News Corp — owner of The Post and The Wall Street Journal — reported better-than-expected quarterly earnings on Thursday, bolstered by growth in its digital real estate, Dow Jones and book publishing divisions.
The New York-based media giant reported $107 million in net income from continuing operations, or 14 cents a share, compared with income of $64 million, or 7 cents, the year prior. Adjusted earnings per share totaled 17 cents.
Third-quarter revenue jumped to 1% to $2.01 billion from $1.99 billion a year earlier.
Wall Street expected EPS of 13 cents on revenue of $2 billion, according to Yahoo Finance.
News Corp CEO Robert Thomson touted the company’s “sustained strength” and “strategic transformation” for lifting profits 67% in the quarter, which ended March 31.
“The sustained strength of News Corp’s third quarter reflects the company’s strategic transformation,” Thomson said Thursday. “We have pursued digital growth, realigned our assets, focused relentlessly on cost discipline and asserted the essential value of our intellectual property in a changing, challenging content world.”
News Corp’s financial results were driven by a 5.7% increase in revenue to $575 million at its Dow Jones unit, due in part to improved circulation revenues, as well as a 4.6% increase at its real estate division to $406 million.
“The enduring importance of quality journalism cannot be underestimated in the midst of a political and economic maelstrom.” Thomson said.
The book publishing unit, which includes HarperCollins, saw its revenue jump 2% thanks to higher book sales that were driven by key titles such as “Wicked” by Gregory Maguire, “Dream Girl Drama” by Tessa Bailey and higher sales of the Bible.
Thomson went on to address the hot topic of artificial intelligence, saying: “The currency of credibility will become even more crucial as AI continues its exponential growth and inevitably blurs the lines between the actual and the anthropomorphic.”
He also hailed the completion of the sale of the company’s Australian cable TV business, Foxtel Group, to British-owned sports network DAZN last month for $2.1 billion, which he said “marked a significant moment for News Corp” in its continued growth.
“The transaction meaningfully strengthened our balance sheet and is expected to increase return on invested capital, and be accretive to earnings per share. It also demonstrates our ongoing commitment to maximizing returns for our shareholders,” he said.