News Corporation (ASX: NWS) shares are catching the eye of investors on Thursday.
In morning trade, the $27 billion ASX 200 share is up almost 5% to a 52-week high of $55.79.
This follows the release of the media giant's quarterly results before the market open.
ASX 200 share jumps on quarterly result
- Revenue up 5% to US$2.24 billion
- Segment EBITDA up 20% to US$478 million
- Net income from continuing operations up 58% to US$306 million
What's happened during the quarter?
News Corp delivered a strong second-quarter result, with revenues rising 5% year-over-year to US$2.24 billion. This was driven by strong performances in its Digital Real Estate Services, Book Publishing, and Dow Jones segments.
Net income from continuing operations surged 58% to US$306 million, reflecting solid operational growth. Total segment EBITDA jumped 20% to US$478 million.
Among the standout performers was REA Group Ltd (ASX: REA) (61.4% ownership), which posted record revenues of US$343 million for the quarter. Management notes that this was fuelled by robust Australian residential market conditions.
The Dow Jones business also delivered record revenues of US$600 million, supported by an 11% increase in Risk & Compliance revenue and a 10% lift in Dow Jones Energy. Meanwhile, Book Publishing revenues climbed 8%, with Segment EBITDA increasing 19% on the back of strong physical and digital book sales.
The ASX 200 share also reminded investors that it signed an agreement to sell Foxtel to DAZN for an enterprise value of A$3.4 billion during the half. This means that the business is now classified as a discontinued operation. Management believes the sale will simplify the business, sharpen its focus on key growth areas, and drive long-term value for shareholders.
Management commentary
The ASX 200 share's chief executive, Robert Thomson, was pleased with the three months. He said:
News Corp had a fruitful quarter, qualitatively and quantitatively. Revenues on a continuing operations basis, which excludes Foxtel, grew 5 percent to US$2.24 billion, net income from continuing operations surged 58 percent to US$306 million and Total Segment EBITDA rose 20 percent to US$478 million.
The three pillars of growth—Digital Real Estate, Dow Jones and Book Publishing—continued to expand Segment EBITDA robustly. We also saw the positive impact of rigorous cost discipline and digital development in the News Media segment, and our overall margin rose meaningfully compared to the prior year.
Thomson also spoke about the company's artificial intelligence (AI) partnerships and legal battles. He adds:
We are providing priceless content for Generative AI, and remain vigilant in our pursuit of degenerative AI. We are pleased with our partnership with OpenAI and hope that other companies in the segment take a similarly enlightened approach.
Our legal action against the perplexing Perplexity is underway and we look forward with relish to document discovery. The sudden rise of DeepSeek is itself a salutary lesson for all AI players. Data centers, chips, and energy costs aside, we believe DeepSeek lacks the immediacy of trusted news and, ultimately, content will be king in the world of AI.
