News Corp reported a sharp increase in revenue for its most recent fiscal quarter, driven by the consolidation of Australian pay-television company Foxtel and continued gains at its book-publishing arm, reportds the Wall Street Journal.
The New York-based media company posted a net profit of $23 million, or 2 cents a share, in the quarter ended March 31, compared with a loss of $1.11 billion, or $1.94 a share, in the year-earlier period. Last year’s loss included noncash impairment charges and write-downs of $1.2 billion.
Revenue rose 17% to $2.46 billion. Analysts polled by FactSet expected net profit of $9 million and earnings per share of a penny on revenue of $2.5 billion. Earnings before interest, taxes, depreciation and amortization were $247 million, up 36% from a year earlier.
“News Corp reaped rewards from our digital strategy this quarter, underscored by a robust rise in digital subscriptions across our media properties, a sharp increase in digital audio book sales and continued expansion at our digital real estate businesses despite volatile conditions in property markets,” Chief Executive Robert Thomson said in a statement.
Separately, Lachlan Murdoch, chief executive of Fox Corp. , told investors in New York on Thursday that Fox Corp. and News Corp wouldn’t be reuniting. Both businesses had once been united but were split several years ago. Rupert Murdoch serves on the News Corp board as co-chairman.
News Corp’s largest unit, the news and information-services business, which includes The Wall Street Journal, Times of London and New York Post, reported a revenue decline of 5% to $1.22 billion, reflecting the negative impact of foreign-currency fluctuations.
Advertising revenue for the news unit fell 9%, reflecting in part foreign-currency fluctuations, while circulation and subscription revenues were relatively flat.
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