News Corp Reports Second Quarter Results for Fiscal 2023

News Corp Reports Second Quarter Results for Fiscal 2023

Fiscal 2023 Second Quarter Key Financial Highlights

Revenues in the quarter were $2.52 billion, a 7% decrease compared to $2.72 billion in the prior year, reflecting a $171 million, or 6%, negative impact from foreign currency fluctuations. Adjusted Revenues decreased 3%

Net income in the quarter was $94 million compared to $262 million in the prior year

Total Segment EBITDA in the quarter was $409 million compared to $586 million in the prior year

In the quarter, reported EPS were $0.12 compared to $0.40 in the prior year - Adjusted EPS were $0.14 compared to $0.44 in the prior year

At the Dow Jones segment, revenues from its professional information business grew 45%, benefiting from the acquisitions of OPIS and CMA and the ongoing momentum in its Risk & Compliance products

At the Subscription Video Services segment, higher streaming revenues from Foxtel's Kayo and BINGE continued to offset broadcast revenue declines

Revenues at News UK continued to benefit from strong digital advertising revenue growth at The Sun, highlighting the brand's successful expansion into the U.S. and increase in yield

Engaged in discussions with CoStar Group regarding a potential sale of Move

New York, NY - February 9, 2023 - News Corporation ( News Corp or the Company ) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended December 31, 2022.

Commenting on the results, Chief Executive Robert Thomson said:

The second quarter highlighted the progress made in certain of our business segments. Obviously, a surge in interest rates and acute inflation had a tangible impact on all of our businesses. But we believe these challenges are more ephemeral than eternal. Just as our company passed the stress-test of the pandemic with record profits, the initiatives now underway, including an expected 5 percent headcount reduction, or around 1,250 positions this calendar year, will create a robust platform for future growth.

Even in the midst of the obvious global challenges, the professional information business at Dow Jones displayed particular promise, with revenues surging 45 percent year-over-year. That encouraging result highlights the value of our opportunistic acquisitions of OPIS and CMA, and continuing growth at our burgeoning Risk and Compliance business.

In terms of portfolio optimization, as publicly reported, we have been actively engaged in discussions with CoStar Group about a potential sale of Move. Any transaction would be designed to create shareholder value and strengthen Realtor.com 's competitive position.

Second Quarter Results

The Company reported fiscal 2023 second quarter total revenues of $2.52 billion, a 7% decrease compared to $2.72 billion in the prior year period. The decline was primarily due to a $171 million, or 6%, negative impact from foreign currency fluctuations, lower revenues at the Book Publishing segment primarily due to lower book sales and lower revenues at the Digital Real Estate Services segment due to challenging housing market conditions in Australia and the U.S. The decline was partially offset by higher Dow Jones segment revenues, which includes the acquisitions of OPIS and Chemical Market Analytics ( CMA ), and higher Subscription Video Services revenues on a constant currency basis. Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) decreased 3%.

Net income for the quarter was $94 million, a 64% decline compared to $262 million in the prior year, primarily due to lower Total Segment EBITDA, as discussed below, and higher losses from equity affiliates due to losses from the Company's investment in a newly launched sports wagering platform in Australia, partially offset by lower tax expense.

The Company reported second quarter Total Segment EBITDA of $409 million, a 30% decline compared to $586 million in the prior year, primarily due to higher costs at the Dow Jones segment, higher operating expenses at the News Media segment, partly due to inflationary pressures, lower revenues, as discussed above, and a $30 million, or 5%, negative impact from foreign currency fluctuations. The results this quarter also include $6 million of one-time costs related to the professional fees incurred by the Special Committee and the Company in connection with evaluating the proposal from the Murdoch Family Trust. Adjusted Total Segment EBITDA (as defined in Note 2) decreased 28%.

Net income per share attributable to News Corporation stockholders was $0.12 as compared to $0.40 in the prior year.

Adjusted EPS (as defined in Note 3) were $0.14 compared to $0.44 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/2023/02/09/news-corp-reports-second-quarter-resul...
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