News Corp beat estimates for fourth-quarter earnings on Thursday, benefiting from its cost-cutting measures and a surge in digital subscriptions for its Dow Jones news and data services.
The New York-based media giant, which owns The Post, The Wall Street Journal and Dow Jones, said core profit fell 8% to 341 in the quarter on cost cuts, including a 5% headcount reduction announced earlier in the year million US dollars.
Adjusted for certain one-time items, adjusted earnings per share were 14 cents, according to Refinitiv data, beating estimates of 8 cents.
Total revenue declined 9% to $2.43 billion for the quarter ended June 30 — weighed down by an 18.4% decline in real estate revenue and an 11.9% decline in advertising revenue in the quarter.
News Corp CEO Robert Thomson said he was “optimistic” about improved results as economic headwinds abated sharply in the second half of the year.
“News Corp’s fiscal 2023 results demonstrated the durability and depth of our revenue streams and the impact of tight cost controls as we navigated difficult macroeconomic conditions, supply chain pressures and currency headwinds,” said Thomson.
“We delivered fiscal 2023 revenue of $9.9 billion and income of over $1.4 billion — the second-highest profitability the company has ever recorded.”
Thomson hailed growth in digital, which accounted for over 50% of News Corp’s full-year revenue, and touted Dow Jones’ division, which posted the highest profitability for both the quarter and the full year since the company was acquired in 2007.
He said overall results “improved significantly in the second half of the year,” noting that “with inflation easing, interest rates plateauing and the housing market beginning to show signs of stability, we have good reason to be optimistic about the coming quarters.” “
Looking ahead, the chief executive cited the advent of artificial intelligence technology as a “notable opportunity” that could create new revenue streams for the company while reducing costs.
“We are already in active negotiations to establish a value for our unique content sets and intellectual property [intellectual property] This will play a crucial role in the future of AI,” he added.