These quarterly results confirm that News Corp is turning into a much more stable company, as the weight of volatile businesses keeps decreasing. In Q4 FY21, 98 % of total segment EBITDA (or 64 % of segment EBITDA before others) came from their 2 most stable divisions : Digital Real Estate and Dow Jones.
It is now generating a high level of cash as free cash flow available to News Corp reached 731 m in FY 21 vs 180 m in FY 20. At the end of June, News Corp had 2.2 bn of (gross) cash.
It is reinvesting its cash in : - well targeted acquisitions in their 3 "core" divisions, - and now also wants to put a greater focus on share buybacks.
Main points I noticed in Q4 results : - strong revenues : + 30 % yoy, which was 13 % above the consensus figure I could find. This strong revenue was driven by digital real estate division (+ 74 %), book publishing (+ 21 %), Dow Jones (+ 18 %), increase of ad across all segments and higher subscription revenue for the Subscription Video segment, - "material impact" of Google and FB agreements in their Q4 results which will play on a full year basis in FY 22, - Move continues to have a significant impact on the growth in the Digital Real Estate division (both on revenue and EBITDA),
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