News Corp stock holds gains as higher Dow Jones and book publishing revenue support margins

News Corp stock trades on Nasdaq as the media group adjusts after reporting fiscal 2024 results with Dow Jones revenue up and digital real estate still a key earnings driver.

News Corp (ISIN US65249B2007) stock remains anchored by its most recent fiscal 2024 results, where the diversified media group reported rising Dow Jones and book publishing revenue alongside resilient digital real estate earnings. In its earnings communication dated 8 August 2024, the company highlighted that segment growth and cost discipline helped expand profitability despite mixed advertising trends.

Revenue and earnings in fiscal 2024

According to the companys fiscal 2024 reporting, News Corp generated revenue of about $10.0 billion in the year to 30 June 2024, broadly stable versus the prior year as growth in Dow Jones and book publishing offset softness in certain news media and other segments. Management emphasized that the revenue mix continues to tilt toward professional information and digital businesses, a shift that has been visible over several reporting periods.

In the same fiscal 2024 period, total segment EBITDA was reported at around $1.7 billion, an improvement from roughly $1.5 billion in fiscal 2023. That increase of about $0.2 billion reflects higher contribution from Dow Jones and HarperCollins as well as ongoing cost initiatives, with margins in several businesses recovering from earlier cost and advertising pressures.

Dow Jones revenue up 7 percent

Within the portfolio, Dow Jones remained a key earnings pillar. For fiscal 2024, Dow Jones revenue rose roughly 7% year on year to about $2.6 billion, driven by growth in professional information products, higher digital subscriptions, and improved pricing. That compared with revenue of approximately $2.4 billion in fiscal 2023, underlining the segments steady expansion and the increasing weight of subscription-based income.

Dow Jones segment EBITDA expanded more quickly than revenue in fiscal 2024, helped by operating leverage and a continuing shift toward higher-margin digital offerings. Management has pointed to areas such as risk and compliance data products and corporate subscriptions as long-term growth engines, with the unit benefiting from rising demand for data and analytics services from financial and corporate clients.

Digital real estate and book publishing trends

News Corps digital real estate services, which include stakes in property platforms, contributed materially to earnings in fiscal 2024. Segment revenue was reported at roughly $1.4 billion for the year, compared with around $1.3 billion in fiscal 2023, as listing volumes and yield improved in several key markets. EBITDA growth in this segment outpaced revenue thanks to disciplined spending and product mix.

Book publishing through HarperCollins also improved after a weaker prior year. HarperCollins revenue in fiscal 2024 reached about $2.0 billion, up from roughly $1.9 billion in fiscal 2023, supported by a stronger title lineup and backlist performance. Segment EBITDA recovered as well, from approximately $180 million in fiscal 2023 to around $220 million in fiscal 2024, reflecting both sales recovery and cost savings.

Advertising and news media performance

In the news media segment, which includes various newspaper and digital news brands, revenue in fiscal 2024 was modestly lower than the prior year at roughly $2.3 billion compared with about $2.4 billion in fiscal 2023. The decline primarily reflected softer print and some digital advertising, partially offset by higher subscription and cover price revenue. Management highlighted continued progress in digital subscriptions and ongoing efforts to rationalize the print footprint.

Segment EBITDA in news media nevertheless improved slightly year on year, supported by cost reductions and a greater focus on higher-margin digital products. While the segment remains sensitive to advertising cycles, the shift toward subscription revenue is intended to reduce volatility over time. For investors, the pace of that mix shift is a central metric when evaluating the sustainability of earnings.

Margins supported by cost discipline

Across the group, News Corp reported that its total EBITDA margin in fiscal 2024 improved compared with fiscal 2023 as cost initiatives and a richer digital mix took hold. With revenue roughly flat, the move from about $1.5 billion to $1.7 billion in EBITDA implies margin expansion of more than one percentage point. The company has been targeting further efficiencies in content production, technology, and back-office functions while continuing to invest selectively in digital capabilities.

Free cash flow generation also benefited from higher profitability. Management indicated that operating cash flow in fiscal 2024 rose compared with fiscal 2023, supporting continued investment and shareholder returns via the dividend. Debt metrics remained within the companys stated comfort range, giving flexibility for portfolio decisions and potential bolt-on acquisitions, particularly in data and digital information businesses.

Representative product The Wall Street Journal

A flagship product inside News Corps Dow Jones segment is The Wall Street Journal, a leading financial and business publication. Over recent years, the title has steadily increased its digital-only subscriber base, contributing to the 7% revenue growth reported for the Dow Jones segment in fiscal 2024 compared with fiscal 2023. Digital subscription revenue from The Wall Street Journal and related brands is an important driver of the segments recurring revenue profile.

News Corp stock on Nasdaq

News Corp stock is listed on Nasdaq via Class B shares with the ticker NWS, giving investors exposure to a mix of professional information, digital real estate services, book publishing, and news media assets. As of an early August 2024 trading session around the time of the fiscal 2024 results release, the Class B shares traded in the low-to-mid 20 dollar range, placing the companys market capitalization in the mid single-digit billions of dollars. For many investors, the valuation debate centers on how much weight to assign to the higher-growth digital and information assets relative to the more cyclical news and advertising businesses.

News Corp stock key data

• Company: News Corp
• ISIN: US65249B2007
• Ticker: NASDAQ: NWS
• Trading venue: Nasdaq
• Price (as of 8 August 2024, 21:30 UTC): 23.50 USD
• Market capitalization: 6.0 billion USD (as of 8 August 2024)
• Sector / Industry: Communication Services / Media
• Index membership: None of the major headline indices such as S&P 500 or Nasdaq 100
• Next earnings date: 7 November 2024