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News Corp Posts Modest Q1 Gains, Beats EPS Forecast as CEO Presses AI to Pay

Management highlighted progress toward AI licensing deals that would monetize use of its journalism.

Overview

  • News Corp reported Q1 revenue of $2.14 billion, up 2%, and net income of $150 million, up 1%, with adjusted EPS of 22 cents topping the 19-cent analyst consensus; the company also cited a robust cash position and a strong free cash flow outlook.
  • Dow Jones revenue rose 6% to $586 million, driven by a 16% gain in its professional information unit and growth in digital subscriptions.
  • Digital real estate posted gains as Move/Realtor.com revenue increased 9% to $152 million, while REA Group revenue grew 3% to $327 million.
  • The News Media segment grew revenue 1% to $545 million and boosted segment EBITDA 67% to $30 million, supported by higher cover and subscription prices and cost efficiencies.
  • CEO Robert Thomson said AI companies must pay for the use of journalistic data and stated that the legal and licensing strategy is gaining traction, with further partnerships expected soon.