News Corp tops Q1 profit estimates, misses on revenue

News Corp (NWSA) said on Nov. 4 that its fiscal 2027 first-quarter adjusted earnings were 28 cents a share, topping the 26-cent consensus estimate, while adjusted revenue of $2.22 billion missed the $2.32 billion estimate.

Reported revenue rose 6% to $2.28 billion from $2.14 billion a year earlier. Net income rose 43% to $215 million from $150 million, according to the company's press release.

Here's how the company did:

• Adjusted EPS: 28 cents vs. 22 cents a year earlier, 26 cents expected
• Reported EPS: 29 cents vs. 20 cents a year earlier
• Revenue: $2.28 billion vs. $2.14 billion a year earlier
• Adjusted revenue: $2.22 billion vs. $2.13 billion a year earlier, $2.32 billion expected

“We began Fiscal 2027 with a record first quarter performance,” Chief Executive Robert Thomson said.

Segment results

Dow Jones revenue rose 8% to $630 million, driven by higher circulation and subscription revenues and digital advertising. Digital Real Estate Services revenue rose 10% to $529 million, with REA Group revenue up 13% to $369 million.

Book Publishing revenue rose 9% to $582 million. News Media revenue fell 1% to $540 million.

Total Segment EBITDA rose 19% to $403 million from $340 million. Adjusted Total Segment EBITDA rose 13% to $392 million from $347 million.

Cash flow and capital returns

Net cash provided by operating activities from continuing operations was $13 million, against $85 million a year earlier. Capital expenditures were $102 million, leaving free cash flow of $(89) million, compared with $4 million a year earlier.

Repurchases of News Corp shares were $166 million, against $92 million a year earlier. Dividends paid were $61 million, up from $47 million.