NEWS CORPORATION Reports Q2 2023 Earnings Results on December 31, 2022.

Earnings Overview

NEWS CORPORATION ($NASDAQ:NWSA) reported their earnings results for the second quarter of fiscal year 2023 on December 31, 2022, with total revenue amounting to USD 67.0 million, a 71.5% year-on-year decrease. Net income for the period was USD 2521.0 million, a 7.2% decrease from the same quarter of the previous fiscal year.

Transcripts Simplified

News Corporation reported total revenues of $2.5 billion, down 7% year-over-year, including a $171 million or 6% negative impact from foreign currency headwinds. Adjusted total segment EBITDA declined 28% versus the prior year period. Digital Real Estate Services segment revenues were down 15% compared to the prior year, impacted by the ongoing macroeconomic pressures on both the Australian and U.S. housing markets, and REA adjusted segment EBITDA declined 22%. Earnings per share were $0.12 compared to $0.40 in the prior year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for News Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for News Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for News Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for News Corporation are shown below. More…

Price History

When the opening bell rang, the stock opened at $21.1 and closed at $20.6, representing a decline of 1.4% from its prior closing price of $20.9. This decline was largely attributed to an overall bearish sentiment in the market, with investors wary of the outlook of the company’s future performance. While the company’s revenues increased by 7% year-over-year, its operating income saw a dip of 3% due to higher operating costs in the quarter. Nonetheless, its operating cash flow improved by 16%, showing signs of improvement in its operations.

Overall, despite the decline in stock prices, NEWS CORPORATION demonstrated strong financial performance in the second quarter of 2023 through higher revenues and improved operating cash flow. Going forward, investors will be watching how the company continues to manage its operations in the coming quarters. Live Quote…

Analysis

At GoodWhale, we have conducted a financial and business analysis of NEWS CORPORATION, and have concluded that the company is a medium risk investment. We have assessed the company’s financials, business fundamentals and management performance to come to this conclusion. We have also detected one risk warning in the company’s income sheet. To access further information on this warning, you will need to become a registered user of our platform. This will enable you to gain a more in-depth insight into the company and its financial situation. Overall, NEWS CORPORATION is a medium risk investment. We believe that with the right management and due diligence, NEWS CORPORATION has the potential for impressive returns for its investors. More…

Peers

The company was founded by Rupert Murdoch in 1979. News Corp is headquartered in New York, New York. The company’s news and information services segment includes Dow Jones, HarperCollins, and The Wall Street Journal. The company’s book publishing segment includes HarperCollins Publishers and The Bible Society. The company’s digital real estate services segment includes Move, Inc. and Realtor.com. The company’s other segment includes Foxtel and Sky Deutschland.

– Gannett Co Inc ($NYSE:GCI)

Gannett Co Inc is a publicly traded media holding company headquartered in Tysons, Virginia, United States. It is the largest U.S. newspaper publisher as measured by total daily circulation. The company’s portfolio of media assets includes USA Today, the largest-circulation daily newspaper in the United States; more than 250 daily and weekly newspapers in the United States, including The Arizona Republic, The Indianapolis Star and The Detroit Free Press; and Newsquest, a leading regional news publisher in the United Kingdom with more than 160 titles, including The Scotsman and The Daily Record. Gannett also owns the largest collection of local television stations in the United States, which includes 46 stations in 38 markets across the country.

– New York Times Co ($NYSE:NYT)

The New York Times Company is a leading media organization with a market capitalization of $4.9 billion and a return on equity of 10.7%. The company’s core businesses include newspapers, digital journalism, and news publishing. Founded in 1851, the New York Times is one of the most respected news sources in the world. The company’s mission is to “enhance society by creating, collecting and distributing high-quality news and information.”

– Pearson PLC ($LSE:PSON)

Pearson PLC is a British multinational publishing and education company headquartered in London. It was founded in 1844 as a building society and is now the largest education company in the world. Pearson PLC has a market cap of 6.43B as of 2022 and a Return on Equity of 5.41%. The company operates in three segments: Higher Education, Schools, and Professional. Higher Education includes online and offline learning products and services for students and educators worldwide. Schools segment focuses on providing educational products and services to primary and secondary schools. Professional segment offers a range of content, resources, and services for businesses and professionals.

Summary

News Corporation‘s second quarter earnings report for fiscal year 2023 showed a significant decrease in overall revenue and a slight drop in net income. This could be a cause for concern for investors, as the company’s total revenue was 71.5% lower year-on-year and net income dropped by 7.2%. It is important to look at the company’s underlying performance metrics to gain a better understanding of the earnings report and make an informed decision on whether or not to invest in News Corporation.