News Corp Posts 3% Revenue Growth and $379M Net Income After Foxtel Exit

Foxtel Disposition Marks Strategic Shift

News Corporation has formally recast its financial statements following the April 2025 completion of the Foxtel Group sale to DAZN Group Limited. This transaction, a significant strategic pivot, led to Foxtel’s classification as discontinued operations and the dissolution of the Subscription Video Services segment as a standalone reporting unit. Residual results from this segment have been integrated into the News Media segment, reflecting a streamlined operational focus.

Fiscal 2024 Financial Highlights

Despite the divestiture, News Corp reported a 3% increase in total revenues to $8.25 billion for fiscal 2024, driven primarily by robust performance in its Digital Real Estate Services and Book Publishing segments. REA Group, the company’s majority-owned digital property platform, saw a 19% revenue increase, buoyed by higher Australian residential revenues and growth in financial services. Meanwhile, HarperCollins benefited from improved returns and a rise in digital book sales, including audiobooks.

Conversely, the News Media segment experienced a 3% revenue decline, largely due to lower advertising revenues amid shifting market dynamics and platform-related traffic changes. However, circulation and subscription revenues showed modest growth, supported by digital subscriber gains and cover price increases.

Profitability and Cost Management

Net income from continuing operations surged 66% to $379 million, reflecting higher segment EBITDA and effective cost control measures. The company’s ongoing 5% headcount reduction initiative, substantially completed by December 2023, contributed to annualized gross cost savings exceeding $160 million. These savings helped offset increased selling, general and administrative expenses driven by investments in technology, marketing, and employee costs across key segments.

News Corp also reported non-cash impairment charges related to fixed assets in its News Media segment and goodwill impairments totaling $18 million, underscoring management’s vigilance in asset valuation amid evolving market conditions.

Liquidity, Capital Structure, and Shareholder Returns

The company maintains a strong liquidity position with $1.87 billion in cash and cash equivalents as of June 30, 2024, supplemented by undrawn credit facilities. News Corp’s borrowings, including senior notes and term loans, remain well-managed with compliance to all covenants. The Board has authorized a $1 billion stock repurchase program, with approximately $460 million remaining as of the fiscal year-end, and declared consistent dividends of $0.20 per share for fiscal 2024.

Legal and Regulatory Landscape

News Corp continues to navigate legal contingencies, notably related to the U.K. Newspaper Matters and antitrust litigation involving HarperCollins. While the company has made provisions for known liabilities, uncertainties remain regarding the timing and financial impact of ongoing and potential claims. Management emphasizes its commitment to vigorous defense and prudent risk management.

Looking ahead, the company’s strategic realignment post-Foxtel sale, combined with disciplined cost management and digital growth initiatives, positions it to adapt to the rapidly evolving media landscape.