News Corp’s revenue saw a 6% increase in the fourth quarter, driven by digital subscriptions in its Dow Jones division.
The company reported a net income of $71 million, marking a significant improvement from a net loss the previous year.
Strategic partnerships and legal actions, including a deal with OpenAI, underscore News Corp’s commitment to innovation and the future of journalism.
News Corp, a leading media conglomerate that owns prominent publications such as The Post, The Wall Street Journal, and Dow Jones, has recently reported a significant uptick in its financial performance for the fourth quarter, surpassing Wall Street’s expectations. The company’s revenue for the quarter ending June 30 experienced a 6% increase, reaching $2.58 billion up from $2.43 billion in the previous year. This growth is primarily driven by a 4% rise in its Dow Jones division, largely attributed to the expansion of digital subscriptions. The company’s strategic focus on digital growth has evidently paid off, reflecting a broader industry trend towards digital content consumption.
The financial health of News Corp has shown remarkable improvement, with net income for the quarter reported at $71 million, or 9 cents per share. This is a significant turnaround from a net loss of $32 million, or a penny per share, a year earlier. The adjusted earnings per share (EPS) also exceeded expectations, standing at 17 cents against a forecasted 16 cents on a revenue prediction of $2.49 billion. This performance underscores the company’s ability to navigate the challenges of the media landscape effectively.
Over the fiscal year, News Corp announced a profit of $266 million, or 46 cents per share, with total revenue reaching $10.09 billion. The company’s stock price has reflected this positive trajectory, witnessing an 11% increase over the last three months and a 34% surge over the past year, closing at $27.76. These figures highlight the investor confidence in News Corp’s strategic direction and operational efficiency.
In addition to financial achievements, News Corp has been proactive in forging strategic partnerships and legal actions to secure its future in the rapidly evolving media industry. The company entered into a multi-year partnership with the London Stock Exchange Group and a significant agreement with OpenAI, led by Sam Altman, in May. This deal, potentially valued over $250 million, allows OpenAI to use current and archived content from News Corp-owned outlets for user queries and AI model training. CEO Robert Thomson emphasized the importance of this partnership for the future of professional journalism and content provenance, showcasing News Corp’s commitment to innovation and legal integrity in content distribution.
Furthermore, CEO Robert Thomson expressed gratitude towards those involved in the release of Wall Street Journal reporter Evan Gershkovich, who had been imprisoned in Russia since March 2023. This acknowledgment highlights News Corp’s dedication to its employees and the broader journalistic community, reinforcing its role as a leading entity in the media industry.