Strong Quarter Thanks to the Dow Jones
News Corp’s second-quarter revenue was higher than what Wall Street had expected. The business made $2.36 billion in sales during that time. Analysts had predicted about $2.29 billion.
Reuters says that growth in the Dow Jones segment drove the results. The business information unit keeps adding new ways to make money from subscriptions. Enterprise demand played a big role in the gains.
Source: TheWrap/Website
Subscription Growth Supports Media Shift
News Corp has sped up its move to digital subscription models. The plan is meant to stop the long-term decline of print advertising. More and more, people are getting their news from paid digital platforms.
The amount of money that Dow Jones made went up by 8% from 1 year to the next. The number of people who subscribe to the Wall Street Journal went up by 11%. The number of subscribers came close to 4.7 million.
Enterprise Clients Boost Business Information Revenue
Robert Thomson, the CEO, talked about how the company is growing its enterprise customer base. More and more businesses are using Wall Street Journal content in their daily work. This makes it easier to see recurring revenue.
The use of enterprise software shows that there is a larger need for reliable business information. Subscription-based models lessen the impact of changing ads. Institutional contracts help make cash flow more predictable.
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Digital Real Estate Segment Recovers
The digital real estate services unit at News Corp also did better. That part of the business saw an 8% rise in sales. A stable property market helped the economy get back on track.
Real estate platforms do better when housing activity picks up. Digital marketplaces keep track of transaction data and demand for listings. Economic normalization helps keep the growth momentum going.
HarperCollins Publishing Makes Money
The book publishing part of the company reported good growth in the last quarter. HarperCollins made $633 million, which is 6% more than last year. Performance was helped by new releases and strong catalog sales.
Publishing is still a source of diverse income in the portfolio. Intellectual property assets always have value over time. Digital formats make it possible to reach even more people.
Strategic Growth Into New Markets
In January, News Corp started the California Post. The conservative daily tabloid brings the New York Post brand to the West. Expanding geographically makes national media stronger.
The move shows that there is confidence in the demand from niche audiences. Regional diversification lowers the risk of concentration. Media positioning keeps changing to fit the way people read.
Long Term Digital Transformation Focus
The company is still focused on subscription-based economics. Leadership stresses content monetization strategies that are based on data. Different verticals balance out advertising exposure that happens in cycles.
Operational leverage may get better as digital penetration grows. The Dow Jones continues to be a growth anchor. Analysts will keep an eye on how long the subscription growth lasts.
