News Corp Earnings Rise as Wall Street Journal Digital Subscriptions Jump 11%

News Corp reported fiscal first-quarter revenue of $2.28 billion, up 6% from $2.14 billion a year earlier. Net income rose 43% to $215 million. Dow Jones revenue increased 8% to $630 million, while digital-only subscriptions to The Wall Street Journal grew 11% to nearly 4.7 million on average during the quarter. Adjusted earnings rose to 28 cents per share from 22 cents a year earlier, beating analysts’ expectations of 26 cents. News Corp reported fiscal first-quarter revenue of $2.28 billion Wednesday, up 6% from a year earlier, as growth at Dow Jones and an 11% increase in digital-only subscriptions to The Wall Street Journal helped drive stronger earnings. Net income rose 43% to $215 million from $150 million a year earlier, while adjusted earnings increased to 28 cents per share from 22 cents. The results topped analysts’ expectations of 26 cents per share on revenue of $2.27 billion, according to MarketBeat. The quarter highlighted the growing importance of Dow Jones’ subscription and professional information businesses to News Corp, even as its traditional newspaper operations faced pressure. The company is also looking to artificial intelligence licensing as another source of revenue, with CEO Robert Thomson continuing to press technology companies to pay for its content. Dow Jones, which includes the Journal, Barron’s and MarketWatch, reported revenue of $630 million, up 8% from $586 million a year earlier. Circulation and subscription revenue rose 7%, while digital advertising revenue increased 12%. Digital-only subscriptions to the Journal grew 11% to nearly 4.7 million on average during the quarter, helped by growth in enterprise subscriptions. Across Dow Jones’ news products, digital-only subscriptions increased 10% to nearly 6.5 million. The company’s professional information businesses also posted gains. Revenue at Dow Jones Risk & Compliance, which helps companies assess regulatory and business risks, rose 11% to $104 million. Dow Jones Energy revenue increased 8% to $79 million. Outside Dow Jones, News Corp’s digital real estate services business reported revenue of $529 million, up 10% from a year earlier. Australian property listings company REA Group grew revenue 13%, partly benefiting from favorable currency movements, while Realtor.com parent Move posted a 5% increase. HarperCollins revenue rose 9% to $582 million, supported by stronger physical and digital book sales, including growth in audiobooks. News Corp’s traditional newspaper operations continued to face pressure. Revenue in its News Media segment, which includes newspapers in Australia and the U.K. as well as the New York Post, declined 1% to $540 million, reflecting lower print advertising and other revenue. The company’s increase in net income also benefited from a gain related to the sale of REA India’s remaining business. Total segment earnings before interest, taxes, depreciation and amortization rose 19% to $403 million from $340 million a year earlier. Thomson, meanwhile, pointed to the growing value of News Corp’s content to artificial intelligence companies, arguing in the earnings announcement that “high quality content is the very essence of AI.” He cited existing licensing agreements with OpenAI and Meta, while warning that News Corp would continue pressing other technology platforms to compensate publishers for their content. “We will woo and we will sue,” he said.