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۶app

۶app Reports Fourth Quarter and Full Year Results for Fiscal 2024

Fiscal 2024 Fourth Quarter and Full Year Key Financial Highlights

  • Fourth quarter revenues were $2.58 billion, a 6% increase compared to $2.43 billion in the prior year, driven by growth at the Digital Real Estate Services, Book Publishing and Dow Jones segments
  • Net income in the quarter was $71 million, a significant improvement compared to a net loss of $(32) million in the prior year
  • Total Segment EBITDA was the highest for a fourth quarter since separation at $380 million, compared to $341 million in the prior year
  • In the quarter, reported EPS were $0.09 as compared to $(0.01) in the prior year – Adjusted EPS were $0.17 compared to $0.14 in the prior year
  • At the Dow Jones segment, for the quarter and full fiscal year, the professional information business was the largest contributor to segment profitability driven by robust revenue growth at Risk & Compliance and Dow Jones Energy
  • Book Publishing revenues grew 15% in the quarter, while Segment EBITDA increased $41 million, driven by higher physical and digital book sales combined with improved return rates. Digital audiobooks revenue was larger than e-books revenue for the first time this quarter
  • REA Group posted exceptional results for the quarter, with revenues of $305 million, a 37% increase compared to the prior year, primarily driven by robust Australian residential performance and higher financial services revenue
  • At the Subscription Video Services segment, Foxtel Group saw strong streaming performance, with both Kayo and BINGE achieving record paying subscribers, and ended the fiscal year at over 3.2 million total paying streaming subscribers
  • Announced landmark multi-year global partnership with OpenAI

NEW YORK, NY – August 8, 2024 – ۶apporation (“۶app” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months and fiscal year ended June 30, 2024.

Commenting on the results, Chief Executive Robert Thomson said:

“Fiscal 2024 was an outstanding year for ۶app, as we not only delivered robust earnings growth and created substantial shareholder value, but took a significant step to prepare the Company to prosper in the AI age.

Our landmark agreement with OpenAI is not only expected to be lucrative, but will enable us to work closely with a trusted, pre-eminent partner to fashion a future for professional journalism and for provenance. Meanwhile, we have begun to take legal steps against AI aggressors, the egregious aggregators, who are predatory in the confiscation of our content. ‘Open source’ can never be a justification for ‘open slather.’

For the quarter, revenues grew 6 percent to almost $2.6 billion, while net income improved significantly and profitability advanced by 11 percent to a fourth quarter record. Our core pillars of growth – Book Publishing, Digital Real Estate Services and Dow Jones – inspired the increasing profitability, and their strength augurs well for Fiscal 2025.

We are confident in the Company’s long-term prospects and are continuing to review our portfolio with a focus on maximizing returns for shareholders. That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years. We are evaluating options for the business with our advisors in light of that external interest.

I would like to express our sincere gratitude to all who contributed to the emancipation of Evan Gershkovich. His freedom was made possible by the concerted efforts of concerned, principled people who recognized that his incarceration was unjust and immoral. Many thanks to our leaders at Dow Jones and ۶app, who campaigned vigorously for Evan, and to the U.S. Government and other enlightened Governments, whose divine interventions played a pivotal role in his release.”

Fourth Quarter Results

The Company reported fiscal 2024 fourth quarter total revenues of $2.58 billion, a 6% increase compared to $2.43 billion in the prior year period, primarily driven by higher Australian residential revenues at REA Group, higher physical and digital book sales combined with lower return rates at the Book Publishing segment and continued growth in the professional information business at the Dow Jones segment. The increase was partly offset by lower advertising and circulation and subscription revenues at the News Media segment, in addition to a $15 million, or 1%, negative impact from foreign currency fluctuations. Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 6% compared to the prior year.

Net income for the quarter was $71 million, a $103 million increase compared to a net loss of $(32) million in the prior year, primarily driven by improved losses from equity affiliates due to the absence of a non-cash write-down of REA Group’s investment in PropertyGuru in the prior year, higher Total Segment EBITDA and lower impairment and restructuring charges. These impacts were partially offset by higher income tax expense and lower Other, net.

The Company reported fourth quarter Total Segment EBITDA of $380 million, an 11% increase compared to $341 million in the prior year primarily due to strong contributions from the Book Publishing segment and REA Group. The increase was partly offset by Hubbl launch costs at Foxtel Group and lower contributions from the News Media segment and Move. Adjusted Total Segment EBITDA (as defined in Note 2) increased 13%.

Net income (loss) per share attributable to ۶apporation stockholders was $0.09 as compared to $(0.01) in the prior year.

Adjusted EPS (as defined in Note 3) were $0.17 compared to $0.14 in the prior year.

Full Year Results

The Company reported fiscal 2024 full year total revenues of $10.09 billion, a 2% increase compared to $9.88 billion in the prior year, driven by higher Australian residential revenues at REA Group, improved returns combined with higher digital sales at the Book Publishing segment and continued growth in the professional information business at the Dow Jones segment. The increase was partly offset by lower advertising revenues at the News Media segment and lower revenues at Move due to ongoing challenging housing market conditions in the U.S., in addition to a $37 million negative impact from foreign currency fluctuations. Adjusted Revenues increased 2%.

Net income for the full year was $354 million, a $167 million, or 89%, increase compared to $187 million in the prior year. The increase was primarily driven by improved losses from equity affiliates due to the absence of a non-cash write-down of REA Group’s investment in PropertyGuru in the prior year and higher Total Segment EBITDA. These impacts were partially offset by higher income tax expense and lower Other, net.

Total Segment EBITDA for the full year was $1.54 billion, a $119 million, or 8%, increase compared to $1.42 billion in the prior year primarily driven by improved performance at REA Group and the Book Publishing and Dow Jones segments primarily as a result of higher revenues, as discussed above, in addition to gross cost savings related to the announced 5% headcount reduction initiative and savings due to lower production costs at News UK and Book Publishing. The increase was partially offset by higher costs related to the launch of Hubbl and higher sports programming rights costs due to contractual increases at the Subscription Video Services segment, higher employee costs at the Book Publishing segment and REA Group, increased marketing costs at Move, increased technology and marketing costs at the Dow Jones segment and a $17 million, or 2%, negative impact from foreign currency fluctuations. Adjusted Total Segment EBITDA increased 8%.

Diluted net income per share attributable to ۶apporation stockholders was $0.46 as compared to $0.26 in the prior year.

Adjusted diluted EPS were $0.70 compared to $0.49 in the prior year.

Click here for the full Earnings Release information

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About ۶app
۶app (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, ۶app 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: .

Contacts
۶app Investor Relations
Michael Florin
212-416-3363
mflorin@newscorp.com

Anthony Rudolf
212-416-3040
arudolf@newscorp.com

۶app Corporate Communications
Arthur Bochner
646-422-9671
abochner@newscorp.com