News Corp shares experienced a significant rally on Friday, driven by the company’s September quarter results which exceeded expectations. UBS analyst Lucy Huang noted a slight beat in both top-line revenue and EBITDA. The media group’s performance was buoyed by its news media and property listings segments.
Revenue saw a 2 per cent increase, reaching $US2.144 billion, while EBITDA rose by 5 per cent to $US340 million. According to UBS, Move, News Corp’s property listings group, outperformed due to pricing increases, cost efficiencies, and premium offerings. Dow Jones also maintained consistent earnings growth, aligning with forecasts. News Corp is a global media and information services company providing content and services for consumers and businesses.
Book publishing was a notable exception, experiencing a 28 per cent drop in EBITDA, attributed to a $US13 million receivables write-off, although revenues were marginally above expectations. Digital real estate services demonstrated momentum with revenue up 5 per cent and EBITDA rising 13 per cent, meeting consensus estimates.
Huang also pointed out the company’s accelerated share buyback program, reflecting confidence in News Corp’s business outlook. The positive sentiment translated into a 4.6 per cent increase in News Corp shares on Friday, positioning it among the top performers on the ASX 200.
