News Corp misses quarterly revenue, profit estimates despite ad growth
8:39 pm Tuesday, November 08th, 2022
(Reuters) -News Corp on Tuesday reported first-quarter revenue and profit that fell short of Wall Street estimates, even as the media conglomerate recorded growth in advertising and subscription sales.
Shares of the company fell 2.5% in after-market trading.
Total revenue decreased 1% to $2.48 billion in the quarter ended Sept. 30, while analysts were expecting $2.50 billion, according to Refinitiv data. On adjusted basis, revenue grew 3%.
News Corp said loss from foreign exchange and lower book sales as a result of Amazon.com Inc reconfiguring its inventory and warehouse footprint dragged the topline, even as inflationary pressure increased costs.
“Turning to the upcoming quarter. We continue to expect higher costs due to supply chain and inflationary pressures. Advertising conditions and mix and visibility remains limited across the businesses,” Chief Financial Officer Susan Lee Panuccio said in the analysts’ call.
Business at the company was boosted by growth in its Dow Jones unit, which earns primarily from subscription sales, while all other units reported a drop in revenue.
Sales at Dow Jones unit grew 16% to $515 million in the reported quarter. Overall revenue from advertising grew to $406 million, a $1 million jump from a year-ago period.
Net income, however, slumped 75% to $66 million. On an adjusted basis, News Corp reported earnings per share of 12 cents, missing analysts’ estimate of 15 cents.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Shailesh Kuber and Sherry Jacob-Phillips)
