News Corp’s Q2 FY2025: Three Growth Pillars Hold, Foxtel Exit Signals a Portfolio Reset
Ticker: NWS, NWSA (Nasdaq); EPS and EPS, consensus concepts buzz in the background as News Corp reports a solid quarter while teeing up a strategic sale of Foxtel to DAZN. Revenue came in at about $2.24 billion; continuing-operations earnings rose meaningfully; the company leans into AI-backed content and cost discipline as it reshapes its asset mix.
Overview: a clean quarter with a strategic pivot
News Corp (NWS, NWSA) posted second-quarter results for fiscal 2025 that underscore resilience across its core media and information platforms. Second-quarter revenues were $2.24 billion, up 5% from $2.14 billion a year earlier. Net income from continuing operations climbed 58% to $306 million, and Total Segment EBITDA rose 20% to $478 million. On the earnings line, EPS from continuing operations came in at $0.40, versus $0.28 in the prior year, while Adjusted EPS was $0.33 versus $0.27 a year ago. The company does not provide a formal EPS consensus or a stated earnings surprise figure in the release, leaving the market to judge the pace against prior-period baselines and expectations. Notably, the release does not include a near-term revenue forecast for the next quarter.
The three growth pillars keep delivering
The quarter’s strength rested on News Corp’s three primary engines. Dow Jones generated $600 million in revenues, with solid momentum supported by improved circulation-related revenues and higher professional-information volumes within its Risk & Compliance and energy lines. REA Group posted record quarterly revenues of $343 million, up 17% year over year on the back of Australian residential strength. Book Publishing also contributed solid growth, with revenues up about 8% and Segment EBITDA up 19% as physical and digital book sales benefited from a robust mix shift.
Foxtel sale: a strategic simplification and capital reallocation
A pivotal line in the press release is News Corp’s agreement to sell Foxtel to DAZN for an enterprise value of A$3.4 billion. Foxtel’s results are reflected in discontinued operations, reinforcing the company’s stated aim to simplify the portfolio and sharpen focus on its growth pillars. Management argues the move will unlock value for shareholders and enable deeper investment in core digital and information franchises while trimming exposure to the traditional pay-TV ecosystem.
AI, content strategy, and adjacent risk considerations
The statements underscore a commitment to Generative AI—described as providing valuable content for AI use cases—while signaling vigilance on “degenerative AI.” News Corp cites its partnership with OpenAI and hints at ongoing legal action in the AI arena as part of its risk and governance posture. The tone suggests the company views data and digital development as accelerants for its core franchises, even as it navigates the broader tension between content quality, copyright, and AI-enabled distribution. In the same breath, the firm notes cost discipline and margin expansion as contributing factors to the margin trajectory versus the prior year.
Implications for News Corp and sector peers
The quarter reaffirms the market thesis that diversified, content-rich media groups can compound earnings through a mix of high-margin publishing, subscription-like information services, and stable, advertising-sensitive assets when supported by disciplined cost management. For sector peers, News Corp’s Foxtel exit adds to a wave of strategic divestitures aimed at sharpening focus on growth pillars—often juxtaposed with investments in AI-assisted workflows and data-enabled products. If the three pillars—Dow Jones, REA Group, and Book Publishing—continue to outperform and the Foxtel sale proceeds without derailing timing for other capital programs, peers might follow with similar portfolio reviews, balancing near-term cash generation against longer-term platform investment. The absence of a disclosed revenue forecast for the next quarter keeps expectations running on a treadmill of guidance-less momentum, which could tempt analysts to stake views on EPS trajectory in coming updates. In short: the market will be watching not just the numbers, but how aggressively News Corp redeploys capital toward higher-growth, data-driven franchises.
Notes on disclosure and disclosures-as-signal
Key takeaways include continuing-operations EPS of $0.40 and Adjusted EPS of $0.33, with notable YoY improvements in net income and EBITDA. The omission of a formal EPS consensus or earnings-surprise metric in the release means investors must infer how the results compare to street expectations from the cross-sectional moves in revenue, margin, and segment performance. The Foxtel sale environment and the AI commentary provide a narrative overlay that could shape investor sentiment around the stock’s multiple and risk profile.