News Corporation, a global diversified media and information services company, announced on Thursday the ongoing execution of its stock repurchase program. Under the initiative, the company is authorized to buy back up to $1 billion of its outstanding Class A and Class B common stock.
The repurchase program, part of a broader strategy to enhance shareholder value, is subject to market conditions, applicable legal requirements, and other factors. The company's management retains the flexibility to determine the timing and amount of repurchases based on their evaluation of these conditions.
In compliance with the Australian Securities Exchange (ASX) regulations, News Corp (NASDAQ:NWSA) provides daily disclosures of transactions made under this program. These transactions are also reported in the company's quarterly and annual filings with the Securities and Exchange Commission (SEC).
This announcement is based on information contained in the company's recent SEC filing.
In other recent news, News Corp reported a notable 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. This positive trend has been attributed to increases in digital subscriptions and cost savings, with digital revenues now constituting over half of the company's total revenue.
As part of its strategic focus, News Corp has announced plans for digital expansion. This includes The Times of London's venture into the US market, reflecting the company's ongoing transformation towards a more digital-focused business model.
These are among the recent developments in the company's business strategy and financial performance.
InvestingPro Insights
As News Corporation continues its stock repurchase initiative, real-time data from InvestingPro provides a snapshot of the company's financial health and market performance. News Corp's market capitalization stands at $15.44 billion, reflecting its significant presence in the media and information services sector. Despite a challenging environment, the company has maintained a Price/Earnings (P/E) ratio of 47.34 over the last twelve months as of Q3 2024, which may be of interest to investors looking at earnings potential relative to stock price.
InvestingPro Tips highlight the company's Price/Book (P/B) ratio of 1.92, suggesting that the market values the company at nearly twice its book value, which could point to investor confidence in News Corp's assets and growth potential. Additionally, the company has demonstrated a Gross Profit Margin of 49.55%, indicating a strong ability to retain earnings after the cost of goods sold is accounted for. For those considering the long-term investment potential, News Corp has shown a 1 Year Price Total Return of 40.79%, signaling robust performance over the past year.
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