News Corporation (ASX: CDI) shares hit a new, 5-year high last week. Friday saw the News Corp share price surge 13.2% higher to close at $28.41 after the company’s earnings release.
What was driving the News Corp share price?
Shares in the Aussie media group surged higher despite what appeared to be a relatively benign half-year result. News Corp could be one to watch again today after releasing another regulatory filing, its 10-Q report, which outlines the more detailed statutory accounts.
News Corp reported second quarter revenue (Q2 2021) of $2.41 billion, down 3% from the same time last year. The softer revenue result was largely driven by its News Media segment, hampered by the closure of several community newspapers.
Adjusted revenues edged 2% higher while net income more than doubled from $103 million last year to $261 million. Positively for the company and its shareholders, revenues climbed across all major operating segments compared to the first half last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 40% higher. That was largely driven by improved operating trends and cost reductions alongside favourable currency impacts.
Adjusted earnings per share (EPS) nearly doubled, climbing to 34 cents compared to 18 cents in Q2 2020.
Importantly, the News Corp dividend remained unchanged at US10 cents per share, the same level as the group paid in its interim 2020 distribution.
It seems those earnings figures were enough for investors, with the News Corp share price surging higher on Friday. In fact, the Aussie media company was Friday’s top performing share amongst the S&P/ASX 200 Index (ASX: XJO).
Friday’s surge means the News Corp share price is now up 22.7% in 2021 so far. That represents a new 5-year high for the Aussie media group which now boasts a $14.8 billion market capitalisation.
Investors have been impressed by the latest results which sent the News Corp share price surging to new highs on Friday.
The Aussie media share may be one to watch again in trading today as investors mull over the detailed 10-Q report.