NEW YORK - News Corporation (NASDAQ:NWSA) reported better-than-expected fiscal second quarter results, as strong performances in its digital real estate and book publishing segments helped drive revenue and profit growth.
The media conglomerate posted adjusted earnings per share of $0.33, surpassing analyst estimates of $0.29. Revenue rose 5% year-over-year to $2.24 billion, also beating expectations of $2.18 billion.
"News Corp had a fruitful quarter, qualitatively and quantitatively," said Chief Executive Robert Thomson. "Revenues on a continuing operations basis, which excludes Foxtel, grew 5 percent to $2.24 billion, net income from continuing operations surged 58 percent to $306 million and Total (EPA:TTEF) Segment EBITDA rose 20 percent to $478 million."
The company’s digital real estate services segment saw revenues jump 13% to $473 million, driven by a 17% increase at REA Group to a record $343 million. Book publishing revenues grew 8% to $595 million on strong physical and digital book sales.
Meanwhile, Dow Jones achieved record quarterly revenues of $600 million, up 3% YoY, underpinned by improved circulation revenues and 11% growth in its Risk & Compliance business.
News Corp also announced an agreement to sell Foxtel to DAZN for an enterprise value of A$3.4 billion, which Thomson said is "tangible recognition of Foxtel’s successful digital transformation."
Looking ahead, the company remains focused on its core growth pillars of digital real estate, Dow Jones, and book publishing as it aims to drive long-term shareholder value.
The company declared a semi-annual cash dividend of $0.10 per share.
News Corp shares were unchanged in after-hours trading following the earnings release.
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