News Corporation Q4 2022 Earnings Results

Aug 10th, 2022 8:25 EST

  • News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) recently reported the financial results for the 3 months and fiscal year ended June 30, 2022. These are the details.

News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) recently reported the financial results for the 3 months and fiscal year that ended June 30, 2022. Below are the highlights.

Fiscal 2022 Full Year And Q4 Highlights

– Fiscal 2022 full-year revenues and net income were records at $10.39 billion and $760 million, respectively. Revenues grew 11% compared to $9.36 billion in the prior year and net income increased 95% compared to $389 million in the prior year

– Full year Total Segment EBITDA was $1.67 billion, also a record and a 31% increase compared to $1.27 billion in the prior year. Reported EPS was $1.05 for the full year compared to $0.56 in the prior year – Adjusted EPS was $1.20 compared to $0.67 in the prior year

– Fourth quarter revenues were $2.67 billion, a 7% increase compared to $2.49 billion in the prior year, while net income was $127 million, a substantial improvement from a net loss of $(15) million in the prior year

– Fourth quarter Total Segment EBITDA was $315 million, a 50% increase compared to $210 million in the prior year. Reported EPS was $0.19 for the fourth quarter compared to $(0.02) in the prior year – Adjusted EPS was $0.37 compared to $0.16 in the prior year

– Digital Real Estate Services revenues for the fiscal year grew 25% despite facing tough prior year comparisons, with 37% and 11% revenue growth at REA Group and Move, respectively

– Dow Jones achieved its highest full-year revenues and Segment EBITDA since its acquisition, driven by strategic acquisitions, continued growth in digital-only subscriptions, record advertising revenues, and robust growth in Risk & Compliance products

– News Media’s Segment EBITDA improved to $217 million from $52 million in the prior year, helped by growth in digital advertising revenues, and was the biggest contributor to Total Segment EBITDA growth for the fiscal year

– At the Subscription Video Services segment, Foxtel saw its streaming revenues from Kayo and BINGE offset broadcast declines during the year while achieving over 2.8 million total streaming subscribers as of year-end

– Book Publishing revenues grew 10% in the fiscal year, driven by the acquisition of the HMH Books and Media segment and continued strong consumer spending, which remains above pre-pandemic levels

– Continued strong cash generation funding for the execution of the $1 billion share repurchase program

KEY QUOTES:

“News Corp set significant records in Fiscal 2022, including in revenue and profitability, which surged 31 percent to $1.7 billion, and that came after a resounding 26 percent increase in the previous year. Revenues rose a robust 11 percent, reaching a record $10.4 billion, with increases in each and every segment on an adjusted basis.”

“Dow Jones profitability soared 54 percent in the quarter to $106 million, while for the year, it rose 30 percent to $433 million. OPIS and Chemical Market Analytics are already contributing to profitability, and they have added meaningful depth to our fast-growing Professional Information Business which targets a premium audience with premium products providing premium value.”

“Our Digital Real Estate Services segment reported 25 percent revenue growth for the year and a healthy 12 percent improvement in profitability, as we continued to build brands and products for future success across Realtor.com and REA Group.”

“The News Media segment was the single largest contributor to the enhanced profit picture this fiscal year with profitability expanding to $217 million from $52 million, bolstered by growth in digital advertising revenues and record digital subscriber numbers.”

“Foxtel’s renaissance continued, as streaming revenues from Kayo and BINGE offset broadcast declines during the year. While down slightly for the year due to currency fluctuations, both revenue and profitability were markedly higher on an adjusted basis.”

“Our provenance and principles endure at News Corporation but the business has been fundamentally transformed – we are vastly more profitable and have created a potent platform for even greater growth, to the benefit of all our investors and other stakeholders.”

– Chief Executive Robert Thomson

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