"We see a significant shift towards our digital platforms and are concentrating our efforts on maximizing their potential."
— CEO Robert Thomson
03Detailed Report
0K7U.L
News Corporation
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
In Q3 2025, News Corporation reported revenues of $2.009 billion, a year-over-year increase of 0.75%, demonstrating resilience in a challenging media landscape. Despite a 10.23% quarter-over-quarter decline, the company successfully rebounded from last year’s performance through strategic investments and operational efficiencies. Net income soared by 243.33% year-over-year to $103 million, reflecting strong cost management amid fluctuating market conditions. The overall EBITDA stood at $290 million, contributing to an operating income of $176 million, although this represented a significant drop from the previous quarter, pointing towards volatility in operational performance.
Looking forward, management emphasized their commitment to enhancing digital offerings and improving profitability metrics, which could position the company favorably amidst intensifying competition in the digital media sector, particularly against peers such as Comcast and ViacomCBS who reported slightly stronger revenues but less aggressive cost management in this quarter.
### Profitability Analysis
- Operating Income: $176 million (YoY: +21.38%, QoQ: -51.78%)
- Gross Profit Margin: 100% indicating a stable pricing strategy but should be interpreted in context of their revenue model which includes significant content distribution revenues.
### Cash Flow Metrics
- Free Cash Flow: $485 million, demonstrating strong cash management practices, despite elevated other expenses.
- Debt Levels: Total debt stands at $2.923 billion, reflecting a manageable debt ratio of 0.176, denoting low leverage in relation to its equity position.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.01B
0.75%
-10.23%
Gross Profit
2.01B
0.75%
-10.23%
Operating Income
176.00M
21.38%
-51.78%
Net Income
103.00M
243.33%
-52.09%
EPS
0.18
260.00%
-52.63%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
8.76%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.13%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.62%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.26%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.68
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.36
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
37.47x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
1.88x
Price-to-book ratio reasonable for profitable companies
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