Foxtel sale boosts News Corp net assets; cautious dividend stance remains
News Corporation has reported a modest 2% increase in revenues to US$8.452 billion for the fiscal year ended June 30, 2025, alongside a remarkable 344% surge in net income to US$1.18 billion. The company declared a stable total dividend of US$0.20 per share, reflecting confidence despite market challenges.
- Revenue growth of 2% to US$8.452 billion
- Net income jumps 344% to US$1.18 billion
- Total dividends maintained at US$0.20 per share
- Significant increase in net tangible asset backing per share
- Foxtel sale and DAZN equity stake impact financials
Overview of Financial Performance
News Corporation, a global media and information services company, has released its Appendix 4E and Form 10-K filings for the fiscal year ended 30 June 2025. The company reported revenues of US$8.452 billion, marking a 2% increase compared to the previous year. More strikingly, net income soared by 344% to US$1.18 billion, a substantial leap that has caught the attention of investors and analysts alike.
Dividend Declaration and Shareholder Returns
Despite the significant jump in profitability, News Corp has maintained its dividend payout at US$0.20 per share for both Class A non-voting and Class B voting common stock. This total dividend comprises an interim dividend of US$0.10 per share and a final dividend of US$0.10 per share, consistent with the previous fiscal year. The final dividend is unfranked and is scheduled for payment on 8 October 2025, with a record date of 10 September 2025.
Impact of Foxtel Sale and DAZN Equity Stake
The financial results notably exclude the continuing operations of the Foxtel Group, which was sold during the fiscal year. The sale has materially influenced the company’s net tangible asset backing per share, which increased significantly from US$2.64 to US$5.46. This uplift primarily reflects the proceeds from the Foxtel sale and the receipt of a minority equity interest of approximately 6% in DAZN, a sports streaming service. This strategic move not only bolstered News Corp’s balance sheet but also positioned it to benefit from the growing digital sports content market.
Geographic and Sector Footprint
Headquartered in New York, News Corp operates mainly in the United States, Australia, and the United Kingdom. Its diversified portfolio spans information services, news, digital real estate services, and book publishing. The company’s content and services reach a global audience, underscoring its significant role in the media and publishing sector.
Looking Ahead
While the strong net income growth is encouraging, the stable dividend suggests a cautious approach to capital allocation amid ongoing industry challenges. Investors will be keen to monitor how News Corp leverages its new DAZN stake and navigates the evolving media landscape, especially as digital transformation accelerates.
Bottom Line?
News Corp’s robust net income growth and strategic asset repositioning set the stage for a pivotal year ahead, but market watchers should stay alert for how these gains translate into sustainable shareholder value.
Questions in the middle?
- How will News Corp’s minority stake in DAZN influence future earnings and strategic direction?
- What are the implications of excluding Foxtel’s continuing operations on the company’s revenue sustainability?
- Will News Corp consider increasing dividends or share buybacks given the surge in net income?
