News Corp shares surge on Q1 revenue boost
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More news: News Corp was the top performer on the ASX 200 in morning trade after reporting an uptick in revenue and net income for the first quarter.
Shares in the media giant were up 7.9% to $48.53 at 11am AEDT.
News Corp posts 2% Q1 revenue lift as Thomson flags AI-driven content deals
The news: Media giant News Corp has recorded a 2% lift in first-quarter revenue, boosted by growth at its Dow Jones and digital real estate businesses.
The numbers: Q1 revenue totalled USD2.14 billion ($3.30 billion), up from USD2.10 billion in the prior corresponding period. Net income from continuing operations in the quarter was up 1% year on year to USD150 million. First-quarter EBITDA increased 5% year on year to USD340 million.
Revenue at its publishing firm Dow Jones (+6%) and real estate business Move (+9%) were two of the group's standout results.
The context: News Corp said its news media division saw a "strong improvement in profitability" compared to the prior year, driven by continued cost savings initiatives and higher pricing on circulation and subscriptions in the UK and Australia.
What they said: "We believe our shares are undervalued, given the sum of our valuable parts and our profit trajectory, and we will continue to focus on ways and means to maximise shareholder value," said News Corp CEO Robert Thomson.
"It is also patently clear that the value of IP in the age of AI is misconceived. Information and sophisticated data are the essence of AI, and without these essential ingredients, AI is but empty, ignorant infrastructure. Electricity without alacrity. Buildings without billings. Chips without chops.
"Thankfully, we are seeing a positive trend with both enlightened companies and wise courts deciding that creativity and content must not be stolen, but purchased for a reasonable price. Courtship and courts are both crucial components of our strategy. Our wooing has gained increasing traction, and we expect to announce further partnerships in the near future, which we expect to have a positive impact on our results."
The source: ASX
