icon
icon
icon
icon
Upgrade
upgrade

News Corp - Ordinary Shares (NWS) 8 Aug 24 2024 Q4 Earnings call transcript

AInvestWednesday, Aug 14, 2024 3:27 pm ET
2min read

Diversified Portfolio Drives Growth in Book Publishing, Digital Real Estate Services, and Dow Jones

News Corp has announced its financial results for the fourth quarter of fiscal 2024, revealing a strong performance with revenues growing by 6% and profitability improving by 11% compared to the previous year. The company reported a total of $2.6 billion in revenues and a profit of $380 million, marking a fourth quarter record for News Corp.

Key Themes and Trends

News Corp's earnings call highlighted several key themes and trends, including the company's focus on growth through its core pillars of book publishing, Digital Real Estate Services, and Dow Jones. The strong performance of these divisions contributed significantly to the company's revenue and profitability growth.

Book Publishing

HarperCollins, a key player in book publishing, experienced a notable increase in revenue and profitability, with digital sales accounting for a significant portion of the growth. The success of digital books and audio books, particularly with the help of partnerships with platforms like Spotify, underscored the company's ability to adapt to changing consumer preferences and market trends.

Digital Real Estate Services

The Digital Real Estate Services segment, led by REA, showcased robust growth with revenues rising by 21% and segment EBITDA surging by 25%. The success of REA was attributed to strong listings growth and the expansion of its Financial Services division, as well as the implementation of premium products to improve client results.

Dow Jones

Dow Jones continued its growth trajectory, with revenue expanding by 4% and digital revenue accounting for a majority of the total revenue. The company's focus on B2B growth and the success of its digital subscriptions and advertising strategies have been instrumental in driving revenue and profitability.

Investor and Shareholder Insights

During the call, analysts raised questions regarding the company's strategic direction, particularly with regards to Foxtel and the potential for a transaction involving the Foxtel Group. News Corp's management team expressed confidence in the potential of Foxtel while acknowledging the interest from third parties. They also emphasized the importance of maximizing returns for shareholders and the ongoing review of the company's portfolio.

Looking Ahead

News Corp's strong fourth quarter performance and strategic focus on its core pillars position the company well for continued growth in the future. The company's ability to adapt to changing market trends and consumer preferences, as well as its strategic investments in digital and B2B offerings, are expected to drive further revenue and profitability growth.

As News Corp continues to navigate regulatory processes and potential transactions, investors and analysts will closely watch for updates on the company's strategic direction and financial performance. With a diverse portfolio of businesses and a strong focus on innovation and growth, News Corp remains a key player in the media and entertainment industry.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.