News Corp Beats Earnings Estimates

News Corp Beats Earnings Estimates
By News Corp (From announcement of new logo here) [Public domain], <a href="">via Wikimedia Commons</a>

News Corp (NASDAQ:NWSA) released the earnings results from its most recently completed quarter after closing bell tonight, posting adjusted earnings of 9 cents per share on $2.15 billion in revenue, a 4% year over year increase. Analysts had been expecting the company to report earnings of 3 cents per share on $2.1 billion in revenue for the first fiscal quarter of 2015. In the same quarter last year, News Corp reported earnings of 3 cents per share on $2.07 billion in revenue.

Key metrics from News Corp’s earnings report

Net earnings were 11 cents per share, compared to 5 cents per share in the same quarter last year. Total segment EBITDA was $170 million, compared to $141 million in the same quarter last year. The company’s free cash flow rose to $73 million in the quarter.

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News Corp said most of the increase in revenue was from strength in its Book Publishing, Digital Real Estate and Digital Education businesses. The company also included the results from its Harlequin acquisition, which closed in August. Lower advertising revenues in the News and Information business and the sale of the Dow Jones Local Media Group partially offset the result.

News Corp’s earnings by segment

First quarter revenues for News Corp’s News and Information Services business fell 3% year over year, while Book Publishing revenues rose 24% year over year. In the Cable Network Programming segment, the company recorded a 5% increase in revenue due to higher affiliate pricing and more subscribers.

Revenue from News Corp’s Digital Real Estate Services segment rose 24% year over year, mostly due to higher residential listing depth product penetration and an increase in prices. Revenues from the company’s Digital Education business rose 56% due to higher revenues in its Amplify Learning products.

“Our digital offerings are expanding in reach and depth, while our global platform has been bolstered in books, online real estate and business information and analysis,” said News Corp CEO Robert Thompson in a statement. “The announced acquisition of Move will provide a new foundation for growth in digital real estate, and we will use our extensive resources at Dow Jones, News America Marketing and the New York Post to drive traffic and revenue in coming years.”

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