News Corp has reported robust second-quarter results for FY25, with revenues from continuing operations rising 5 per cent year-over-year to $2.24 billion (excluding Foxtel), while profitability rose by 20 per cent to $478 million.
Net income from continuing operations surged 58 per cent to $306 million, while EPS from continuing operations climbed to $0.40, compared to $0.28 in the prior year. News Corp also reported a significant improvement in its overall margin, which rose from 18.7 per cent to 21.4 per cent, driven by cost discipline and digital development.
“Our three pillars of growth—Digital Real Estate, Dow Jones and Book Publishing—continued to expand their Segment EBITDA robustly while we saw the positive impact of rigorous cost discipline and digital development in our News Media segment,” said Robert Thomson, chief executive at News Corp.
Performance Across Key Segments
Digital Real Estate Services
Revenues grew 13 per cent to $473 million, with Segment EBITDA surging 26 per cent to $185 million.
REA Group delivered an impressive performance achieving a 20 per cent revenue growth in H1 FY25, reaching $873 million and a 26 per cent increase in net profit to $314 million.
The company’s EBITDA rose by 22 per cent to $535 million, while earnings per share (EPS) grew to $2.38, reflecting a 26 per cent improvement year-over-year.
A fully franked interim dividend of $1.10 per share was declared, up 26 per cent. These results highlight the continued strength of REA’s core markets, particularly in Australia, where residential revenue grew by 21 per cent to $614m, bolstered by increased listings and premium advertising products.
“REA’s exceptional first half result was driven by strong yield growth in a healthy listings environment. Vendors remained confident during the half with sales volumes consistently higher than the prior year, demonstrating the depth of demand, while buyers benefitted from more choice and some moderation in price growth,” said REA Group CEO Owen Wilson.
REA Group’s international ventures also showed promising growth, with REA India reporting a 46 per cent revenue increase to $64 million. The company’s investments in digital tools and new markets, such as the acquisition of Realtair, further solidified its market position.
Dow Jones
Revenues increased 3 per cent to $600 million, while Segment EBITDA rose 7 per cent to $174 million. The Risk & Compliance and Dow Jones Energy businesses continued their double-digit growth, supported by strong demand for compliance and forecasting services.
Book Publishing
Revenues rose 8 per cent to $595 million, and Segment EBITDA grew by 19 per cent to $101 million. Growth was fueled by strong backlist sales, a 13 per cent increase in audio revenue, and the success of key titles such as Cher’s memoir and Wicked by Gregory Maguire.
News Media
While revenues declined 2 per cent to $570 million, Segment EBITDA rose by an impressive 30 per cent to $74 million. The division benefited from cost-saving measures in Australia and the U.K., alongside digital advertising growth, particularly at the New York Post.
News Corp continued its strategic transformation with the announcement of the sale of Foxtel to DAZN for A$3.4 billion. The transaction, expected to close later this fiscal year, is part of News Corp’s ongoing efforts to simplify its portfolio and focus on its core growth areas. Upon completion, the sale will eliminate Foxtel’s debt from the company’s balance sheet and provide News Corp with a 6 per cent stake in DAZN, positioning it for future growth in the global sports streaming market.
Leadership Changes
News Corps results come alongside the news of Wilson’s planned retirement. After a decade with the company and six years as CEO, Wilson will step down in the second half of 2025, leaving a legacy marked by transformative growth and strong financial outcomes.
REA Group Chairman Hamish McLennan praised Wilson’s tenure. “After more than ten glorious years at REA Group, Owen has decided to retire. His stellar leadership leaves the company exceptionally well positioned, and REA is one of the best home-grown technology companies, which has flourished into being a global leader. Our board and staff sincerely thank Owen for his contribution in building an incredible organisation under his outstanding leadership.”
“It has been a privilege to lead REA Group for the past six years, and I am proud of all our team has accomplished. The business is in excellent shape as evidenced by the results we have announced today. We have an exciting strategy and a talented and committed team to deliver it. I want to thank them wholeheartedly for all the tremendous support I have received over the years. REA’s future is undeniably exciting. I would also like to thank the REA Board, Robert Thomson, and Lachlan Murdoch for entrusting me with such a great company and incredible business,” said Wilson.
The Board has begun the process of identifying Wilson’s successor, evaluating both internal and external candidates. Wilson will remain with the company to ensure a smooth leadership transition.
