News Corporation Reports Fourth Quarter and Full Year Results for Fiscal 2024

Rhea-AI Summary

News (NWS) reported its fiscal 2024 fourth quarter and full year results, showing a 6% increase in quarter revenues to $2.58 billion, driven by Digital Real Estate Services and Book Publishing. Net income improved to $71 million from a loss of $32 million in the prior year. Total Segment EBITDA rose to $380 million, an 11% increase. Adjusted EPS for the quarter were $0.17, up from $0.14.

For the full year, revenues grew 2% to $10.09 billion. Net income surged 89% to $354 million. Total Segment EBITDA increased by 8% to $1.54 billion. The Dow Jones segment saw notable growth in its professional information business. Book Publishing revenues rose 15% in Q4, with digital audiobooks outpacing e-books for the first time.

Foxtel Group achieved a record 3.2 million streaming subscribers. News Corp also announced a multi-year partnership with OpenAI, signaling a future focus on AI in journalism.

Positive

• Q4 revenues up 6% to $2.58 billion.
• Net income of $71 million, up from a loss of $32 million.
• Total Segment EBITDA increased 11% to $380 million.
• Adjusted EPS up to $0.17 from $0.14.
• Full year revenues grew 2% to $10.09 billion.
• Full year net income surged 89% to $354 million.
• Full year Total Segment EBITDA rose 8% to $1.54 billion.
• Book Publishing revenues up 15% in Q4.
• Digital audiobooks revenue surpassed e-books.
• Foxtel Group's streaming subscribers reached 3.2 million.
• Partnership with OpenAI to enhance AI in journalism.

Negative

• News Media segment revenues down 5% in Q4.
• Lower advertising revenues affected the News Media segment.
• Higher income tax expense impacted net income.
• Negative foreign currency impact of $15 million in Q4 revenues.

Insights

Financial Analyst

News Corp's Q4 and FY2024 results show strong performance across key segments. Q4 revenues increased 6% to $2.58 billion, with net income improving significantly to $71 million from a loss in the prior year. Total Segment EBITDA reached a Q4 record of $380 million, up 11%.

Key highlights:

• Digital Real Estate Services saw 21% revenue growth, driven by REA Group
• Book Publishing revenues grew 15%, with digital audiobooks surpassing e-books
• Dow Jones professional information business showed robust growth
• Foxtel Group achieved record streaming subscribers

The OpenAI partnership positions News Corp well for the AI era. However, challenges remain in the News Media segment with declining advertising and circulation revenues. Overall, these results demonstrate News Corp's ability to adapt and grow in a changing media landscape.

Media Industry Expert

News Corp's results reflect the ongoing shift in media consumption habits. The standout performance of digital and streaming services underscores the company's successful pivot to digital-first strategies:

• REA Group's 37% revenue increase highlights the strength of digital real estate platforms
• Foxtel's streaming subscribers now account for 32% of subscription revenues
• Dow Jones saw 16% growth in digital-only subscriptions
• Book Publishing's digital sales grew 12%, with audiobooks leading the charge

However, the News Media segment's struggles with print advertising and circulation declines remain a concern. The expiration of the Meta content licensing deal also impacted digital revenues, highlighting the volatile nature of platform partnerships. The OpenAI collaboration is a forward-thinking move, but its impact on journalism and content monetization remains to be seen.

Corporate Strategy Analyst

News Corp's FY2024 results demonstrate the effectiveness of its diversification strategy. The company's portfolio approach has allowed it to offset challenges in traditional media with growth in digital and professional information services:

• Dow Jones' professional information business, particularly Risk & Compliance, is becoming a significant profit driver
• REA Group's strong performance balances slower growth in US digital real estate
• Book Publishing's recovery shows resilience in the face of industry challenges

The potential Foxtel Group transaction signals a willingness to optimize the portfolio further. This, combined with the 5% headcount reduction initiative, suggests a focus on streamlining operations and maximizing shareholder value. The OpenAI partnership also positions News Corp to monetize its vast content library in the emerging AI landscape. However, the ongoing challenges in News Media underscore the need for continued transformation in this segment.

FISCAL 2024 FOURTH QUARTER AND FULL YEAR KEY FINANCIAL HIGHLIGHTS

• Fourth quarter revenues were $2.58 billion, a 6% increase compared to $2.43 billion in the prior year, driven by growth at the Digital Real Estate Services, Book Publishing and Dow Jones segments
• Net income in the quarter was $71 million, a significant improvement compared to a net loss of $(32) million in the prior year
• Total Segment EBITDA was the highest for a fourth quarter since separation at $380 million, compared to $341 million in the prior year
• In the quarter, reported EPS were $0.09 as compared to $(0.01) in the prior year - Adjusted EPS were $0.17 compared to $0.14 in the prior year
• At the Dow Jones segment, for the quarter and full fiscal year, the professional information business was the largest contributor to segment profitability driven by robust revenue growth at Risk & Compliance and Dow Jones Energy
• Book Publishing revenues grew 15% in the quarter, while Segment EBITDA increased $41 million, driven by higher physical and digital book sales combined with improved return rates. Digital audiobooks revenue was larger than e-books revenue for the first time this quarter
• REA Group posted exceptional results for the quarter, with revenues of $305 million, a 37% increase compared to the prior year, primarily driven by robust Australian residential performance and higher financial services revenue
• At the Subscription Video Services segment, Foxtel Group saw strong streaming performance, with both Kayo and BINGE achieving record paying subscribers, and ended the fiscal year at over 3.2 million total paying streaming subscribers
• Announced landmark multi-year global partnership with OpenAI

NEW YORK--(BUSINESS WIRE)-- News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months and fiscal year ended June 30, 2024.

Commenting on the results, Chief Executive Robert Thomson said:

“Fiscal 2024 was an outstanding year for News Corp, as we not only delivered robust earnings growth and created substantial shareholder value, but took a significant step to prepare the Company to prosper in the AI age.

Our landmark agreement with OpenAI is not only expected to be lucrative, but will enable us to work closely with a trusted, pre-eminent partner to fashion a future for professional journalism and for provenance. Meanwhile, we have begun to take legal steps against AI aggressors, the egregious aggregators, who are predatory in the confiscation of our content. ‘Open source’ can never be a justification for ‘open slather.’

For the quarter, revenues grew 6 percent to almost $2.6 billion, while net income improved significantly and profitability advanced by 11 percent to a fourth quarter record. Our core pillars of growth - Book Publishing, Digital Real Estate Services and Dow Jones - inspired the increasing profitability, and their strength augurs well for Fiscal 2025.

We are confident in the Company’s long-term prospects and are continuing to review our portfolio with a focus on maximizing returns for shareholders. That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years. We are evaluating options for the business with our advisors in light of that external interest.

I would like to express our sincere gratitude to all who contributed to the emancipation of Evan Gershkovich. His freedom was made possible by the concerted efforts of concerned, principled people who recognized that his incarceration was unjust and immoral. Many thanks to our leaders at Dow Jones and News Corp, who campaigned vigorously for Evan, and to the U.S. Government and other enlightened Governments, whose divine interventions played a pivotal role in his release.”

FOURTH QUARTER RESULTS

The Company reported fiscal 2024 fourth quarter total revenues of $2.58 billion, a 6% increase compared to $2.43 billion in the prior year period, primarily driven by higher Australian residential revenues at REA Group, higher physical and digital book sales combined with lower return rates at the Book Publishing segment and continued growth in the professional information business at the Dow Jones segment. The increase was partly offset by lower advertising and circulation and subscription revenues at the News Media segment, in addition to a $15 million, or 1%, negative impact from foreign currency fluctuations. Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 6% compared to the prior year.

Net income for the quarter was $71 million, a $103 million increase compared to a net loss of $(32) million in the prior year, primarily driven by improved losses from equity affiliates due to the absence of a non-cash write-down of REA Group’s investment in PropertyGuru in the prior year, higher Total Segment EBITDA and lower impairment and restructuring charges. These impacts were partially offset by higher income tax expense and lower Other, net.

The Company reported fourth quarter Total Segment EBITDA of $380 million, an 11% increase compared to $341 million in the prior year primarily due to strong contributions from the Book Publishing segment and REA Group. The increase was partly offset by Hubbl launch costs at Foxtel Group and lower contributions from the News Media segment and Move. Adjusted Total Segment EBITDA (as defined in Note 2) increased 13%.

Net income (loss) per share attributable to News Corporation stockholders was $0.09 as compared to $(0.01) in the prior year.

Adjusted EPS (as defined in Note 3) were $0.17 compared to $0.14 in the prior year.

FULL YEAR RESULTS

The Company reported fiscal 2024 full year total revenues of $10.09 billion, a 2% increase compared to $9.88 billion in the prior year, driven by higher Australian residential revenues at REA Group, improved returns combined with higher digital sales at the Book Publishing segment and continued growth in the professional information business at the Dow Jones segment. The increase was partly offset by lower advertising revenues at the News Media segment and lower revenues at Move due to ongoing challenging housing market conditions in the U.S., in addition to a $37 million negative impact from foreign currency fluctuations. Adjusted Revenues increased 2%.

Net income for the full year was $354 million, a $167 million, or 89%, increase compared to $187 million in the prior year. The increase was primarily driven by improved losses from equity affiliates due to the absence of a non-cash write-down of REA Group’s investment in PropertyGuru in the prior year and higher Total Segment EBITDA. These impacts were partially offset by higher income tax expense and lower Other, net.

Total Segment EBITDA for the full year was $1.54 billion, a $119 million, or 8%, increase compared to $1.42 billion in the prior year primarily driven by improved performance at REA Group and the Book Publishing and Dow Jones segments primarily as a result of higher revenues, as discussed above, in addition to gross cost savings related to the announced 5% headcount reduction initiative and savings due to lower production costs at News UK and Book Publishing. The increase was partially offset by higher costs related to the launch of Hubbl and higher sports programming rights costs due to contractual increases at the Subscription Video Services segment, higher employee costs at the Book Publishing segment and REA Group, increased marketing costs at Move, increased technology and marketing costs at the Dow Jones segment and a $17 million, or 2%, negative impact from foreign currency fluctuations. Adjusted Total Segment EBITDA increased 8%.

Diluted net income per share attributable to News Corporation stockholders was $0.46 as compared to $0.26 in the prior year.

Adjusted diluted EPS were $0.70 compared to $0.49 in the prior year.

SEGMENT REVIEW

	For the three months ended June 30,											For the fiscal years ended June 30,
		2024				2023			% Change				2024				2023			% Change
	(in millions)								Better/ (Worse)			(in millions)								Better/ (Worse)
Revenues:
Digital Real Estate Services	$	448			$	369			21	%		$	1,658			$	1,539			8	%
Subscription Video Services		506				501			1	%			1,917				1,942			(1	)%
Dow Jones		566				546			4	%			2,231				2,153			4	%
Book Publishing		512				446			15	%			2,093				1,979			6	%
News Media		545				571			(5	)%			2,186				2,266			(4	)%
Other		—				—			—	%			—				—			—	%
Total Revenues	$	2,577			$	2,433			6	%		$	10,085			$	9,879			2	%
Segment EBITDA:
Digital Real Estate Services	$	135			$	108			25	%		$	508			$	457			11	%
Subscription Video Services		74				78			(5	)%			310				347			(11	)%
Dow Jones		137				133			3	%			542				494			10	%
Book Publishing		57				16			256	%			269				167			61	%
News Media		28				45			(38	)%			120				156			(23	)%
Other		(51	)			(39	)		(31	)%			(210	)			(201	)		(4	)%
Total Segment EBITDA	$	380			$	341			11	%		$	1,539			$	1,420			8	%

Digital Real Estate Services

Fourth Quarter Segment Results

Revenues in the quarter increased $79 million, or 21%, compared to the prior year, driven by strong performance at REA Group. Segment EBITDA in the quarter increased $27 million, or 25%, compared to the prior year, including a $2 million, or 2%, negative impact from foreign currency fluctuations, due to higher contribution from REA Group partly offset by $11 million in increased costs at Move primarily driven by higher marketing spend. Adjusted Revenues and Adjusted Segment EBITDA (as defined in Note 2) increased 21% and 28%, respectively.

In the quarter, revenues at REA Group increased $82 million, or 37%, to $305 million, primarily driven by higher Australian residential revenues due to price increases, increased depth penetration, favorable geographic mix and an increase in national listings, higher financial services revenue, which includes the benefit from the absence of a negative valuation adjustment related to expected future trail commissions in the prior year, and higher revenue from REA India. The increase was slightly offset by a $4 million, or 2%, negative impact from foreign currency fluctuations. Australian national residential buy listing volumes in the quarter increased 16% compared to the prior year, with listings in Sydney and Melbourne up 26% and 32%, respectively.

Move’s revenues in the quarter decreased $3 million, or 2%, to $143 million, primarily as a result of lower real estate revenues. Real estate revenues, which represented 80% of total Move revenues, decreased 2%, driven by the ongoing impact of the macroeconomic environment on the housing market, including higher mortgage rates, which led to lower transaction volumes. Revenues from the referral model, which includes the ReadyConnect Concierge℠ product, and the core lead generation product decreased due to these factors. The decline was partially offset by strong growth in seller, new homes and rentals including the partnership with Zillow. Based on Move’s internal data, average monthly unique users of Realtor.com^®’s web and mobile sites for the fiscal fourth quarter was flat compared to the prior year at 74 million. Lead volume was flat year over year as it continues to be impacted by high mortgage rates.

Full Year Segment Results

Fiscal 2024 full year revenues increased $119 million, or 8%, compared to the prior year, primarily due to the strong performance from REA Group, partly offset by lower revenues at Move and a $28 million, or 2%, negative impact from foreign currency fluctuations. Segment EBITDA for fiscal 2024 increased $51 million, or 11%, compared to the prior year, primarily due to the higher revenues, partially offset by higher employee costs and broker commissions at REA Group, higher REA India costs, a $13 million, or 3%, negative impact from foreign currency fluctuations and slightly higher costs at Move. Adjusted Revenues and Adjusted Segment EBITDA increased 9% and 15%, respectively.

In the fiscal year, REA Group’s revenues increased $177 million, or 19%, to $1.11 billion, primarily driven by higher Australian residential revenues due to price increases, increased depth penetration, favorable geographic mix and an increase in national listings, higher financial services revenue, which includes the benefit from the absence of a negative valuation adjustment related to expected future trail commissions in the prior year, and higher revenues from REA India, partially offset by a $28 million, or 3%, negative impact from foreign currency fluctuations.

Move’s revenues in the fiscal year decreased $58 million, or 10%, to $544 million, primarily due to lower real estate revenues. Move’s real estate revenues, which represented 80% of total Move revenues, declined 11%, primarily due to declines in both the referral model and the core lead generation product, partially offset by revenue growth in seller, new homes and rentals through the partnership with Zillow. The market downturn resulted in lower lead volumes, which decreased 3%, and lower transaction volumes.

Subscription Video Services

Fourth Quarter Segment Results

Revenues of $506 million in the quarter increased $5 million, or 1%, compared with the prior year, primarily driven by higher revenues from Kayo and BINGE from increases in both volume and pricing, mostly offset by the impact from fewer residential broadcast subscribers and a $7 million, or 1%, negative impact from foreign currency fluctuations. Adjusted Revenues of $513 million increased 2% compared to the prior year. Foxtel Group streaming subscription revenues represented 32% of total circulation and subscription revenues in the quarter, as compared to 29% in the prior year.

As of June 30, 2024, Foxtel’s total closing paid subscribers were nearly 4.7 million, a 1% increase compared to the prior year, driven by growth in Kayo and BINGE subscribers, partly offset by fewer residential broadcast subscribers. Broadcast subscriber churn in the quarter was 11.7% compared to 11.1% in the prior year partly driven by the price and packaging simplification. Broadcast ARPU for the quarter increased 6% year-over-year to A$90 (US$59).

	As of June 30,
	2024		2023
	(in 000's)
Broadcast Subscribers
Residential	1,210		1,341
Commercial	242		233
Streaming Subscribers - Total (Paid)
Kayo	1,606 (1,550)		1,411 (1,401)
BINGE	1,552 (1,529)		1,541 (1,487)
Foxtel Now	147 (142)		177 (170)
Total Subscribers - Total (Paid)	4,776 (4,690)		4,723 (4,650)

Segment EBITDA of $74 million in the quarter decreased $4 million, or 5%, compared with the prior year, primarily due to $28 million of Hubbl launch costs, partially offset by lower entertainment programming rights and transmission costs and the higher revenues discussed above. Adjusted Segment EBITDA decreased 4%.

Full Year Segment Results

Fiscal 2024 full year revenues declined $25 million, or 1%, compared with the prior year, due to a $52 million, or 2%, negative impact from foreign currency fluctuations. Adjusted Revenues increased 1% compared to the prior year. Higher streaming revenues, primarily from Kayo and BINGE, and higher advertising revenues more than offset the revenue declines from lower residential broadcast subscribers. Foxtel Group streaming subscription revenues represented approximately 30% of total circulation and subscription revenues in the fiscal year compared to 27% in the prior year.

Segment EBITDA for fiscal 2024 decreased $37 million, or 11%, compared to the prior year, primarily due to $51 million of costs related to the launch of Hubbl, higher sports programming costs due to contractual increases and the $9 million, or 3%, negative impact from foreign currency fluctuations, partly offset by the revenue drivers discussed above and declines in other costs including lower technology, entertainment programming rights and marketing. Adjusted Segment EBITDA decreased 8%.

Dow Jones

Fourth Quarter Segment Results

Revenues in the quarter increased $20 million, or 4%, compared to the prior year, driven by growth in circulation and subscription revenues underpinned by the professional information business. Digital revenues at Dow Jones in the quarter represented 81% of total revenues compared to 79% in the prior year. Adjusted Revenues increased 4%.

Circulation and subscription revenues increased $17 million, or 4%, primarily driven by an 8% increase in professional information business revenues, led by 12% growth in Risk & Compliance revenues to $76 million and 14% growth in Dow Jones Energy revenues to $65 million. Circulation revenues increased 1% compared to the prior year, as the continued growth in digital-only subscriptions was mostly offset by lower print volume. Digital circulation revenues accounted for 71% of circulation revenues for the quarter, compared to 70% in the prior year.

During the fourth quarter, total average subscriptions to Dow Jones’ consumer products were over 5.8 million, an 11% increase compared to the prior year. Digital-only subscriptions to Dow Jones’ consumer products grew 16% to over 5.2 million. Total subscriptions to The Wall Street Journal grew 7% compared to the prior year, to nearly 4.3 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 11% to almost 3.8 million average subscriptions in the quarter, and represented 89% of total Wall Street Journal subscriptions.

	For the three months ended June 30,
	2024		2023		% Change
(in thousands, except %)					Better/(Worse)
The Wall Street Journal
Digital-only subscriptions	3,788		3,406		11 %
Total subscriptions	4,256		3,966		7 %
Barron’s Group
Digital-only subscriptions	1,290		1,018		27 %
Total subscriptions	1,419		1,168		21 %
Total Consumer
Digital-only subscriptions	5,226		4,510		16 %
Total subscriptions	5,842		5,242		11 %

Advertising revenues increased $2 million, or 2%, primarily due to 12% growth in digital advertising revenues, partly offset by a 13% decline in print advertising revenues. Digital advertising accounted for 66% of total advertising revenues in the quarter, compared to 60% in the prior year.

Segment EBITDA for the quarter increased $4 million, or 3%, primarily as a result of the higher revenues discussed above, partially offset by higher marketing costs and higher employee costs, which includes a retroactive payment related to the ratification of a new union agreement. Adjusted Segment EBITDA increased 3%.

Full Year Segment Results

Fiscal 2024 full year revenues increased $78 million, or 4%, compared to the prior year, primarily driven by growth in professional information business revenues and a $7 million, or 1%, positive impact from foreign currency fluctuations. Adjusted Revenues grew 3% compared to the prior year. Digital revenues at Dow Jones represented 80% of total revenues for the year compared to 78% in the prior year.

Circulation and subscription revenues increased $82 million, or 5%, which includes a $7 million, or 1%, positive impact from foreign currency fluctuations. Professional information business revenues grew 11%, driven by 16% growth in Risk & Compliance products, which reached nearly $300 million in revenues in fiscal 2024, and 16% growth in Dow Jones Energy. Circulation revenues grew 1% compared to the prior year, reflecting continued strong growth in digital-only subscriptions at The Wall Street Journal, offset by lower print volumes. Digital circulation revenues accounted for 71% of circulation revenues for the year, compared to 69% in the prior year.

Advertising revenue decreased $8 million, or 2%, primarily due to a 10% decrease in print advertising, partly offset by a 4% increase in digital advertising. Digital advertising revenues accounted for 64% of total advertising revenues for the year, compared to 61% in the prior year.

Segment EBITDA for fiscal 2024 increased $48 million, or 10%, compared to the prior year, primarily due to higher revenues, as noted above, and lower newsprint, production and distribution costs, partially offset by higher technology and marketing costs. Adjusted Segment EBITDA increased 10%.

Book Publishing

Fourth Quarter Segment Results

Revenues in the quarter increased $66 million, or 15%, compared to the prior year, primarily driven by higher physical and digital book sales and improved returns. Key titles in the quarter included The Bridgerton Series by Julia Quinn, The Midnight Feast by Lucy Foley and When the Moon Hatched by Sarah A. Parker. Bible sales were also strong. Adjusted Revenues increased 15%.

Digital sales increased 12% compared to the prior year, driven by 28% growth from audiobook sales, which benefited from the continued contribution from the new Spotify partnership and strong market conditions. Digital sales represented 24% of Consumer revenues for the quarter compared to 25% in the prior year with audiobooks, for the first time, accounting for more than half of digital revenues for the quarter. Backlist sales represented approximately 62% of Consumer revenues in the quarter compared to 59% in the prior year.

Segment EBITDA for the quarter increased $41 million, to $57 million compared to $16 million in the prior year, primarily due to the higher revenues discussed above and lower manufacturing costs driven by product mix, partially offset by higher employee costs.

Full Year Segment Results

Fiscal 2024 full year revenues increased $114 million, or 6%, compared to the prior year, primarily due to improved returns in the U.S. driven by recovering consumer demand industry-wide and the absence of the impact of Amazon’s reset of its inventory levels and rightsizing of its warehouse footprint in the prior year, as well as higher digital book sales and a $16 million, or 1%, positive impact from foreign currency fluctuations. These improvements were partially offset by lower physical book sales. Adjusted Revenues increased 5% compared to the prior year. Digital sales increased 9% compared to the prior year, driven by 18% growth in audiobooks, which benefited from strong market growth, including the contribution from the new Spotify partnership. Digital sales represented 23% of Consumer revenues for the year compared to 22% in the prior year. Backlist sales represented approximately 61% of Consumer revenues in the year compared to 60% in the prior year.

Segment EBITDA for fiscal 2024 increased $102 million, or 61%, from the prior year primarily due to higher revenues, as discussed above, and lower manufacturing, freight and distribution costs driven by product mix and the absence of prior year supply chain challenges and inventory and inflationary pressures, partially offset by higher employee costs. Adjusted Segment EBITDA increased 59%.

News Media

Fourth Quarter Segment Results

Revenues in the quarter decreased $26 million, or 5%, as compared to the prior year, primarily driven by lower advertising revenues and lower circulation and subscription revenues. Within the segment, revenues at News Corp Australia decreased 5%, driven by lower circulation and subscription revenues, and included a $4 million, or 1%, negative impact from foreign currency fluctuations, while News UK revenues decreased 5% driven by lower advertising revenues. Adjusted Revenues for the segment decreased 4% compared to the prior year.

Circulation and subscription revenues decreased $9 million, or 3%, compared to the prior year, primarily due to lower print volumes and lower digital circulation and subscription revenue at News Corp Australia due to the expiration of the Meta content licensing deal, partially offset by price increases and digital subscriber growth at News UK.

Advertising revenues decreased $11 million, or 5%, compared to the prior year, primarily due to lower print advertising at News UK and News Corp Australia and lower digital advertising mainly driven by a decline in traffic at some mastheads due to platform-related changes, partly offset by growth in digital advertising at Wireless Group.

In the quarter, Segment EBITDA decreased $17 million, or 38%, compared to the prior year, driven by lower contribution from News Corp Australia. Adjusted Segment EBITDA decreased 38%.

Digital revenues represented 37% of News Media segment revenues in the quarter, compared to 36% in the prior year, and represented 35% of the combined revenues of the newspaper mastheads. Digital subscribers and users across key properties within the News Media segment are summarized below:

• Closing digital subscribers at News Corp Australia as of June 30, 2024 were 1,117,000 (968,000 for news mastheads), compared to 1,059,000 (943,000 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, 2024 were 594,000, compared to 565,000 in the prior year (Source: Internal data).
• The Sun’s digital offering reached 112 million global monthly unique users in June 2024, compared to 159 million in the prior year (Source: Meta Pixel)
• New York Post’s digital network reached 117 million unique users in June 2024, compared to 145 million in the prior year (Source: Google Analytics)

Full Year Segment Results

Fiscal 2024 full year revenues decreased $80 million, or 4%, compared to the prior year, which includes a $20 million positive impact from foreign currency fluctuations. Within the segment, revenues at News Corp Australia decreased 7%, driven by lower advertising and a $25 million, or 3%, negative impact from foreign currency fluctuations, while revenues at News UK were flat, reflecting a $39 million, or 5%, positive impact from foreign currency fluctuations. In constant currency, News UK revenues were down 5%. Adjusted Revenues for the segment decreased 4% compared to the prior year.

Circulation and subscription revenues increased $10 million, or 1%, compared to the prior year, primarily due to a $15 million, or 1%, positive impact from foreign currency fluctuations, as cover price increases and digital subscriber growth were more than offset by print volume declines.

Advertising revenues decreased $73 million, or 8%, compared to the prior year, driven by lower print and digital advertising at both News Corp Australia and News UK.

Segment EBITDA for fiscal 2024 decreased $36 million, or 23%, compared to the prior year, which includes $6 million of one-time costs at News UK pertaining to the combination of printing operations with DMG Media. The decrease is primarily due to the lower contribution from News Corp Australia. Adjusted Segment EBITDA decreased 24% compared to the prior year.

CASH FLOW

The following table presents a reconciliation of net cash provided by operating activities to free cash flow:

	For the fiscal years ended June 30,
		2024				2023
	(in millions)
Net cash provided by operating activities	$	1,098			$	1,092
Less: Capital expenditures		(496	)			(499	)
Free cash flow	$	602			$	593

Net cash provided by operating activities of $1,098 million for the fiscal year ended June 30, 2024 was $6 million higher than $1,092 million in the prior year, primarily due to higher Total Segment EBITDA, as noted above, largely offset by higher working capital and higher restructuring payments.

Free cash flow in the fiscal year ended June 30, 2024 was $602 million compared to $593 million in the prior year. The improvement in free cash flow was primarily due to higher cash provided by operating activities, as mentioned above. Foxtel’s capital expenditures for the fiscal year ended June 30, 2024 were $139 million compared to $152 million in the prior year.

Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net cash provided by (used in) operating activities, less capital expenditures. Free cash flow may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of free cash flow.

Free cash flow does not represent the total increase or decrease in the cash balance for the period and should be considered in addition to, not as a substitute for, the net change in cash and cash equivalents as presented in the Company’s consolidated statements of cash flows prepared in accordance with GAAP, which incorporates all cash movements during the period. The Company believes free cash flow provides useful information to management and investors about the Company’s liquidity and cash flow trends.

OTHER ITEMS

Dividends

The Company declared today a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend is payable on October 9, 2024 to stockholders of record as of September 11, 2024.

Strategic Review

In response to third party interest, the Company is assessing strategic and financial options for the Foxtel Group, including its capital structure and assets. There is no assurance regarding the timing of any action or transaction, nor that the strategic review will result in a transaction or other strategic change.

COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION

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 and free cash flow 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 U.S. GAAP are included in Notes 1, 2, 3 and 4 and the reconciliation of net cash provided by operating activities to free cash flow is included above.

Conference call

News Corporation’s earnings conference call can be heard live at 5:00 p.m. EDT on August 8, 2024. 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 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 Australia, news and information services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: www.newscorp.com.

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,
		2024				2023				2024				2023
Revenues:
Circulation and subscription	$	1,140			$	1,129			$	4,509			$	4,447
Advertising		420				424				1,607				1,687
Consumer		487				425				2,000				1,899
Real estate		345				293				1,284				1,189
Other		185				162				685				657
Total Revenues		2,577				2,433				10,085				9,879
Operating expenses		(1,261	)			(1,271	)			(5,053	)			(5,124	)
Selling, general and administrative		(936	)			(821	)			(3,493	)			(3,335	)
Depreciation and amortization		(192	)			(178	)			(734	)			(714	)
Impairment and restructuring charges		(52	)			(85	)			(138	)			(150	)
Equity losses of affiliates		(1	)			(84	)			(6	)			(127	)
Interest expense, net		(18	)			(22	)			(85	)			(100	)
Other, net		(7	)			11				(30	)			1
Income (loss) before income tax expense		110				(17	)			546				330
Income tax expense		(39	)			(15	)			(192	)			(143	)
Net income (loss)		71				(32	)			354				187
Net (income) loss attributable to noncontrolling interests		(21	)			24				(88	)			(38	)
Net income (loss) attributable to News Corporation stockholders	$	50			$	(8	)		$	266			$	149
Weighted average shares outstanding:
Basic		570				573				571				576
Diluted		573				573				574				579
Net income (loss) attributable to News Corporation stockholders per share:
Basic	$	0.09			$	(0.01	)		$	0.47			$	0.26
Diluted	$	0.09			$	(0.01	)		$	0.46			$	0.26

NEWS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited; in millions)
	As of June 30, 2024				As of June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,960			$	1,833
Receivables, net		1,503				1,425
Inventory, net		296				311
Other current assets		613				484
Total current assets		4,372				4,053
Non-current assets:
Investments		430				427
Property, plant and equipment, net		1,914				2,042
Operating lease right-of-use assets		958				1,036
Intangible assets, net		2,322				2,489
Goodwill		5,186				5,140
Deferred income tax assets, net		332				393
Other non-current assets		1,170				1,341
Total assets	$	16,684			$	16,921
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	314			$	440
Accrued expenses		1,231				1,123
Deferred revenue		551				622
Current borrowings		54				27
Other current liabilities		905				953
Total current liabilities		3,055				3,165
Non-current liabilities:
Borrowings		2,855				2,940
Retirement benefit obligations		125				134
Deferred income tax liabilities, net		119				163
Operating lease liabilities		1,027				1,128
Other non-current liabilities		492				446
Commitments and contingencies
Equity:
Class A common stock		4				4
Class B common stock		2				2
Additional paid-in capital		11,254				11,449
Accumulated deficit		(1,889	)			(2,144	)
Accumulated other comprehensive loss		(1,251	)			(1,247	)
Total News Corporation stockholders' equity		8,120				8,064
Noncontrolling interests		891				881
Total equity		9,011				8,945
Total liabilities and equity	$	16,684			$	16,921

NEWS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions)
	For the fiscal years ended June 30,
		2024				2023
Operating activities:
Net income	$	354			$	187
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		734				714
Operating lease expense		96				109
Equity losses of affiliates		6				127
Impairment charges		44				25
Deferred income taxes		17				6
Other, net		34				6
Change in operating assets and liabilities, net of acquisitions:
Receivables and other assets		(120	)			(146	)
Inventories, net		54				(2	)
Accounts payable and other liabilities		(121	)			66
Net cash provided by operating activities		1,098				1,092
Investing activities:
Capital expenditures		(496	)			(499	)
Proceeds from sales of property, plant and equipment		—				37
Acquisitions, net of cash acquired		(38	)			(17	)
Purchases of investments in equity affiliates and other		(96	)			(124	)
Proceeds from sales of investments in equity affiliates and other		81				50
Other, net		25				(21	)
Net cash used in investing activities		(524	)			(574	)
Financing activities:
Borrowings		1,268				514
Repayment of borrowings		(1,375	)			(589	)
Repurchase of shares		(117	)			(243	)
Dividends paid		(172	)			(174	)
Other, net		(45	)			(9	)
Net cash used in financing activities		(441	)			(501	)
Net change in cash and cash equivalents		133				17
Cash and cash equivalents, beginning of year		1,833				1,822
Effect of exchange rate changes on cash and cash equivalents		(6	)			(6	)
Cash and cash equivalents, end of year	$	1,960			$	1,833

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 income (loss) to Total Segment EBITDA for the three months and fiscal years ended June 30, 2024 and 2023:

	For the three months ended June 30,
		2024				2023			Change				% Change
	(in millions)
Net income (loss)	$	71			$	(32	)		$	103			**
Add:
Income tax expense		39				15				24			160	%
Other, net		7				(11	)			18			**
Interest expense, net		18				22				(4	)		(18	)%
Equity losses of affiliates		1				84				(83	)		(99	)%
Impairment and restructuring charges		52				85				(33	)		(39	)%
Depreciation and amortization		192				178				14			8	%
Total Segment EBITDA	$	380			$	341			$	39			11	%

	For the fiscal years ended June 30,
		2024				2023			Change				% Change
	(in millions)
Net income	$	354			$	187			$	167			89	%
Add:
Income tax expense		192				143				49			34	%
Other, net		30				(1	)			31			**
Interest expense, net		85				100				(15	)		(15	)%
Equity losses of affiliates		6				127				(121	)		(95	)%
Impairment and restructuring charges		138				150				(12	)		(8	)%
Depreciation and amortization		734				714				20			3	%
Total Segment EBITDA	$	1,539			$	1,420			$	119			8	%
**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 U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period.

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, 2024 and 2023:

	Revenues													Total Segment EBITDA
	For the three months ended June 30,													For the three months ended June 30,
		2024				2023			Difference						2024				2023			Difference
	(in millions)													(in millions)
As reported	$	2,577			$	2,433			$	144				$	380			$	341			$	39
Impact of acquisitions		(5	)			—				(5	)				1				(3	)			4
Impact of foreign currency fluctuations		15				—				15					3				—				3
Net impact of U.K. Newspaper Matters		—				—				—					1				3				(2	)
As adjusted	$	2,587			$	2,433			$	154				$	385			$	341			$	44

	Revenues													Total Segment EBITDA
	For the fiscal years ended June 30,													For the fiscal years ended June 30,
		2024				2023			Difference						2024				2023			Difference
	(in millions)													(in millions)
As reported	$	10,085			$	9,879			$	206				$	1,539			$	1,420			$	119
Impact of acquisitions		(21	)			—				(21	)				1				7				(6	)
Impact of foreign currency fluctuations		37				—				37					17				—				17
Net impact of U.K. Newspaper Matters		—				—				—					8				16				(8	)
As adjusted	$	10,101			$	9,879			$	222				$	1,565			$	1,443			$	122

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, 2024 and 2023 are as follows:

	Fiscal Year 2024
	Q1		Q2		Q3		Q4
U.S. Dollar per Australian Dollar	$0.65		$0.65		$0.66		$0.66
U.S. Dollar per British Pound Sterling	$1.27		$1.24		$1.27		$1.26
	Fiscal Year 2023
	Q1		Q2		Q3		Q4
U.S. Dollar per Australian Dollar	$0.68		$0.66		$0.68		$0.67
U.S. Dollar per British Pound Sterling	$1.17		$1.17		$1.22		$1.25

Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months and fiscal years ended June 30, 2024 and 2023 are as follows:

	For the three months ended June 30,
		2024				2023			% Change
	(in millions)								Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services	$	447			$	369			21	%
Subscription Video Services		513				501			2	%
Dow Jones		567				546			4	%
Book Publishing		512				446			15	%
News Media		548				571			(4	)%
Other		—				—			—	%
Adjusted Total Revenues	$	2,587			$	2,433			6	%
Adjusted Segment EBITDA:
Digital Real Estate Services	$	138			$	108			28	%
Subscription Video Services		75				78			(4	)%
Dow Jones		137				133			3	%
Book Publishing		57				16			256	%
News Media		28				45			(38	)%
Other		(50	)			(39	)		(28	)%
Adjusted Total Segment EBITDA	$	385			$	341			13	%

	For the fiscal years ended June 30,
		2024				2023			% Change
	(in millions)								Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services	$	1,671			$	1,539			9	%
Subscription Video Services		1,969				1,942			1	%
Dow Jones		2,224				2,153			3	%
Book Publishing		2,071				1,979			5	%
News Media		2,166				2,266			(4	)%
Other		—				—			—	%
Adjusted Total Revenues	$	10,101			$	9,879			2	%
Adjusted Segment EBITDA:
Digital Real Estate Services	$	524			$	457			15	%
Subscription Video Services		319				347			(8	)%
Dow Jones		541				494			10	%
Book Publishing		265				167			59	%
News Media		118				156			(24	)%
Other		(202	)			(178	)		(13	)%
Adjusted Total Segment EBITDA	$	1,565			$	1,443			8	%

The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months and fiscal years ended June 30, 2024 and 2023:

	For the three months ended June 30, 2024
	As Reported				Impact of Acquisitions				Impact of Foreign Currency Fluctuations				Net Impact of U.K. Newspaper Matters				As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	448			$	(5	)		$	4			$	—			$	447
Subscription Video Services		506				—				7				—				513
Dow Jones		566				—				1				—				567
Book Publishing		512				—				—				—				512
News Media		545				—				3				—				548
Other		—				—				—				—				—
Total Revenues	$	2,577			$	(5	)		$	15			$	—			$	2,587
Segment EBITDA:
Digital Real Estate Services	$	135			$	1			$	2			$	—			$	138
Subscription Video Services		74				—				1				—				75
Dow Jones		137				—				—				—				137
Book Publishing		57				—				—				—				57
News Media		28				—				—				—				28
Other		(51	)			—				—				1				(50	)
Total Segment EBITDA	$	380			$	1			$	3			$	1			$	385

	For the three months ended June 30, 2023
	As Reported				Impact of Acquisitions				Impact of Foreign Currency Fluctuations				Net Impact of U.K. Newspaper Matters				As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	369			$	—			$	—			$	—			$	369
Subscription Video Services		501				—				—				—				501
Dow Jones		546				—				—				—				546
Book Publishing		446				—				—				—				446
News Media		571				—				—				—				571
Other		—				—				—				—				—
Total Revenues	$	2,433			$	—			$	—			$	—			$	2,433
Segment EBITDA:
Digital Real Estate Services	$	108			$	—			$	—			$	—			$	108
Subscription Video Services		78				—				—				—				78
Dow Jones		133				—				—				—				133
Book Publishing		16				—				—				—				16
News Media		45				—				—				—				45
Other		(39	)			(3	)			—				3				(39	)
Total Segment EBITDA	$	341			$	(3	)		$	—			$	3			$	341

	For the fiscal year ended June 30, 2024
	As Reported				Impact of Acquisitions				Impact of Foreign Currency Fluctuations				Net Impact of U.K. Newspaper Matters				As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	1,658			$	(15	)		$	28			$	—			$	1,671
Subscription Video Services		1,917				—				52				—				1,969
Dow Jones		2,231				—				(7	)			—				2,224
Book Publishing		2,093				(6	)			(16	)			—				2,071
News Media		2,186				—				(20	)			—				2,166
Other		—				—				—				—				—
Total Revenues	$	10,085			$	(21	)		$	37			$	—			$	10,101
Segment EBITDA:
Digital Real Estate Services	$	508			$	3			$	13			$	—			$	524
Subscription Video Services		310				—				9				—				319
Dow Jones		542				—				(1	)			—				541
Book Publishing		269				(2	)			(2	)			—				265
News Media		120				—				(2	)			—				118
Other		(210	)			—				—				8				(202	)
Total Segment EBITDA	$	1,539			$	1			$	17			$	8			$	1,565

	For the fiscal year ended June 30, 2023
	As Reported				Impact of Acquisitions				Impact of Foreign Currency Fluctuations				Net Impact of U.K. Newspaper Matters				As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	1,539			$	—			$	—			$	—			$	1,539
Subscription Video Services		1,942				—				—				—				1,942
Dow Jones		2,153				—				—				—				2,153
Book Publishing		1,979				—				—				—				1,979
News Media		2,266				—				—				—				2,266
Other		—				—				—				—				—
Total Revenues	$	9,879			$	—			$	—			$	—			$	9,879
Segment EBITDA:
Digital Real Estate Services	$	457			$	—			$	—			$	—			$	457
Subscription Video Services		347				—				—				—				347
Dow Jones		494				—				—				—				494
Book Publishing		167				—				—				—				167
News Media		156				—				—				—				156
Other		(201	)			7				—				16				(178	)
Total Segment EBITDA	$	1,420			$	7			$	—			$	16			$	1,443

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 U.K. Newspaper Matters, litigation charges, impairment and restructuring charges and “Other, net”, net of tax, recognized by the Company or its equity method investees, as well as the settlement of certain pre-Separation tax matters (“adjusted net income (loss) attributable to News Corporation stockholders” and “adjusted EPS,” respectively), to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period, as well as certain non-operational items. The calculation of adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS 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 net income (loss) attributable to News Corporation stockholders and adjusted EPS are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income (loss) attributable to News Corporation stockholders and net income (loss) per share as determined under GAAP as a measure 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 net income (loss) 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, 2024 and 2023:

	For the three months ended June 30, 2024								For the three months ended June 30, 2023
(in millions, except per share data)	Net income attributable to stockholders				EPS				Net (loss) income attributable to stockholders				EPS
Net income (loss)	$	71							$	(32	)
Net (income) loss attributable to noncontrolling interests		(21	)							24
Net income (loss) attributable to News Corporation stockholders	$	50			$	0.09			$	(8	)		$	(0.01	)
U.K. Newspaper Matters		1				—				3				—
Impairment and restructuring charges(a)		52				0.09				85				0.15
Equity losses of affiliates(b)		—				—				81				0.14
Other, net		7				0.01				(11	)			(0.02	)
Tax impact on items above		(11	)			(0.02	)			(37	)			(0.06	)
Impact of noncontrolling interest on items above		—				—				(35	)			(0.06	)
As adjusted	$	99			$	0.17			$	78			$	0.14

(a)		During the three months ended June 30, 2024, the Company recognized non-cash impairment charges of $20 million primarily related to the impairment of an indefinite-lived intangible asset and goodwill during the Company’s annual impairment assessment.
		During the three months ended June 30, 2023, the Company recognized non-cash impairment charges of $25 million related to the impairment of certain indefinite-lived intangible assets during the Company’s annual impairment assessment.
(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 $81 million.

	For the fiscal year ended June 30, 2024								For the fiscal year ended June 30, 2023
(in millions, except per share data)	Net income attributable to stockholders				EPS				Net income attributable to stockholders				EPS
Net income	$	354							$	187
Less: Net income attributable to noncontrolling interests		(88	)							(38	)
Net income attributable to News Corporation stockholders	$	266			$	0.46			$	149			$	0.26
U.K. Newspaper Matters		8				0.02				16				0.02
Impairment and restructuring charges (a)		138				0.24				150				0.26
Equity losses of affiliates (b)		—				—				81				0.14
Other, net		30				0.05				(1	)			—
Tax impact on items above		(41	)			(0.07	)			(76	)			(0.13	)
Impact of noncontrolling interest on items above		2				—				(36	)			(0.06	)
As adjusted	$	403			$	0.70			$	283			$	0.49

(a)		During the fiscal year ended June 30, 2024, the Company recognized non-cash impairment charges of $44 million primarily related to the write-down of fixed assets associated with the proposed combination of certain U.K. printing operations with those of a third party and the impairment of an indefinite-lived intangible asset and goodwill during the Company’s annual impairment assessment.
		During the fiscal year ended June 30, 2023, the Company recognized non-cash impairment charges of $25 million related to the impairment of certain indefinite-lived intangible assets during the Company’s annual impairment assessment.
(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 $81 million.

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 U.S. dollar as described in Note 2.

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, 2024:

	Q4 Fiscal 2023				Q4 Fiscal 2024				FX impact				Q4 Fiscal 2024 constant currency				% Change - reported			% Change - constant currency
	($ in millions)																Better/(Worse)
Consolidated results:
Circulation and subscription	$	1,129			$	1,140			$	(7	)		$	1,147			1	%		2	%
Advertising		424				420				(3	)			423			(1	)%		—	%
Consumer		425				487				—				487			15	%		15	%
Real estate		293				345				(4	)			349			18	%		19	%
Other		162				185				(1	)			186			14	%		15	%
Total revenues	$	2,433			$	2,577			$	(15	)		$	2,592			6	%		7	%
Digital Real Estate Services:
Circulation and subscription	$	3			$	2			$	—			$	2			(33	)%		(33	)%
Advertising		37				37				—			$	37			—	%		—	%
Real estate		293				345				(4	)		$	349			18	%		19	%
Other		36				64				—			$	64			78	%		78	%
Total Digital Real Estate Services segment revenues	$	369			$	448			$	(4	)		$	452			21	%		22	%
REA Group revenues	$	223			$	305			$	(4	)		$	309			37	%		39	%
Subscription Video Services:
Circulation and subscription	$	422			$	426			$	(6	)		$	432			1	%		2	%
Advertising		67				72				(1	)		$	73			7	%		9	%
Other		12				8				—			$	8			(33	)%		(33	)%
Total Subscription Video Services segment revenues	$	501			$	506			$	(7	)		$	513			1	%		2	%

	Q4 Fiscal 2023				Q4 Fiscal 2024				FX impact				Q4 Fiscal 2024 constant currency				% Change - reported			% Change - constant currency
	($ in millions)																Better/(Worse)
Dow Jones:
Circulation and subscription	$	432			$	449			$	(1	)		$	450			4	%		4	%
Advertising		100				102				—			$	102			2	%		2	%
Other		14				15				—			$	15			7	%		7	%
Total Dow Jones segment revenues	$	546			$	566			$	(1	)		$	567			4	%		4	%
Book Publishing:
Consumer		425				487				—			$	487			15	%		15	%
Other		21				25				—			$	25			19	%		19	%
Total Book Publishing segment revenues	$	446			$	512			$	—			$	512			15	%		15	%
News Media:
Circulation and subscription	$	272			$	263			$	—			$	263			(3	)%		(3	)%
Advertising		220				209				(2	)		$	211			(5	)%		(4	)%
Other		79				73				(1	)		$	74			(8	)%		(6	)%
Total News Media segment revenues	$	571			$	545			$	(3	)		$	548			(5	)%		(4	)%
News UK
Circulation and subscription	$	138			$	140			$	1			$	139			1	%		1	%
Advertising		72				63				—			$	63			(13	)%		(13	)%
Other		29				25				—			$	25			(14	)%		(14	)%
Total News UK revenues	$	239			$	228			$	1			$	227			(5	)%		(5	)%
News Corp Australia
Circulation and subscription	$	109			$	101			$	(1	)		$	102			(7	)%		(6	)%
Advertising		96				94				(2	)		$	96			(2	)%		—	%
Other		44				41				(1	)		$	42			(7	)%		(5	)%
Total News Corp Australia revenues	$	249			$	236			$	(4	)		$	240			(5	)%		(4	)%

	Fiscal 2023				Fiscal 2024				FX impact				Fiscal 2024 constant currency				% Change - reported			% Change - constant currency
	($ in millions)																Better/(Worse)
Consolidated results:
Circulation and subscription	$	4,447			$	4,509			$	(23	)		$	4,532			1	%		2	%
Advertising		1,687				1,607				(2	)			1,609			(5	)%		(5	)%
Consumer		1,899				2,000				16				1,984			5	%		4	%
Real estate		1,189				1,284				(22	)			1,306			8	%		10	%
Other		657				685				(6	)			691			4	%		5	%
Total revenues	$	9,879			$	10,085			$	(37	)		$	10,122			2	%		2	%
Digital Real Estate Services:
Circulation and subscription	$	12			$	10			$	—			$	10			(17	)%		(17	)%
Advertising		140				136				(1	)		$	137			(3	)%		(2	)%
Real estate		1,189				1,284				(22	)		$	1,306			8	%		10	%
Other		198				228				(5	)		$	233			15	%		18	%
Total Digital Real Estate Services segment revenues	$	1,539			$	1,658			$	(28	)		$	1,686			8	%		10	%
REA Group revenues	$	937			$	1,114			$	(28	)		$	1,142			19	%		22	%
Subscription Video Services:
Circulation and subscription	$	1,671			$	1,643			$	(45	)		$	1,688			(2	)%		1	%
Advertising		227				232				(6	)		$	238			2	%		5	%
Other		44				42				(1	)		$	43			(5	)%		(2	)%
Total Subscription Video Services segment revenues	$	1,942			$	1,917			$	(52	)		$	1,969			(1	)%		1	%
Dow Jones:
Circulation and subscription	$	1,689			$	1,771			$	7			$	1,764			5	%		4	%
Advertising		413				405				—			$	405			(2	)%		(2	)%
Other		51				55				—			$	55			8	%		8	%
Total Dow Jones segment revenues	$	2,153			$	2,231			$	7			$	2,224			4	%		3	%
Book Publishing:
Consumer		1,899				2,000				16			$	1,984			5	%		4	%
Other		80				93				—			$	93			16	%		16	%
Total Book Publishing segment revenues	$	1,979			$	2,093			$	16			$	2,077			6	%		5	%

	Fiscal 2023				Fiscal 2024				FX impact				Fiscal 2024 constant currency				% Change - reported			% Change - constant currency
	($ in millions)																Better/(Worse)
News Media:
Circulation and subscription	$	1,075			$	1,085			$	15			$	1,070			1	%		—	%
Advertising		907				834				5			$	829			(8	)%		(9	)%
Other		284				267				—			$	267			(6	)%		(6	)%
Total News Media segment revenues	$	2,266			$	2,186			$	20			$	2,166			(4	)%		(4	)%
News UK
Circulation and subscription	$	536			$	569			$	25			$	544			6	%		1	%
Advertising		288				262				10			$	252			(9	)%		(13	)%
Other		109				98				4			$	94			(10	)%		(14	)%
Total News UK revenues	$	933			$	929			$	39			$	890			—	%		(5	)%
News Corp Australia
Circulation and subscription	$	440			$	419			$	(11	)		$	430			(5	)%		(2	)%
Advertising		412				366				(10	)		$	376			(11	)%		(9	)%
Other		146				144				(4	)		$	148			(1	)%		1	%
Total News Corp Australia revenues	$	998			$	929			$	(25	)		$	954			(7	)%		(4	)%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808836523/en/

Investor Relations

Michael Florin

212-416-3363

mflorin@newscorp.com

Anthony Rudolf

212-416-3040

arudolf@newscorp.com

Corporate Communications

Arthur Bochner

646-422-9671

abochner@newscorp.com

Source: News Corporation

FAQ

What were News 's earnings for the fourth quarter of fiscal 2024?

News reported fourth quarter revenues of $2.58 billion and a net income of $71 million. Adjusted EPS were $0.17.

How did News 's Book Publishing segment perform in Q4 of fiscal 2024?

The Book Publishing segment saw a 15% increase in revenues, driven by higher physical and digital book sales, with digital audiobook revenue surpassing e-books.

What was the total revenue for News in fiscal 2024?

News 's total revenue for fiscal 2024 was $10.09 billion, a 2% increase compared to the previous year.

How many streaming subscribers did Foxtel Group have at the end of fiscal 2024?

Foxtel Group had over 3.2 million total paying streaming subscribers at the end of fiscal 2024.

What is the significance of News 's partnership with OpenAI?

The partnership with OpenAI is expected to be lucrative and will enable News Corp to advance AI in journalism.