Global media and information services company News Corporation said net income increased 148% to US$144 million (A$215 million) in the three months ended 30 September 2024, compared with the previous corresponding period.
The company said first quarter revenues rose 3% at $2.58 billion, which was the highest quarterly level since it spun-off its 21st Century Fox business in 2013, driven by growth at the digital real estate services, book publishing and Dow Jones publishing segments.
Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 14% to the highest level since the separation at $415 million in the first quarter of the 2025 fiscal year.
Reported earnings per share (EPS) were $0.21, compared with $0.05, while adjusted EPS were $0.21 compared to $0.16.
Chief Executive Robert Thomson said News Corp had begun the new fiscal year robustly, with record first quarter revenue and profitability and strong net income.
“That we have achieved these record first quarter results in macro-conditions which are far from auspicious is compelling evidence of the successful transformation of News Corp over the past decade,” he said in an ASX announcement.
Thomson said the U.S. election had highlighted the importance of trusted journalism in a media maelstrom in which some journalists mistook virtue signalling for virtue.
“Artificial intelligence recycles informational infelicities and it is critical that journalistic inputs have integrity, which is why our partnership with OpenAI is so crucial and why we intend to sue AI companies abusing and misusing our trusted journalism,” he said.
News Corp said its Dow Jones publishing business and the New York Post newspaper had started proceedings against Perplexity, which was selling products based on News Corp’s journalism, and it was preparing for further action against other companies that had “ingested our archives and are synthesising our intellectual property.”
Circulation and subscription revenues increased 5% to $23 million, with circulation revenues up 1% as continued growth in digital-only subscriptions was mostly offset by lower print volume.
Addressing speculation it would spin-off its Australian broadcasting business, the company said it was continuing to assess strategic and financial options for the Foxtel Group, including its capital structure and assets, in response to third party interest.
“There is no assurance regarding the timing of any action or transaction, nor that the strategic review will result in a transaction or other strategic change,” News Corp said.
As at 8:50 am (AEDT), Friday, November 8, News Corp (ASX: NWS, NWSLV; Nasdaq: NWS, NWSA) class B voting shares were trading at $47.21, up $1.11 (2.41%). Its market cap is approximately $16.87 billion.