News Corp earnings beat as Dow Jones, real estate listing units drive growth
Adds share move in paragraph 1, details in paragraphs 2,9,12 and 13, adds analyst quote in paragraphs 5 and 6
By Jaspreet Singh
Aug 8 (Reuters) -News Corp NWSA.O beat estimatesfor fourth-quarter revenue and profiton Thursday, driven by strength in its Dow Jones unit and strong performance in itsreal estate listing and book publishing businesses, sending its shares up 4% in extended trading.
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.
TheLondon Stock Exchange Group LSEG.L signed a multi-year news and data partnership with Dow Jones last month and Sam Altman-led OpenAI has partnered with the company for access to its news content.
"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 rose 6% to $2.58 billion in the quarter ended June 30, compared with anestimate of $2.49 billion, according to LSEG data.
News Corp's adjusted profit per share was 17 cents, beating estimates of 16 cents.
REA Group REA.AX, largely owned by News Corp,operates residential and commercial property websites in Australia. Its revenue rose 37% to$305 million in the quarter, helped by price increases and a rise in national listings.
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.
Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai and Anil D'Silva
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