Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
News Corporation’s ASX Rally Puts Earnings Momentum and Cash Flow in Focus
Highlights
Strong Quarterly Earnings
News Corporation (ASX: NWS) traded at a current market price (CMP) of AU$49.510, representing a 6.6% surge. The company announced its first-quarter FY2027 results on 4 November 2026, reporting stronger earnings across its digital property, information services and publishing businesses.
Revenue increased 6% to US$2.28 billion, compared to US$2.14 billion a year earlier. Net income rose 43% to US$215 million, while Total Segment EBITDA expanded 19% to US$403 million.
Reported earnings per share increased to US$0.29 from US$0.20, while adjusted earnings reached US$0.28, compared to US$0.22. Adjusted revenue and adjusted Total Segment EBITDA grew 4% and 13%, respectively. Currency movements added US$43 million to revenue.
Digital Operations Support Growth
Digital Real Estate Services revenue increased 10% to US$529 million, while segment EBITDA climbed 34% to US$212 million. REA Group contributed revenue of US$369 million, up 13%, despite Australian residential buy listings declining 2%.
Move’s revenue advanced 5% to US$160 million, although Realtor.com’s average monthly unique users fell 8% to 66 million.
Dow Jones revenue rose 8% to US$630 million, with EBITDA increasing 11% to US$160 million. Risk & Compliance revenue grew 11% to US$104 million, while Energy revenue increased 8% to US$79 million. Digital-only news subscriptions expanded 10% to nearly 6.5 million.
Publishing Gains and Cash Pressures
Book Publishing revenue increased 9% to US$582 million, and EBITDA rose 29% to US$75 million. News Media revenue declined 1% to US$540 million, while EBITDA contracted 40% to US$18 million.
Operating cash flow fell to US$13 million from US$85 million. Capital expenditure reached US$102 million, producing negative free cash flow of US$89 million, reflecting working capital timing, higher taxes and increased investment.
Outlook
Management remains focused on expanding profitability through cost discipline, digital growth and careful capital allocation. Chief Executive Robert Thomson identified opportunities for premium content in artificial intelligence, while emphasising intellectual property protection. Following fourteen consecutive quarters of annual profitability growth, sustaining earnings momentum alongside stronger cash generation remains central to assessing future performance.
Note- All data presented is based on information available at the time of writing.
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