News Corporation, known for its global media and information services, has announced the continuation of its stock repurchase program, which authorizes the company to buy back up to $1 billion of its Class A and Class B common stock. The company disclosed the ongoing program in a report filed with the Securities and Exchange Commission on November 19, 2024.
The buyback initiative is part of the company's strategy to enhance shareholder value, and News Corp (NASDAQ:NWSA) has been providing daily updates to the Australian Securities Exchange (ASX) as required by its rules. The company also includes information about the repurchase program in its quarterly and annual reports.
In the SEC filing, News Corp stated that the repurchase of shares would occur from time to time, depending on market conditions, stock prices, alternative investment opportunities, and other factors. The company emphasized that the forward-looking statements regarding the repurchase program are based on current management expectations and are subject to change due to various uncertainties.
News Corp's financial performance for the first quarter of fiscal year 2025 shows significant growth. The company's revenue rose to $2.58 billion, marking a 3% year-over-year increase, and profitability improved by 14% to $415 million. Furthermore, the net income surged to $144 million, with earnings per share climbing to $0.21, a substantial rise from $0.05 the previous year.
CEO Robert Thomson attributed the company's financial growth to circulation and subscription revenues. Despite a 5% decline in News Media revenues to $521 million, the company's segments, including REA Group, Dow Jones, HarperCollins, and Foxtel, demonstrated robust performance. Other recent developments include the departure of CFO Susan Panuccio and acknowledgment of board member Kelly Ayotte's contributions.
InvestingPro Insights
News Corporation's ongoing stock repurchase program aligns with its strong financial position, as evidenced by recent InvestingPro data. The company's market capitalization stands at $16.94 billion, reflecting its significant presence in the global media landscape. News Corp's revenue for the last twelve months as of Q1 2025 reached $10.16 billion, with a modest growth of 2.66% over the same period.
The company's commitment to shareholder value is further underscored by its dividend yield of 0.69%, with the most recent ex-dividend date on September 11, 2024. This, coupled with the buyback program, demonstrates News Corp's multi-faceted approach to returning value to shareholders.
InvestingPro Tips highlight that News Corp has been rewarding shareholders with consistent dividend payments, which aligns with the company's strategy of enhancing shareholder value through both dividends and share repurchases. Additionally, another InvestingPro Tip notes that the company's earnings per share have shown growth over the past year, potentially indicating improving profitability that could support the buyback initiative.
For investors seeking a deeper understanding of News Corp's financial health and future prospects, InvestingPro offers 14 additional tips that could provide valuable insights into the company's performance and strategy.
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