News Corporation reported a robust half-year performance with revenues up 4% to $4.33 billion and net income soaring 80% to $334 million, while advancing its strategic pivot through the planned sale of Foxtel.
- Revenues increased 4% to US$4.33 billion for H1 FY2025
- Net income surged 80% to US$334 million
- Foxtel classified as discontinued operations pending sale to DAZN
- Strong growth in Digital Real Estate Services and Book Publishing segments
- Interim dividend declared at US$0.10 per share, payable April 2025
Financial Highlights and Strategic Shift
News Corporation has delivered a solid financial performance for the half year ended 31 December 2024, with consolidated revenues rising 4% to US$4.33 billion and net income climbing an impressive 80% to US$334 million. This growth was underpinned by strong contributions from its Digital Real Estate Services and Book Publishing segments, offsetting softness in News Media revenues.
The company’s interim dividend of US$0.10 per share, declared in February 2025 and payable in April, signals confidence in ongoing cash flow generation despite the evolving media landscape.
Foxtel Sale and Discontinued Operations
A key strategic development during the period was the definitive agreement to sell the Foxtel Group to DAZN Group Limited, a global sports streaming platform. Foxtel’s assets and liabilities have been classified as held for sale and its results as discontinued operations, reflecting a major shift in News Corp’s operational focus away from subscription video services.
Upon closing, expected in the second half of fiscal 2025 subject to regulatory approvals, News Corp will receive a minority equity stake of approximately 6% in DAZN and a board seat, maintaining a strategic interest in the evolving streaming market while divesting direct operational exposure.
Segment Performance Insights
The Digital Real Estate Services segment, comprising REA Group and Move, posted a 13% revenue increase driven by higher Australian residential property listings and growth in digital advertising, despite macroeconomic headwinds in the U.S. housing market. Segment EBITDA rose 21%, reflecting operational leverage and cost discipline.
Book Publishing saw a 6% revenue uplift, fueled by stronger physical and digital book sales, including growth in audiobooks and digital partnerships such as with Spotify. Segment EBITDA increased 21%, despite higher manufacturing costs associated with increased sales volume.
Dow Jones revenues grew 3%, supported by higher circulation and subscription revenues, particularly in digital formats, which now represent over 80% of segment revenues. News Media revenues declined 3%, impacted by lower print advertising and the transfer of printing contracts to a joint venture, but cost savings initiatives helped lift segment EBITDA by 24%.
Balance Sheet and Cash Flow
News Corp ended the period with US$1.8 billion in cash and cash equivalents and maintained compliance with all debt covenants. Operating cash flow from continuing operations increased modestly to US$278 million, while free cash flow improved to US$121 million, reflecting disciplined capital expenditure and working capital management.
The company continued its share repurchase program, buying back US$78 million of stock in the half year, with approximately US$382 million remaining authorized. This, alongside the declared dividend, underscores a shareholder-friendly capital allocation approach.
Leadership and Governance
News Corp appointed Lavanya Chandrashekar as Executive Vice President and Chief Financial Officer effective January 2025, succeeding Susan Panuccio who transitioned to a senior advisory role. This leadership continuity supports the company’s strategic and financial execution during this transformative phase.
Management affirmed the effectiveness of internal controls and compliance with regulatory requirements, with no material changes impacting financial reporting during the quarter.
Bottom Line?
As News Corp accelerates its pivot from traditional media to digital real estate and publishing, the Foxtel sale marks a defining moment that will shape its next growth chapter.
Questions in the middle?
- How will News Corp deploy proceeds from the Foxtel sale to fuel growth or reduce debt?
- What are the risks and opportunities in the Digital Real Estate Services segment amid global housing market volatility?
- How sustainable are the cost savings in News Media given ongoing print advertising declines?