News Corporation Reports Second Quarter Results for Fiscal 2022

FISCAL 2022 SECOND QUARTER AND FIRST HALF KEY FINANCIAL HIGHLIGHTS

  • Revenues in the quarter were $2.72 billion, a 13% increase compared to $2.41 billion in the prior year and the highest quarterly revenue since separation. Revenues in the first half rose 15% year-over-year
  • Net income in the quarter was $262 million, flat compared to $261 million in the prior year. Net income in the first half rose 72% year-over-year
  • Total Segment EBITDA in the quarter was $586 million, an 18% increase compared to $497 million in the prior year. Total Segment EBITDA in the first half rose 30% year-over-year
  • In the quarter, Reported EPS were $0.40 compared to $0.39 in the prior year – Adjusted EPS were $0.44 compared to $0.34 in the prior year. In the first half, Reported diluted EPS were $0.72 and Adjusted EPS were $0.67
  • Digital Real Estate Services segment revenues grew 35% in the quarter, with continued traffic gains at Move, operator of realtor.com®, and strong listing volumes at REA Group
  • Dow Jones again saw its highest quarterly profitability since its acquisition and highest revenue since fiscal 2011
  • As of the end of December, Foxtel’s total streaming subscribers grew 66% compared to the prior year with BINGE and Kayo each reaching more than 1 million total subscribers
  • News Media Segment EBITDA in the quarter grew 68% as the businesses continued to benefit from the rebound in the advertising market, new content licensing revenues and strong digital subscriber gains

NEW YORK--()--News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended December 31, 2021.

Commenting on the results, Chief Executive Robert Thomson said:

“For the first half of fiscal year 2022, News Corp’s profitability reached nearly $1 billion, up 30% year-over-year, with the second quarter delivering record revenues and the highest profit of any quarter since the company was formed in 2013.

Our businesses are thriving, particularly at the Digital Real Estate Services, Dow Jones and Book Publishing segments, and there was a pronounced surge in profitability at our News Media segment. Meanwhile, Foxtel’s streaming products flourished, with a 66 percent increase in total customers, and Kayo and BINGE both exceeding one million.

We are delighted with our planned acquisitions of the OPIS and Base Chemicals businesses, which we expect will close in the first half of calendar 2022 and bolster the highly profitable Dow Jones Professional Information Business.

The landmark agreements with Big Tech continued to benefit our journalism and our bottom line. In addition to the substantial deals with Google and Facebook, we expanded our multi-year global agreement with Apple, which is expected to be an important source of subscriptions and of advertising revenue for our news sites around the world.

Our increasing momentum has given us the ability to make opportunistic acquisitions and further our $1 billion share buyback program. News Corp is clearly going from strength to strength.”

SECOND QUARTER RESULTS

The Company reported fiscal 2022 second quarter total revenues of $2.72 billion, which was the highest quarterly revenue since separation and was also 13% higher compared to $2.41 billion in the prior year period. The increase reflects growth in all revenue lines, primarily in real estate and advertising, as well as recent acquisitions. Adjusted Revenues (which exclude the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 8%.

Net income for the quarter was $262 million, flat compared to $261 million in the prior year, reflecting higher Total Segment EBITDA, as discussed below, offset by lower Other, net, higher tax expense and higher interest expense.

The Company reported second quarter Total Segment EBITDA of $586 million, which was also the highest since separation. Total Segment EBITDA grew 18% compared to $497 million in the prior year, primarily due to higher revenues, as discussed above, partially offset by higher costs across all operating segments, including the impact of recent acquisitions. Adjusted Total Segment EBITDA (as defined in Note 2) increased 16%.

Net income per share attributable to News Corporation stockholders was $0.40 as compared to $0.39 in the prior year.

Adjusted EPS (as defined in Note 3) were $0.44 compared to $0.34 in the prior year.

SEGMENT REVIEW

 

For the three months ended

December 31,

 

For the six months ended

December 31,

 

2021

 

2020

 

% Change

 

2021

 

2020

 

% Change

 

(in millions)

 

Better/

(Worse)

 

(in millions)

 

Better/

(Worse)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

456

 

 

$

339

 

 

35

%

 

$

882

 

 

$

629

 

 

40

%

Subscription Video Services

 

498

 

 

 

511

 

 

(3

)%

 

 

1,008

 

 

 

1,007

 

 

%

Dow Jones

 

508

 

 

 

446

 

 

14

%

 

 

952

 

 

 

832

 

 

14

%

Book Publishing

 

617

 

 

 

544

 

 

13

%

 

 

1,163

 

 

 

1,002

 

 

16

%

News Media

 

638

 

 

 

573

 

 

11

%

 

 

1,214

 

 

 

1,060

 

 

15

%

Other

 

 

 

 

1

 

 

**

 

 

 

 

 

1

 

 

**

Total Revenues

$

2,717

 

 

$

2,414

 

 

13

%

 

$

5,219

 

 

$

4,531

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

178

 

 

$

142

 

 

25

%

 

$

316

 

 

$

261

 

 

21

%

Subscription Video Services

 

86

 

 

 

124

 

 

(31

)%

 

 

200

 

 

 

202

 

 

(1

)%

Dow Jones

 

144

 

 

 

109

 

 

32

%

 

 

239

 

 

 

181

 

 

32

%

Book Publishing

 

107

 

 

 

104

 

 

3

%

 

 

192

 

 

 

175

 

 

10

%

News Media

 

111

 

 

 

66

 

 

68

%

 

 

145

 

 

 

44

 

 

**

Other

 

(40

)

 

 

(48

)

 

17

%

 

 

(96

)

 

 

(98

)

 

2

%

Total Segment EBITDA

$

586

 

 

$

497

 

 

18

%

 

$

996

 

 

$

765

 

 

30

%

** - Not meaningful

 

Digital Real Estate Services

Revenues in the quarter increased $117 million, or 35%, compared to the prior year, driven by strong underlying performances at REA Group and Move, as well as the acquisition of Mortgage Choice and REA India (rebranded from Elara). Segment EBITDA in the quarter increased $36 million, or 25%, compared to the prior year, primarily due to the higher revenues. The growth was partially offset by the increase in expenses associated with the acquisitions of Mortgage Choice and REA India, higher employee costs at both Move and REA Group and higher marketing costs at Move. Adjusted Revenues and Adjusted Segment EBITDA (as defined in Note 2) increased 22% and 29%, respectively.

In the quarter, revenues at REA Group increased $103 million, or 56%, to $287 million, driven by higher financial services revenues, primarily due to the $41 million contribution from the acquisition of Mortgage Choice, and higher Australian residential revenues due to price increases, strong national listings, and favorable depth penetration and product mix. The growth was also due in part to the $10 million contribution from the acquisition of REA India. Australian national residential buy listing volumes in the quarter increased 22% compared to the prior year, with listings in Sydney up 39% and Melbourne up 25%.

Move’s revenues in the quarter increased $14 million, or 9%, to $169 million, primarily as a result of higher real estate revenues. Real estate revenues, which represented 86% of total Move revenues, increased $17 million, or 13%, due to growth in both the traditional lead generation product and the referral model. The improvement in the traditional lead generation product was driven by higher contribution from the Market VIP℠ product, as well as continued improvements in yield. The referral model benefited from record average home values and higher referral fees, partially offset by lower transaction volume. The referral model generated approximately 32% of total Move revenues in the quarter. Revenue growth was partially offset by a $4 million negative impact from the divestiture of Top Producer. Based on Move’s internal data, average monthly unique users of realtor.com®’s web and mobile sites for the fiscal second quarter grew 6% year-over-year to 85 million. Lead volume declined 9%, an improvement from the trends seen in the first quarter, but reflecting a continued tough comparison to the prior year.

Subscription Video Services

Revenues in the quarter decreased $13 million, or 3%, compared with the prior year. Higher revenues from Kayo and BINGE were more than offset by the impact from fewer residential broadcast subscribers and lower commercial subscription revenues primarily resulting from restrictions related to the global COVID-19 pandemic during the quarter. Foxtel Group streaming subscription revenues represented approximately 19% of total circulation and subscription revenues in the quarter. Adjusted Revenues decreased 3% compared to the prior year.

As of December 31, 2021, Foxtel’s total closing paid subscribers were over 3.9 million, a 19% increase compared to the prior year, primarily due to the growth in BINGE and Kayo subscribers, partially offset by lower residential broadcast subscribers. Approximately 1.8 million of the total closing paid subscribers were residential and commercial broadcast subscribers, and the remaining 2.1 million consisted largely of Kayo, BINGE and Foxtel Now subscribers. As of December 31, 2021, there were over 1 million Kayo subscribers (total and paying), compared to 648,000 subscribers (624,000 paying) in the prior year. BINGE had over 1 million subscribers (928,000 paying) as of December 31, 2021, compared to 468,000 (431,000 paying) in the prior year. As of December 31, 2021, there were 219,000 Foxtel Now subscribers (211,000 paying), compared to 265,000 subscribers (258,000 paying) in the prior year. Broadcast subscriber churn in the quarter improved to 13.0%, the lowest since the first quarter of fiscal 2019, from 17.5% in the prior year. Broadcast ARPU for the quarter increased 3% year-over-year to A$82 (US$60).

Segment EBITDA in the quarter decreased $38 million, or 31%, compared with the prior year. The decline was primarily driven by higher investment spending on technology and streaming products, as well as higher sports programming rights and production costs due to sporting events such as motorsports and cricket which did not occur during the prior year period. Adjusted Segment EBITDA decreased 31%.

Dow Jones

Revenues in the quarter increased $62 million, or 14%, compared to the prior year, primarily due to higher advertising revenues, growth in circulation and subscription revenues and an $18 million contribution from the acquisition of Investor’s Business Daily (“IBD”). Digital revenues at Dow Jones in the quarter represented 72% of total revenues compared to 70% in the prior year. Adjusted Revenues increased 10% compared to the prior year.

Circulation and subscription revenues increased $37 million, or 12%. Circulation revenue grew 13%, reflecting the acquisition of IBD and continued strong growth in digital-only subscriptions. Professional information business revenues grew 9%, primarily driven by 17% growth in Risk & Compliance products as well as modest improvements in the Newswires product. Digital circulation revenues accounted for 67% of circulation revenues for the quarter, compared to 63% in the prior year.

During the second quarter, total average subscriptions to Dow Jones’ consumer products reached over 4.7 million, a 17% increase compared to the prior year, and includes 126,000 IBD subscriptions, the majority being digital-only. Digital-only subscriptions to Dow Jones’ consumer products grew 23%. Total subscriptions to The Wall Street Journal grew 12% compared to the prior year, to over 3.6 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 19% to over 2.9 million average subscriptions in the quarter, and represented 81% of total Wall Street Journal subscriptions.

Advertising revenues increased $26 million, or 23%, primarily due to 29% growth in print advertising revenues, which recovered strongly from the COVID-19 related weakness in the prior year, and 18% growth in digital advertising revenues, driven by improvement across major categories, most notably in B2C and financial services, and benefiting from higher yield. Digital advertising accounted for 56% of total advertising revenues in the quarter, compared to 58% in the prior year, due to the recovery of print advertising.

Segment EBITDA for the quarter increased $35 million, or 32%, including a $4 million contribution from the acquisition of IBD, primarily due to higher revenues, as discussed above, partially offset by higher professional services fees. Adjusted Segment EBITDA increased 29%.

Book Publishing

Revenues in the quarter increased $73 million, or 13%, compared to the prior year, reflecting a $50 million contribution from the acquisition of Houghton Mifflin Harcourt’s Books and Media segment (“HMH”) and continued strong consumption trends, driven by higher frontlist sales in General books, including Twelve and a Half by Gary Vaynerchuk, The Pioneer Woman Cooks: Super Easy! by Ree Drummond and The Storyteller by Dave Grohl. The growth was also driven by the U.K. division and the Christian books category, partially offset by lower sales of Childrens books. Adjusted Revenues increased 4%. Digital sales increased 8% compared to the prior year, driven by growth in downloadable audiobooks. Digital sales represented 17% of Consumer revenues for the quarter.

Segment EBITDA for the quarter increased $3 million, or 3%, compared to the prior year, driven by a $10 million contribution from the HMH acquisition, partially offset by higher costs related to increased sales volumes and mix of titles, as well as the increase in manufacturing and freight costs exacerbated by supply chain pressures. Adjusted Segment EBITDA decreased 7%.

News Media

Revenues in the quarter increased $65 million, or 11%, as compared to the prior year, driven by the continued recovery of the advertising market from COVID-19 related market weakness in the prior year and higher circulation and subscription revenues. The results also reflect a $6 million, or 1%, positive impact from foreign currency fluctuations. Within the segment, revenues at News Corp Australia and News UK increased 14% and 7%, respectively. The New York Post and Wireless Group also saw higher revenues in the quarter. Adjusted Revenues for the segment increased 10% compared to the prior year.

Circulation and subscription revenues increased $23 million, or 9%, compared to the prior year, primarily due to higher content licensing revenues, digital subscriber growth, cover price increases and a $3 million, or 1%, positive impact from foreign currency fluctuations, partially offset by a decline in print volumes.

Advertising revenues increased $42 million, or 17%, compared to the prior year, driven by growth in digital advertising across the businesses due to improved yields and higher impressions, the recovery of print advertising at News UK (primarily at The Times and Sunday Times) and a $2 million, or 1%, positive impact from foreign currency fluctuations.

In the quarter, Segment EBITDA increased $45 million, or 68%, compared to the prior year, reflecting higher revenues, as discussed above. News Corp Australia and News UK contributed $35 million and $6 million, respectively, to the Segment EBITDA growth. The New York Post and Wireless Group were also positive contributors to the growth, which was partially offset by costs related to News UK’s TV project. Adjusted Segment EBITDA increased 65%.

Digital revenues represented 34% of News Media segment revenues in the quarter, compared to 31% in the prior year, and represented 32% of the combined revenues of the newspaper mastheads. Digital subscribers and users across key properties within the News Media segment are summarized below:

  • Closing digital subscribers at News Corp Australia as of December 31, 2021 were 909,000 (861,000 for news mastheads), compared to 779,000 (738,000 for news mastheads) in the prior year (Source: Internal data)
  • The Times and Sunday Times closing digital subscribers, including the Times Literary Supplement, as of December 31, 2021 were 399,000, compared to 340,000 in the prior year (Source: Internal data)
  • The Sun’s digital offering reached 163 million global monthly unique users in December 2021, compared to 130 million in the prior year (Source: Google Analytics)
  • New York Post’s digital network reached 160 million unique users in December 2021, compared to 141 million in the prior year (Source: Google Analytics)

CASH FLOW

The following table presents a reconciliation of net cash provided by operating activities to free cash flow available to News Corporation:

 

For the six months ended

December 31,

 

2021

 

2020

 

(in millions)

Net cash provided by operating activities

$

430

 

 

$

483

 

Less: Capital expenditures

 

(208

)

 

 

(173

)

 

 

222

 

 

 

310

 

Less: REA Group free cash flow

 

(121

)

 

 

(65

)

Plus: Cash dividends received from REA Group

 

43

 

 

 

32

 

Free cash flow available to News Corporation

$

144

 

 

$

277

 

Net cash provided by operating activities of $430 million for the six months ended December 31, 2021 was $53 million lower than $483 million in the prior year, primarily due to higher working capital, driven by higher receivables from higher revenues, higher employee bonus and equity-based compensation payments, payments related to one-time legal settlement costs and $21 million in higher interest payments, partially offset by higher Total Segment EBITDA as noted above.

Free cash flow available to News Corporation in the six months ended December 31, 2021 was $144 million compared to $277 million in the prior year period. The decline was primarily due to lower cash provided by operating activities, as mentioned above, and higher capital expenditures, partially offset by higher dividends received from REA Group. Foxtel’s capital expenditures for the six months ended December 31, 2021 were $89 million, compared to $79 million in the prior year.

Free cash flow available to News Corporation is a non-GAAP financial measure defined as net cash provided by operating activities, less capital expenditures (“free cash flow”), less REA Group free cash flow, plus cash dividends received from REA Group.

The Company considers free cash flow available to News Corporation to provide useful information to management and investors about the amount of cash that is available to be used to strengthen the Company’s balance sheet and for strategic opportunities including, among others, investing in the Company’s business, strategic acquisitions, dividend payouts and repurchasing stock. The Company believes excluding REA Group’s free cash flow and including dividends received from REA Group provides users of its consolidated financial statements with a measure of the amount of cash flow that is readily available to the Company, as REA Group is a separately listed public company in Australia and must declare a dividend in order for the Company to have access to its share of REA Group’s cash balance. The Company believes free cash flow available to News Corporation provides a more conservative view of the Company’s free cash flow because this presentation includes only that amount of cash the Company actually receives from REA Group, which has generally been lower than the Company’s unadjusted free cash flow. A limitation of free cash flow available to News Corporation is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for the limitation of free cash flow available to News Corporation by also relying on the net change in cash and cash equivalents as presented in the Company’s consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.

OTHER ITEMS

Dividends

The Company today declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend is payable on April 13, 2022 to stockholders of record as of March 16, 2022.

COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION

Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted Segment EBITDA, adjusted net income attributable to News Corporation stockholders, Adjusted EPS and free cash flow available to News Corporation are non-GAAP financial measures contained in this earnings release. The Company believes these measures are important tools for investors and analysts to use in assessing the Company’s underlying business performance and to provide for more meaningful comparisons of the Company’s operating performance between periods. These measures also allow investors and analysts to view the Company’s business from the same perspective as Company management. These non-GAAP measures may be different than similar measures used by other companies and should be considered in addition to, not as a substitute for, measures of financial performance calculated in accordance with GAAP. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with U.S. GAAP are included in Notes 1, 2 and 3 and the reconciliation of net cash provided by operating activities to free cash flow available to News Corporation is included above.

Conference call

News Corporation’s earnings conference call can be heard live at 5:00pm EST on February 3, 2022. To listen to the call, please visit http://investors.newscorp.com.

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends and uncertainties affecting the Company’s business, results of operations and financial condition, the Company’s strategy and strategic initiatives, including potential acquisitions, investments and dispositions, and the outcome of contingencies such as litigation and investigations. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to the risks, uncertainties and other factors described in the Company’s filings with the Securities and Exchange Commission. More detailed information about factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The “forward-looking statements” included in this document are made only as of the date of this document and we do not have and do not undertake any obligation to publicly update any “forward-looking statements” to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation.

About News Corporation

News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: www.newscorp.com.

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)

 

For the three months ended
December 31,

 

For the six months ended
December 31,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

Circulation and subscription

$

1,072

 

 

$

1,030

 

 

$

2,149

 

 

$

2,032

 

Advertising

 

519

 

 

 

448

 

 

 

924

 

 

 

780

 

Consumer

 

594

 

 

 

523

 

 

 

1,118

 

 

 

964

 

Real estate

 

352

 

 

 

281

 

 

 

672

 

 

 

516

 

Other

 

180

 

 

 

132

 

 

 

356

 

 

 

239

 

Total Revenues

 

2,717

 

 

 

2,414

 

 

 

5,219

 

 

 

4,531

 

Operating expenses

 

(1,279

)

 

 

(1,198

)

 

 

(2,523

)

 

 

(2,362

)

Selling, general and administrative

 

(852

)

 

 

(719

)

 

 

(1,700

)

 

 

(1,404

)

Depreciation and amortization

 

(168

)

 

 

(167

)

 

 

(333

)

 

 

(331

)

Impairment and restructuring charges

 

(23

)

 

 

(23

)

 

 

(45

)

 

 

(63

)

Equity losses of affiliates

 

(6

)

 

 

(3

)

 

 

(6

)

 

 

(4

)

Interest expense, net

 

(21

)

 

 

(12

)

 

 

(43

)

 

 

(20

)

Other, net

 

(7

)

 

 

54

 

 

 

130

 

 

 

71

 

Income before income tax expense

 

361

 

 

 

346

 

 

 

699

 

 

 

418

 

Income tax expense

 

(99

)

 

 

(85

)

 

 

(170

)

 

 

(110

)

Net income

 

262

 

 

 

261

 

 

 

529

 

 

 

308

 

Less: Net income attributable to noncontrolling interests

 

(27

)

 

 

(30

)

 

 

(98

)

 

 

(43

)

Net income attributable to News Corporation stockholders

$

235

 

 

$

231

 

 

$

431

 

 

$

265

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

592

 

 

 

591

 

 

 

592

 

 

 

590

 

Diluted

 

595

 

 

 

593

 

 

 

595

 

 

 

592

 

 

 

 

 

 

 

 

 

Net income attributable to News Corporation stockholders per share:

 

 

 

 

 

 

 

Basic

$

0.40

 

 

$

0.39

 

 

$

0.73

 

 

$

0.45

 

Diluted

$

0.40

 

 

$

0.39

 

 

$

0.72

 

 

$

0.45

 

NEWS CORPORATION

CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)

As of December 31,

2021

 

As of June 30,

2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,184

 

 

$

2,236

 

Receivables, net

 

1,665

 

 

 

1,498

 

Inventory, net

 

248

 

 

 

253

 

Other current assets

 

502

 

 

 

469

 

Total current assets

 

4,599

 

 

 

4,456

 

 

 

 

 

Non-current assets:

 

 

 

Investments

 

505

 

 

 

351

 

Property, plant and equipment, net

 

2,134

 

 

 

2,272

 

Operating lease right-of-use assets

 

963

 

 

 

1,035

 

Intangible assets, net

 

2,082

 

 

 

2,179

 

Goodwill

 

4,557

 

 

 

4,653

 

Deferred income tax assets

 

295

 

 

 

378

 

Other non-current assets

 

1,385

 

 

 

1,447

 

Total assets

$

16,520

 

 

$

16,771

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

351

 

 

$

321

 

Accrued expenses

 

1,118

 

 

 

1,339

 

Deferred revenue

 

462

 

 

 

473

 

Current borrowings

 

302

 

 

 

28

 

Other current liabilities

 

1,000

 

 

 

1,073

 

Total current liabilities

 

3,233

 

 

 

3,234

 

 

 

 

 

Non-current liabilities:

 

 

 

Borrowings

 

1,968

 

 

 

2,285

 

Retirement benefit obligations

 

202

 

 

 

211

 

Deferred income tax liabilities

 

241

 

 

 

260

 

Operating lease liabilities

 

1,035

 

 

 

1,116

 

Other non-current liabilities

 

494

 

 

 

519

 

Commitments and contingencies

 

 

 

Equity:

 

 

 

Class A common stock

 

4

 

 

 

4

 

Class B common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

11,948

 

 

 

12,057

 

Accumulated deficit

 

(2,482

)

 

 

(2,911

)

Accumulated other comprehensive loss

 

(1,089

)

 

 

(941

)

Total News Corporation stockholders' equity

 

8,383

 

 

 

8,211

 

Noncontrolling interests

 

964

 

 

 

935

 

Total equity

 

9,347

 

 

 

9,146

 

Total liabilities and equity

$

16,520

 

 

$

16,771

 

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)

 

For the six months ended
December 31,

 

2021

 

2020

Operating activities:

 

 

 

Net income

$

529

 

 

$

308

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

333

 

 

 

331

 

Operating lease expense

 

64

 

 

 

64

 

Equity losses of affiliates

 

6

 

 

 

4

 

Cash distributions received from affiliates

 

7

 

 

 

7

 

Other, net

 

(130

)

 

 

(71

)

Deferred income taxes and taxes payable

 

79

 

 

 

21

 

Change in operating assets and liabilities, net of acquisitions:

 

 

 

Receivables and other assets

 

(222

)

 

 

(172

)

Inventories, net

 

6

 

 

 

27

 

Accounts payable and other liabilities

 

(242

)

 

 

(36

)

Net cash provided by operating activities

 

430

 

 

 

483

 

Investing activities:

 

 

 

Capital expenditures

 

(208

)

 

 

(173

)

Acquisitions, net of cash acquired

 

(21

)

 

 

(90

)

Investments in equity affiliates and other

 

(46

)

 

 

(11

)

Proceeds from property, plant and equipment and other asset dispositions

 

(2

)

 

 

3

 

Other, net

 

28

 

 

 

(5

)

Net cash used in investing activities

 

(249

)

 

 

(276

)

Financing activities:

 

 

 

Borrowings

 

495

 

 

 

146

 

Repayment of borrowings

 

(500

)

 

 

(248

)

Repurchase of shares

 

(43

)

 

 

 

Dividends paid

 

(86

)

 

 

(80

)

Other, net

 

(64

)

 

 

(37

)

Net cash used in financing activities

 

(198

)

 

 

(219

)

Net change in cash and cash equivalents

 

(17

)

 

 

(12

)

Cash and cash equivalents, beginning of period

 

2,236

 

 

 

1,517

 

Exchange movement on opening cash balance

 

(35

)

 

 

57

 

Cash and cash equivalents, end of period

$

2,184

 

 

$

1,562

 

 

 

 

 

NOTE 1 – TOTAL SEGMENT EBITDA

Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss), cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods. The following tables reconcile net income to Total Segment EBITDA for the three and six months ended December 31, 2021 and 2020:

 

For the three months ended December 31,

 

2021

 

2020

 

Change

 

% Change

 

(in millions)

 

 

Net income

$

262

 

$

261

 

 

$

1

 

%

Add:

 

 

 

 

 

 

 

Income tax expense

 

99

 

 

 

85

 

 

 

14

 

 

16

%

Other, net

 

7

 

 

 

(54

)

 

 

61

 

 

**

Interest expense, net

 

21

 

 

 

12

 

 

 

9

 

 

75

%

Equity losses of affiliates

 

6

 

 

 

3

 

 

 

3

 

 

100

%

Impairment and restructuring charges

 

23

 

 

 

23

 

 

 

 

 

%

Depreciation and amortization

 

168

 

 

 

167

 

 

 

1

 

 

1

%

Total Segment EBITDA

$

586

 

 

$

497

 

 

$

89

 

 

18

%

** - Not meaningful

 

 

For the six months ended December 31,

 

2021

 

2020

 

Change

 

% Change

 

(in millions)

 

 

Net income

$

529

 

 

$

308

 

 

$

221

 

 

72

%

Add:

 

 

 

 

 

 

 

Income tax expense

 

170

 

 

 

110

 

 

 

60

 

 

55

%

Other, net

 

(130

)

 

 

(71

)

 

 

(59

)

 

(83

)%

Interest expense, net

 

43

 

 

 

20

 

 

 

23

 

 

**

Equity losses of affiliates

 

6

 

 

 

4

 

 

 

2

 

 

50

%

Impairment and restructuring charges

 

45

 

 

 

63

 

 

 

(18

)

 

(29

)%

Depreciation and amortization

 

333

 

 

 

331

 

 

 

2

 

 

1

%

Total Segment EBITDA

$

996

 

 

$

765

 

 

$

231

 

 

30

%

** - Not meaningful

 

NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA

The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”), charges for other significant, non-ordinary course legal or regulatory matters (“litigation charges”) and foreign currency fluctuations (“Adjusted Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment EBITDA,” respectively) to evaluate the performance of the Company’s core business operations exclusive of certain items that impact the comparability of results from period to period such as the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period.

The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for amounts determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The following tables reconcile reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three and six months ended December 31, 2021 and 2020:

 

Revenues

 

 

Total Segment EBITDA

 

For the three months ended

December 31,

 

 

For the three months ended

December 31,

 

2021

 

2020

 

Difference

 

 

2021

 

2020

 

Difference

 

(in millions)

 

 

(in millions)

As reported

$

2,717

 

 

$

2,414

 

 

$

303

 

 

 

$

586

 

 

$

497

 

$

89

 

Impact of acquisitions

 

(124

)

 

 

 

 

 

(124

)

 

 

 

(5

)

 

 

6

 

 

 

(11

)

Impact of divestitures

 

 

 

 

(9

)

 

 

9

 

 

 

 

3

 

 

 

 

 

 

3

 

Impact of foreign currency fluctuations

 

(6

)

 

 

 

 

 

(6

)

 

 

 

(1

)

 

 

 

 

 

(1

)

Net impact of U.K. Newspaper Matters

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

3

 

 

 

1

 

As adjusted

$

2,587

 

 

$

2,405

 

 

$

182

 

 

 

$

587

 

 

$

506

 

 

$

81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Total Segment EBITDA

 

For the six months ended
December 31,

 

 

For the six months ended
December 31,

 

2021

 

2020

 

Difference

 

 

2021

 

2020

 

Difference

 

(in millions)

 

 

(in millions)

As reported

$

5,219

 

 

$

4,531

 

 

$

688

 

 

 

$

996

 

 

$

765

 

$

231

 

Impact of acquisitions

 

(247

)

 

 

 

 

 

(247

)

 

 

 

(12

)

 

 

6

 

 

 

(18

)

Impact of divestitures

 

(1

)

 

 

(17

)

 

 

16

 

 

 

 

5

 

 

 

 

 

 

5

 

Impact of foreign currency fluctuations

 

(63

)

 

 

 

 

 

(63

)

 

 

 

(12

)

 

 

 

 

 

(12

)

Net impact of U.K. Newspaper Matters

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

5

 

 

 

1

 

As adjusted

$

4,908

 

 

$

4,514

 

 

$

394

 

 

 

$

983

 

 

$

776

 

 

$

207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Rates

Average foreign exchange rates used in the calculation of the impact of foreign currency fluctuations for each of the three month periods in the six months ended December 31, 2021 and 2020 are as follows:

 

Fiscal Year 2022

 

Q1

 

Q2

U.S. Dollar per Australian Dollar

$

0.74

 

$

0.73

U.S. Dollar per British Pound Sterling

$

1.38

 

 

$

1.35

 

 

 

 

 

 

Fiscal Year 2021

 

Q1

 

Q2

U.S. Dollar per Australian Dollar

$

0.71

 

 

$

0.73

 

U.S. Dollar per British Pound Sterling

$

1.29

 

 

$

1.32

 

Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and six months ended December 31, 2021 and 2020 are as follows:

 

For the three months ended December 31,

 

2021

 

2020

 

% Change

 

(in millions)

 

Better/(Worse)

Adjusted Revenues:

 

 

 

 

 

Digital Real Estate Services

$

403

 

 

$

331

 

 

22

%

Subscription Video Services

 

498

 

 

 

511

 

 

(3

)%

Dow Jones

 

491

 

 

 

446

 

 

10

%

Book Publishing

 

565

 

 

 

544

 

 

4

%

News Media

 

630

 

 

 

573

 

 

10

%

Other

 

 

 

 

 

 

%

Adjusted Total Revenues

$

2,587

 

 

$

2,405

 

 

8

%

 

 

 

 

 

 

Adjusted Segment EBITDA:

 

 

 

 

 

Digital Real Estate Services

$

190

 

 

$

147

 

 

29

%

Subscription Video Services

 

86

 

 

 

124

 

 

(31

)%

Dow Jones

 

141

 

 

 

109

 

 

29

%

Book Publishing

 

97

 

 

 

104

 

 

(7

)%

News Media

 

109

 

 

 

66

 

 

65

%

Other

 

(36

)

 

 

(44

)

 

18

%

Adjusted Total Segment EBITDA

$

587

 

 

$

506

 

 

16

%

** - Not meaningful

 

 

For the six months ended December 31,

 

2021

 

2020

 

% Change

 

(in millions)

 

Better/(Worse)

Adjusted Revenues:

 

 

 

 

 

Digital Real Estate Services

$

768

 

 

$

613

 

 

25

%

Subscription Video Services

 

992

 

 

 

1,007

 

 

(1

)%

Dow Jones

 

913

 

 

 

832

 

 

10

%

Book Publishing

 

1,054

 

 

 

1,002

 

 

5

%

News Media

 

1,181

 

 

 

1,060

 

 

11

%

Other

 

 

 

 

 

 

%

Adjusted Total Revenues

$

4,908

 

 

$

4,514

 

 

9

%

 

 

 

 

 

 

Adjusted Segment EBITDA:

 

 

 

 

 

Digital Real Estate Services

$

332

 

 

$

266

 

 

25

%

Subscription Video Services

 

197

 

 

 

202

 

 

(2

)%

Dow Jones

 

230

 

 

 

181

 

 

27

%

Book Publishing

 

175

 

 

 

175

 

 

%

News Media

 

139

 

 

 

44

 

 

**

Other

 

(90

)

 

 

(92

)

 

2

%

Adjusted Total Segment EBITDA

$

983

 

 

$

776

 

 

27

%

** - Not meaningful

 

 

 

 

 

The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and six months ended December 31, 2021 and 2020:

 

For the three months ended December 31, 2021

 

As Reported

 

Impact of

Acquisitions

 

Impact of

Divestitures

 

Impact of

Foreign

Currency

Fluctuations

 

Net Impact

of U.K.

Newspaper

Matters

 

As Adjusted

 

(in millions)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

456

 

 

$

(53

)

 

$

 

$

 

 

$

 

$

403

 

Subscription Video Services

 

498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

498

 

Dow Jones

 

508

 

 

 

(18

)

 

 

 

 

 

1

 

 

 

 

 

 

491

 

Book Publishing

 

617

 

 

 

(51

)

 

 

 

 

 

(1

)

 

 

 

 

 

565

 

News Media

 

638

 

 

 

(2

)

 

 

 

 

 

(6

)

 

 

 

 

 

630

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

$

2,717

 

 

$

(124

)

 

$

 

 

$

(6

)

 

$

 

 

$

2,587

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

178

 

 

$

9

 

 

$

3

 

 

$

 

 

$

 

 

$

190

 

Subscription Video Services

 

86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

86

 

Dow Jones

 

144

 

 

 

(4

)

 

 

 

 

 

1

 

 

 

 

 

 

141

 

Book Publishing

 

107

 

 

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

97

 

News Media

 

111

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

109

 

Other

 

(40

)

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

(36

)

Total Segment EBITDA

$

586

 

 

$

(5

)

 

$

3

 

 

$

(1

)

 

$

4

 

 

$

587

 

 

For the three months ended December 31, 2020

 

As Reported

 

Impact of

Acquisitions

 

Impact of

Divestitures

 

Impact of

Foreign

Currency

Fluctuations

 

Net Impact

of U.K.

Newspaper

Matters

 

As Adjusted

 

(in millions)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

339

 

 

$

 

$

(8

)

 

$

 

$

 

$

331

 

Subscription Video Services

 

511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

511

 

Dow Jones

 

446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

446

 

Book Publishing

 

544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

544

 

News Media

 

573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

573

 

Other

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Total Revenues

$

2,414

 

 

$

 

 

$

(9

)

 

$

 

 

$

 

 

$

2,405

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

142

 

 

$

6

 

 

$

(1

)

 

$

 

 

$

 

 

$

147

 

Subscription Video Services

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

124

 

Dow Jones

 

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

109

 

Book Publishing

 

104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

104

 

News Media

 

66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

66

 

Other

 

(48

)

 

 

 

 

 

1

 

 

 

 

 

 

3

 

 

 

(44

)

Total Segment EBITDA

$

497

 

 

$

6

 

 

$

 

 

$

 

 

$

3

 

 

$

506

 

 

For the six months ended December 31, 2021

 

As Reported

 

Impact of

Acquisitions

 

Impact of

Divestitures

 

Impact of

Foreign

Currency

Fluctuations

 

Net Impact

of U.K.

Newspaper

Matters

 

As Adjusted

 

(in millions)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

882

 

 

$

(106

)

 

$

(1

)

 

$

(7

)

 

$

 

$

768

 

Subscription Video Services

 

1,008

 

 

 

 

 

 

 

 

 

(16

)

 

 

 

 

 

992

 

Dow Jones

 

952

 

 

 

(38

)

 

 

 

 

 

(1

)

 

 

 

 

 

913

 

Book Publishing

 

1,163

 

 

 

(101

)

 

 

 

 

 

(8

)

 

 

 

 

 

1,054

 

News Media

 

1,214

 

 

 

(2

)

 

 

 

 

 

(31

)

 

 

 

 

 

1,181

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

$

5,219

 

 

$

(247

)

 

$

(1

)

 

$

(63

)

 

$

 

 

$

4,908

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

316

 

 

$

14

 

 

$

5

 

 

$

(3

)

 

$

 

 

$

332

 

Subscription Video Services

 

200

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

197

 

Dow Jones

 

239

 

 

 

(10

)

 

 

 

 

 

1

 

 

 

 

 

 

230

 

Book Publishing

 

192

 

 

 

(16

)

 

 

 

 

 

(1

)

 

 

 

 

 

175

 

News Media

 

145

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

139

 

Other

 

(96

)

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

(90

)

Total Segment EBITDA

$

996

 

 

$

(12

)

 

$

5

 

 

$

(12

)

 

$

6

 

 

$

983

 

 

For the six months ended December 31, 2020

 

As Reported

 

Impact of

Acquisitions

 

Impact of

Divestitures

 

Impact of

Foreign

Currency

Fluctuations

 

Net Impact

of U.K.

Newspaper

Matters

 

As Adjusted

 

(in millions)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

629

 

 

$

 

$

(16

)

 

$

 

$

 

$

613

 

Subscription Video Services

 

1,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,007

 

Dow Jones

 

832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

832

 

Book Publishing

 

1,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,002

 

News Media

 

1,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,060

 

Other

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Total Revenues

$

4,531

 

 

$

 

 

$

(17

)

 

$

 

 

$

 

 

$

4,514

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA:

 

 

 

 

 

 

 

 

 

 

 

Digital Real Estate Services

$

261

 

 

$

6

 

 

$

(1

)

 

$

 

 

$

 

 

$

266

 

Subscription Video Services

 

202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

202

 

Dow Jones

 

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

181

 

Book Publishing

 

175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

175

 

News Media

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

Other

 

(98

)

 

 

 

 

 

1

 

 

 

 

 

 

5

 

 

 

(92

)

Total Segment EBITDA

$

765

 

 

$

6

 

 

$

 

 

$

 

 

$

5

 

 

$

776

 

NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION STOCKHOLDERS AND ADJUSTED EPS

The Company uses net income (loss) attributable to News Corporation stockholders and diluted earnings per share (“EPS”) excluding expenses related to U.K. Newspaper Matters, charges for other significant, non-ordinary course legal or regulatory matters (“litigation charges”), impairment and restructuring charges and “Other, net”, net of tax, recognized by the Company or its equity method investees, as well as the settlement of certain pre-Separation tax matters (“adjusted net income (loss) attributable to News Corporation stockholders” and “adjusted EPS,” respectively), to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period, as well as certain non-operational items. The calculation of adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income (loss) attributable to News Corporation stockholders and net income (loss) per share as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The following tables reconcile reported net income attributable to News Corporation stockholders and reported diluted EPS to adjusted net income attributable to News Corporation stockholders and adjusted EPS for the three and six months ended December 31, 2021 and 2020:

 

For the three months ended

December 31, 2021

 

For the three months ended

December 31, 2020

(in millions, except per share data)

Net income

attributable to

stockholders

 

EPS

 

Net income

attributable to

stockholders

 

EPS

Net income

$

262

 

 

 

 

$

261

 

 

 

Less: Net income attributable to noncontrolling interests

 

(27

)

 

 

 

 

(30

)

 

 

Net income attributable to News Corporation stockholders

$

235

 

 

$

0.40

 

 

$

231

 

 

$

0.39

 

U.K. Newspaper Matters

 

4

 

 

 

0.01

 

 

 

3

 

 

 

0.01

 

Impairment and restructuring charges

 

23

 

 

 

0.04

 

 

 

23

 

 

 

0.04

 

Equity losses of affiliates (a)

 

3

 

 

 

0.01

 

 

 

 

 

 

 

Other, net

 

7

 

 

 

0.01

 

 

 

(54

)

 

 

(0.10

)

Tax impact on items above

 

(10

)

 

 

(0.02

)

 

 

(2

)

 

 

 

Impact of noncontrolling interest on items above

 

(2

)

 

 

(0.01

)

 

 

(1

)

 

 

 

As adjusted

$

260

 

 

$

0.44

 

 

$

200

 

 

$

0.34

 

(a)

During the three months ended December 31, 2021, the Company recognized a non-cash impairment charge related to an equity method investment.

 

For the six months ended

December 31, 2021

 

For the six months ended

December 31, 2020

(in millions, except per share data)

Net income

attributable to

stockholders

 

EPS

 

Net income

attributable to

stockholders

 

EPS

Net income

$

529

 

 

 

 

$

308

 

 

 

Less: Net income attributable to noncontrolling interests

 

(98

)

 

 

 

 

(43

)

 

 

Net income attributable to News Corporation stockholders

$

431

 

 

$

0.72

 

 

$

265

 

 

$

0.45

 

U.K. Newspaper Matters

 

6

 

 

 

0.01

 

 

 

5

 

 

 

0.01

 

Impairment and restructuring charges

 

45

 

 

 

0.08

 

 

 

63

 

 

 

0.10

 

Equity losses of affiliates (a)

 

3

 

 

 

0.01

 

 

 

 

 

 

 

Other, net

 

(130

)

 

 

(0.22

)

 

 

(71

)

 

 

(0.12

)

Tax impact on items above

 

2

 

 

 

 

 

 

(12

)

 

 

(0.02

)

Impact of noncontrolling interest on items above

 

41

 

 

 

0.07

 

 

 

(2

)

 

 

 

As adjusted

$

398

 

 

$

0.67

 

 

$

248

 

 

$

0.42

(a)

During the six months ended December 31, 2021, the Company recognized a non-cash impairment charge related to an equity method investment.

 

Contacts

Investor Relations
Michael Florin
212-416-3363
mflorin@newscorp.com

Leslie Kim
212-416-4529
lkim@newscorp.com

Corporate Communications
Jim Kennedy
212-416-4064
jkennedy@newscorp.com

Contacts

Investor Relations
Michael Florin
212-416-3363
mflorin@newscorp.com

Leslie Kim
212-416-4529
lkim@newscorp.com

Corporate Communications
Jim Kennedy
212-416-4064
jkennedy@newscorp.com