News Corp Q3 FY25: Revenues $2.01B, Net Income Up 67%, Foxtel Deal Closed

Solid Revenue Growth Amid Currency Headwinds

News Corporation’s third quarter results for fiscal 2025 reveal a company steadily navigating a challenging media landscape. Revenues edged up 1% to $2.01 billion despite a 1% negative impact from foreign currency fluctuations. This modest top-line growth was underpinned by strong performances in Dow Jones, Digital Real Estate Services, and Book Publishing segments.

Profitability Surges on Digital Subscriptions and Cost Discipline

Net income from continuing operations soared 67% to $107 million, reflecting a 12% increase in Total Segment EBITDA to $290 million. Adjusted earnings per share rose to $0.17 from $0.13 a year earlier. CEO Robert Thomson highlighted the company’s strategic transformation, emphasizing digital growth, asset realignment, and rigorous cost control as key drivers behind the improved margins across all segments.

Dow Jones Leads with Subscription Momentum

Dow Jones was a standout, with revenues climbing 6% to $575 million. Digital circulation revenues grew robustly, with digital-only subscriptions increasing 9% to over 5.5 million and total consumer subscriptions rising 7% to 6.1 million. The Wall Street Journal’s digital-only subscriptions grew 5% to nearly 3.9 million, now representing 90% of its total subscriptions. Growth in professional information businesses, including Risk & Compliance and Dow Jones Energy, further bolstered results.

Digital Real Estate and Book Publishing Show Resilience

Digital Real Estate Services revenues increased 5% to $406 million, driven by REA Group’s strong Australian residential market performance and improved results at Move. Despite a challenging housing market, Move’s revenue grew for the second consecutive quarter. Book Publishing revenues rose 2%, supported by strong backlist sales and growth in downloadable audiobooks, including partnerships with Spotify.

News Media Faces Revenue Pressure but Improves Profitability

The News Media segment saw an 8% revenue decline to $514 million, primarily due to lower advertising and circulation revenues amid shifting consumer habits and currency headwinds. However, segment EBITDA increased 22% thanks to cost savings initiatives and operational efficiencies, including the consolidation of printing operations in the UK.

Strategic Foxtel Sale Strengthens Balance Sheet

April marked a pivotal moment with the completion of the Foxtel Group sale to DAZN. News Corp received full repayment of shareholder loans and secured a 6% minority equity stake in DAZN, along with a board seat. This transaction not only bolstered the company’s balance sheet but is expected to enhance return on invested capital and be accretive to earnings per share, signaling a sharper focus on core media and information services.

Cash Flow and Outlook

Free cash flow improved to $539 million for the nine months ended March 31, 2025, reflecting higher operating cash flow and disciplined capital expenditures. While macroeconomic uncertainties and currency volatility remain, News Corp’s diversified portfolio and digital subscription momentum position it well for continued transformation and shareholder value creation.