News Corp (NWS) investor relations material

Executive summary

• Revenue increased 2% year-over-year to $2.14 billion, led by Dow Jones and Digital Real Estate Services, while Book Publishing declined due to a $13 million write-off but showed recent improvement.

• Net income from continuing operations rose to $150 million, with total segment EBITDA up 5% to $340 million, reflecting higher revenues and cost savings.

• Adjusted EPS improved to $0.22 from $0.20, while reported EPS was $0.20 versus $0.21 last year.

• Share repurchases accelerated, running at over four times the prior fiscal year's pace, with $92–94 million spent in the quarter.

• Free cash flow improved to $4 million from $(49) million in the prior year period.

Financial highlights

• Dow Jones revenues up 6% to $586 million; Digital Real Estate Services up 5% to $479 million; Book Publishing down 2% to $534 million; News Media up 1% to $545 million.

• Segment EBITDA: Dow Jones up 10% to $144 million; Digital Real Estate up 13% to $158 million; Book Publishing down 28% to $58 million; News Media up 67% to $30 million.

• Margins improved by 40 basis points to 15.9% year-over-year.

• Circulation and subscription revenues increased 5% to $782 million; advertising revenues declined 1% to $317 million.

• Digital revenues now comprise 62% of total business, with 84% of Dow Jones segment revenue.

Outlook and guidance

• Management expects strong free cash flow for the fiscal year, with capital spending up moderately, partly for HarperCollins logistics investments.

• Continued growth in digital revenues anticipated, especially in Dow Jones and Digital Real Estate Services, but macroeconomic headwinds persist in U.S. housing and Book Publishing.

• Book Publishing trends improving, with Q2 expected to benefit from stronger front list and timing of orders.

• Company maintains strong liquidity with $2.2 billion in cash and access to credit facilities.

• Continued aggressive share buybacks planned.