News Corporation Reports Strong Q4 and Full Year 2024 Results
NEWS CORPORATION.. (NWS) Share Update August 2024 Thursday 8th
News Corporation Reports Strong Q4 and Full Year 2024 Results
News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) has announced its financial results for the fourth quarter and full fiscal year ending June 30, 2024, showcasing significant growth and strategic advancements.
Instant Summary:
- Q4 revenues increased by 6% to $2.58 billion.
- Net income improved to $71 million from a net loss of $32 million in the prior year.
- Total Segment EBITDA reached $380 million, the highest for a fourth quarter since separation.
- Adjusted EPS for Q4 was $0.17, up from $0.14 in the prior year.
- Book Publishing revenues grew by 15% in Q4.
- REA Group posted a 37% revenue increase to $305 million.
- Foxtel Group achieved over 3.2 million paying streaming subscribers.
- Announced a multi-year global partnership with OpenAI.
Fourth Quarter Results
News Corporation reported fiscal 2024 fourth quarter total revenues of $2.58 billion, a 6% increase compared to $2.43 billion in the prior year period. This growth was driven by higher Australian residential revenues at REA Group, increased physical and digital book sales, and continued growth in the professional information business at the Dow Jones segment.
Net income for the quarter was $71 million, a significant improvement from a net loss of $32 million in the prior year. This was primarily due to improved losses from equity affiliates, higher Total Segment EBITDA, and lower impairment and restructuring charges.
Full Year Results
For the full fiscal year, News Corporation reported total revenues of $10.09 billion, a 2% increase from $9.88 billion in the prior year. The growth was driven by higher Australian residential revenues at REA Group and increased digital sales at the Book Publishing segment.
Net income for the full year was $354 million, an 89% increase from $187 million in the prior year. This was largely due to improved losses from equity affiliates and higher Total Segment EBITDA.
Segment Performance
The Digital Real Estate Services segment saw a 21% increase in Q4 revenues, driven by strong performance at REA Group. The Subscription Video Services segment, including Foxtel Group, saw a 1% revenue increase, with streaming subscription revenues representing 32% of total circulation and subscription revenues.
The Dow Jones segment reported a 4% revenue increase in Q4, driven by growth in circulation and subscription revenues. The Book Publishing segment saw a 15% revenue increase, with digital audiobook sales surpassing e-books for the first time.
The positive financial results reflect News Corporation's strong performance across its core segments. The increase in revenues and net income is likely to boost investor confidence and positively impact the company's stock price. The strategic partnership with OpenAI positions News Corporation well for future growth in the AI space.
Investor Reaction:
Analysts are likely to view the results favorably, given the significant improvements in net income and EBITDA. The strong performance in the Digital Real Estate Services and Book Publishing segments, along with the strategic partnership with OpenAI, may lead to positive investor sentiment.
Conclusion:
Investors should keep an eye on News Corporation's continued performance and strategic initiatives, particularly in the AI space. The company's robust financial results and strategic partnerships indicate strong future prospects.