Executive Summary

Q3 FY2025 delivered modest top-line growth and strong profitability: revenue $2.01B (+1% YoY), Total Segment EBITDA $290M (+12% YoY), reported EPS from continuing ops $0.14 (vs. $0.07 YoY), and adjusted EPS $0.17; EBITDA margin expanded to 14.4% on mix and cost discipline .
Against S&P Global consensus, revenue was roughly in line (beat by ~$7M) and EPS was a clear beat: EPS $0.17 actual vs. $0.13 consensus; revenue $2.009B actual vs. $2.002B consensus; adjusted EPS also exceeded expectations; the beat was driven by Dow Jones and Digital Real Estate strength and News Media cost savings [functions.GetEstimates].
Strategic milestones: Foxtel sale to DAZN closed April 2 (repayment of A$592M shareholder loans, ~6% DAZN stake), simplifying portfolio and expected to be EPS accretive and ROIC enhancing; both Moody’s and S&P upgraded News Corp to investment grade, enhancing optionality for capital allocation .
Segment highlights: Dow Jones revenue +6% and EBITDA +12% on double-digit growth in Risk & Compliance (+11% to $84M) and Energy (+10% to $69M), plus digital circulation momentum; REA Group +6% to $271M (11% constant currency), Realtor.com revenue +2% with mix shift to rentals/seller/new homes; News Media EBITDA +22% on cost actions despite -8% revenue YoY .
Near-term catalysts: continued B2B growth at Dow Jones, improving Factiva drag, portfolio simplification and cash returns; watch Q4 commentary for modestly higher reinvestment at Realtor.com and volatile advertising in News Media; estimate revisions likely upward for EPS, stable for revenue .

What Went Well and What Went Wrong

What Went Well

Dow Jones drove the quarter: revenues +6% to $575M and segment EBITDA +12% to $132M; Risk & Compliance +11% to $84M and Energy +10% to $69M; digital revenues 82% of segment revenue .
Quote: “Dow Jones posted a healthy 6% revenue growth… digital circulation revenue expand[ed] 14%… total consumer subscriptions surpassed the 6 million milestone” .
Digital Real Estate Services strength: REA Group +6% to $271M (11% constant currency), segment EBITDA +19% to $124M; Realtor.com revenue +2% with rentals/seller/new homes rising to 22% of revenue .
News Media profitability: segment EBITDA +22% to $33M on cost savings (printing JV, lower Talk costs), despite revenue pressure; digital share of segment revenue rose to 39% .
Quote: “News Media segment posted healthy EBITDA growth of 22%, building on the 30% year-on-year growth reported last quarter” .

What Went Wrong

News Media revenue -8% YoY to $514M on lower print advertising, transferred third-party printing contracts, and lower circulation; The Sun digital ad weakness noted .
Realtor.com traffic and lead volumes soft: average monthly unique users -8% YoY to 66M; lead volume -17% YoY due to affordability/mortgage rates (partly offset by higher revenue per lead) .
Factiva dispute weighed on Dow Jones B2B revenue (~200bps impact), though expected to improve as comps lap through Q4 .

Financial Results

Consolidated metrics vs prior quarters and YoY

Metric	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Revenue ($USD Billions)	$2.577	$2.238	$2.009
Reported Diluted EPS from Continuing Ops ($)	$0.21	$0.40	$0.14
Adjusted EPS ($)	$0.21	$0.33	$0.17
Total Segment EBITDA ($USD Millions)	$415	$478	$290
Total Segment EBITDA Margin (%)	16.1% (415/2,577)	21.4% (478/2,238)	14.4%

Notes: Q1 EPS is total company EPS, while Q2–Q3 EPS are from continuing operations (Foxtel reclassified as discontinued in Q3) .

Segment revenues (YoY)

Segment Revenue ($USD Millions)	Q3 FY2024	Q3 FY2025
Dow Jones	$544	$575
Digital Real Estate Services	$388	$406
Book Publishing	$506	$514
News Media	$556	$514
Total	$1,994	$2,009

Segment EBITDA (YoY)

Segment EBITDA ($USD Millions)	Q3 FY2024	Q3 FY2025
Dow Jones	$118	$132
Digital Real Estate Services	$104	$124
Book Publishing	$62	$64
News Media	$27	$33
Other	($52)	($63)
Total	$259	$290

KPIs

KPI	Q3 FY2024	Q3 FY2025
Dow Jones Total Consumer Subscriptions (000s)	5,723	6,103
WSJ Digital-only Subs (000s)	3,715	3,913
Barron’s Group Digital-only Subs (000s)	1,221	1,368
Dow Jones Digital Revenue Share (%)	81%	82%
REA Group Revenue ($USD Millions)	$256	$271
Realtor.com Monthly Unique Users (Millions)	72 (Q2 ref 62)	66
Realtor.com Lead Volume YoY (%)	-2% (Q2)	-17%
News Media Digital Revenue Share (%)	37%	39%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dow Jones Circulation Revenue Growth	Q4 FY2025	Expect improvement in H2 vs H1 (Q2 commentary)	Growth “more similar to the second quarter”; B2B focus; smaller Factiva impact in Q4	Maintained, with qualitative clarification
Digital Real Estate (REA) Listings	April FY2025	Flat Q3 listings YoY; REA yield +15% (Q3)	April national residential buy listings down 11% due to holiday timing; see REA outlook	Lower near term
Realtor.com Reinvestment	Q4 FY2025	Expenses better than forecast in Q3; campaign shifted to Q4	Modestly higher reinvestment rate in Q4; launch new ad campaign	Raised reinvestment
News Media Advertising	Q4 FY2025	Volatile advertising; cost initiatives ongoing (Q2)	Advertising likely volatile given macro; continue to benefit from cost initiatives	Maintained
Other Segment Costs (AI/legal)	FY2025	Ongoing AI/legal costs (Q2)	Other segment costs expected higher than last year including AI/legal	Raised
Dividend	FY2025	Semi-annual dividend $0.10 payable Apr 9, 2025	No update in Q3	Maintained (no change disclosed)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 FY2025)	Previous Mentions (Q2 FY2025)	Current Period (Q3 FY2025)	Trend
AI/IP and Legal	Announced intent to sue AI companies misusing content; partnership with OpenAI	Legal action vs Perplexity underway; partnership with OpenAI reiterated	Strong IP stance; partnership praised; ongoing AI/legal costs; concern over IP evisceration by AI firms	Escalating enforcement, steady partnership
Dow Jones B2B Growth	R&C +16%; Energy +11%	R&C +11% ($80M), Energy +10% ($68M)	R&C +11% ($84M), Energy +10% ($69M); Oxford Analytica & Dragonfly acquisitions	Sustained double-digit momentum
Digital Circulation/ARPU	Digital sales grew; WSJ digital-only +10%	Digital circulation revenue +8%; ARPU improved	Digital circulation revenue +14% (incl. ~300bps timing), ARPU up QoQ & YoY	Strengthening pricing power
Realtor.com Execution	Q1: mix shift; uniques +2% to 77M	Q2: revenue +2%; adjacencies growing; uniques 62M	Q3: revenue +2%; uniques 66M; leads -17%; rentals via Zillow partnership strong; higher revenue/lead	Quality over volume; adjacencies offset macro
News Media Cost Actions	JV printing benefits; EBITDA up	EBITDA +30% YoY on cost savings	EBITDA +22% YoY; continued cost initiatives	Ongoing efficiency gains
Tariffs/Macro	Macro headwinds noted	Macro/algorithm impacts on ad	CFO: direct tariff impact immaterial; advertising volatile	Stable macro caution

Management Commentary

CEO Robert Thomson: “Net income from continuing operations rose 67% to $107 million… Reported EPS doubled to $0.14 and margins expanded in every segment” .
CEO on strategy: “The completion of the sale of Foxtel to DAZN… strengthened our balance sheet… expected to be accretive to EPS and increase ROIC” .
CFO Lavanya Chandrashekar: “This quarter, Dow Jones and Digital Real Estate contributed 88% of profitability… adjusted total segment EBITDA rose 15%” .
CEO on Dow Jones: “Digital circulation revenue expand[ed] 14%… total consumer subscriptions surpassed the 6 million milestone” .
CFO on Realtor.com: “Realtor continued to show strong growth from new revenue streams… rentals… driven by the partnership with Zillow… average monthly unique users… fell 8% YoY to 66 million… lead volumes declining 17%” .

Q&A Highlights

Dow Jones investment cadence and durability of B2B growth: modest acquisitions (Dragonfly, Oxford Analytica); confidence in continued double-digit R&C/Energy revenue growth; Factiva dispute’s impact diminishing into Q4 .
Margin trajectory at Dow Jones: B2B mix and cost discipline support margin expansion; margin rose to ~23% this quarter; B2B now majority of profit .
Capital allocation optionality post-Foxtel: focus on three core pillars (Dow Jones, Digital Real Estate, Book Publishing); disciplined M&A; share repurchases and dividends; investment-grade upgrades broaden flexibility .
Portfolio simplification/value realization: continued willingness to make structural decisions (Foxtel example); path to unlock intrinsic value, but cognizant of current U.S. housing market impacts on Realtor.com valuation .
Dynamic pricing and churn management at Dow Jones: leveraging AI to segment cohorts, manage elasticity, reduce churn, and grow ARPU over time .

Estimates Context

Metric	Consensus (S&P Global)	Actual	Surprise
Revenue ($USD)	$2,001,951,530*	$2,009,000,000	+$7,048,470* (~+0.35%)
Primary EPS ($)	$0.13*	$0.17 (SPGI primary EPS actual); reported EPS from continuing ops $0.14	+$0.04* vs SPGI primary EPS

Values retrieved from S&P Global.
Company-reported adjusted EPS was $0.17 and reported EPS from continuing operations was $0.14, implying the SPGI “Primary EPS” tracked aligns with the adjusted EPS figure .

Potential estimate revisions: Upward EPS revisions likely on margin expansion and B2B momentum; revenue revisions modest given in-line sales and macro-ad volatility commentary .

Key Takeaways for Investors

Mix shift toward higher-margin and recurring B2B (Risk & Compliance/Energy) at Dow Jones continues to underpin margin expansion and earnings visibility .
Digital Real Estate remains a core growth pillar: REA execution offsets FX; Realtor.com’s adjacencies (rentals, seller, new homes) help monetize quality leads despite cyclical volume softness .
News Media profitability is improving structurally via cost actions (printing JV, programming costs) even as print and some digital ad revenues face macro/algorithm headwinds .
Portfolio simplification (Foxtel sale) and investment-grade ratings enhance capital return and strategic optionality; management reiterates disciplined M&A within core pillars .
Near-term watch items: Q4 reinvestment at Realtor.com (brand campaign), volatile advertising, and diminishing Factiva drag; B2B demand trends supportive of continued Dow Jones growth .
ESG/IP moat angle: assertive protection/monetization of journalism in AI era (OpenAI partnership, legal actions) could create incremental monetization opportunities and defend content economics .
Tactical: EPS beat and margin expansion are positive; traders should monitor follow-through on B2B growth, FX impacts at REA, and any incremental capital return signals post-deal close .

NEWS CORP (NWSA)·Q3 2025 Earnings Summary