📢 Earnings Summary — NWS

News Corp delivered modest top-line growth and stronger profitability in Q1 FY26, led by Dow Jones and Digital Real Estate. Management highlighted accelerating digital and AI-related revenues, with Dow Jones’ professional information businesses and realtor.com driving the gains. Book Publishing was a drag due to market softness and a $13M receivable write-off, but trends have improved with a stronger release slate. The company is aggressively repurchasing shares, expects robust free cash flow, and sees tailwinds from a recovering U.S. housing market and improving Australian property activity. Management anticipates additional AI licensing deals and remains confident in further margin and profit expansion.

📈 Growth Highlights

• Consolidated revenue up 2% to $2.14B; total segment EBITDA up 5% to $340M; margin up 40 bps to 15.9%
• Dow Jones revenue up 6% to $586M; EBITDA up 10% to $144M with ~25% margin; digital revenue mix up to 84%
• Risk & Compliance revenue up 16% to $94M; Dow Jones Energy up 7% to $73M with ~90% retention
• Digital Real Estate revenue up 5% to $479M (7% adjusted); EBITDA up 13% to $158M (16% adjusted); margin improved to 33% (from 30.6%)
• realtor.com revenue up 9% to $152M (4th straight quarter of growth); core real estate returned to growth; leads down just 1% vs -13% in Q4
• REA revenue up 3% (5% cc); residential yield +13%; financial services improved
• News Media revenue up 1%; EBITDA up 67%; margin improved to 5.5% from 3.3%
• Dow Jones consumer: total average subscriptions up 8% to 6.4M; WSJ digital-only subs up 11%; digital circulation revenue mix up to 75% (from 72%)

🔨 Business Development

• Acquired Eco-Movement, a global EV charging station data platform (supports OPIS/Energy transition strategy)
• Raised digital pricing for new and some tenured WSJ subscribers; broader pricing strategy under review
• Realtor.com scaling RealPro Select targeting larger brokers; focus on higher-intent audiences
• REA appointed new CEO Cameron McIntyre; divested PropTiger (India); discontinued Housing Edge in India post regulatory changes
• Preparing launch of the California Post (expansion of New York Post brand) early in calendar 2026
• Advancing AI content-licensing partnerships (OpenAI in place; additional deals expected); active legal enforcement of IP rights

💵 Financial Performance

• Revenue $2.14B (+2% y/y); total segment EBITDA $340M (+5%); net income from continuing ops $150M (vs $149M)
• Reported EPS from continuing ops $0.20 (vs $0.21); adjusted EPS $0.22 (vs $0.20)
• Book Publishing revenue $534M (-2%); EBITDA $58M (-28%), including $13M receivable write-off tied to expected distributor closure
• Dow Jones advertising $85M (flat y/y): digital +2%, print -4%; digital is 68% of ad revenue
• realtor.com average monthly uniques 72M (-6% y/y) but highest engagement at ~5 visits per unique (comScore)
• REA: new buy listings -8% (Melbourne -4%, Sydney -6%); home prices remained strong
• News Media: New York Post ad revenue +19% y/y; ~90% of Post ads are digital
• Digital mix and profitability concentration: 62% of FY25 revenue digital; Dow Jones + Digital Real Estate were 49% of FY25 revenue and 84% of FY25 EBITDA; advertising down to 16% of FY25 revenue

🏦 Capital & Funding

• Accelerated buybacks to ~$2.5M per day (~4x prior pace); management views shares as undervalued
• Expect FY26 cash flow pacing to benefit from ~$380M Foxtel shareholder loan repayment
• Strong current cash position and expectation of robust FY26 free cash flow
• Portfolio optimization continues (e.g., prior acquisitions OPIS/CMA; divestitures like News America Marketing; Foxtel stake exchanged for DAZN equity)

🧠 Operations & Strategy

• Emphasis on recurring, high-margin digital content licensing and professional information (Risk & Compliance, Energy data)
• Expanding energy transition datasets and analytics (Eco-Movement integration with OPIS)
• WSJ pricing optimization underway; enterprise subscription growth (margin accretive though ARPU dilutive)
• Realtor.com strategy centered on sell-side, new homes, and rentals (now 22% of revenue, +3 pts y/y), plus quality audience shift
• Building unique content moat in real estate with leading original residential news to drive engagement
• News Media digital subscription growth (The Times/Sunday Times to 640k; News Corp Australia digital subs +3% to 1.162M)

🌍 Market Outlook

• U.S. housing showing early renaissance as mortgage rates approach ~6% post Fed cuts; anticipating further recovery (benefits realtor.com)
• Australia property showing signs of improvement with elevated auction activity in Melbourne/Sydney
• Book market softness early in quarter but improving; strong fall lineup and cross-promotion expected to support sales
• Further AI licensing partnerships expected; management expects positive financial impact
• Company plans to continue aggressive buybacks and targets strong FY26 free cash flow

⚠ Risks & Headwinds

• Book Publishing faced tough comps and softer U.S. demand; $13M receivable write-off tied to expected distributor closure
• Macro uncertainty and FX; uneven listing volumes in Australia (new buy listings -8%)
• Timing effects (e.g., World Chemical Forum) weighed on Dow Jones Energy growth vs recent quarters
• Realtor.com audience down 6% y/y despite engagement gains; competitive dynamics vs Zillow/Homes.com/Redfin
• Print advertising continued to decline; ongoing litigation and compliance costs related to AI/IP enforcement

AI-generated earnings recap sourced from company results & conference call observations. Not investment advice — verify with official filings.