News Corp (NWSA): “Breaking the Headlines” – Can Digital Growth Engines and Portfolio Simplification Offset These Structural Headwinds?

$50.00 — or $120.00 / year

News Corp’s Q1 FY2025 results demonstrate strong digital momentum and operational resilience, with revenue of $2.58B (+3% YoY) narrowly missing estimates, while adjusted EPS of $0.21 beat expectations by $0.06. Segment EBITDA rose 14% to $415M, with margins expanding 150 basis points to 16.1%. Dow Jones led growth with an 8% revenue increase in its Professional Information Businesses (PIB), driven by Risk and Compliance (+16%) and Dow Jones Energy (+11%), as B2B now accounts for more than half of the segment’s profitability. REA Group achieved record quarterly performance with 22% revenue growth, leveraging higher residential yields and premium product adoption, while early expansion into financial services presents new opportunities. HarperCollins posted a 25% EBITDA increase, driven by a surge in audiobook (+26%) and e-book sales (+7%). Despite advertising softness (-5% digital ad revenue at Dow Jones) and ongoing challenges in print and Foxtel, News Corp’s pivot to subscription and B2B revenue streams mitigates volatility. The valuation disconnect, with REA’s $12.5B stake underrepresented in News Corp’s $17B market cap, underscores potential upside from restructuring initiatives and asset sales. The strategic question is: can News Corp’s digital transformation and simplification strategies effectively counter structural headwinds and unlock long-term shareholder value?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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