News Corp, which owns the Post and the Wall Street Journal, announced on Thursday that its quarterly revenues exceeded expectations, driven by growth in digital real estate, the Dow Jones division, and its book publishing sector.
Based in New York, the media company reported a net profit of $107 million from ongoing operations, a significant increase from $64 million (7 cents per share) the previous year. Adjusted earnings per share were at 17 cents.
In the third quarter, revenue climbed to $2.010 billion, marking a 1% increase from $1.99 billion the same time last year.
According to Yahoo Finance, Wall Street analysts had anticipated an EPS of 13 cents on $2 billion in revenue.
CEO Robert Thomson highlighted the company’s “sustainable strength” and “strategic transformation,” noting a 67% boost in profits for the quarter ending March 31.
“Our enduring strength in the third quarter is a testament to our strategic changes,” Thomson stated. “We focused on digital growth, reorganized assets, maintain strict cost controls, and highlighted the intrinsic value of intellectual property in a changing content landscape.”
Financial results revealed a 5.7% increase in revenue from the Dow Jones unit, reaching $575 million, while real estate revenue rose by 4.6% to $406 million, helped by better distribution revenue.
He emphasized the crucial role of quality journalism during tumultuous political and economic times.
The book publishing segment, which includes HarperCollins, saw a 2% rise in revenue bolstered by prominent titles like “Wicked” by Gregory Maguire and “Dream Girl Drama” by Tessa Bailey, along with a boost in biblical book sales.
Addressing the rise of artificial intelligence, Thomson remarked, “The importance of credibility grows even more significant as AI evolves and blurs the lines between reality and imitation.”
Last week, he welcomed the completion of the sale of the company’s Australian cable television unit, Foxtel, to Dazn for $2.1 billion, marking what he described as a pivotal moment for News Corp.
He stated that the transaction would considerably enhance the balance sheet, increase returns on investment, boost earnings per share, and reflect a ongoing commitment to maximizing shareholder value.
