News Corporation delivered solid financial performance in the third quarter of fiscal 2025, reporting a 67% increase in net income from continuing operations to $107 million, compared to $64 million in the prior year. The media and information services giant also recorded a 1% year-over-year increase in total revenues, reaching $2.01 billion, bolstered by growth in its Dow Jones, Digital Real Estate Services, and Book Publishing segments.
Total Segment EBITDA for the quarter rose 12% to $290 million, up from $259 million in the same period last year. On an adjusted basis, Total Segment EBITDA increased by 15% to $301 million. Earnings per share (EPS) from continuing operations doubled to $0.14, while adjusted EPS rose to $0.17 from $0.13 a year earlier.
Chief Executive Robert Thomson described the quarter’s performance as a result of the company’s strategic transformation. “We have pursued digital growth, realigned our assets, and focused relentlessly on cost discipline,” he said, also highlighting the recently completed sale of Foxtel to DAZN, which he called “a significant moment for News Corp.”
Segment performance highlights
Dow Jones led the quarter with $575 million in revenue, a 6% increase driven by strong performance in digital circulation and professional information services. The Risk & Compliance unit saw revenue jump 11% to $84 million, while Dow Jones Energy grew 10% to $69 million. Digital circulation revenues made up 75% of total circulation revenue, up from 70% a year ago. Dow Jones' consumer products exceeded 6.1 million average subscriptions, with digital-only subscriptions rising 9% to 5.5 million.
Digital Real Estate Services, including REA Group and Move, reported a 5% increase in revenue to $406 million, with REA Group alone contributing $271 million, a 6% year-over-year rise. Segment EBITDA grew 19% to $124 million. On an adjusted basis, revenue climbed 8% and EBITDA surged 25%. The gains were partly offset by $14 million in negative foreign currency impacts.
Book Publishing revenue rose 2% to $514 million, aided by strong backlist performance and increased audiobook sales. Titles such as Wicked by Gregory Maguire and Summer in the City by Alex Aster helped drive the results. Segment EBITDA increased 3% to $64 million. Digital formats accounted for 25% of consumer revenues.
In contrast, News Media revenues declined 8% to $514 million, largely due to falling advertising revenues and the transfer of third-party printing contracts in the UK. However, EBITDA for the segment jumped 22% to $33 million, reflecting cost savings and operational efficiencies. Digital revenues now comprise 39% of segment revenue, up from 37% a year earlier.
Digital subscriber growth was notable in key markets:
- News Corp Australia digital subscribers reached 1.15 million, up from 1.11 million.
- The Times and Sunday Times grew to 629,000 subscribers, a 8% increase.
However, audience metrics for The Sun and New York Post digital platforms declined year-over-year, with The Sun dropping from 126 million to 74 million unique users and New York Post falling from 125 million to 85 million.
Strategic moves and cash flow
The April 2025 sale of Foxtel to DAZN resulted in the repayment of A$592 million in shareholder loans and gave News Corp a 6% equity stake in DAZN. The move is expected to boost return on invested capital and improve EPS.
Free cash flow for the nine months ending March 31, 2025, was $539 million, up from $475 million in the previous year, supported by stronger operating cash flows which rose to $789 million.
Outlook
News Corp’s diversified portfolio and continued investment in digital transformation have positioned it well despite currency headwinds and broader macroeconomic uncertainty. The company reaffirmed its focus on enhancing shareholder value, streamlining operations, and expanding digital assets.