NASDAQ$NWSA

News Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

News Corp's Q4 2023 financial results were reported, showing a decrease in revenue compared to the prior year, but an increase in Total Segment EBITDA.

News Corp reported Q4 2023 revenues of $2.43 billion, a 9% decrease compared to the prior year. The net loss for the quarter was $(32) million, compared to a net income of $127 million in the prior year. Total Segment EBITDA was $341 million, an 8% increase compared to the prior year.

  • Fourth quarter revenues were $2.43 billion, a decrease of 9% compared to the prior year, impacted by the absence of an extra week and foreign currency fluctuations.
  • Net loss in the quarter was $(32) million, compared to net income of $127 million in the prior year, due to higher non-cash write-downs and restructuring charges.
  • Total Segment EBITDA for the fourth quarter was $341 million, an increase of 8% compared to the prior year.
  • Digital revenues accounted for over 50% of total revenues for the full year.

Headline financials

Total Revenue

$2.43B

Previous: $2.67B-9.0%
EPS (adj)

$0.14

Previous: $0.37-62.2%
Total Consumer Digital-Only Subscriptions

4.5M

Previous: 4.0M+11.9%
Capital Expenditures

$149M

Previous: $184M-19.0%
Free Cash Flow

$273M

Previous: $140M+95.0%
Net Income

-$32M

Previous: $127M-125.2%
Operating Income

-$17M

Previous: -$20M+15.0%
Gross Profit

$982M

Previous: $1.14B-13.6%
Cash & Equivalents

$1.83B

Previous: $1.82B+0.6%
Total Assets

$16.9B

Previous: $17.2B-1.7%

Revenue & EPS history

News Corp · Revenue · Quarterly

$2.43B

Q4 2023-9%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

News Corp · $1.56B total across 3 segments · Q4 2023

  • News Media
    $571M-9.2%
  • Dow Jones
    $546M-3.4%
  • Book Publishing
    $446M-13.1%

Forward guidance

News Corp's Fiscal 2023 results highlighted the durability and depth of our revenue streams and the impact of stringent cost controls as we navigated challenging macro conditions, supply chain pressures and currency headwinds. Results showed marked improvement in the second half, so with inflation abating, interest rates plateauing and incipient signs of stability in the housing market, we have sound reasons for optimism about the coming quarters.

Tailwinds

  • Inflation abating
  • Interest rates plateauing
  • Incipient signs of stability in the housing market
  • Generative AI presents a remarkable opportunity to create a new stream of revenues
  • Generative AI allows to reduce costs across the business

Headwinds

  • Challenging macro conditions
  • Supply chain pressures
  • Currency headwinds
  • Ongoing supply chain challenges and inventory and inflationary pressures are expected to continue to impact the business in the near term
  • Lower book sales due to lower consumer demand industry-wide

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+1.4%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.2%

Avg return

30 days after

57%

29 / 51 earnings

Positive

+13.2%

Q1 2021

Best reaction

-18.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-1.2%-1.4%+0.7%
Q2 2026-7.1%-4.1%+1.7%
Q1 2026+6.7%+6.9%+3.8%
Q3 2025-1.5%-0.7%-2.4%
Q2 2025-0.8%+2.3%-2.8%
Q1 2025+4.0%+1.3%+1.4%
Q4 2024+6.6%+5.8%+2.0%
Q3 2024+1.5%+4.3%+11.3%
Q2 2024+5.1%+5.6%+6.7%
Q1 2024-2.3%-2.1%+2.5%
Q4 2023+4.4%+2.8%+3.5%
Q3 2023+8.7%+10.3%+15.3%
Q2 2023-10.9%-9.9%-23.3%
Q1 2023-2.9%+8.0%+8.6%
Q4 2022+7.9%+10.7%-1.1%
Q3 2022-18.6%-15.7%-17.5%
Q2 2022+1.4%+2.1%-5.1%
Q1 2022+5.8%+1.7%-6.8%
Q4 2021+1.5%-0.2%-7.3%
Q3 2021+5.4%+5.8%+0.4%
Q2 2021+8.1%+11.8%+22.8%
Q1 2021+13.2%+20.2%+38.0%
Q4 2020+7.6%+12.0%+12.5%
Q3 2020+12.6%+9.5%+34.0%
Q2 2020+0.3%+0.3%-21.8%
Q1 2020-5.4%-3.2%-2.5%
Q4 2019+7.2%+9.8%+10.3%
Q3 2019+3.6%+0.9%+2.6%
Q2 2019-3.1%-4.0%-0.9%
Q1 2019+6.2%+3.2%-6.9%
Q4 2018-12.1%-9.6%-16.4%
Q3 2018-6.9%-4.4%-4.2%
Q2 2018-1.8%+1.0%+2.6%
Q1 2018+7.6%+8.0%+17.0%
Q4 2017-5.2%-6.1%-7.3%
Q3 2017-0.4%-0.6%+5.6%
Q2 2017+9.2%+7.6%+1.8%
Q1 2017-0.4%+1.9%-0.5%
Q4 2016+3.7%+5.3%+7.4%
Q3 2016+3.7%
Q2 2016-6.1%
Q1 2016-3.0%
Q4 2015+8.4%
Q3 2015-7.2%
Q2 2015+4.4%
Q1 2015+1.7%
Q4 2014-2.3%
Q3 2014+5.2%
Q2 2014+11.0%
Q1 2014-2.5%
Q4 2013-2.0%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012

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