News Corp - Ordinary Shares (NWSA) 8 Aug 24 2024 Q4 Earnings call transcript
1min read News Corp recently held its Fourth Quarter and Full Year Fiscal 2024 Earnings Call, showcasing a robust performance across its core business segments. The company reported a 6% increase in total revenues to almost $2.6 billion, with profitability improving by an impressive 11% to $380 million, marking a fourth-quarter record for News Corp.
The company's financial health was further underscored by its second-best year on record, with profitability rising 8% to $1.54 billion. These figures reflect the success of News Corp's strategic focus on its core pillars of growth, including book publishing, Digital Real Estate Services, and Dow Jones.
Key Themes and Trends: Growth and Innovation
One of the most notable themes to emerge from the earnings call was the company's focus on growth and innovation. News Corp's Digital Real Estate Services, in particular, had a standout quarter, with revenues rising 21% and segment EBITDA surging 25%. This performance was driven by REA, where listings flourished and Financial Services returned to growth, while revenues expanded substantially at REA India. The company's digital real estate division is expected to continue its strong performance, with Australian residential new buy listings for July up 12%.
Another significant development is News Corp's partnership with OpenAI, a leading artificial intelligence company, which is expected to be lucrative and could revolutionize professional journalism. This partnership is already bearing fruit, with the companies working together to fashion a future for journalism and ensure the provenance of news content.
Investor Engagement and Future Prospects
During the earnings call, key shareholders and investors had the opportunity to ask questions, providing valuable insights into their concerns and priorities. These interactions highlighted the importance of the company's performance in the digital real estate sector, particularly in the context of interest rate cuts and the potential impact on affordability and liquidity in the stagnant property market.
Looking ahead, News Corp is continuing to review its portfolio with a view to maximizing returns for shareholders. This includes considering strategic and financial options for the Foxtel Group, which has seen record numbers of streaming subscribers and low broadcast churn, signaling strong potential for subscriber and advertising growth. The company also highlighted its ongoing restructuring efforts in Australia to enhance its digital progress.
Conclusion
News Corp's strong performance in the fourth quarter and fiscal year 2024 underscores its resilience and adaptability in the face of market challenges. The company's strategic focus on growth, innovation, and investor engagement bodes well for its future prospects. As News Corp continues to navigate the complexities of the digital era, its commitment to delivering value to shareholders remains a key priority.