News Corp has reported a stronger-than-expected first-half result, surpassing both UBS and market forecasts. According to UBS analyst Ailsa Lei, revenue, EBITDA, and underlying profit all exceeded expectations, primarily driven by exceptional performances from the Digital Real Estate Services and Dow Jones segments. News Corp is a global media and information services company providing content and services to consumers and businesses worldwide. It includes businesses such as Dow Jones, News UK, News Australia, and Foxtel.
Revenue saw a 4 per cent increase, reaching $US4.506 billion, while EBITDA rose by 7 per cent to $US861 million. The company’s underlying profit reached $354 million, exceeding anticipated figures. The dividend was maintained at 10¢ a share. The Digital Real Estate Services segment was a key contributor to the strong results, fueled by robust growth at Move, which has been transitioning towards premium offerings. This shift resulted in a 13 per cent increase in lead volumes and expanded audience share gains.
Dow Jones also demonstrated strong performance, driven by increased subscriptions and a 12 per cent growth in professional information businesses revenue. UBS noted management’s remarks regarding improvements in circulation revenue, attributed to customers transitioning from promotional to higher price points.
The expanded Bloomberg partnership, which now includes AI rights, was highlighted as a strategically positive signal. This move could potentially attract further content and technology deals for News Corp, enhancing its market position.
