Overview of News Corporation’s Financial Performance

News Corporation, a global media and information services company, has reported its financial results for the three and nine months ended March 31, 2025. The company operates in five main segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other.

Overall, News Corp’s revenues increased by 1% and 3% for the three and nine month periods, respectively, compared to the same periods in the prior year. This was driven by higher revenues across most of the company’s business segments. Net income from continuing operations also increased significantly, by 67% and 80% for the three and nine month periods, respectively.

The Dow Jones segment, which includes The Wall Street Journal and other business information products, saw a 6% and 4% increase in revenues for the three and nine month periods, respectively, due to growth in circulation and subscription revenues. Segment EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 12% and 8% for the respective periods.

The Digital Real Estate Services segment, which includes REA Group and Move, reported revenue increases of 5% and 10% for the three and nine month periods. This was driven by higher residential revenues at REA Group and growth in seller, new homes and rentals at Move. Segment EBITDA increased by 19% and 20% for the respective periods.

The Book Publishing segment, home to HarperCollins, saw a 2% and 5% increase in revenues, boosted by the acquisition of a German book publisher and higher physical and digital book sales. Segment EBITDA rose by 3% and 16% for the three and nine month periods.

The News Media segment, which includes news operations in Australia, the UK and the US, reported revenue declines of 8% and 5% for the three and nine month periods, respectively, due to lower advertising and circulation revenues. However, Segment EBITDA increased by 22% and 24% as a result of cost savings initiatives.

Analysis of Strengths and Weaknesses

A key strength of News Corp is the diversity of its business portfolio, with strong performance across multiple segments. The Dow Jones, Digital Real Estate Services and Book Publishing divisions all delivered solid revenue and profit growth, offsetting the challenges faced by the News Media segment.

The company’s digital transformation efforts also appear to be paying off, with digital revenues representing a growing proportion of total revenues, particularly at Dow Jones and the Book Publishing unit. This suggests the company is successfully adapting to the shift towards digital consumption of media and information.

Another strength is News Corp’s focus on cost management, as evidenced by the significant improvements in Segment EBITDA margins, particularly in the News Media segment. The consolidation of printing operations in the UK and other efficiency initiatives have helped offset revenue declines.

However, the ongoing challenges in the News Media business, with lower advertising and circulation revenues, remain a weakness. While the segment has implemented cost savings, it may struggle to fully offset the structural decline in traditional print media. The company will need to continue investing in digital capabilities and new revenue streams to address this.

The sale of the Foxtel pay-TV business is a significant event, as it allows News Corp to focus more on its core publishing and digital real estate operations. But it also introduces risks and uncertainties, as the company navigates the strategic shift and integrates the minority equity stake in the new owner, DAZN.

Outlook and Future Prospects

Looking ahead, News Corp appears well-positioned to continue its growth trajectory, particularly in its digital-focused segments. The Dow Jones, Digital Real Estate Services and Book Publishing divisions all have promising outlooks, with opportunities to further expand their digital offerings and customer bases.

The company’s strong balance sheet and cash flow generation provide financial flexibility to invest in strategic initiatives, pursue acquisitions, and return capital to shareholders through dividends and share buybacks.

However, the company will need to closely monitor the macroeconomic environment, as factors such as trade tensions, inflation and changes in consumer spending could impact demand for its products and services. The News Media segment will also require ongoing attention to adapt to the evolving media landscape.

Overall, News Corp’s diversified business model, digital transformation progress, and focus on operational efficiency position the company well to navigate the challenges and capitalize on the opportunities in the media and information services industry.