News Corp revenue rises 6% as Dow Jones, HarperCollins and digital property drive growth
News Corp (NASDAQ:NWSA) delivered stronger-than-expected first-quarter revenue and earnings, with growth across Dow Jones, HarperCollins and its digital real estate businesses helping lift group revenue by 6% to US$2.28 billion.
Revenue for the quarter ended September 30 came in ahead of analyst expectations, while segment earnings before interest, tax, depreciation and amortisation rose 19% to US$403 million.
Net income attributable to News Corp (NASDAQ:NWSA) shareholders increased 42% to US$159 million, while adjusted earnings reached US28 cents per share, ahead of the US26 cents expected by analysts polled by FactSet.
Dow Jones subscriptions and advertising climb
Dow Jones, publisher of The Wall Street Journal, MarketWatch and Barron’s, increased revenue by 8% to US$630 million, while segment earnings rose 11% to US$160 million.
Advertising revenue climbed 9%, supported by continued growth in digital advertising.
The Wall Street Journal averaged more than 4.66 million digital-only subscriptions during the quarter, up from 4.46 million in the June quarter.
Including print subscriptions, average Wall Street Journal subscriptions reached five million, compared with 4.83 million previously.
Digital property earnings jump 34%
News Corp’s digital real estate services division, which includes its interests in REA Group and Realtor.com operator Move, continued to provide a major earnings contribution.
Revenue increased 10% to US$529 million, while segment earnings jumped 34% to US$212 million.
The result underlined the growing importance of digital property platforms within News Corp’s broader portfolio.
HarperCollins delivers 9% revenue growth
HarperCollins Publishers also delivered a strong quarter, with revenue rising 9% to US$582 million as both physical and digital book sales increased.
News media was the only major division to record a decline, with revenue slipping 1% to US$540 million across publications in Australia, the UK and the US.