Aug 5 - News Corp, the publisher of the Wall Street Journal and owner of HarperCollins, reported fourth-quarter revenue that surpassed analyst expectations, reflecting momentum in several of its digital operations.
The company logged fourth-quarter revenue of $2.34 billion, above the average analyst estimate of $2.23 billion compiled by LSEG. Adjusted earnings per share rose to $0.35 in the period, up from $0.19 a year earlier, and comfortably ahead of the consensus forecast of $0.21.
Executives highlighted specific areas of strength. Revenue at Dow Jones expanded 7% during the quarter, while the company's digital real estate services business posted a 19% increase in revenue. Book publishing, through HarperCollins, also contributed to the top-line improvement.
Management framed the results as a payoff from a broader strategic shift. The company is positioning itself as a digital-first content provider, an approach management says is enabling it to pursue revenue opportunities tied to the rise of artificial intelligence. As part of that effort, News Corp has entered into licensing arrangements with technology companies and is exploring further agreements.
"We have trusted content relationships with OpenAI and Meta, and are in advanced discussions with several other companies," CEO Robert Thomson said.
The combination of subscription growth at Dow Jones and robust performance in digital real estate and book publishing underpinned the quarterly beat. Adjusted EPS nearly doubled compared with the same quarter last year, indicating improved profitability alongside top-line growth.
While management pointed to licensing and partnerships as a path to capitalize on AI-related demand for content, the company also noted it has moved away from a print-first model toward digital distribution and monetization.
What this means
- News Corp's shift toward digital content and licensing relationships has been a material factor in its latest quarter of revenue outperformance.
- Subscription and digital services categories - specifically Dow Jones subscriptions and digital real estate services - were major contributors to growth in the quarter.
- The company is actively engaging with technology platforms on content licensing as part of a broader strategy to leverage AI-driven demand.
The quarter's results show an ongoing transformation of the company's revenue mix away from traditional print toward digital-first offerings. Management's comments underscore both existing partnerships and further potential deals in progress with technology firms.