News Corp beat estimates for fourth-quarter revenue and profit on Thursday, driven by strength in its Dow Jones unit and strong performance in its real estate listing and book publishing businesses, sending its shares up 4% in extended trading.
Reuters reports the company said it was also evaluating options for Foxtel, its Australia-based subscription television provider, in response to interest from a third party.
News Corp, part of media mogul Rupert Murdoch's empire, has benefited from continued growth in its business information unit, Dow Jones, which includes publications such as The Wall Street Journal, Barron's and Market Watch.
"News Corp hit on nearly all cylinders in the fourth quarter ... Additionally their agreement with Open AI will be additive," said Michael Ashley Schulman, chief investment officer at Running Point Capital.
"Overall, their emphasis on digital seems to be working much as it has for their competitor, the New York Times."
Revenue at Dow Jones grew 4% to $566 million, driven by growth in circulation and subscription revenue. Revenue from its book publishing unit, which consists of HarperCollins, rose 15% on higher sales of its physical and digital books.
However, revenue from its news media unit, which includes News Corp Australia, News UK and the New York Post, fell 5%, hit by lower advertising, circulation and subscription revenues.
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