(Reuters) – News Corp reported second-quarter results that beat analysts’ estimates on Wednesday, as growth in its digital real estate, book publishing and Dow Jones segments help offset its slowing news media segment.
The company has been re-aligning its focus on digital and subscription-based operations to fend off competition in a crowded market and navigate a shift toward diverse digital platforms and formats for news consumption. It is also working to strengthen its real estate marketplace business in Australia and the United States.
Its digital real estate segment jumped 13% for the second quarter, benefiting from price increases in Australia.
In the U.S., Move revenues increased for the first time in ten quarters, but were partially offset by higher mortgage rates in the housing market.
Pew Research estimates 58% of Americans consume news from digital devices.
Dow Jones, which accounts for the largest share of revenue and houses publications such as the Wall Street Journal, Barron’s and Market Watch, grew 3% to $600 million for the quarter ended December 31. That was aided by growth in circulation and subscription revenues.
Revenue from News Corp’s news media unit fell 2% in the quarter. It posted a 2% decline in its advertising revenue, citing a traffic reduction at some mastheads due to “algorithm changes at certain platforms.”
Revenue from its book publishing unit, which consists of HarperCollins, rose 8% on higher sales of its physical and digital books.
News Corp’s revenue stood at $2.23 billion in the quarter, compared with analysts’ average estimate of $2.17 billion, according to data compiled by LSEG.
Its adjusted profit per share stood at 33 cents, beating estimates of 31 cents.
(Reporting by Rishi Kant in Bengaluru; Editing by Alan Barona)
Comments