News Corp beat earnings estimates for Q4 revenue and profit on Thursday. News Corp’s high earnings was driven by strength in its Dow Jones unit and strong performance in its real estate listing and book publishing businesses. This made the News Corp share price to go 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’s growth
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.”
News Corp earnings report
News Corp’s revenue rose 6% t $2.58 billion in the quarter ended June 30, compared with an estimate of $2.49 billion, according to LSEG data.
The adjusted profit of News Corp per share was 17 cents, beating estimates of 16 cents.
REA Group, largely owned by News Corp, operates residential and commercial property websites in Australia. REA group’s 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 growth in circulation and subscription revenue.
News Corp’s revenue from its book publishing unit, which consists of HarperCollins, rose 15% on higher sales of its physical and digital books.
Fall in news media unit
The revenue from its news media unit, which includes News Corp Australia, News UK and the New York Post, fell 5%, hit by lower advertising, circulation and subscription revenues.
News Corp stock update
News Corp’s share price closed at $27.76. It is up 7.35% in the last 3 months and the stock was up 33.59% in the last 12 months.
News Corp saw 0 positive EPS revisions and 0 negative EPS revisions in the last 90 days.
