NWSA — News Corporation

News Corp (NWSA) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $2.14 billion, up 2% year-over-year.
• Total Segment EBITDA: $340 million, up 5%.
• Net Income from Continuing Operations: $150 million, slightly up from $149 million last year.
• Adjusted EPS: Increased from $0.20 to $0.22.
• Margins: Improved to 15.9%, up 40 basis points from the prior year.

2. Strategic Updates and Business Highlights

• Dow Jones: Revenue rose 6% to $586 million; EBITDA increased 10% to $144 million. Digital revenues accounted for 84% of Dow Jones revenue. Strong growth in Risk & Compliance (up 16%).
• Digital Real Estate Services: Revenue increased 5% to $479 million; EBITDA rose 13% to $158 million. Realtor.com saw a 9% revenue boost, marking the highest growth rate in nearly four years.
• Book Publishing: Revenue declined 2% to $534 million, impacted by a $13 million write-off due to a distributor's closure. Recent trends show improvement in sales.
• News Media: Revenue grew 1% to $545 million, with EBITDA soaring 67% to $30 million, driven by cost efficiencies and strong advertising growth at the New York Post.

3. Forward Guidance and Outlook

• Digital Growth: Continued focus on digital revenues, which now comprise 62% of total revenues.
• Book Publishing: Positive trends expected in Q2, with anticipated stronger sales from upcoming releases.
• Digital Real Estate: Anticipated growth driven by improving market conditions and lower mortgage rates.
• Share Buybacks: Accelerated buyback program with a rate of approximately $2.5 million per day, reflecting confidence in the company's growth potential.

4. Bad News, Challenges, or Points of Concern

• Book Publishing: Facing challenges with a decline in orders and a significant write-off, although recent trends are improving.
• Market Conditions: The U.S. housing market remains hampered by high interest rates, which could limit growth in the Digital Real Estate segment.
• Advertising Trends: Mixed results in advertising, particularly in traditional media, though digital advertising at the New York Post showed strong growth.

5. Notable Q&A Insights

• Growth in Realtor: Management expressed optimism about sustaining revenue growth in Realtor despite the challenging housing market.
• Share Buyback Strategy: There is potential to increase the buyback rate further if deemed optimal, given the company's robust cash position.
• Risk & Compliance Growth: The segment is expected to benefit from stringent regulatory requirements, contributing to future revenue growth.
• News Media Trajectory: The team highlighted ongoing cost efficiencies and the positive impact of the upcoming launch of the California Post on advertising revenue.

Overall, News Corp reported a solid start to fiscal 2026, with strong performance in digital segments, though challenges in Book Publishing and the broader economic environment remain areas to monitor.