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ews Corp's digital real estate, Dow Jones, and book publishing divisions are driving growth for the media conglomerate. The company's quarterly earnings exceeded expectations, with a 58% increase in profits fueled by these three key areas.
Net income soared to $306 million, or 38 cents per share, compared to $156 million, or 27 cents, in the same period last year. Adjusted earnings per share came in at 33 cents. Revenue jumped 17% to $2.24 billion, outpacing analyst forecasts of $2.18 billion.
The Dow Jones unit recorded a record-breaking $600 million in revenue, while the real estate division saw a 17% surge to $343 million. The book publishing group, which includes HarperCollins, reported an 8% increase in revenue and 19% growth in earnings.
During the earnings call, CEO Robert Thomson highlighted the company's partnership with OpenAI and its efforts to combat Generative AI. He praised the deal as a "priceless" opportunity for content creation, while criticizing the technology as "degenerative." News Corp is also taking legal action against Perplexity, a rival AI player.
Thomson expressed optimism about the US economy, citing a "tangible increase in business confidence" since the election. He attributed this to a combination of economic optimism and a cultural shift away from "woke" ideology. The CEO believes these trends will lead to reduced regulation, increased capital formation, and more open conversations.
