News Corp misses quarterly revenue estimates
2024.05.08 17:56
(Reuters) – Media conglomerate News Corp (NASDAQ:) on Wednesday missed Wall Street estimates for third-quarter revenue, weighed down by a sluggish advertising market and lower physical book sales at its book publishing business.
Inflation and higher interest rates have impacted News Corp’s businesses and dented its advertising sales.
The company’s News Media segment, which includes the New York Post, The Times, the Sunday Times, among others, came under pressure as marketers kept a tight leash on ad budgets in an uncertain economy.
News Corp, a part of media baron Rupert Murdoch’s empire, said it has been reviewing the company’s structure and that the “work is intense and ongoing.”
Shares of the New York-based company fell nearly 3% in trading after the bell.
Revenue fell 1% to $2.42 billion in the quarter ended March 31, below estimates of $2.46 billion, according to Visible Alpha.
Revenue at the Dow Jones business grew 3% to $544 million, while revenue at its Digital Real Estate Services unit rose 7%, driven by strong performance at REA Group, which operates residential and commercial property websites in Australia.
The company’s revenue at its book publishing segment fell 2% to $506 million.
Revenue from its subscription video services unit, which includes the Foxtel Group and Australian News Channel (ANC), decreased 5% to $455 million.
Earlier on Wednesday, News Corp’s peers Fox Corp and New York Times beat Wall Street estimates for quarterly profit and revenue.
