News Corporation, the global media and publishing firm, has announced the ongoing execution of its stock repurchase program. The program, initially authorized to acquire up to $1 billion of the company's outstanding Class A common stock and Class B common stock, is part of News Corp (NASDAQ:NWSA)'s strategic financial management.
The company, listed on the Nasdaq Global Select Market with tickers NASDAQ:NWSA for Class A shares and NASDAQ:NWS for Class B shares, has reiterated its commitment to the buyback through recent filings. The disclosure was made in accordance with the rules of the Australian Securities Exchange (ASX), which requires daily updates on such transactions.
In other recent news, News Corporation has been progressing with its stock repurchase program, nearing its authorized limit of $1 billion for its Class A and Class B common stock.
This is part of the company's strategy to enhance shareholder value. News Corp's first quarter of fiscal year 2025 showed significant financial growth, with revenue increasing by 3% year-over-year to $2.58 billion. Profitability improved by 14% to $415 million, and net income surged to $144 million.
Earnings per share climbed to $0.21, a substantial rise from $0.05 the previous year, attributed by CEO Robert Thomson to circulation and subscription revenues. However, News Media revenues saw a 5% decline to $521 million.
InvestingPro Insights
News Corporation's ongoing stock repurchase program aligns with its strong financial position, as reflected in recent InvestingPro data. The company's market capitalization stands at $17.25 billion, underlining its significant presence in the media and publishing industry. 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.
InvestingPro Tips highlight News Corp's potential for value creation. One tip notes that the company's earnings per share are forecast to grow significantly, which could support the rationale behind the stock buyback program. Another tip points out that News Corp has maintained dividend payments for 11 consecutive years, demonstrating a commitment to returning value to shareholders.
These insights suggest that News Corp's repurchase program is part of a broader strategy to enhance shareholder value, supported by steady financial performance and positive growth prospects. For investors seeking a deeper understanding of News Corp's financial health and future outlook, InvestingPro offers 15 additional tips that could provide valuable context to the company's stock buyback decision.
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