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Dec 31, 2022
News Corp Q2 2023 Earnings Report
News Corp's Q2 2023 financial performance was impacted by foreign currency fluctuations and challenging market conditions.
Key Takeaways
News Corp reported a decrease in revenue by 7% to $2.52 billion, primarily due to foreign currency fluctuations and lower revenues in Book Publishing and Digital Real Estate Services. Net income decreased to $94 million, and adjusted EPS were $0.14. Dow Jones' professional information business grew 45%.
Revenues decreased by 7% to $2.52 billion, impacted by currency fluctuations.
Net income declined to $94 million from $262 million in the prior year.
Adjusted EPS decreased to $0.14 compared to $0.44 in the prior year.
Dow Jones' professional information business grew by 45%.
News Corp
News Corp
News Corp Revenue by Segment
Revenue by Segment
Dow Jones Revenue
CapyFin.comDigital Real Estate Services Revenue
CapyFin.comBook Publishing Revenue
CapyFin.comNews Media Revenue
CapyFin.com Forward Guidance
News Corp expects cost-saving initiatives, including a 5% headcount reduction, to create a robust platform for future growth, despite challenges from interest rates and inflation. Newsprint, production, and distribution costs are expected to be higher in fiscal 2023 due to supply chain and inflationary pressures, partially offset by the Company’s continued transition to digital products.
Positive Outlook
- Initiatives underway, including a 5 percent headcount reduction, will create a robust platform for future growth.
- The professional information business at Dow Jones displayed particular promise, with revenues surging 45 percent year-over-year.
- Growth in circulation and subscription revenues from continued digital subscription gains and growth in Risk & Compliance products.
- Foxtel Group streaming subscription revenues represented approximately 26% of total circulation and subscription revenues in the quarter, as compared to 19% in the prior year.
- 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
Challenges Ahead
- A surge in interest rates and acute inflation had a tangible impact on all of our businesses.
- Newsprint, production and distribution costs are expected to be higher in fiscal 2023 than the prior year due to supply chain and inflationary pressures.
- Lower revenues at the Book Publishing segment primarily due to lower book sales
- challenging housing market conditions in Australia and the U.S.
- Revenues at REA Group decreased $47 million, or 16%, to $240 million, driven by a $26 million, or 9%, negative impact from foreign currency fluctuations
Revenue & Expenses
Visualization of income flow from segment revenue to net income