What changed in this filing

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Item 1. Financial Statements

2025-02-06 compared with 2024-11-08 · 371 added, 207 removed, 499 unchanged (54% of the section changed)

4 unchanged sentences

For the three months ended

September 30,

December 31, For the six months ended

Notes 2024 2023 2024 2023

12 unchanged sentences

Other, net 13 92 21 114 ( 17 )

Income before income tax expense 204 95

Income tax expense 10 ( 60 ) ( 37 )

Income before income tax expense from continuing operations 430 291 640 379

Income tax expense from continuing operations 11 ( 124 ) ( 97 ) ( 185 ) ( 131 )

Net income from continuing operations 306 194 455 248

Net loss from discontinued operations, net of tax 2 ( 23 ) ( 11 ) ( 28 ) ( 7 )

Net income 283 183 427 241

Net income attributable to noncontrolling interests ( 25 ) ( 28 )

Net income attributable to noncontrolling interests from continuing operations ( 78 ) ( 34 ) ( 109 ) ( 64 )

Net loss attributable to noncontrolling interests from discontinued operations 10 7 16 9

Net income attributable to News Corporation stockholders $ 215 $ 156 $ 334 $ 186

Net income attributable to News Corporation stockholders per share, basic and diluted 8 $ 0.21 $ 0.05

Net income (loss) attributable to News Corporation stockholders per share:

Continuing operations

$ 0.40 $ 0.28 $ 0.61 $ 0.33

Discontinued operations

$ ( 0.02 ) $ ( 0.01 ) $ ( 0.02 ) $ —

$ 0.38 $ 0.27 $ 0.59 $ 0.33

Continuing operations

$ 0.40 $ 0.28 $ 0.61 $ 0.32

Discontinued operations

$ ( 0.02 ) $ ( 0.01 ) $ ( 0.02 ) $ —

$ 0.38 $ 0.27 $ 0.59 $ 0.32

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2 unchanged sentences

For the three months ended

September 30,

December 31, For the six months ended

2024 2023 2024 2023

Net income $ 283 $ 183 $ 427 $ 241

Other comprehensive income (loss):

Other comprehensive (loss) income:

Foreign currency translation adjustments ( 418 ) 215 ( 248 ) 70

Net change in the fair value of cash flow hedges (a)

10 ( 17 ) ( 6 ) ( 18 )

Benefit plan adjustments, net (b)

Other comprehensive income (loss) 151 ( 131 )

Comprehensive income (loss) 295 ( 73 )

10 ( 2 ) 7 13

Other comprehensive (loss) income ( 398 ) 196 ( 247 ) 65

Comprehensive (loss) income ( 115 ) 379 180 306

Net income attributable to noncontrolling interests ( 68 ) ( 27 ) ( 93 ) ( 55 )

Other comprehensive (income) loss attributable to noncontrolling interests (c)

Comprehensive income (loss) attributable to News Corporation stockholders $ 239 $ ( 70 )

(a) Net of income tax expense (benefit) of $( 6 ) million and $( 1 ) million for the three months ended September 30, 2024 and 2023, respectively.

(b) Net of income tax expense (benefit) of $( 1 ) million and $ 5 million for the three months ended September 30, 2024 and 2023, respectively.

Other comprehensive loss (income) attributable to noncontrolling interests (c)

105 ( 49 ) 74 ( 18 )

Comprehensive (loss) income attributable to News Corporation stockholders $ ( 78 ) $ 303 $ 161 $ 233

(a) Net of income tax expense (benefit) of $ 4 million and $( 6 ) million for the three months ended December 31, 2024 and 2023, respectively, and $( 2 ) million and $( 7 ) million for the six months ended December 31, 2024 and 2023, respectively.

(b) Net of income tax expense (benefit) of $ 3 million and $( 1 ) million for the three months ended December 31, 2024 and 2023, respectively, and $ 2 million and $ 4 million for the six months ended December 31, 2024 and 2023, respectively.

3 unchanged sentences

millions, except share and per share amounts)

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

(unaudited) (audited)

Current assets:

3 unchanged sentences

Other current assets 554 474

Current assets held for sale

Total current assets 6,452 4,372

7 unchanged sentences

Other non-current assets 13 935 957

Non-current assets held for sale

Total assets $ 16,161 $ 16,684

6 unchanged sentences

Other current liabilities 13 759 772

Current liabilities held for sale

Total current liabilities 3,730 3,055

5 unchanged sentences

Other non-current liabilities 446 472

Non-current liabilities held for sale

Commitments and contingencies 10

8 unchanged sentences

Total liabilities and equity $ 16,161 $ 16,684

(a) Class A common stock , $ 0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 379,296,926 and 378,670,671 shares issued and outstanding, net of 27,368,413 treasury shares at par, at September 30, 2024 and June 30, 2024, respectively.

(b) Class B common stock , $ 0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 189,966,150 and 190,423,250 shares issued and outstanding, net of 78,430,424 treasury shares at par, at September 30, 2024 and June 30, 2024, respectively.

(a) Class A common stock , $ 0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 378,380,369 and 378,670,671 shares issued and outstanding, net of 27,368,413 treasury shares at par, at December 31, 2024 and June 30, 2024, respectively.

(b) Class B common stock , $ 0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 189,503,773 and 190,423,250 shares issued and outstanding, net of 78,430,424 treasury shares at par, at December 31, 2024 and June 30, 2024, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended

September 30,

For the six months ended

Notes 2024 2023

1 unchanged sentence

Net income $ 427 $ 241

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Net loss from discontinued operations, net of tax 28 7

Net income from continuing operations $ 455 $ 248

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations:

Depreciation and amortization 225 211

8 unchanged sentences

Accounts payable and other liabilities ( 140 ) ( 295 )

Net cash provided by (used in) operating activities 64 ( 55 )

Net cash provided by operating activities from continuing operations 278 251

Investing activities:

3 unchanged sentences

Proceeds from sales of investments in equity affiliates and other 234 30

Net cash used in investing activities ( 136 ) ( 159 )

Other, net ( 13 ) —

Net cash used in investing activities from continuing operations ( 56 ) ( 196 )

Financing activities:

4 unchanged sentences

Other, net ( 37 ) ( 39 )

Net cash used in financing activities ( 147 ) ( 65 )

Net change in cash and cash equivalents ( 219 ) ( 279 )

Cash and cash equivalents, beginning of year 1,960 1,833

Effect of exchange rate changes on cash and cash equivalents 37 ( 25 )

Cash and cash equivalents, end of period $ 1,778 $ 1,529

Net cash used in financing activities from continuing operations ( 342 ) ( 175 )

Cash flows from discontinued operations:

Net cash provided by operating activities from discontinued operations 90 53

Net cash used in investing activities from discontinued operations ( 43 ) ( 82 )

Net cash (used in) provided by financing activities from discontinued operations ( 11 ) 31

Net cash provided by discontinued operations 36 2

Net change in cash, cash equivalents, and restricted cash ( 84 ) ( 118 )

Cash, cash equivalents and restricted cash, beginning of year 1,960 1,833

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 30 ) 9

Cash, cash equivalents and restricted cash, end of period 1,846 1,724

Cash and cash equivalents at end of period of discontinued operations ( 58 ) ( 17 )

Restricted cash included in Other current assets (a)

Cash and cash equivalents $ 1,751 $ 1,707

(a) Represents restricted cash in escrow to fund an acquisition at the Book Publishing segment which closed in the third quarter of fiscal 2025.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3 unchanged sentences

News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including:

information services and news, digital real estate services, book publishing and subscription video services in Australia.

information services and news, digital real estate services and book publishing.

During the second quarter of fiscal 2025, the assets and liabilities of the Foxtel Group (“Foxtel”) were classified as held for sale and the results of operations and cash flows have been classified as discontinued operations for all periods presented.

Furthermore, upon reclassification of Foxtel’s results, the Subscription Video Services segment ceased to be a reportable segment and the residual results of the segment were aggregated into the News Media segment.

Unless indicated otherwise, the information in the notes to the unaudited Consolidated Financial Statements relates to the Company’s continuing operations.

See Note 2—Discontinued Operations.

Basis of Presentation

4 unchanged sentences

Actual results could differ from those estimates.

Intercompany transactions and balances have been eliminated.

Intercompany transactions and balances have been eliminated, with the exception of those pertaining to Foxtel that are expected to continue after the sale.

Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method.

5 unchanged sentences

Fiscal 2025 and fiscal 2024 include 52 weeks.

All references to the three months ended September 30, 2024 and 2023 relate to the three months ended September 29, 2024 and October 1, 2023, respectively.

For convenience purposes, the Company continues to date its Consolidated Financial Statements as of September 30.

All references to the three and six months ended December 31, 2024 and 2023 relate to the three and six months ended December 29, 2024 and December 31, 2023, respectively.

For convenience purposes, the Company continues to date its Consolidated Financial Statements as of December 31.

Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current fiscal year presentation.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Recently Issued Accounting Pronouncements

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The Company is currently evaluating the impact ASU 2023-07 will have on its financial statement disclosures.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

9 unchanged sentences

The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements.

The following tables present the Company’s disaggregated revenues by type and segment for the three months ended September 30, 2024 and 2023:

For the three months ended September 30, 2024

DISCONTINUED OPERATIONS

During the second quarter of fiscal 2025, the Company entered into a definitive agreement to sell Foxtel to DAZN Group Limited (“DAZN”), a global sports streaming platform.

Under the terms of the agreement, amounts outstanding under Foxtel’s shareholder loans with News Corp (A$ 574 million of outstanding principal, including capitalized interest, as of December 31, 2024) will be repaid in full in cash at closing.

Foxtel’s third-party borrowings will transfer with the business, and News Corp will receive a minority equity interest in DAZN of approximately 6 % and hold one seat on its Board of Directors.

Telstra Group Ltd will also sell its minority interest in Foxtel.

The transaction is expected to close in the second half of fiscal 2025, subject to regulatory approvals and other customary closing conditions.

As a result of the progression of the sale process and the discontinuation of further significant business activities in the Subscription Video Services segment, the assets and liabilities of Foxtel were classified as held for sale and the results of operations and cash flows have been classified as discontinued operations for all periods presented in accordance with ASC 205-20, Discontinued Operations (“ASC 205-20”), as the disposition reflects a strategic shift that has, and will have, a major effect on the Company’s operations and financial results.

Upon reclassification of Foxtel’s results, the Company determined that the Subscription Video Services segment was no longer a reportable segment and the residual results of the segment were aggregated into the News Media segment.

News Media segment results have been recast to reflect this change for all periods presented.

See Note 12—Segment Information.

In all periods presented, transactions between Foxtel and the continuing operations of the Company that are not expected to continue after the sale are eliminated, whereas those expected to continue are no longer eliminated.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the assets and liabilities of Foxtel classified to held for sale:

December 31, 2024 As of

June 30, 2024

Assets held for sale:

Current assets:

Cash and cash equivalents $ 58 $ 88

Receivables, net 75 83

Inventory, net 5 30

Other current assets 114 139

Total current assets (a)

Non-current assets:

Investments 1 1

Property, plant and equipment, net 516 642

Operating lease right-of-use assets 132 153

Intangible assets, net 322 374

Goodwill 793 850

Other non-current assets 180 213

Total non-current assets (a)

Total assets held for sale

$ 2,196 $ 2,573

Liabilities held for sale:

Current liabilities:

Accounts payable $ 20 $ 60

Accrued expenses 188 245

Deferred revenue 60 68

Current borrowings 32 45

Other current liabilities 107 133

Total current liabilities (a)

Non-current liabilities:

Borrowings 712 762

Deferred income tax liabilities, net

Operating lease liabilities 97 115

Other non-current liabilities (a)

Total non-current liabilities

Total liabilities held for sale

$ 1,324 $ 1,546

(a) The assets and liabilities held for sale are classified as current on the December 31, 2024 balance sheet as the transaction is expected to close within one year of that balance sheet date.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the results of operations from the discontinued operations of Foxtel for the three and six months ended December 31, 2024 and 2023:

For the three months ended

December 31, For the six months ended

2024 2023 2024 2023

Total Revenues $ 462 $ 466 $ 961 $ 950

Operating expenses ( 314 ) ( 321 ) ( 638 ) ( 629 )

Selling, general and administrative ( 83 ) ( 72 ) ( 168 ) ( 158 )

Depreciation and amortization ( 79 ) ( 69 ) ( 156 ) ( 139 )

Impairment and restructuring charges ( 1 ) ( 1 ) ( 2 ) ( 2 )

Interest expense, net ( 17 ) ( 18 ) ( 35 ) ( 33 )

Other, net ( 1 ) 1 — 4

Loss before income tax benefit ( 33 ) ( 14 ) ( 38 ) ( 7 )

Income tax benefit 10 3 10 —

Net loss ( 23 ) ( 11 ) ( 28 ) ( 7 )

Net loss attributable to noncontrolling interests

Net (loss) income attributable to News Corporation stockholders

( 13 ) ( 4 ) ( 12 ) 2

The following tables present the Company’s disaggregated revenues by type and segment for the three and six months ended December 31, 2024 and 2023:

For the three months ended December 31, 2024

Dow Jones Digital Real

Services Book

Publishing Subscription

Services News Media Other Total

Publishing News Media Other Total

(in millions)

5 unchanged sentences

Total Revenues $ 600 $ 473 $ 595 $ 570 $ — $ 2,238

For the three months ended September 30, 2023

For the three months ended December 31, 2023

Dow Jones Digital Real

Services Book

Publishing Subscription

Services News Media Other Total

Publishing News Media Other Total

(in millions)

7 unchanged sentences

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended December 31, 2024

Dow Jones Digital Real

Services Book

Publishing News Media Other Total

(in millions)

Circulation and subscription $ 920 $ 4 $ — $ 564 $ — $ 1,488

Advertising 206 73 — 427 — 706

Consumer — — 1,093 — — 1,093

Real estate — 734 — — — 734

Other 26 119 48 120 — 313

Total Revenues $ 1,152 $ 930 $ 1,141 $ 1,111 $ — $ 4,334

For the six months ended December 31, 2023

Dow Jones Digital Real

Services Book

Publishing News Media Other Total

(in millions)

Circulation and subscription $ 877 $ 5 $ — $ 567 $ — $ 1,449

Advertising 217 67 — 439 — 723

Consumer — — 1,029 — — 1,029

Real estate — 638 — — — 638

Other 27 112 46 142 — 327

Total Revenues $ 1,121 $ 822 $ 1,075 $ 1,148 $ — $ 4,166

Contract Liabilities and Assets

The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided.

The following table presents changes in the deferred revenue balance for the three months ended September 30, 2024 and 2023:

The following table presents changes in the deferred revenue balance for the three and six months ended December 31, 2024 and 2023:

For the three months ended

September 30,

December 31, For the six months ended

2024 2023 2024 2023

(in millions)

5 unchanged sentences

Balance, end of period $ 431 $ 446 $ 431 $ 446

(a) For the three months ended September 30, 2024 and 2023, the Company recognized $ 340 million and $ 393 million, respectively, of revenue which was included in the opening deferred revenue balance.

Contract assets were immaterial for disclosure as of September 30, 2024 and 2023.

(a) For the three and six months ended December 31, 2024, the Company recognized $ 205 million and $ 378 million, respectively, of revenue which was included in the opening deferred revenue balance.

For the three and six months ended December 31, 2023, the Company recognized $ 266 million and $ 435 million, respectively, of revenue which was included in the opening deferred revenue balance.

Contract assets were immaterial for disclosure as of December 31, 2024 and 2023.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Other Revenue Disclosures

2 unchanged sentences

The Company also does not capitalize significant financing components when the transfer of the good or service is paid within twelve months or less, or consideration is received within twelve months or less of the transfer of the good or service.

For the three months ended September 30, 2024, the Company recognized approximately $ 112 million in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period.

The remaining transaction price related to unsatisfied performance obligations as of September 30, 2024 was approximately $ 1,324 million, of which approximately $ 381 million is expected to be recognized over the remainder of fiscal 2025, $ 354 million is expected to be recognized in fiscal 2026 and $ 235 million is expected to be recognized in fiscal 2027, with the remainder to be recognized thereafter.

For the three and six months ended December 31, 2024, the Company recognized approximately $ 110 million and $ 222 million, respectively, in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period.

The remaining transaction price related to unsatisfied performance obligations as of December 31, 2024 was approximately $ 1,258 million, of which approximately $ 256 million is expected to be recognized over the remainder of fiscal 2025, $ 378 million is expected to be recognized in fiscal 2026 and $ 254 million is expected to be recognized in fiscal 2027, with the remainder to be recognized thereafter.

These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606, Revenue from Contracts with Customers .

1 unchanged sentence

Restructuring

During the three months ended September 30, 2024 and 2023, the Company recorded restructuring charges of $ 24 million and $ 17 million, respectively, primarily related to employee termination benefits.

During the three and six months ended December 31, 2024, the Company recorded restructuring charges of $ 16 million and $ 38 million, respectively.

During the three and six months ended December 31, 2023, the Company recorded restructuring charges of $ 9 million and $ 25 million, respectively.

The restructuring charges recorded in fiscal 2025 and 2024 primarily related to employee termination benefits.

Fiscal 2024 Impairment

During the three months ended September 30, 2023, the Company recognized non-cash impairment charges of $ 21 million at the News Media segment related to the write-down of fixed assets associated with the combination of News UK’s printing operations with those of DMG Media.

During the three and six months ended December 31, 2023, the Company recognized non-cash impairment charges of $ 1 million and $ 22 million, respectively, at the News Media segment related to the write-down of fixed assets associated with the combination of News UK’s printing operations with those of DMG Media.

NEWS CORPORATION

1 unchanged sentence

Changes in restructuring program liabilities were as follows:

For the three months ended September 30,

For the three months ended December 31,

benefits Other costs Total One time

4 unchanged sentences

Payments ( 20 ) ( 2 ) ( 22 ) ( 15 ) ( 2 ) ( 17 )

( 1 ) ( 1 ) ( 2 ) — — —

Balance, end of period $ 18 $ 31 $ 49 $ 22 $ 38 $ 60

For the six months ended December 31,

benefits Other costs Total One time

benefits Other costs Total

(in millions)

Balance, beginning of period $ 25 $ 34 $ 59 $ 48 $ 41 $ 89

Additions 36 2 38 25 — 25

Payments ( 42 ) ( 4 ) ( 46 ) ( 51 ) ( 3 ) ( 54 )

Other ( 1 ) ( 1 ) ( 2 ) — — —

Balance, end of period $ 18 $ 31 $ 49 $ 22 $ 38 $ 60

As of September 30, 2024, restructuring liabilities of approximately $ 33 million were included in the Balance Sheet in Other current liabilities and $ 26 million were included in Other non-current liabilities.

As of December 31, 2024, restructuring liabilities of approximately $ 24 million were included in the Balance Sheet in Other current liabilities and $ 25 million were included in Other non-current liabilities.

The Company’s investments were comprised of the following:

Ownership Percentage as of September 30, 2024 As of

September 30, 2024 As of

Ownership Percentage as of December 31, 2024 As of

December 31, 2024 As of

June 30, 2024

5 unchanged sentences

Total Investments $ 365 $ 429

(a) Equity method investments are primarily comprised of REA Group’s ownership interest in PropertyGuru Group Ltd.

(“PropertyGuru”).

In August 2024, REA Group announced that PropertyGuru had entered into an agreement to be acquired by a third party, which will result in the divestiture of REA Group’s interest in PropertyGuru upon completion.

The transaction is expected to close later in the fiscal year.

(b) Equity and other securities are primarily comprised of Nexxen International, Ltd., certain investments in China, RipJar Ltd., an artificial intelligence-focused data analytics company, and ARN Media Limited, which operates a portfolio of Australian radio media assets.

(a) Equity method investments are primarily comprised of News UK’s joint venture with DMG Media.

In December 2024, REA Group’s interest in PropertyGuru was acquired by a third party.

A gain of approximately $ 87 million was recognized on the sale and recorded in Other, net.

See Note 13—Additional Financial Information.

(b) Equity and other securities are primarily comprised of certain investments in China, Nexxen International, Ltd., REA Group’s investment in Athena Home Loans and RipJar Ltd., an artificial intelligence-focused data analytics company.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values.

2 unchanged sentences

For the three months ended

September 30,

(in millions)

December 31, For the six months ended

2024 2023 2024 2023

(in millions) (in millions)

Total gains (losses) recognized on equity securities $ 18 $ 13 $ 28 $ ( 10 )

2 unchanged sentences

Equity Losses of Affiliates

The Company’s share of the losses of its equity affiliates was $ 3 million and $ 2 million for the three months ended September 30, 2024 and 2023, respectively.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company’s share of the losses of its equity affiliates was $ 8 million and $ 11 million for the three and six months ended December 31, 2024, respectively, and $ 1 million and $ 3 million for the corresponding periods of fiscal 2024, respectively.

The Company’s total borrowings consist of the following:

Interest rate at September 30, 2024 Maturity at September 30, 2024 As of

September 30, 2024 As of

Interest rate at December 31, 2024 Maturity at December 31, 2024 As of

December 31, 2024 As of

June 30, 2024

5 unchanged sentences

2021 Senior notes 3.875 % May 15, 2029 992 991

Foxtel Group (b)

2024 Foxtel credit facility — tranche 1 (c)(d)

7.33 % Aug 1, 2026 428 434

2024 Foxtel credit facility — USD portion — tranche 2 (e)

8.36 % Aug 1, 2027 44 49

2024 Foxtel credit facility — tranche 3 (d)

7.48 % Aug 1, 2027 195 208

2017 Working capital facility (c)

7.33 % Aug 1, 2026 21 —

Telstra facility 12.25 % Dec 22, 2027 89 93

REA Group (b)

2024 REA credit facility — tranche 1 (f)

5.93 % Sep 15, 2028 — —

2024 REA credit facility — tranche 2 (f)

5.63 % Sep 16, 2025 138 79

2024 Subsidiary facility (g)

2024 REA credit facility — tranche 1 (c)

5.93 % Sep 15, 2028 — —

Finance Leases

Finance lease liability 16 23

2024 REA credit facility — tranche 2 (d)

2024 Subsidiary facility (e)

Total borrowings 1,967 2,102

current portion (h)

( 194 ) ( 54 )

current portion (f)

Long-term borrowings

1 unchanged sentence

(a) The Company entered into an interest rate swap derivative to fix the floating rate interest component of its Term A Loans at 2.083 %.

For the three months ended September 30, 2024, the Company was paying interest at an effective interest rate of 3.521 %.

See Note 7—Financial Instruments and Fair Value Measurements.

(b) These borrowings were incurred by certain subsidiaries of NXE Australia Pty Limited (the “Foxtel Group” and together with such subsidiaries, the “Foxtel Debt Group”) and REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the Foxtel Group and REA Group and their respective subsidiaries, as applicable, and are non-recourse to News Corp.

(c) As of September 30, 2024, the Foxtel Debt Group had total undrawn commitments of A$ 203 million available under these facilities.

(d) The Company entered into A$ 610 million of interest rate swap derivatives to fix the floating rate interest components of tranche 1 and tranche 3 of its 2024 Foxtel Credit Facility at approximately 4.30 %.

For the three months ended September 30, 2024, the Company was paying interest at an effective interest rate of 7.25 % and 7.30 % for tranche 1 and tranche 3, respectively.

See Note 7—Financial Instruments and Fair Value Measurements.

(e) The Company entered into a cross-currency interest rate swap derivative to fix the floating rate interest component of tranche 2 of its 2024 Foxtel Credit Facility at 4.38 %.

For the three months ended September 30, 2024, the Company was paying interest at an effective interest rate of 7.64 %.

For the three months ended December 31, 2024, the Company was paying interest at an effective interest rate of 3.521 %.

See Note 8—Financial Instruments and Fair Value Measurements.

(f) As of September 30, 2024, REA Group had total undrawn commitments of A$ 400 million available under this facility.

(g) This facility was terminated by REA Group during the three months ended September 30, 2024, with the amount outstanding repaid using capacity available under the 2024 REA Credit Facility.

(h) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50, Debt .

$ 16 million and $ 21 million relates to the current portion of finance lease liabilities as of September 30, 2024 and June 30, 2024, respectively, with the remainder as of September 30, 2024 consisting of required principal repayments on the 2022 Term Loan A, 2024 Foxtel Credit Facility — tranches 2 and 3 and 2024 REA credit facility — tranche 2.

(b) These borrowings were incurred by REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the REA Debt Group and are non-recourse to News Corp.

(d) This facility was terminated by REA Group during the six months ended December 31, 2024, with the amount outstanding repaid using proceeds from the sale of REA Group’s interest in PropertyGuru.

See Note 5—Investments.

(e) This facility was terminated by REA Group during the six months ended December 31, 2024, with the amount outstanding repaid using capacity available under the 2024 REA Credit Facility.

(f) The current portion of long term debt as of December 31, 2024 and June 30, 2024 relates to required principal repayments on the 2022 Term Loan A.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company’s borrowings and those of its consolidated subsidiaries contain customary representations, covenants and events of default, including those discussed in the Company’s 2024 Form 10-K.

If any of the events of default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the applicable debt agreements may be declared immediately due and payable.

The Company was in compliance with all such covenants at September 30, 2024.

The Company was in compliance with all such covenants at December 31, 2024.

The following tables summarize changes in equity for the three and six months ended December 31, 2024 and 2023:

For the three months ended December 31, 2024

Class A Common

Stock Class B Common

Stock Additional

Capital Accumulated

Deficit Accumulated

Comprehensive

Equity Non-controlling

Interests Total

Shares Amount Shares Amount

(in millions)

Balance, September 30, 2024 379 $ 4 190 $ 2 $ 11,157 $ ( 1,779 ) $ ( 1,131 ) $ 8,253 $ 913 $ 9,166

Net income — — — — — 215 — 215 68 283

Other comprehensive loss — — — — — — ( 293 ) ( 293 ) ( 105 ) ( 398 )

Dividends — — — — — — — — — —

Share repurchases ( 1 ) — ( 1 ) — ( 30 ) ( 10 ) — ( 40 ) — ( 40 )

Other — — — — 14 — — 14 — 14

Balance, December 31, 2024 378 $ 4 189 $ 2 $ 11,141 $ ( 1,574 ) $ ( 1,424 ) $ 8,149 $ 876 $ 9,025

For the three months ended December 31, 2023

Class A Common

Stock Class B Common

Stock Additional

Capital Accumulated

Deficit Accumulated

Comprehensive

Equity Non-controlling

Interests Total

Shares Amount Shares Amount

(in millions)

Balance, September 30, 2023 381 $ 4 192 $ 2 $ 11,347 $ ( 2,114 ) $ ( 1,347 ) $ 7,892 $ 844 $ 8,736

Net income — — — — — 156 — 156 27 183

Other comprehensive income — — — — — — 147 147 49 196

Dividends — — — — — — — — — —

Share repurchases ( 1 ) — ( 1 ) — ( 26 ) — — ( 26 ) — ( 26 )

— — — — 13 — — 13 — 13

Balance, December 31, 2023 380 $ 4 191 $ 2 $ 11,334 $ ( 1,958 ) $ ( 1,200 ) $ 8,182 $ 920 $ 9,102

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following tables summarize changes in equity for the three months ended September 30, 2024 and 2023:

For the three months ended September 30, 2024

For the six months ended December 31, 2024

Class A Common

10 unchanged sentences

Net income — — — — — 334 — 334 93 427

Other comprehensive income — — — — — — 120 120 31 151

Other comprehensive loss — — — — — — ( 173 ) ( 173 ) ( 74 ) ( 247 )

Dividends — — — — ( 57 ) — — ( 57 ) ( 35 ) ( 92 )

1 unchanged sentence

Other 1 — — — 3 — — 3 1 4

Balance, September 30, 2024 379 $ 4 190 $ 2 $ 11,157 $ ( 1,779 ) $ ( 1,131 ) $ 8,253 $ 913 $ 9,166

For the three months ended September 30, 2023

Balance, December 31, 2024 378 $ 4 189 $ 2 $ 11,141 $ ( 1,574 ) $ ( 1,424 ) $ 8,149 $ 876 $ 9,025

For the six months ended December 31, 2023

Common Stock Class B

9 unchanged sentences

Net income — — — — — 186 — 186 55 241

Other comprehensive loss — — — — — — ( 100 ) ( 100 ) ( 31 ) ( 131 )

Other comprehensive income — — — — — — 47 47 18 65

Dividends — — — — ( 57 ) — — ( 57 ) ( 28 ) ( 85 )

1 unchanged sentence

Other 2 — — — ( 3 ) — — ( 3 ) ( 6 ) ( 9 )

Balance, September 30, 2023 381 $ 4 192 $ 2 $ 11,347 $ ( 2,114 ) $ ( 1,347 ) $ 7,892 $ 844 $ 8,736

Balance, December 31, 2023 380 $ 4 191 $ 2 $ 11,334 $ ( 1,958 ) $ ( 1,200 ) $ 8,182 $ 920 $ 9,102

Stock Repurchases

2 unchanged sentences

The Repurchase Program has no time limit and may be modified, suspended or discontinued at any time.

As of September 30, 2024, the remaining authorized amount under the Repurchase Program was approximately $ 422 million.

As of December 31, 2024, the remaining authorized amount under the Repurchase Program was approximately $ 382 million.

Stock repurchases under the Repurchase Program commenced on November 9, 2021.

The following table summarizes the shares repurchased and subsequently retired and the related consideration paid during the three months ended December 31, 2024 and 2023:

For the three months ended December 31,

(in millions)

Class A Common Stock

1.0 $ 26 0.8 $ 18

Class B Common Stock

1.5 $ 40 1.2 $ 26

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Stock repurchases under the Repurchase Program commenced on November 9, 2021.

The following table summarizes the shares repurchased and subsequently retired and the related consideration paid during the three months ended September 30, 2024 and 2023:

For the three months ended September 30,

For the six months ended December 31,

Shares Amount Shares Amount

(in millions)

3 unchanged sentences

0.9 27 0.8 17

2.8 $ 78 2.6 $ 55

In August 2024, the Board of Directors declared a semi-annual cash dividend of $ 0.10 per share for Class A Common Stock and Class B Common Stock.

10 unchanged sentences

Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes those assets and liabilities measured at fair value on a recurring basis:

As of September 30, 2024 As of June 30, 2024

The following table summarizes those assets and liabilities, as applicable, measured at fair value on a recurring basis:

As of December 31, 2024 As of June 30, 2024

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

4 unchanged sentences

Total assets $ 75 $ 66 $ 163 $ 304 $ 53 $ 67 $ 122 $ 242

Interest rate derivatives - cash flow hedges $ — $ ( 5 ) $ — $ ( 5 ) $ — $ — $ — $ —

Foreign currency derivatives - cash flow hedges — ( 2 ) — ( 2 ) — — — —

Cross-currency interest rate derivatives - cash flow hedges — ( 4 ) — ( 4 ) — ( 2 ) — ( 2 )

Total liabilities $ — $ ( 11 ) $ — $ ( 11 ) $ — $ ( 2 ) $ — $ ( 2 )

Equity and Other Securities

3 unchanged sentences

These securities are classified as Level 3 in the fair value hierarchy outlined above.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

A rollforward of the Company’s equity and other securities classified as Level 3 is as follows:

For the three months ended

September 30,

For the six months ended

(in millions)

Balance - beginning of period

Additions (a)

Returns of capital ( 5 ) ( 4 )

Measurement adjustments

Foreign exchange and other 2 2

Balance - end of period $ 163 $ 131

(a) The additions for the six months ended December 31, 2024 primarily relate to REA Group’s investment in Athena Home Loans.

Derivative Instruments

1 unchanged sentence

When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks.

The primary market risks managed by the Company through the use of derivative instruments include:

• foreign currency exchange rate risk:

arising primarily through Foxtel Debt Group borrowings denominated in United States (“U.S.”) dollars, payments for customer premise equipment, certain programming rights, product development costs and inventory purchases;

• interest rate risk:

arising from fixed and floating rate Foxtel Debt Group and News Corporation borrowings.

The primary market risk managed by the Company through the use of derivative instruments relates to interest rate risk arising from floating rate News Corporation borrowings.

The Company formally designates qualifying derivatives as hedge relationships and applies hedge accounting when considered appropriate.

The Company does not use derivative financial instruments for trading or speculative purposes.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Derivatives are classified as current or non-current in the Balance Sheets based on their maturity dates.

1 unchanged sentence

Balance Sheet Classification

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

2 unchanged sentences

Interest rate derivatives - cash flow hedges Other non-current assets 13 14

Interest rate derivatives - cash flow hedges Other current liabilities ( 1 ) —

Foreign currency derivatives - cash flow hedges Other current liabilities ( 2 ) —

Cross-currency interest rate derivatives - cash flow hedges Other current liabilities ( 1 ) —

Interest rate derivatives - cash flow hedges Other non-current liabilities ( 4 ) —

Cross-currency interest rate derivatives - cash flow hedges Other non-current liabilities ( 3 ) ( 2 )

Cash flow hedges

The Company utilizes a combination of interest rate derivatives, foreign currency derivatives and cross-currency interest rate derivatives to mitigate currency exchange rate risk and interest rate risk in relation to future interest and principal payments and payments for customer premise equipment, certain programming rights, product development costs and inventory purchases.

The total notional value of interest rate swap derivatives designated for hedging was approximately $ 484 million and A$ 610 million as of September 30, 2024 for News Corporation and Foxtel Debt Group borrowings, respectively.

The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2027.

As of September 30, 2024, the Company estimates that approximately $ 7 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next twelve months.

The total notional value of foreign currency contract derivatives designated for hedging was $ 77 million as of September 30, 2024.

The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is less than one year .

As of September 30, 2024, the Company estimates that approximately $ 2 million of net derivative losses related to its foreign currency contract derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next twelve months.

The total notional value of cross-currency interest rate swap derivatives designated for hedging was approximately $ 44 million as of September 30, 2024.

The maximum hedged term over which the Company is hedging exposure to variability in interest and principal payments is to July 2027.

As of September 30, 2024, the Company estimates that approximately $ 1 million of net derivative losses related to its cross-currency interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next twelve months.

The following tables present the impact that changes in the fair values had on Accumulated other comprehensive loss and the Statements of Operations during the three months ended September 30, 2024 and 2023 for both derivatives designated as cash flow hedges that continue to be highly effective and derivatives initially designated as cash flow hedges but for which hedge accounting was discontinued as of December 31, 2020:

The Company utilizes interest rate derivatives to mitigate interest rate risk in relation to future interest payments.

The total notional value of interest rate swap derivatives designated for hedging was approximately $ 481 million as of December 31, 2024 for News Corporation borrowings.

The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to March 2027.

As of December 31, 2024, the Company estimates that approximately $ 10 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next twelve months.

The following tables present the impact that changes in the fair values had on Accumulated other comprehensive loss and the Statements of Operations during the three and six months ended December 31, 2024 and 2023 for derivatives designated as cash flow hedges:

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Gains (losses) recognized in Accumulated other comprehensive loss for the three months ended September 30, 2024 and 2023, by derivative instrument:

Gains (losses) recognized in Accumulated other comprehensive loss for the three and six months ended December 31, 2024 and 2023, by derivative instrument:

For the three months ended

September 30,

December 31, For the six months ended

2024 2023 2024 2023

(in millions)

Interest rate derivatives - cash flow hedges $ 10 $ ( 9 ) $ — $ ( 2 )

Foreign currency derivatives - cash flow hedges ( 2 ) 2

Cross-currency interest rate derivatives - cash flow hedges ( 2 ) —

Total $ ( 20 ) $ 9

(Gains) losses reclassified from Accumulated other comprehensive loss into the Statements of Operations for the three months ended September 30, 2024 and 2023, by derivative instrument:

(Gains) losses reclassified from Accumulated other comprehensive loss into the Statements of Operations for the three and six months ended December 31, 2024 and 2023, by derivative instrument:

Income Statement

1 unchanged sentence

For the three months ended

September 30,

December 31, For the six months ended

2024 2023 2024 2023

(in millions)

Interest rate derivatives - cash flow hedges Interest expense, net $ ( 3 ) $ ( 4 ) $ ( 7 ) $ ( 8 )

Cross-currency interest rate derivatives - cash flow hedges

Interest expense, net ( 2 ) —

Cross-currency interest rate derivatives (a)

Interest expense, net — ( 1 )

Total $ ( 6 ) $ ( 11 )

(a) These cross-currency interest rate derivatives were initially designated as cash flow hedges.

Hedge accounting for these derivatives was discontinued as of December 31, 2020.

Other Fair Value Measurements

As of September 30, 2024, the carrying value of the Company’s outstanding borrowings approximates the fair value.

As of December 31, 2024, the carrying value of the Company’s outstanding borrowings approximates the fair value.

The 2022 Senior Notes and the 2021 Senior Notes are classified as Level 2 and the remaining borrowings are classified as Level 3 in the fair value hierarchy.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

EARNINGS (LOSS) PER SHARE

1 unchanged sentence

For the three months ended

September 30,

December 31, For the six months ended

2024 2023 2024 2023

(in millions, except per share amounts)

Net income from continuing operations $ 306 $ 194 $ 455 $ 248

Net loss from discontinued operations, net of tax ( 23 ) ( 11 ) ( 28 ) ( 7 )

Net income 283 183 427 241

Net income attributable to noncontrolling interests ( 25 ) ( 28 )

Net income from continuing operations attributable to noncontrolling interests ( 78 ) ( 34 ) ( 109 ) ( 64 )

Net loss attributable to noncontrolling interests from discontinued operations 10 7 16 9

Net income attributable to News Corporation stockholders $ 215 $ 156 $ 334 $ 186

2 unchanged sentences

Weighted-average number of shares of common stock outstanding - diluted 570.1 573.5 570.7 573.8

Net income attributable to News Corporation stockholders per share - basic and diluted $ 0.21 $ 0.05

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Net income (loss) attributable to News Corporation stockholders per share:

Continuing operations $ 0.40 $ 0.28 $ 0.61 $ 0.33

Discontinued operations $ ( 0.02 ) $ ( 0.01 ) $ ( 0.02 ) $ —

$ 0.38 $ 0.27 $ 0.59 $ 0.33

Continuing operations $ 0.40 $ 0.28 $ 0.61 $ 0.32

Discontinued operations $ ( 0.02 ) $ ( 0.01 ) $ ( 0.02 ) $ —

$ 0.38 $ 0.27 $ 0.59 $ 0.32

COMMITMENTS AND CONTINGENCIES

1 unchanged sentence

These firm commitments secure the current and future rights to various assets and services to be used in the normal course of operations.

The Company’s commitments as of September 30, 2024 have not changed significantly from the disclosures included in the 2024 Form 10-K.

Upon closing of the Company’s sale of Foxtel, certain commitments will no longer be the obligation of the Company.

These primarily relate to sports and other programming rights, Foxtel borrowings and certain lease obligations.

The Company’s commitments as of December 31, 2024 have not otherwise changed significantly from the disclosures included in the 2024 Form 10-K.

Contingencies

2 unchanged sentences

Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company establishes an accrued liability for legal claims when it determines that a loss is probable and the amount of the loss can be reasonably estimated.

4 unchanged sentences

The Company recognizes gain contingencies when the gain becomes realized or realizable.

Beginning in August 2024, a number of purported class action complaints have been filed in the U.S.

District Court for the Northern District of Illinois against certain pipe converters, distributors and the Company’s subsidiary, Oil Price Information Service, LLC (“OPIS”), alleging violations of federal and state antitrust laws.

The complaints seek treble damages, injunctive relief and attorneys’ fees and costs.

While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these actions, OPIS intends to defend itself vigorously.

In addition, in January 2025, OPIS received a grand jury subpoena issued by the U.S.

District Court for the Northern District of California, from the U.S.

Department of Justice Antitrust Division.

The subpoena calls for production of documents related to the pricing of PVC pipe and the publication of the PVC and Pipe Weekly Report.

OPIS is responding to the subpoena and intends to comply with its obligations under the subpoena.

HarperCollins

15 unchanged sentences

The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

In connection with the separation of the Company from Twenty-First Century Fox, Inc.

4 unchanged sentences

Newspaper Matters.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The net expense related to the U.K.

Newspaper Matters in Selling, general and administrative was $ 2 million and $ 3 million for the three months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $ 62 million.

The amount to be indemnified by FOX of approximately $ 68 million was recorded as a receivable in Other current assets on the Balance Sheet as of September 30, 2024.

Newspaper Matters in Selling, general and administrative was $ 4 million and $ 2 million for the three months ended December 31, 2024 and 2023, respectively, and $ 6 million and $ 5 million for the six months ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $ 55 million.

The amount to be indemnified by FOX of approximately $ 64 million was recorded as a receivable in Other current assets on the Balance Sheet as of December 31, 2024.

It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company.

5 unchanged sentences

In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs.

For the three months ended September 30, 2024, the Company recorded income tax expense of $ 60 million on pre-tax income of $ 204 million, resulting in an effective tax rate that was higher than the U.S.

For the three months ended December 31, 2024, the Company recorded income tax expense of $ 124 million on pre-tax income from continuing operations of $ 430 million, resulting in an effective tax rate that was higher than the U.S.

statutory tax rate.

The tax rate was impacted by foreign operations which are subject to higher tax rates and by valuation allowances recorded against tax benefits in certain businesses offset by lower taxes on the disposition of REA Group’s interest in PropertyGuru.

For the six months ended December 31, 2024, the Company recorded income tax expense of $ 185 million on pre-tax income from continuing operations of $ 640 million, resulting in an effective tax rate that was higher than the U.S.

statutory tax rate.

For the three months ended December 31, 2023, the Company recorded income tax expense of $ 97 million on pre-tax income from continuing operations of $ 291 million, resulting in an effective tax rate that was higher than the U.S.

statutory tax rate.

The tax rate was impacted by foreign operations which are subject to higher tax rates, and by valuation allowances recorded against tax benefits in certain businesses.

For the three months ended September 30, 2023, the Company recorded income tax expense of $ 37 million on pre-tax income of $ 95 million, resulting in an effective tax rate that was higher than the U.S.

For the six months ended December 31, 2023, the Company recorded income tax expense of $ 131 million on pre-tax income from continuing operations of $ 379 million, resulting in an effective tax rate that was higher than the U.S.

statutory tax rate.

16 unchanged sentences

enacted minimum tax legislation in 2023.

Several other countries, including Australia, have proposed changes to their tax law to implement the OECD’s minimum tax proposal.

Australia enacted minimum tax legislation in December 2024.

Several other countries have proposed changes to their tax law to implement the OECD’s minimum tax proposal.

Global minimum tax legislation will generally be effective for the Company’s financial year beginning on July 1, 2024.

3 unchanged sentences

The Company continues to evaluate the potential impact of these rules.

The Company paid gross income taxes of $ 48 million and $ 25 million during the three months ended September 30, 2024 and 2023, respectively, and received tax refunds of $ 1 million and $ 8 million, respectively.

The Company paid gross income taxes of $ 108 million and $ 74 million during the six months ended December 31, 2024 and 2023, respectively, and received tax refunds of $ 1 million and $ 9 million, respectively.

SEGMENT INFORMATION

The Company manages and reports its businesses in the following six segments:

The Company manages and reports its businesses in the following five segments:

• Dow Jones —The Dow Jones segment consists of Dow Jones, a global provider of news and business information whose products target individual consumers and enterprise customers and are distributed through a variety of media channels including newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video and podcasts.

18 unchanged sentences

It is also home to many beloved children’s books and series and a significant Christian publishing business.

• Subscription Video Services —The Company’s Subscription Video Services segment provides sports, entertainment and news services to pay-TV and streaming subscribers and other commercial licensees via satellite and internet distribution and consists of (i) the Company’s 65 % interest in the Foxtel Group (with the remaining 35 % interest held by Telstra, an ASX-listed telecommunications company) and (ii) Australian News Channel (“ANC”).

The Foxtel Group is the largest Australian-based subscription television provider.

Its Foxtel pay-TV service provides approximately 200 channels and video on demand covering sports, general entertainment, movies, documentaries, music, children’s programming and news.

Foxtel and the Group’s Kayo Sports streaming service offer the leading sports programming content in Australia, with broadcast rights to live sporting events including:

National Rugby League, Australian Football League, Cricket Australia and various motorsports programming.

The Foxtel Group’s other products and services include BINGE , its entertainment streaming service, Foxtel Now, a streaming service that provides access across Foxtel’s live and on-demand content, and Hubbl, its content aggregation platform.

ANC operates the Sky News Australia network, Australia’s 24-hour multi-channel, multi-platform news service.

ANC channels are distributed throughout Australia on Foxtel and Sky News is distributed in New Zealand by Sky Network Television Limited.

ANC also owns and operates the IPTV Australia Channel, which is available in territories outside Australia and New Zealand, and offers content across a variety of digital media platforms, including web, mobile and third-party providers.

• News Media —The News Media segment consists primarily of News Corp Australia, News UK and the New York Post and includes The Australian , The Daily Telegraph , Herald Sun , The Courier Mail , The Advertiser and the news.com.au website in Australia, The Times , The Sunday Times , The Sun , The Sun on Sunday and thesun.co.uk in the U.K.

and the-sun.com in the U.S.

This segment also includes Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., Talk in the U.K.

and Storyful, a social media content agency.

This segment also includes Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., Talk in the U.K., Australian News Channel, which operates the Sky News Australia network, Australia’s 24-hour multi-channel, multi-platform news service, and Storyful, a social media content agency.

• Other —The Other segment consists primarily of general corporate overhead expenses, strategy costs and costs related to the U.K.

3 unchanged sentences

Segment EBITDA does not include:

depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit.

depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net, income tax (expense) benefit and net income (loss) from discontinued operations, net of tax.

Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA.

3 unchanged sentences

Segment information is summarized as follows:

For the three months ended September 30,

For the three months ended

December 31, For the six months ended December 31,

2024 2023 2024 2023

(in millions)

2 unchanged sentences

Book Publishing 595 550 1,141 1,075

Subscription Video Services 501 486

News Media 570 582 1,111 1,148

Other — — — —

Total Revenues $ 2,238 $ 2,135 $ 4,334 $ 4,166

3 unchanged sentences

Book Publishing 101 85 182 150

Subscription Video Services 92 93

News Media 74 57 92 74

5 unchanged sentences

Other, net 92 21 114 ( 17 )

Income before income tax expense 204 95

Income tax expense ( 60 ) ( 37 )

Income before income tax expense from continuing operations 430 291 640 379

Income tax expense from continuing operations ( 124 ) ( 97 ) ( 185 ) ( 131 )

Net income from continuing operations 306 194 455 248

Net loss from discontinued operations, net of tax ( 23 ) ( 11 ) ( 28 ) ( 7 )

Net income $ 283 $ 183 $ 427 $ 241

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

4 unchanged sentences

Book Publishing 2,828 2,647

Subscription Video Services 2,556 2,587

News Media 1,956 2,018

Investments 365 429

Assets held for sale (b)

Total assets $ 16,161 $ 16,684

(a) The Other segment primarily includes Cash and cash equivalents.

(b) See Note 2—Discontinued Operations.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

4 unchanged sentences

Book Publishing 881 914

Subscription Video Services 1,253 1,224

News Media 286 294

4 unchanged sentences

Receivables, net consist of:

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

5 unchanged sentences

The following table sets forth the components of Other non-current assets:

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

1 unchanged sentence

Royalty advances to authors $ 361 $ 375

Non-current receivables

Retirement benefit assets 152 147

Inventory (a)

Other 131 135

Total Other non-current assets $ 935 $ 957

(a) Primarily consists of the non-current portion of programming rights.

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Other Current Liabilities

The following table sets forth the components of Other current liabilities:

September 30, 2024 As of

December 31, 2024 As of

June 30, 2024

1 unchanged sentence

Royalties and commissions payable $ 241 $ 215

Current operating lease liabilities 115 117

Allowance for sales returns 152 141

Programming rights payable

Current operating lease liabilities 84 89

Other 282 327

Total Other current liabilities $ 759 $ 772

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the components of Other, net:

For the three months ended September 30,

For the three months ended December 31, For the six months ended December 31,

2024 2023 2024 2023

(in millions)

Remeasurement of equity securities $ 18 $ 13 $ 28 $ ( 10 )

Dividends received from equity security investments — 2

Gain on remeasurement of previously-held interest — 4

Gain on sale of investment in PropertyGuru 87 — 87 —

Other ( 13 ) 8 ( 1 ) ( 7 )

2 unchanged sentences

The following table sets forth the Company’s cash paid for interest and taxes:

For the three months ended September 30,

For the six months ended December 31,

(in millions)

1 unchanged sentence

Cash paid for taxes $ 108 $ 74

SUBSEQUENT EVENTS

Dividend declaration

In February 2025, the Company’s Board of Directors declared a semi-annual cash dividend of $ 0.10 per share for Class A Common Stock and Class B Common Stock.

The dividend is payable on April 9, 2025 to stockholders of record as of March 12, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements