News Corp Reports First Quarter Results for Fiscal 2022

News Corp Reports First Quarter Results for Fiscal 2022

Fiscal 2022 First Quarter Key Financial Highlights

Revenues were $2.50 billion, an 18% increase compared to $2.12 billion in the prior year, driven by growth across key segments

Net income of $267 million compared to $47 million in the prior year

Total Segment EBITDA was $410 million compared to $268 million in the prior year

Reported EPS were $0.33 compared to $0.06 in the prior year - Adjusted EPS were $0.23 compared to $0.08 in the prior year

Digital Real Estate Services segment revenues grew 47%, driven primarily by strong yield and demand at both REA Group and Move, operator of realtor.com

Dow Jones saw its highest first quarter revenue and profitability since its acquisition

Book Publishing segment revenues grew 19%, benefiting from the HMH acquisition and continued strong consumption patterns

Subscription Video Services Segment EBITDA grew 46% as Foxtel's streaming products reached approximately 2.1 million paid subscribers, up 69% compared to the prior year

News Media segment revenues grew 18%, benefiting from the rebound in the advertising market, strong digital subscriber gains and new content licensing revenues from recent news payment agreements with major tech platforms

Announced a $1 billion stock repurchase program and the termination of the Stockholder Rights Agreement

New York, NY - November 4, 2021 - News Corporation ( News Corp or the Company ) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended September 30, 2021.

Commenting on the results, Chief Executive Robert Thomson said:

I am pleased to report that the first quarter of Fiscal 2022 was the most profitable of its kind since the re-launch of News Corp in 2013, building on the trends evident in the last financial year. Revenues for the quarter were $2.5 billion, an increase of 18 percent, while our profitability rose by a hefty 53 percent.

Dow Jones achieved stronger profitability than any first quarter in its 140-year history. We look forward to completing the acquisition of OPIS, which will enhance our fast-growing professional information business. Recent events have highlighted the importance of intelligence about energy and carbon markets, and we fully expect to emerge as a world leader in that area.

Digital Real Estate Services was again a source of express growth, with both REA Group and Move benefiting from robust yield growth, increased audience and expansion into adjacencies. HarperCollins is thriving, driven by strong sales and the successful integration of HMH. News Media was an especially notable contributor to profitability this quarter, thanks to significant digital advertising growth and our groundbreaking agreements with Google and Facebook.

We are primed to capitalize on the patent success of the Foxtel streaming strategy, which was highlighted during the Foxtel Strategy Day, and are reviewing potential permutations to maximize shareholder value and growth. It's worth noting that Subscription Video Services Segment EBITDA rose an impressive 46 percent in the first quarter.

Following Board approval of a $1 billion stock repurchase program, we expect to begin executing on that program after our quiet period ends next week. These strong results underpin our confidence, our resilience, our ability to generate cash for our investors, and our potential for continued growth.

First Quarter Results

The Company reported fiscal 2022 first quarter total revenues of $2.50 billion, 18% higher compared to $2.12 billion in the prior year period, driven by growth across key segments. The growth reflects strength in the underlying businesses, recent acquisitions and a $57 million, or 3%, positive impact from foreign currency fluctuations. Adjusted Revenues (which exclude the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 10%.

Net income for the quarter was $267 million compared to $47 million in the prior year, reflecting higher Total Segment EBITDA, as discussed below, and higher Other, net, partially offset by higher tax expense.

The Company reported first quarter Total Segment EBITDA of $410 million, a 53% increase compared to $268 million in the prior year. The increase was primarily due to higher revenues, as discussed above, lower costs at the Subscription Video Services segment, and an $11 million, or 4%, positive impact from foreign currency fluctuations. The growth was partially offset by higher costs in the Digital Real Estate Services, Book Publishing and Dow Jones segments, partly due to the recent acquisitions. Adjusted Total Segment EBITDA (as defined in Note 2) increased 47%.

Net income per share attributable to News Corporation stockholders was $0.33 as compared to $0.06 in the prior year.

Adjusted EPS (as defined in Note 3) were $0.23 compared to $0.08 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@maydinnewscorp-com

Leslie Kim

212-416-4529

lkim@newscorp.com

News Corp Corporate Communications

Jim Kennedy

212-416-4064

jkennedy@newsc

LINK:	https://newscorp.com/2021/11/04/news-corp-reports-first-quarter-result...
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