News Corp surpasses quarterly profit forecasts, fueled by Dow Jones and real estate divisions

News Corp Reports Strong Quarterly Profits

On Thursday, News Corp, the parent company of the Post, announced quarterly profits that exceeded expectations, primarily due to advancements in the Dow Jones division, as well as growth in digital real estate and book publishing.

The New York-based media conglomerate disclosed an income from ongoing operations of $121 million, equating to 16 cents per share. This marks an increase from $107 million (or 14 cents) in the same quarter last year. When adjusted, earnings per share stood at 21 cents.

For the third quarter, sales climbed by 9% to $2.19 billion, up from $2.01 billion during the comparable period last year. This surpassed Wall Street’s projections, which had anticipated $2.11 billion in revenue and earnings per share of 16 cents.

Robert Thomson, News Corp’s CEO, remarked, “We’ve delivered another impressive performance this quarter. Look, based on how well the fourth quarter is shaping up, we’re on track for yet another year of record earnings.”

He continued, “The third quarter showcased compelling evidence of our transformation as a business and highlighted the strength of our core growth engine, which we expect will help us finish the year strongly.”

News Corp’s quarterly success was largely driven by an 8% surge in revenue to $619 million within the Dow Jones division, known for publishing the Wall Street Journal and MarketWatch. Additionally, the property division saw sales rise by 10% to $148 million, while book publishing increased by 8% to $555 million.

Interestingly, Thomson, who has expressed his frustrations with AI companies for underpaying for content, also highlighted News Corp’s artificial intelligence advancements. “Our confidence is high even as the world considers AI’s potential impacts. We’re an AI input company. Our recent deal with Meta reflects this, complementing our collaboration with OpenAI.”

Earlier this year, News Corp signed a multi-year licensing deal with Meta, worth up to $50 million annually. They also reached a significant agreement with OpenAI last year regarding content licensing.

“We are currently in talks with other companies that understand the value of content provenance, and these potential agreements should positively influence both our revenue and profitability,” Thomson noted.

In his statements, he also issued a cautionary note concerning questionable practices in the digital space. “We’re actively targeting several dubious digital entities that are illegally taking our valuable content and reselling it without permission,” he stated.