News Corp Reports First Quarter Results for Fiscal 2023

News Corp Reports First Quarter Results for Fiscal 2023

Fiscal 2023 First Quarter Key Financial Highlights

Revenues in the quarter were $2.48 billion, a 1% decrease compared to $2.50 billion in the prior year, driven by a $153 million, or 6%, negative impact from foreign currency fluctuations and lower Book Publishing segment revenues. Adjusted Revenues increased 3%

Net income in the quarter was $66 million compared to $267 million in the prior year

Total Segment EBITDA in the quarter was $350 million compared to $410 million in the prior year

In the quarter, reported EPS were $0.07 compared to $0.33 in the prior year - Adjusted EPS were $0.12 compared to $0.23 in the prior year

Dow Jones segment revenues and Segment EBITDA grew 16% and 19%, respectively, benefiting from recent acquisitions, continued strong growth in digital-only subscriptions, a 7th consecutive quarter of year-over-year advertising revenue growth and sustained momentum in its Risk & Compliance products

REA Group's residential business continued to benefit from price increases, favorable depth penetration and product mix, and growth in national listings

At the Subscription Video Services segment, Foxtel saw its streaming revenues from Kayo and BINGE continue to offset broadcast revenue declines

New York, NY - November 8, 2022 - News Corporation ( News Corp or the Company ) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended September 30, 2022.

Commenting on the results, Chief Executive Robert Thomson said:

While the macro environment is patently more volatile, the results highlight the resilience of News Corp and the potential for sustained growth and increased profitability.

Headline revenues were down one percent to $2.5 billion, but the decline was obviously a consequence of foreign currency fluctuations. On an adjusted basis, our revenues grew a healthy three percent, building on the robust results from last year.

Profitability for the quarter was $350 million, down 15 percent, although that reflects the forex headwinds and a fundamental reset by Amazon of its book inventory levels and warehouse footprint. We view neither factor as reflective of core business conditions or of our long-term potential.

Dow Jones posted its best first quarter results since its acquisition with revenues rising 16 percent and Segment EBITDA an even more impressive 19 percent, benefiting from the successful integration of OPIS and Chemical Market Analytics, strong digital advertising growth, record digital subscriptions and continued momentum at Risk & Compliance.

News Corp is building on a sturdy base. We have reported record profitability in each of the last two fiscal years and bolstered our fortunes through savvy investments and by streamlining the cost base.

First Quarter Results

The Company reported fiscal 2023 first quarter total revenues of $2.48 billion, a 1% decrease compared to $2.50 billion in the prior year period. The decline was primarily due to a $153 million, or 6%, negative impact from foreign currency fluctuations and lower revenues at the Book Publishing segment due to lower physical book sales from Amazon, partially offset by higher Dow Jones segment revenues, which includes the acquisitions of OPIS and Chemical Market Analytics ( CMA ). Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 3%.

Net income for the quarter was $66 million, a 75% decline compared to $267 million in the prior year, primarily due to lower Other, net and lower Total Segment EBITDA, as discussed below, partially offset by lower tax expense.

The Company reported first quarter Total Segment EBITDA of $350 million, a 15% decline compared to $410 million in the prior year, primarily due to an increase in costs, partly due to inflationary pressures, lower revenues, as discussed above, and a $23 million, or 6%, negative impact from foreign currency fluctuations. Adjusted Total Segment EBITDA (as defined in Note 2) decreased 13%.

Net income per share attributable to News Corporation stockholders was $0.07 as compared to $0.33 in the prior year.

Adjusted EPS (as defined in Note 3) were $0.12 compared to $0.23 in the prior year.

Please click here for the full Earnings Release information.

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About News Corp

News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: http://www.newscorp.com.

Contacts

News Corp Investor Relations

Michael Florin

212-416-3363

mflorin@newscorp.com

News Corp Corporate Communications

Jim Kennedy

212-416-4064

jkennedy@newscorp.com

LINK:	https://newscorp.com/2022/11/08/news-corp-reports-first-quarter-result...
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