News Corporation Reports Strong Revenue Growth Driven by Digital and Real Estate Divisions

News Corporation has reported a solid performance for the second quarter, surpassing Wall Street expectations. The company, which owns The Times, The Sunday Times, and several other major publications, experienced a 6 per cent increase in total revenues, reaching $2.36 billion. This compares favourably to the $2.24 billion recorded in the same period last year.

The results indicated a $26 million positive contribution from foreign currency fluctuations. Despite the overall rise in revenue, net income from continuing operations fell by 21 per cent, down to $242 million from $306 million the previous year. This decline was primarily attributed to the absence of an $87 million gain from the sale of PropertyGuru, which occurred last year.

News Corporation’s digital real estate arm saw an 8 per cent increase in revenue, totalling $38 million. This growth was supported by strong performances from both REA Group and Move. The Dow Jones division also demonstrated impressive results, generating $648 million for the quarter, an 8 per cent increase compared to $600 million in the same quarter of 2024. The growth was boosted by a 20 per cent rise in Risk and Compliance revenue, along with higher digital circulation earnings and record digital advertising revenues.

In the book publishing segment, there was a 6 per cent quarterly revenue increase, primarily due to recent acquisitions and a rise in physical book sales. Notable titles contributing to this trend include works by prominent authors such as John Kennedy and Mitch Albom.

Revenues in the news media division remained stable year on year, as an increase in circulation and subscription income offset a decline in advertising revenues. Digital revenues now account for 43 per cent of the News Media segment’s revenues, up from 39 per cent last year. The number of digital subscribers at both The Times and The Sunday Times, including the Times Literary Supplement, grew to 659,000 by the end of the year, compared to 616,000 in the same quarter of the previous year.

Robert Thomson, chief executive of News Corporation, commented on the second-quarter results, highlighting the sustained growth at Dow Jones and Digital Real Estate Services. Both segments achieved double-digit profit growth and are beginning the calendar year on a strong note. Thomson also addressed the evolving role of artificial intelligence, cautioning against the repurposing of low-quality content while emphasising the significance of high-quality, premium content.