The News Corporation (ASX: NWS) share price will have plenty of eyes on it today after releasing its first-quarter results for FY22.
Prior to the market opening, the media giant is residing at a price of $31.70. Investors will be watching to see how the market stomachs the company's growth figures.
Here's what we know.
Solid quarterly puts the News Corp share price in focus
- Revenue increased 18% year-on-year to $2.5 billion
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 53% to $410 million
- Reported earnings per share (EPS) of 33 cents compared to 6 cents in the prior year
- Dow Jones media segment recorded its highest quarter revenue and profitability since acquisition
- Digital real estate services segment revenue up 47% year-on-year to $426 million
- Approved a $1 billion share buyback program
How did the company perform?
It was a solid quarterly result for News Corp by nearly all accounts. In fact, the period represented the most profitable quarter for the company since its relaunch in 2013.
All operational business segments recorded revenue growth compared to the prior corresponding period. Although, some more so than others. Namely, digital real estate services reported a 47% increase year-on-year to $426 million. Similarly, book publishing revenue grew by 19% to $546 million in Q1 FY22.
The solid performance from the digital real estate services segment was mostly credited to News Corp's 61% interest in REA Group Limited (ASX: REA). Australia's top property site for real estate notched up an additional $94 million in revenue in the quarter, up 62%.
While the subscription video services segment dramatically increased its EBITDA, revenue increased a marginal 3% to $510 million. All in all, News Corp's revenue in Q1 totalled $2,502 million, representing an increase of 18%. This impressive growth will likely have investors paying attention to the News Corp share price today.
During the quarter, the company also announced a share buyback program worth $1 billion. According to today's release, News Corp expects to begin executing this program after its quiet period ends next week.
What did management say?
Commenting on the successful quarter, chief executive Robert Thomson stated:
I am pleased to report that the first quarter of Fiscal 2022 was the most profitable of its kind since the re-launch of News Corp in 2013, building on the trends evident in the last financial year. Revenues for the quarter were $2.5 billion, an increase of 18 per cent, while our profitability rose by a hefty 53 percent.
Dow Jones achieved stronger profitability than any first quarter in its 140-year history. We look forward to completing the acquisition of OPIS, which will enhance our fast-growing professional information business. Recent events have highlighted the importance of intelligence about energy and carbon markets, and we fully expect to emerge as a world leader in that area.
Despite the positive results, the release did not contain any details relating to News Corp's outlook.
The News Corp share price is up 37% year-to-date.
