News Corp misses revenue and profit estimates; maintains ad growth

Nov 8 (Reuters) – News Corp (NWSA.O) on Tuesday reported first-quarter revenue and profit below Wall Street estimates, even as it posted growth in advertising and media sales. subscription.

Shares of the company fell 2.5% in aftermarket trading.

Total revenue fell 1% to $2.48 billion in the quarter ended Sept. 30, while analysts had expected $2.50 billion, according to Refinitiv data. Excluding currency effects, sales increased by 3%.

News Corp said currency loss and lower book sales following the reconfiguration of its inventory and warehouse by Inc (AMZN.O) weighed on revenue, even as that inflationary pressure was driving up costs.

The media conglomerate’s business was boosted by growth at its Dow Jones unit, which derives its revenue primarily from subscription sales, offsetting a weak advertising market that has plagued media and internet businesses across the board.

Revenue for the Dow Jones unit rose 16% to $515 million in the quarter under review, while all other units saw lower revenue.

Overall advertising revenue reached $406 million, an increase of $1 million from a year ago.

Net income, however, fell 75% to $66 million. On an adjusted basis, News Corp reported earnings per share of 12 cents, missing analysts’ estimate of 15 cents.

News Corp grew revenue 11% and profit 95% in the 2022 fiscal year ending June.

Reporting by Yuvraj Malik in Bangalore; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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