News Corporation has announced progress in its ongoing stock repurchase program, which has been authorized to acquire up to $1 billion of the company's outstanding Class A and Class B common stock. The latest update, filed with the SEC today, reveals that the media giant is actively pursuing its repurchase plan, as required by the rules of the Australian Securities Exchange (ASX).
The company, known for its global portfolio of consumer and professional information services, has provided the ASX with daily disclosures of transactions made under this program. These disclosures are also included in News Corp (NASDAQ:NWSA)'s quarterly and annual reports to ensure transparency and compliance with market regulations.
The repurchase program is part of News Corp's broader strategy to manage its capital effectively. The company's management has stated that repurchases will occur from time to time, influenced by various factors including market conditions, stock price fluctuations, and legal requirements. As with all repurchase programs, this activity is subject to change based on evolving market dynamics and other investment opportunities that may arise.
In other recent news, News Corporation continues its commitment to a $1 billion stock repurchase program, as stated in a recent filing with the Securities and Exchange Commission. The program allows the repurchase of Class A and Class B common stock and is a central part of the company's capital allocation strategy. The company's management will carry out the repurchase activity based on market factors and alternative investment opportunities.
In financial updates, News Corp reported a 53% surge in free cash flow to $491 million in the third quarter of fiscal year 2024. Despite a slight decline in total revenues and earnings per share, the company experienced positive trends in digital subscriptions and cost savings. Digital revenues now account for over half of the company's total revenue.
News Corp also announced plans for digital expansion, particularly into the US market with The Times of London. This is part of the company's strategic focus on transforming its business model.
InvestingPro Insights
News Corporation's stock repurchase program is a strategic move to enhance shareholder value, and the latest data from InvestingPro provides further context to understand the company's financial position. With a market capitalization of $15.54 billion, News Corp is a significant player in the media industry. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, stands at 76.24, but when adjusted for the last twelve months as of Q3 2024, it's at a lower 47.65, indicating potential investor optimism about future earnings growth.
Another key metric is the Price to Book ratio, which at 1.93 suggests that the company's market value is nearly twice its book value, possibly reflecting the market's belief in the company's assets and future profitability. Additionally, the company's revenue for the last twelve months as of Q3 2024 was reported at $9.941 billion, with a gross profit margin of 49.55%, demonstrating its ability to retain nearly half of its revenue as gross profit.
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