News Corporation NWSA reported fourth-quarter fiscal 2024 earnings of 17 cents per share, surpassing the Zacks Consensus Estimate by 13.33% and marking a robust 21.4% year-over-year surge.
Revenue also danced higher to $2.58 billion, showcasing a 6% year-over-year leap, outpacing the consensus forecast by 2.06%. This laudable performance was propelled by growth in the Digital Real Estate Services, Book Publishing, and Dow Jones segments.
A Closer Look at the Quarter
Adjusted revenues, excluding currency impacts, acquisitions, and divestitures, climbed 6% year over year.
Total EBITDA surged 11% to $380 million, with notable contributions from the Book Publishing segment and REA Group cushioning the ascend. However, this uptick was slightly dented by Hubbl launch costs at Foxtel Group and reduced contributions from the News Media segment and Move.
Segmental Examination
Digital Real Estate Services
The Digital Real Estate Services segment witnessed a remarkable 21% rise in revenues to $448 million, driven by stellar performance at REA Group. However, Move experienced a 2% drop in revenues, predominantly due to decreased real estate revenues amidst the throes of a challenging housing market milieu.
REA Group, shining bright amidst the confluence of headwinds, saw revenues soar by 37% to $305 million, fueled by various dynamics including Australian residential revenue upticks and robust nationwide listings.
Subscription Video Services
The Subscription Video Services segment generated revenues of $506 million, pulling off a modest 1% increase year over year, anchored by positive developments at Kayo and BINGE.
Dow Jones
Dow Jones witnessed a 4% revenue uptick, reaching $566 million, propelled by circulation and subscription revenue growth underpinned by the professional information business.
Book Publishing
The Book Publishing segment hit revenues of $512 million, marking a stellar 15% surge driven by elevated physical and digital book sales and more satisfactory returns.
News Media
Conversely, the News Media segment encountered a 5% dip in revenues, primarily due to laggard advertising revenues. Circulation and subscription revenues also shrunk, tallying lower print volumes and digital circulation and subscription revenues at News Corp Australia.
Key Financials and Outlook
News Corporation closed the fiscal fourth quarter with solid financial footing, boasting $1.96 billion in cash reserves, although carrying around $2.9 billion in borrowings.
In terms of analyst sentiment, NWSA currently holds a Zacks Rank of #3 (Hold). For investors seeking more dynamic options, GameSquare Holdings, Inc., H&R Block, and Madison Square Garden Entertainment Corp. all beckon with a Zacks Rank #2 (Buy).