News Corporation Reports Mixed Q3 2025 Results with Revenue Growth Amid Advertising Decline

News Corporation (NASDAQ: NWS) recently released its Q3 2025 earnings report, revealing mixed financial results. Key insights from the income statement and updates within the company are summarized below:

• Revenues: Total revenues for the three months ended March 31, 2025, increased by $15 million, or 1%, to $2.009 billion compared to the same period in 2024. For the nine months, revenues rose by $183 million, or 3%, reaching $6.343 billion.
• Major Growth Areas:
  • Circulation and Subscription: Grew by $21 million (3%) for the quarter and $60 million (3%) year-to-date.
  • Real Estate: Increased revenue by $17 million (6%) for the quarter and $113 million (12%) for the year.
  • Consumer Revenue: Gained $8 million for the quarter and $72 million for the year, marking a 2% and 5% increase respectively.
• Challenges:
  • Advertising Revenue: Declined by $15 million (5%) in the quarter and $32 million (3%) year-to-date.
  • Other Revenue: Fell by $16 million (11%) in the quarter and $30 million (6%) for nine months.
• Operating Expenses: Reduced by $34 million (4%) in Q3 and $67 million (2%) year-to-date, mostly due to cost-saving initiatives in the News Media segment.
• Net Income: Net income attributable to News Corporation stockholders reached $103 million ($0.14 per share), reflecting a significant increase from $30 million ($0.05 per share) in Q3 2024. Year-to-date net income was $437 million, up from $216 million.
• Discontinued Operations: The company recognized a net gain of $30 million for Q3 2025 from discontinued operations related to Foxtel, compared to a loss of $22 million in the same period last year.
• Cash Position: As of March 31, 2025, cash and cash equivalents totaled $2.095 billion, reflecting strong liquidity in contrast to the prior year.

Positive Aspects:

• Overall improvement in revenue streams, with strong growth in circulation, subscription, and real estate services.
• Effective cost management leading to reduced operating expenses and increased net income.
• Significant liquidity position enhancing financial stability.

Negative Aspects:

• Ongoing decline in advertising revenue impacting overall revenue growth and reflecting wider industry challenges.
• Disruptive factors in the macroeconomic landscape, such as trade policy changes, could affect future performance.

The sale of Foxtel to DAZN closed on April 2, 2025, representing a significant strategic shift for the company. This move is intended to refocus its operations towards core media and publishing segments, which are expected to provide a more stable revenue stream moving forward.