10-Q: News Corp Reports Q3 2025 Results: Revenue Up Slightly, Foxtel Sale Completed

News Corp's Q3 2025 results show a slight revenue increase and the completion of the Foxtel sale to DAZN.

Summary

• News Corporation reported its Q3 2025 financial results, with total revenues increasing by 1% to $2.009 billion compared to $1.994 billion in the same period last year.
• For the nine months ended March 31, 2025, total revenues increased by 3% to $6.343 billion compared to $6.160 billion in the prior year.
• Net income attributable to News Corporation stockholders was $103 million, or $0.18 per share, compared to $30 million, or $0.05 per share, in the prior-year quarter.
• For the nine months ended March 31, 2025, net income attributable to News Corporation stockholders was $437 million, or $0.77 per share, compared to $216 million, or $0.38 per share, in the prior year.
• The company completed the sale of Foxtel to DAZN on April 2, 2025, receiving A$592 million in cash and a 6% minority equity interest in DAZN.
• The assets and liabilities of Foxtel have been classified as held for sale and the results of operations and cash flows have been classified as discontinued operations for all periods presented.
• The company's Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A and Class B Common Stock, paid on April 9, 2025.
• As of March 31, 2025, the remaining authorized amount under the Repurchase Program was approximately $345 million.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. Revenue is up slightly, net income has improved significantly, and the Foxtel sale provides a cash infusion. However, there are some challenges in the News Media segment and ongoing legal contingencies.

Positives

• Revenue increased slightly, driven by Dow Jones, Digital Real Estate Services, and Book Publishing.
• Net income attributable to News Corporation stockholders increased significantly.
• The sale of Foxtel was completed, providing cash and an equity stake in DAZN.
• Digital revenues continue to grow, representing a significant portion of total revenues for Dow Jones.
• Cost savings initiatives led to increased EBITDA in the News Media segment.

Negatives

• Advertising revenue decreased at the News Media segment.
• News Media segment revenues decreased overall due to lower advertising and circulation revenues.
• Foreign currency fluctuations had a negative impact on revenues in some segments.
• Operating expenses increased at the Book Publishing segment due to higher manufacturing costs.

Risks

• Recent changes in trade policy may lead to economic and market volatility and uncertainty.
• The outcome of legal proceedings and governmental investigations could adversely affect the company's results of operations and financial condition.
• The company's access to financing on acceptable terms in the future will be affected by many factors, including the financial and operational performance of the company and/or its operating subsidiaries, as applicable, the company's credit ratings and/or the credit rating of its operating subsidiaries, as applicable, the provisions of any relevant debt instruments, credit agreements, indentures and similar or associated documents, the liquidity of the overall credit and capital markets and the state of the economy.

Future Outlook

The company expects to continue evaluating possible future acquisitions and dispositions of certain businesses.

Industry Context

The report reflects the ongoing shift towards digital media consumption, with digital revenues driving growth in several segments. The sale of Foxtel indicates a strategic move towards focusing on core businesses and potentially investing in new growth areas.

Comparison to Industry Standards

• News Corp's performance can be compared to other diversified media companies such as Thomson Reuters, RELX Group, and Bertelsmann.
• REA Group's performance in the digital real estate market can be benchmarked against competitors like Zillow, Rightmove (before the withdrawn offer), and Domain Group.
• HarperCollins' performance in book publishing can be compared to Penguin Random House, Simon & Schuster, and Hachette Livre.
• The growth in digital subscriptions at Dow Jones is a key metric compared to other news organizations like The New York Times and The Washington Post.

Legal Proceedings

• Dow Jones is involved in antitrust litigation related to Oil Price Information Service, LLC (OPIS).
• HarperCollins is involved in antitrust litigation with Amazon.com, Inc.
• The company continues to address civil claims related to U.K. Newspaper Matters.

Stakeholder Impact

• Shareholders will benefit from the increased net income and the semi-annual dividend.
• Employees may be affected by restructuring charges and cost savings initiatives.
• Customers will continue to receive services from the company's various segments.
• Suppliers may be affected by changes in the company's operations and strategic direction.

Next Steps

• The company will continue to evaluate possible future acquisitions and dispositions of certain businesses.
• The company will monitor the impact of global minimum tax legislation.
• The company will continue to monitor trends and uncertainties in the macroeconomic environment and will seek to mitigate any impacts where possible.

Key Dates

Keywords

News Corporation, Financial Results, Q3 2025, Foxtel, DAZN, Revenue, Net Income, Digital Real Estate Services, Book Publishing, Dow Jones, News Media, REA Group, HarperCollins, Advertising, Circulation, Subscription, EBITDA, Share Repurchase, Dividend