News Corp Q3 2025: Revenues Rise 3%, Net Income Surges, Foxtel Sale Finalized

Overview of Financial Performance

News Corporation has released its Form 10-Q for the quarter ended March 31, 2025, revealing a modest 3% increase in total revenues to $2.009 billion compared to the prior year quarter. This growth was driven primarily by stronger performances in the Dow Jones, Digital Real Estate Services, and Book Publishing segments. Despite a slight decline in the News Media segment, the company’s overall profitability improved significantly, with net income attributable to stockholders surging to $137 million from $42 million in the same period last year.

The company’s operating expenses decreased by 4%, reflecting cost savings initiatives, particularly in the News Media segment following the integration of printing operations with DMG Media. Selling, general and administrative expenses saw a modest increase, largely due to higher technology and marketing investments at Dow Jones and employee-related costs.

Strategic Divestiture: Foxtel Sale

A major highlight of this quarter was the completion of the sale of the Foxtel Group to DAZN Group Limited, a global sports streaming platform. The transaction closed on April 2, 2025, with News Corp receiving a 6% minority equity stake in DAZN and a seat on its board. Foxtel’s assets and liabilities have been reclassified as held for sale and its results are now reported as discontinued operations, reflecting a strategic shift that will have a lasting impact on News Corp’s operational focus and financial profile.

Segment Highlights

The Dow Jones segment, representing 27% of consolidated revenues, posted a 6% revenue increase fueled by higher circulation and subscription revenues, particularly digital subscriptions. Digital revenues now constitute 82% of Dow Jones’s total revenues, underscoring the ongoing digital transformation.

The Digital Real Estate Services segment, comprising REA Group and Move, grew revenues by 5% in the quarter, supported by robust Australian residential property advertising and growth in digital offerings despite challenging macroeconomic conditions in the U.S. housing market.

Book Publishing revenues rose 2%, boosted by the acquisition of a German publisher and growth in digital sales, including audiobooks and e-books, which now make up about a quarter of consumer revenues. The News Media segment experienced an 8% revenue decline, primarily due to lower advertising revenues and the transfer of printing contracts, but improved profitability through cost efficiencies.

Liquidity, Capital Management, and Shareholder Returns

News Corp maintains a strong liquidity position with $2.1 billion in cash and cash equivalents as of March 31, 2025. The company continues to execute its $1 billion share repurchase program, having repurchased $115 million worth of shares in the first nine months of fiscal 2025. Additionally, a semi-annual dividend of $0.10 per share was declared and paid in April 2025, reflecting the company’s commitment to returning value to shareholders.

Free cash flow improved to $539 million for the nine months ended March 31, 2025, up from $475 million in the prior year, driven by higher operating cash flows and disciplined capital expenditures.

Legal and Regulatory Landscape

News Corp continues to navigate several legal contingencies, including antitrust settlements related to its Oil Price Information Service and ongoing matters stemming from the U.K. Newspaper investigations. The company has accrued liabilities where losses are probable and estimable, but uncertainties remain. Management remains vigilant in monitoring these risks and their potential financial impact.

On the tax front, News Corp faces evolving global minimum tax regulations, but currently expects no material impact on its financial results. The company also maintains compliance with all debt covenants and continues to monitor market risks prudently.