The Dow Jones segment saw its digital revenues reach 82% of total revenues in FY25, up from 80% in FY24, with circulation and subscription revenues increasing by $113 million (6%). Similarly, Book Publishing's digital sales grew 5% YoY, now representing 24% of consumer revenues, highlighting successful digital adoption and monetization strategies.

The Company completed the sale of Foxtel Group in April 2025, resulting in a significant pre-tax gain of $716 million and a 6% minority equity interest in DAZN. This divestiture reflects a strategic shift to streamline operations and focus on core growth areas, improving overall financial results.

Digital Real Estate Services revenues increased $144 million (9%), driven by REA Group's Australian residential growth and Move's revenue growth from seller, new homes, and rentals, including a Zillow partnership. The Company also continues to pursue new licensing and partnership arrangements with large technology companies and AI-focused platforms to exploit existing content opportunities.

The News Media segment's EBITDA increased by $20 million, or 15%, in fiscal year 2025 compared to fiscal year 2024. This improvement was primarily driven by successful cost savings initiatives, including lower Talk costs and efficiencies gained from combining News UK’s printing operations with DMG Media.

Management's decision to sell the Foxtel Group, completed in April 2025, demonstrates a clear strategic shift to focus on continuing operations. This move generated a substantial pre-tax gain of $716 million, indicating effective portfolio management and a commitment to enhancing shareholder value.

The Company has implemented a robust cybersecurity program, informed by the NIST Cybersecurity Framework, overseen by a dedicated CISO reporting to the CTO. This includes regular employee training, third-party assessments, and technical measures to mitigate increasing cyber threats, demonstrating proactive risk management.

The proliferation of generative AI tools presents a threat of unauthorized exploitation of the Company's content, potentially reducing traffic and subscriber demand for digital products. The application of existing laws and regulations to new AI technologies remains unsettled, making IP protection costly and challenging.

Persistent inflation, elevated interest rates, and lower consumer confidence adversely impacted the U.S. real estate market and book publishing industry in FY25. These conditions led to depressed real estate lead and transaction volumes and softer consumer spending, directly affecting revenue generation.

New data privacy laws (e.g., CCPA, GDPR, DUA Act, CAADC) and rapidly changing AI regulations across multiple jurisdictions create complex compliance requirements. These evolving legal frameworks may impose significant costs, operational restrictions, and potential litigation risks, impacting the Company's ability to operate effectively.

REA Group's realestate.com.au averaged 132.2 million monthly visits and 12.1 million unique visitors in FY25, with Australians visiting the site 4.0 times more than its nearest competitor. This demonstrates a strong competitive advantage and dominant market share in the Australian digital real estate services sector.

The Dow Jones segment, with premier brands like The Wall Street Journal and Barron’s, continues to capitalize on digital consumption. Digital revenues constituted 82% of its total revenues in FY25, driven by growth in digital-only subscriptions and content licensing, underscoring its ability to monetize authoritative journalism in the digital age.

All segments, particularly Dow Jones and News Media, face increasing competition from web and app-based media, news aggregators, and AI-powered platforms. These competitors can commoditize content, impact advertising revenue, and affect traffic to the Company's digital properties, posing ongoing challenges to market share.

Operating expenses for the News Media segment decreased by $122 million (10%) in fiscal year 2025 compared to fiscal year 2024. These savings were primarily due to cost optimization initiatives, including the combination of News UK’s printing operations with those of DMG Media.

Despite overall operating expense reductions, selling, general and administrative expenses increased by $104 million (3%) in FY25, driven by higher employee, technology, and marketing costs across the Digital Real Estate Services, Book Publishing, and Dow Jones segments. This indicates ongoing cost pressures in growth areas.

Printing and distribution costs, particularly paper prices, remain a significant expense for book and newspaper publishing units. These costs are subject to fluctuations from inflation, labor shortages, and supply chain disruptions, which could adversely affect business results and financial condition if alternative sources are not secured cost-effectively.

The Company is actively incorporating AI into its business to develop new products and services that integrate AI solutions, as well as for internal productivity purposes. This strategic focus aims to enhance insights, value for customers, and operational efficiency, positioning the Company for future technological advancements.

News Corp continues to invest in digital distribution platforms, mobile apps, and streaming audio partnerships, evidenced by the 5% growth in Book Publishing's digital sales and Dow Jones's 82% digital revenue contribution. This strategy aims to reach new audiences and maximize content monetization.

With the expansion of digital businesses and AI capabilities, the Company has strengthened its cybersecurity program, guided by the NIST Cybersecurity Framework. This includes a dedicated CISO, regular training, and third-party assessments to protect critical information systems and data from increasing cyber threats.

On July 15, 2025, the Company announced a new $1 billion stock repurchase program, in addition to the $310 million remaining from the prior program. This authorization demonstrates management's confidence in the Company's future cash flow generation and commitment to enhancing shareholder value.

The Company maintained a stable cash dividend payout of $0.20 per share for both Class A and Class B Common Stock for fiscal years 2025, 2024, and 2023. This consistent dividend policy indicates a steady return of capital to shareholders amidst varying market conditions.

Capital expenditures from continuing operations increased by $50 million, from $357 million in fiscal year 2024 to $407 million in fiscal year 2025. This increase suggests ongoing investment in property, plant, and equipment, including capitalized software, to support and enhance business operations.

News Corp emphasizes attracting, developing, and retaining diverse talent, with programs focused on employee wellbeing, ethical conduct, and continuous learning. Investments in training, career planning, and engagement surveys underscore a commitment to fostering a supportive and high-performing workforce.

The Board of Directors, through its Audit Committee, maintains primary responsibility for overseeing cybersecurity risks, while a Compliance Steering Committee ensures adherence to global compliance policies and ethical conduct. Executive incentive compensation is linked to performance on ethics and compliance, reinforcing strong governance.

The Company recognizes that its brands and reputation can be adversely impacted by its sustainability and corporate responsibility commitments, disclosures, and positions on social issues. Navigating divergent stakeholder expectations and evolving ESG-related legislation remains a challenge, posing potential reputational harm.

Persistent inflation, elevated interest rates, and lower consumer confidence in fiscal year 2025 adversely impacted the U.S. real estate market and book publishing industry. This resulted in a 9% decline in real estate lead volumes and lower transaction volumes, alongside softer consumer spending in book publishing.

New and complex data privacy regulations (e.g., CCPA, GDPR, DUA Act) and rapidly developing AI regulations are increasing compliance costs and operational restrictions across multiple jurisdictions. The unsettled nature of these laws and potential conflicts between jurisdictions pose ongoing challenges and risks.

Recent changes in trade policy, including new or potential tariffs, and ongoing geopolitical tensions have led to significant economic and market volatility. These factors may exacerbate inflationary pressures and negatively impact customer and consumer sentiment and spending, posing risks to the Company's business in its main operating geographies.