News Corporation reported a robust fiscal 2025 with revenues climbing 2% to $8.45 billion and net income from continuing operations surging 71%. The company also announced a new $1 billion accelerated stock repurchase program, underscoring confidence in its financial strength.
- Fiscal 2025 revenues up 2% to $8.45 billion
- Net income from continuing operations rises 71% to $648 million
- Total Segment EBITDA grows 14% to $1.42 billion
- Dow Jones and REA Group achieve record revenues
- New $1 billion accelerated stock buyback program announced
Strong Full-Year Growth Amid Mixed Segment Performance
News Corporation closed fiscal 2025 with solid financial results, reporting a 2% increase in full-year revenues to $8.45 billion. This growth was primarily driven by the company’s core pillars – Digital Real Estate Services, Dow Jones, and Book Publishing. Net income from continuing operations surged 71% to $648 million, reflecting improved operational efficiencies and higher earnings contributions across key segments.
The company’s Total Segment EBITDA rose 14% to a record $1.42 billion, signaling enhanced profitability despite ongoing challenges in some areas. Fourth quarter revenues were $2.11 billion, up 1% year-over-year, with net income climbing 28% to $86 million. These results highlight a steady momentum heading into the new fiscal year.
Dow Jones and REA Group Lead with Record Revenues
Dow Jones posted record full-year revenues of $2.33 billion, supported by strong growth in its professional information business, including a 15% increase in Risk & Compliance revenues and an 11% rise in Dow Jones Energy revenues. Digital circulation revenues also contributed significantly, with digital subscriptions to The Wall Street Journal growing 9% in the quarter to over 4.1 million.
REA Group, News Corp’s digital real estate arm, also delivered record revenues of $1.25 billion, a 12% increase driven by robust Australian residential market performance. Despite macroeconomic headwinds such as higher interest rates impacting lead volumes at Move (REA’s U.S. real estate platform), the segment’s EBITDA grew 18% for the year, reflecting operational resilience and strategic focus on premium offerings.
News Media Faces Revenue Pressure but Gains from Cost Savings
The News Media segment experienced a 4% revenue decline for the year, impacted by lower print advertising and circulation revenues, particularly in Australia and the UK. However, cost-saving initiatives, including the consolidation of printing operations with DMG Media, helped lift segment EBITDA by 15%. Digital revenues now represent a growing share of the segment’s income, with digital subscribers increasing across key mastheads.
Capital Returns Accelerate with New $1 Billion Buyback
Reflecting confidence in its financial position, News Corp announced a new $1 billion stock repurchase program in July, supplementing the approximately $300 million remaining from a prior buyback. The company plans to accelerate the pace of share repurchases, signaling management’s commitment to returning capital to shareholders amid a challenging media landscape.
Free cash flow improved to $571 million, supporting the company’s dividend declaration of $0.10 per share payable in October. CEO Robert Thomson emphasized the importance of intellectual property in the AI era, underscoring News Corp’s strategic focus on content and innovation as competitive advantages.
Bottom Line?
With strong earnings and an aggressive buyback underway, News Corp is poised to leverage its digital growth engines while navigating legacy media challenges.
Questions in the middle?
- How will News Corp’s accelerated buyback impact its capital structure and share price?
- Can Dow Jones and REA Group sustain their growth amid evolving market conditions?
- What strategic moves will News Media undertake to reverse revenue declines?