News Corp reported a 2% decline in total revenues for the third quarter of fiscal year 2023, an improvement from the 7% decline in the previous quarter.
The company's cost-cutting program is gaining traction, with a headcount reduction expected to yield over $160 million in annualized savings by the end of the year.
Dow Jones saw robust revenue growth, particularly in its professional information business, which reported a 38% increase in revenues. Digital subscriptions also grew by 9% at The Wall Street Journal and 10% at Dow Jones as a whole.
Foxtel Group continues to build on its streaming success, with streaming now accounting for two-thirds of its total subscription base. Broadcast churn is at near record low levels, and the introduction of advertising on Binge has added a new revenue stream.
HarperCollins experienced improvements in the third quarter, with higher margins compared to the first half. The company has an attractive roster of upcoming books and expects to see further improvements in profitability.
Advertising trends remain uncertain, but there have been some positive signs of improvement, particularly in digital advertising at News UK and print advertising in Australia. However, challenges such as supply chain disruptions and inflationary pressures continue to impact the business.
No specific forecasts, outlooks, expectations, dividends, or buybacks were mentioned in the transcript.
Current Fair Value
Undervalued by 14.3% based on the discounted cash flow analysis.