News Corp (NASDAQ: NWS) beat estimates for fourth-quarter revenue and profit on Thursday, driven by strength in its Dow Jones unit and strong performance in its real estate listing and book publishing businesses, sending its shares up 4% in extended trading.
The company said it was also evaluating options for Foxtel, its Australia-based subscription television provider, in response to interest from a third party.
News Corp, part of media mogul Rupert Murdoch’s empire, has benefited from continued growth in its business information unit, Dow Jones, which includes publications such as The Wall Street Journal, Barron’s, and Market Watch.
The London Stock Exchange Group signed a multi-year news and data partnership with Dow Jones last month and Sam Altman-led OpenAI has partnered with the company for access to its news content.
“News Corp hit on nearly all cylinders in the fourth quarter … Additionally their agreement with Open AI will be additive,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
“Overall, their emphasis on digital seems to be working much as it has for their competitor, the New York Times.”
Revenue rose 6% to $2.58 billion in the quarter ended June 30, compared with an estimate of $2.49 billion, according to LSEG data.
News Corp’s adjusted profit per share was 17 cents, beating estimates of 16 cents.
REA Group, largely owned by News Corp (NASDAQ: NWS), operates residential and commercial property websites in Australia. Its revenue rose 37% to $305 million in the quarter, helped by price increases and a rise in national listings.
Revenue at Dow Jones grew 4% to $566 million, driven by circulation and subscription revenue growth.
Revenue from its book publishing unit, which consists of HarperCollins, rose 15% on higher sales of its physical and digital books.
However, revenue from its news media units, including News Corp Australia, News UK, and the New York Post, fell 5% due to lower advertising, circulation, and subscription revenues.
(Source: Reuters)
