Did News beat or miss consensus estimates last quarter?

What is the market's earnings forecast for News next quarter?

What guidance did News's management provide for the next earnings period?

What factors drove the changes in News's revenue and profit?

What is News's gross profit margin?

What were the key takeaways from News's earnings call?

What does News do and what are its main business segments?

What is News's latest dividend and current dividend yield?

- **Revenue Growth**: 6% Q2 revenue to $2.4B, driven by Dow Jones (8% growth) and Realtor.com (10% growth). EBITDA up 9% to $521M.
- **AI Payday**: $1.5B Anthropic licensing deal for pirated books, with HarperCollins authors set to benefit starting Q4.
- **Buyback Acceleration**: $172M Q2 share repurchases (4x YoY pace), with H2 buybacks expected to surge post-$380M Foxtel loan repayment.
- **Dow Jones Dominance**: 10% EBITDA growth to $191M (30% margin), led by 20% B2B risk compliance growth and record $87M digital ad revenue.
- **Real Estate Strength**: Realtor.com engagement 5x peers, 29% market share, and 13% lead volume gains despite housing market softness.
- **Balance Sheet Strength**: Moody's positive outlook, $1.2B cash, no debt maturities until 2030, and shares undervalued vs. NAV.

**【CEO Summary Section】**
- Q2 2026 revenue rose 6% to $2.4 billion, driven by Dow Jones (8% growth) and Digital Real Estate Services (10% growth). Total segment EBITDA increased 9% to $521 million, despite a one-time $16 million inventory charge at HarperCollins.
- Dow Jones reported record performance with 10% EBITDA growth to $191 million (29.5% margin), fueled by 12% B2B revenue growth and 12% digital advertising rise to $87 million.
- Realtor.com achieved 10% revenue growth to $143 million, with 13% lead volume gains and 4.8x engagement per user vs. industry peers.
- HarperCollins rebounded with 6% revenue growth, benefiting from strong frontlist sales and a $1.5 billion AI licensing deal with Anthropic starting Q4.
- News Corp repurchased $172 million in shares Q2, up 4x YoY pace, with plans to accelerate buybacks in H2.

**【CFO Financial Commentary】**
- Adjusted EPS rose 21% to $0.40, with 11 consecutive quarters of EBITDA growth. Free cash flow improved due to cost control and disciplined capital allocation.
- Dow Jones digital revenue占比82%, up 1pct YoY, with ARPU improving excluding enterprise deals. Realtor.com adjacencies (rentals, new homes) now 21% of revenue.
- Book Publishing EBITDA declined 2% to $99 million due to inventory charge, but digital sales grew 2% to 20% of consumer revenue.
- FY26 buybacks expected to benefit from $380 million Foxtel loan repayment, with CFO noting shares are undervalued vs. NAV.

**【Q&A Highlights】**
- **AI Strategy**: CEO emphasizes premium content moat, with Anthropic paying $1.5B for pirated books and OpenAI partnerships enhancing products. Dow Jones sees no AI threat to its real-time data business.
- **Investment Priorities**: Focus on 3 core pillars (Dow Jones, Real Estate, Books) with modest CapEx increases. No immediate M&A plans beyond accretive tuck-ins.
- **Realtor.com Competition**: 29% market share vs. Zillow, 5x engagement per user. CFO notes Realtor.com has highest revenue growth in 4 years despite housing market challenges.
- **Pricing Strategy**: Dow Jones targeting ARPU growth via dynamic pricing for high-usage subscribers, while maintaining low churn enterprise deals.
- **Balance Sheet**: Moody's upgraded to positive outlook, with $1.2B cash and no debt maturities until 2030. Buybacks prioritized over M&A in current environment.

News Corporation (NWSA) Q2 2026 Earnings Call Transcript

- **Revenue Growth**: Q1 FY26 revenue up 2% to $2.14 billion, with Dow Jones and Digital Real Estate driving 84% of EBITDA.
- **AI Strategy Success**: Pursuing partnerships and lawsuits against AI companies, including a $1.5 billion award against Anthropic.
- **Buyback Acceleration**: Share buybacks at 4x prior pace, reflecting undervalued shares and confidence in growth.
- **Segment Strengths**: Realtor.com revenue up 9%, Risk & Compliance up 16%, and News Media EBITDA up 67%.
- **Future Outlook**: Expect continued growth in B2B, Digital Real Estate, and AI-related revenues, with strong free cash flow generation.

**CEO Summary Section**
- **Overall Performance**: Q1 FY26 revenue rose 2% to $2.14 billion, with total segment EBITDA up 5% to $340 million. Adjusted EPS increased to $0.22 from $0.20.
- **Dow Jones Strength**: EBITDA grew 10% to $144 million, driven by 16% growth in Risk & Compliance and 7% in Energy. Factiva resolved a customer dispute, contributing to 9% revenue growth.
- **Digital Real Estate Renaissance**: Realtor.com revenue up 9% to $152 million, with adjacencies (new homes, rentals) accounting for 22% of revenue. Digital Real Estate margin expanded to 33%.
- **Book Publishing Challenges**: Revenue declined 2% due to market sluggishness and a $13 million receivable write-off. However, recent weeks show order rebounds, with bestsellers like R.F. Kuang's *Katabasis*.
- **AI Strategy & Legal Action**: Pursuing partnerships and lawsuits against AI companies for unauthorized content use, including a $1.5 billion award against Anthropic.
- **Share Buybacks**: Accelerated buyback program at 4x prior pace, reflecting undervalued shares and confidence in growth.

**CFO Financial Commentary**
- **Financial Highlights**: GAAP net income $150 million, up 1% YoY. Digital revenue占比 62% of total, up from 34% in FY2018. Dow Jones and Digital Real Estate now account for 49% of revenue and 84% of EBITDA.
- **Segment Breakdown**: 
  - **Dow Jones**: 6% revenue growth to $586 million, with 84% from digital. EBITDA margin 25%, up 90bps YoY.
  - **Digital Real Estate**: 5% revenue growth to $479 million, EBITDA up 13% to $158 million. Realtor.com leads in engagement (5 visits per user vs. Zillow's 2.5).
  - **Book Publishing**: EBITDA down 28% to $58 million due to write-off. Digital sales 23% of consumer revenue, down 9% YoY.
  - **News Media**: 67% EBITDA growth to $30 million, driven by cost efficiencies and 19% ad revenue growth at New York Post.
- **Free Cash Flow**: Expect strong generation, with $380 million Foxtel loan repayment and $13 million investment in HarperCollins logistics.

**Q&A Key Highlights**
- **Realtor.com Growth**: CEO confident in continued expansion despite macro challenges, citing adjacencies and high-quality audience focus.
- **Buyback Acceleration**: CFO confirms 4x prior pace buybacks, with optionality to increase further.
- **WSJ Pricing Strategy**: Testing elasticity with price increases, supported by planned product improvements.
- **Risk & Compliance Runway**: 16% Q1 growth, driven by regulatory mandates (e.g., KYC regulations) and new GenAI capabilities.
- **News Media Efficiency**: 5.5% margin expansion through cost savings and digital ad growth at New York Post.
- **Legal & AI Strategy**: CEO emphasizes content's intrinsic value, pursuing partnerships and litigation to monetize IP.

News Corporation (NWSA) Q1 2026 Earnings Call Transcript

- **Record Fiscal Year Growth**: Revenues $8.5B (+2%), EBITDA $1.4B (+14%), net income $648M (+71%).
- **Accelerated Buybacks**: $1.3B buyback program to begin post-results, fueled by Foxtel sale proceeds.
- **Segment Strengths**:
  - **Dow Jones**: 7% Q4 revenue growth, 10% EBITDA rise, driven by Risk & Compliance (21% growth).
  - **Realtor.com**: 3Q revenue growth despite housing slump; 24% of sales from adjacencies.
  - **Book Publishing**: 10% EBITDA growth, digital sales 25% of consumer revenue.
- **AI & IP Focus**: Protecting content IP; negotiating AI licensing deals to monetize intellectual property.

**【CEO Summary Section】**
- **Record Fiscal Year 2025 Results**: Revenues rose 2% to $8.5 billion, total segment EBITDA increased 14% to $1.4 billion, and net income from continuing operations jumped 71% to $648 million. Profit margins expanded by 170 basis points to 16.7%.
- **Q4 2025 Performance**: Revenues grew 1% to $2.1 billion, profitability rose 5% to $322 million, and net income from continuing operations increased 28% to $86 million.
- **Stock Buyback Acceleration**: Board authorized a new $1 billion buyback program, adding to the remaining $300 million from the prior program, totaling $1.3 billion. Repurchases will begin at an accelerated pace post-results release.
- **Segment Highlights**:
  - **Dow Jones**: Revenue up 4% annually, EBITDA up 8%. Q4 revenue rose 7% to $604 million, EBITDA increased 10% to $151 million. Risk & Compliance and Dow Jones Energy saw 21% and 12% growth, respectively.
  - **Digital Real Estate**: Revenues rose 9% annually, EBITDA up 18%. Realtor.com reported 3 consecutive quarters of revenue growth despite a sluggish U.S. housing market.
  - **Book Publishing**: Second-best revenue year on record ($2.1 billion), EBITDA up 10% to $296 million. Digital revenues grew 5% with Spotify partnership expansion.

**【CFO Financial Commentary】**
- **Q4 Financials**: Adjusted EBITDA rose 6% year-over-year to $322 million. Dow Jones and Digital Real Estate contributed 94% of profits. Adjusted EPS was $0.19, slightly below prior year's $0.20.
- **Capital Allocation**: Free cash flow of $571 million in FY2025 (vs. $540 million prior year). FY2026 buyback pacing will benefit from $380 million Foxtel loan repayment proceeds.
- **Segment Insights**:
  - **Dow Jones**: Professional Information Business revenue up 10% Q4, driven by Risk & Compliance (21% growth) and Dow Jones Energy (12% growth). Digital circulation revenues rose 10%.
  - **Digital Real Estate**: REA (Australia) maintained 4x visit share of nearest competitor. Realtor.com's Zenlist acquisition focuses on high-quality leads.
  - **Book Publishing**: Digital sales 25% of consumer revenues, backlist contributing 65% of sales. Upcoming titles include Sylvester Stallone's memoir and Harper Lee's unpublished stories.

**【Q&A Key Highlights】**
- **Buyback Acceleration**: Driven by Foxtel sale proceeds and undervalued stock. No target leverage ratio; balance sheet remains conservative.
- **Realtor Strategy**: Growth adjacencies (rentals, new homes, sellers) account for 24% of revenue. Zenlist integration enhances lead quality. U.S. housing market recovery could accelerate growth.
- **Dow Jones Momentum**: Professional Information Business (39% of revenue) leads growth. Risk & Compliance and Energy segments show strong retention (>90%).
- **AI & IP Protection**: Fighting IP misuse in AI; negotiating content licensing deals with AI companies. WSJ subscriptions grow due to unique content and LSEG partnership.
- **CapEx Outlook**: FY2025 CapEx up 42% Q4 for Dow Jones growth initiatives. FY2026 investments will focus on Dow Jones, Realtor integration, and HarperCollins efficiency.


News Corporation (NWSA) Q4 2025 Earnings Call Transcript

- **Revenue & Profit Surge**: Q3 net income up 67% to $107M, adjusted EPS +31% to $0.17. EBITDA margin expands to 14.4%.
- **Strategic Deal Impact**: Foxtel sale frees $724M debt, DAZN equity stake positions for sports streaming growth.
- **Core Growth Drivers**: Dow Jones +6% rev, Digital Real Estate adjacencies +22%, Book Publishing backlist 65% of sales.
- **AI & Pricing Success**: Dow Jones ARPU rising, dynamic pricing reducing churn. PIB margin target >25% as Factiva impact fades.
- **Shareholder Returns**: 70% FCF returned via dividend & buyback. Investment-grade ratings enhance optionality.


**【CEO Opening Remarks】**
- Q3 revenue from continuing ops rose 67% to $107M, with adjusted EPS up 31% to $0.17. Total segment EBITDA increased 12% to $290M, margin expanding to 14.4%.
- Sold Foxtel to DAZN for $724M debt relief, receiving 6% equity stake. Transaction expected to be earnings accretive and improve ROIC.
- Core pillars: Dow Jones (6% rev growth, 12% EBITDA growth), Digital Real Estate (5% rev, 19% EBITDA), Book Publishing (2% rev, 3% EBITDA).
- Dow Jones digital circulation rev up 14%, ARPU rising QoQ, subs surpass 6M. Risk & Compliance +11%, Energy +10%.
- Digital Real Estate: REA revenue +6% (11% FX-adjusted), Realtor adjacencies +22%.
- News Media EBITDA +22% on cost discipline, Times digital subs +8%.

**【CFO Financial Breakdown】**
- Q3 GAAP net income: $107M (vs. $64M prior year). Adjusted EBITDA: $290M (+12%).
- Dow Jones: 82% of rev digital, EBITDA margin 23% (vs. 21.7% prior year). Factiva dispute reduced PIB rev by 200bps, but improving sequentially.
- Digital Real Estate: REA yield +15%, Realtor adjacencies +22%. Book Publishing: Christian division strong, backlist 65% of consumer rev.
- FY26 outlook: Dow Jones PIB growth to offset Factiva drag, Digital Real Estate benefiting from listing recovery, News Media cost savings.

**【Q&A Highlights】**
- **Dow Jones Investment**: No material Q4 investment increase. ARPU growth driven by dynamic pricing, AI tools for churn management.
- **Factiva Impact**: Q4 impact to reduce <200bps, PIB margin expansion to 39% of rev (vs. 34% prior year).
- **Capital Allocation**: Focus on core pillars, disciplined M&A. FY25 returned 70% FCF to shareholders via dividend & buyback.
- **Margins**: Dow Jones EBITDA margin target >25% as PIB share grows. Digital Real Estate >30% margin sustainable.
- **Risks**: Tariffs immaterial, but macro uncertainty in real estate & media. Factiva resolution expected to stabilize PIB growth.


News (NWSA)-8 May 25-2025 Q3 Earnings call transcript

- **Revenue & Profit Growth**: Q2 revenue $2.24B (+5%), EBITDA $478M (+20%), margins 21.4% vs 18.7% prior year.
- **Digital Success**: Dow Jones digital circ rev +8%, Book Publishing audio books +13%, Digital Real Estate EBITDA +26%.
- **Foxtel Sale Impact**: AUD 3.4B sale to DAZN to reduce debt, with 6% stake retained for upside in sports streaming.
- **Shareholder Returns**: $1B buyback program underway, 70% FCF returned in FY24.
- **AI & IP Defense**: OpenAI partnership monetizing content, legal action against Perplexity to protect IP.

**【CEO Opening Remarks】**
- Q2 FY2025 revenue (continuing ops) rose 5% to $2.24B, with profitability up 20% to $478M.
- Key growth drivers: Digital Real Estate (+13%), Dow Jones (+3%), Book Publishing (+8%).
- Foxtel sale to DAZN for AUD 3.4B (7x FY24 EBITDA), expected to close in H2 with 6% DAZN stake retained.
- Margin expansion to 21.4% vs 18.7% prior year, driven by cost discipline and digital growth.

**【CFO Financial Breakdown】**
- Adjusted EBITDA: $478M (+20% YoY), with Dow Jones contributing $174M (+7%), Digital Real Estate $185M (+26%).
- Dow Jones digital circ rev up 8% YoY, ARPU improving as intro offers expire.
- Book Publishing EBITDA +19% to $101M, audio books +13% YoY, backlist sales 61% of total.
- News Media EBITDA +30% to $74M, despite 2% rev decline, due to cost savings (e.g., UK printing JV).

**【Q&A Highlights】**
- **Foxtel Sale**: Proceeds to repay AUD 574M loan to News Corp, with DAZN debt assumed. Share buyback program ($1B authorized) to benefit from capital return.
- **Dow Jones Growth**: Q2 circ rev +3%, digital ARPU up sequentially. Q2 additions of 27K digital subs expected to accelerate in Q3.
- **Spotify Partnership**: Audio book sales +9% YoY, driven by Spotify adoption. Backlist sales 61% of total, highlighting long-term profitability.
- **Capital Allocation**: Focus on buybacks (70% FCF returned in FY24) and strategic investments in AI/legal defense against IP misuse.


NWSA

NWSA fundamentals

Earnings Call

You can ask Aime