
|
(37 |
) |
|
(0.06 |
) |
|
(30 |
) |
|
(0.05 |
) |
||||
Impact of noncontrolling interest on items above |
|
(35 |
) |
|
(0.06 |
) |
|
(2 |
) |
|
— |
|
||||
As adjusted |
$ |
78 |
|
$ |
0.14 |
|
$ |
218 |
|
$ |
0.37 |
|
(a) |
|
During the three months ended June 30, 2023, the Company recognized non-cash impairment charges of |
|
|
|
(b) |
|
During the three months ended June 30, 2023, the Company recognized a non-cash write-down of REA Group’s investment in PropertyGuru of approximately |
For the fiscal year ended
|
|
For the fiscal year ended
|
||||||||||||||
(in millions, except per share data) |
Net income attributable to stockholders |
|
EPS |
|
Net income attributable to stockholders |
|
EPS |
|||||||||
Net income |
$ |
187 |
|
|
$ |
760 |
|
|
||||||||
Less: Net income attributable to noncontrolling interests |
|
(38 |
) |
|
|
(137 |
) |
|
||||||||
Net income attributable to News Corporation stockholders |
$ |
149 |
|
$ |
0.26 |
|
$ |
623 |
|
$ |
1.05 |
|
||||
|
|
16 |
|
|
0.02 |
|
|
11 |
|
|
0.02 |
|
||||
Litigation charges |
|
— |
|
|
— |
|
|
20 |
|
|
0.03 |
|
||||
Impairment and restructuring charges (a) |
|
150 |
|
|
0.26 |
|
|
109 |
|
|
0.18 |
|
||||
Equity losses of affiliates (b) |
|
81 |
|
|
0.14 |
|
|
3 |
|
|
0.01 |
|
||||
Other, net |
|
(1 |
) |
|
— |
|
|
(52 |
) |
|
(0.09 |
) |
||||
Tax impact on items above |
|
(76 |
) |
|
(0.13 |
) |
|
(45 |
) |
|
(0.08 |
) |
||||
Impact of noncontrolling interest on items above |
|
(36 |
) |
|
(0.06 |
) |
|
43 |
|
|
0.08 |
|
||||
As adjusted |
$ |
283 |
|
$ |
0.49 |
|
$ |
712 |
|
$ |
1.20 |
|
(a) |
|
During the fiscal year ended June 30, 2023, the Company recognized non-cash impairment charges of |
|
|
During the fiscal year ended June 30, 2022, the Company recognized a non-cash impairment charge of |
|
|
|
(b) |
|
During the fiscal year ended June 30, 2023, the Company recognized a non-cash write-down of REA Group’s investment in PropertyGuru of approximately |
|
|
During the fiscal year ended June 30, 2022, the Company recognized a non-cash impairment charge related to an equity method investment. |
NOTE 4 – CONSTANT CURRENCY REVENUES
The Company believes that the presentation of revenues excluding the impact of foreign currency fluctuations (“constant currency revenues”) provides useful information regarding the performance of the Company’s core business operations exclusive of distortions between periods caused by the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the
Constant currency revenues are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for revenues as determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following tables reconcile reported revenues to constant currency revenues for the three months and fiscal year ended June 30, 2023:
Q4 Fiscal 2022 |
|
Q4 Fiscal 2023 |
|
FX impact |
|
Q4 Fiscal 2023 constant currency |
|
% Change - reported |
|
% Change - constant currency |
||||||||||||
($ in millions) |
|
Better/(Worse) |
||||||||||||||||||||
Consolidated results: |
||||||||||||||||||||||
Circulation and subscription |
$ |
1,177 |
|
$ |
1,129 |
|
$ |
(38 |
) |
$ |
1,167 |
|
(4 |
)% |
(1 |
)% |
||||||
Advertising |
|
479 |
|
|
424 |
|
|
(12 |
) |
|
436 |
|
(11 |
)% |
(9 |
)% |
||||||
Consumer |
|
491 |
|
|
425 |
|
|
(3 |
) |
|
428 |
|
(13 |
)% |
(13 |
)% |
||||||
Real estate |
|
359 |
|
293 |
|
(12 |
) |
|
305 |
(18 |
)% |
(15 |
)% |
|||||||||
Other |
|
168 |
|
|
162 |
|
|
(7 |
) |
|
169 |
|
(4 |
)% |
1 |
% |
||||||
Total revenues |
$ |
2,674 |
|
$ |
2,433 |
|
$ |
(72 |
) |
$ |
2,505 |
|
(9 |
)% |
(6 |
)% |
Digital Real Estate Services: |
||||||||||||||||||||||
Circulation and subscription |
$ |
4 |
|
$ |
3 |
|
$ |
— |
|
$ |
3 |
|
(25 |
)% |
(25 |
)% |
||||||
Advertising |
|
36 |
|
|
37 |
|
|
— |
|
$ |
37 |
|
3 |
% |
3 |
% |
||||||
Real estate |
|
359 |
|
|
293 |
|
|
(12 |
) |
$ |
305 |
|
(18 |
)% |
(15 |
)% |
||||||
Other |
|
44 |
|
|
36 |
|
|
(3 |
) |
$ |
39 |
|
(18 |
)% |
(11 |
)% |
||||||
Total Digital Real Estate Services segment revenues |
$ |
443 |
|
$ |
369 |
|
$ |
(15 |
) |
$ |
384 |
|
(17 |
)% |
(13 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
REA Group revenues |
$ |
250 |
|
$ |
223 |
|
$ |
(15 |
) |
$ |
238 |
|
(11 |
)% |
(5 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Subscription Video Services: |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
446 |
|
$ |
422 |
|
$ |
(30 |
) |
$ |
452 |
|
(5 |
)% |
1 |
% |
||||||
Advertising |
|
67 |
|
67 |
|
(6 |
) |
$ |
73 |
— |
% |
9 |
% |
|||||||||
Other |
|
11 |
|
|
12 |
|
|
(1 |
) |
$ |
13 |
|
9 |
% |
18 |
% |
||||||
Total Subscription Video Services segment revenues |
$ |
524 |
|
$ |
501 |
|
$ |
(37 |
) |
$ |
538 |
|
(4 |
)% |
3 |
% |
Q4 Fiscal 2022 |
|
Q4 Fiscal 2023 |
|
FX impact |
|
Q4 Fiscal 2023 constant currency |
|
% Change - reported |
|
% Change - constant currency |
||||||||||||
($ in millions) |
|
Better/(Worse) |
||||||||||||||||||||
Dow Jones: |
||||||||||||||||||||||
Circulation and subscription |
$ |
434 |
|
$ |
432 |
|
$ |
1 |
|
$ |
431 |
|
— |
% |
(1 |
)% |
||||||
Advertising |
|
116 |
|
|
100 |
|
|
— |
|
$ |
100 |
|
(14 |
)% |
(14 |
)% |
||||||
Other |
|
15 |
|
14 |
|
— |
|
$ |
14 |
(7 |
)% |
(7 |
)% |
|||||||||
Total Dow Jones segment revenues |
$ |
565 |
|
$ |
546 |
|
$ |
1 |
|
$ |
545 |
|
(3 |
)% |
(4 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Book Publishing: |
|
|
|
|
|
|
||||||||||||||||
Consumer |
|
491 |
|
|
425 |
|
|
(3 |
) |
$ |
428 |
|
(13 |
)% |
(13 |
)% |
||||||
Other |
|
22 |
|
|
21 |
|
|
— |
|
$ |
21 |
|
(5 |
)% |
(5 |
)% |
||||||
Total Book Publishing segment revenues |
$ |
513 |
|
$ |
446 |
|
$ |
(3 |
) |
$ |
449 |
|
(13 |
)% |
(12 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
News Media: |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
293 |
|
$ |
272 |
|
$ |
(9 |
) |
$ |
281 |
|
(7 |
)% |
(4 |
)% |
||||||
Advertising |
|
260 |
|
|
220 |
|
|
(6 |
) |
$ |
226 |
|
(15 |
)% |
(13 |
)% |
||||||
Other |
|
76 |
|
|
79 |
|
|
(3 |
) |
$ |
82 |
|
4 |
% |
8 |
% |
||||||
Total News Media segment revenues |
$ |
629 |
|
$ |
571 |
|
$ |
(18 |
) |
$ |
589 |
|
(9 |
)% |
(6 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
News |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
149 |
|
$ |
138 |
|
$ |
(1 |
) |
$ |
139 |
|
(7 |
)% |
(7 |
)% |
||||||
Advertising |
|
78 |
|
|
72 |
|
|
— |
|
$ |
72 |
|
(8 |
)% |
(8 |
)% |
||||||
Other |
|
29 |
|
|
29 |
|
|
— |
|
$ |
29 |
|
— |
% |
— |
% |
||||||
Total News |
$ |
256 |
|
$ |
239 |
|
$ |
(1 |
) |
$ |
240 |
|
(7 |
)% |
(6 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
News Corp Australia |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
120 |
|
$ |
109 |
|
$ |
(7 |
) |
$ |
116 |
|
(9 |
)% |
(3 |
)% |
||||||
Advertising |
|
129 |
|
|
96 |
|
|
(6 |
) |
$ |
102 |
|
(26 |
)% |
(21 |
)% |
||||||
Other |
|
43 |
|
|
44 |
|
|
(3 |
) |
$ |
47 |
|
2 |
% |
9 |
% |
||||||
Total News Corp Australia revenues |
$ |
292 |
|
$ |
249 |
|
$ |
(16 |
) |
$ |
265 |
|
(15 |
)% |
(9 |
)% |
Fiscal 2022 |
|
Fiscal 2023 |
|
FX impact |
|
Fiscal 2023 constant currency |
|
% Change - reported |
|
% Change - constant currency |
||||||||||||
($ in millions) |
|
Better/(Worse) |
||||||||||||||||||||
Consolidated results: |
||||||||||||||||||||||
Circulation and subscription |
$ |
4,425 |
|
$ |
4,447 |
|
$ |
(245 |
) |
$ |
4,692 |
|
— |
% |
6 |
% |
||||||
Advertising |
|
1,821 |
|
|
1,687 |
|
|
(92 |
) |
|
1,779 |
|
(7 |
)% |
(2 |
)% |
||||||
Consumer |
|
2,106 |
|
1,899 |
|
(58 |
) |
|
1,957 |
(10 |
)% |
(7 |
)% |
|||||||||
Real estate |
|
1,347 |
|
|
1,189 |
|
|
(55 |
) |
|
1,244 |
|
(12 |
)% |
(8 |
)% |
||||||
Other |
|
686 |
|
|
657 |
|
|
(44 |
) |
|
701 |
|
(4 |
)% |
2 |
% |
||||||
Total revenues |
$ |
10,385 |
|
$ |
9,879 |
|
$ |
(494 |
) |
$ |
10,373 |
|
(5 |
)% |
— |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Digital Real Estate Services: |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
13 |
|
$ |
12 |
|
$ |
— |
|
$ |
12 |
|
(8 |
)% |
(8 |
)% |
||||||
Advertising |
|
135 |
|
|
140 |
|
|
(3 |
) |
$ |
143 |
|
4 |
% |
6 |
% |
||||||
Real estate |
|
1,347 |
|
|
1,189 |
|
|
(55 |
) |
$ |
1,244 |
|
(12 |
)% |
(8 |
)% |
||||||
Other |
|
246 |
|
|
198 |
|
|
(16 |
) |
$ |
214 |
|
(20 |
)% |
(13 |
)% |
||||||
Total Digital Real Estate Services segment revenues |
$ |
1,741 |
|
$ |
1,539 |
|
$ |
(74 |
) |
$ |
1,613 |
|
(12 |
)% |
(7 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
REA Group revenues |
$ |
1,029 |
|
$ |
937 |
|
$ |
(74 |
) |
$ |
1,011 |
|
(9 |
)% |
(2 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Subscription Video Services: |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
1,753 |
|
$ |
1,671 |
|
$ |
(134 |
) |
$ |
1,805 |
|
(5 |
)% |
3 |
% |
||||||
Advertising |
|
232 |
|
|
227 |
|
|
(19 |
) |
$ |
246 |
|
(2 |
)% |
6 |
% |
||||||
Other |
|
41 |
|
|
44 |
|
|
(4 |
) |
$ |
48 |
|
7 |
% |
17 |
% |
||||||
Total Subscription Video Services segment revenues |
$ |
2,026 |
|
$ |
1,942 |
|
$ |
(157 |
) |
$ |
2,099 |
|
(4 |
)% |
4 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Dow Jones: |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
1,516 |
|
$ |
1,689 |
|
$ |
(18 |
) |
$ |
1,707 |
|
11 |
% |
13 |
% |
||||||
Advertising |
|
449 |
|
|
413 |
|
|
— |
|
$ |
413 |
|
(8 |
)% |
(8 |
)% |
||||||
Other |
|
39 |
|
|
51 |
|
|
— |
|
$ |
51 |
|
31 |
% |
31 |
% |
||||||
Total Dow Jones segment revenues |
$ |
2,004 |
|
$ |
2,153 |
|
$ |
(18 |
) |
$ |
2,171 |
|
7 |
% |
8 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Book Publishing: |
|
|
|
|
|
|
||||||||||||||||
Consumer |
|
2,106 |
|
|
1,899 |
|
|
(58 |
) |
$ |
1,957 |
|
(10 |
)% |
(7 |
)% |
||||||
Other |
|
85 |
|
|
80 |
|
|
— |
|
$ |
80 |
|
(6 |
)% |
(6 |
)% |
||||||
Total Book Publishing segment revenues |
$ |
2,191 |
|
$ |
1,979 |
|
$ |
(58 |
) |
$ |
2,037 |
|
(10 |
)% |
(7 |
)% |
Fiscal 2022 |
|
Fiscal 2023 |
|
FX impact |
Fiscal 2023 constant currency |
% Change - reported |
% Change - constant currency |
|||||||||||||||
($ in millions) |
|
Better/(Worse) |
||||||||||||||||||||
News Media: |
||||||||||||||||||||||
Circulation and subscription |
$ |
1,143 |
|
$ |
1,075 |
|
$ |
(93 |
) |
$ |
1,168 |
|
(6 |
)% |
2 |
% |
||||||
Advertising |
|
1,005 |
|
907 |
|
(70 |
) |
$ |
977 |
(10 |
)% |
(3 |
)% |
|||||||||
Other |
|
275 |
|
|
284 |
|
|
(24 |
) |
$ |
308 |
|
3 |
% |
12 |
% |
||||||
Total News Media segment revenues |
$ |
2,423 |
|
$ |
2,266 |
|
$ |
(187 |
) |
$ |
2,453 |
|
(6 |
)% |
1 |
% |
News |
||||||||||||||||||||||
Circulation and subscription |
$ |
577 |
|
$ |
536 |
|
$ |
(58 |
) |
$ |
594 |
|
(7 |
)% |
3 |
% |
||||||
Advertising |
|
313 |
|
288 |
|
(25 |
) |
$ |
313 |
(8 |
)% |
— |
% |
|||||||||
Other |
|
117 |
|
|
109 |
|
|
(11 |
) |
$ |
120 |
|
(7 |
)% |
3 |
% |
||||||
Total News |
$ |
1,007 |
|
$ |
933 |
|
$ |
(94 |
) |
$ |
1,027 |
|
(7 |
)% |
2 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
News Corp Australia |
|
|
|
|
|
|
||||||||||||||||
Circulation and subscription |
$ |
474 |
|
$ |
440 |
|
$ |
(34 |
) |
$ |
474 |
|
(7 |
)% |
— |
% |
||||||
Advertising |
|
466 |
|
|
412 |
|
|
(32 |
) |
$ |
444 |
|
(12 |
)% |
(5 |
)% |
||||||
Other |
|
148 |
|
|
146 |
|
|
(11 |
) |
$ |
157 |
|
(1 |
)% |
6 |
% |
||||||
Total News Corp Australia revenues |
$ |
1,088 |
|
$ |
998 |
|
$ |
(77 |
) |
$ |
1,075 |
|
(8 |
)% |
(1 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230810820526/en/
Investor Relations
Michael Florin
212-416-3363
mflorin@newscorp.com
Anthony Rudolf
212-416-3040
arudolf@newscorp.com
Corporate Communications
Jim Kennedy
212-416-4064
jkennedy@newscorp.com
Source: News Corporation