News Corp (NWS) Citi's 2026 Global TMT Conference summary

Traditional media brands have historic and current content, now monetized through AI platform deals. HarperCollins is highlighted as a strong cash generator, with a significant portion of revenue from backlist titles and Christian publishing. Digital real estate includes REA in Australia and realtor.com, considered highly valuable and underappreciated. Dow Jones includes direct-to-consumer brands and B2B services like Risk & Compliance and Energy, which are key growth drivers. Core growth engines are Dow Jones, digital real estate, and HarperCollins Book Publishing, with traditional media as a fourth pillar. Culture of curiosity and tenacity is cited as a key driver of ongoing performance. 61% of revenue is now digital and recurring, tripling since the 2012-2013 spin-out. Portfolio restructuring through divestitures and bolt-on acquisitions has accelerated growth. Three consecutive years of strong growth, not just a one-off performance. Achieved 14% EBITDA growth in fiscal 2024 and 2025, and 15% in 2026, with 40% cash flow growth in 2026 on 7% revenue growth. AI licensing deals with major platforms like OpenAI and Meta are generating incremental value. AI is seen as a net positive, with more upside than downside, despite some investor concerns about referral traffic. Proprietary, reliable content is increasingly valued by hyperscalers and consumers wary of unreliable AI content. AI is driving product innovation (e.g., RealAssist, Hamilton feature) and operational efficiencies across segments.