News Corp Revenue Grows with More Digital Subscriptions

News Corp reported a strong performance in its fourth-quarter earnings, exceeding Wall Street estimates with a revenue increase of 6% to $2.58 billion for the quarter ending June 30. This growth was significantly driven by digital subscription gains at its Dow Jones division. Analysts had anticipated earnings per share (EPS) of 16 cents on revenue of $2.49 billion, highlighting the company's robust financial health. For the fiscal year, News Corp posted a profit of $266 million, or 46 cents per share, with total revenue reaching $10.09 billion. The company's stock has seen a notable rise, closing at $27.76, reflecting an 11% increase over the past three months and a remarkable 34% surge over the past year. CEO Robert Thomson emphasized the importance of a recent landmark agreement with OpenAI, which is expected to be financially beneficial and will foster collaboration in shaping the future of professional journalism. This partnership allows OpenAI to utilize News Corp's current and archived content for its AI models, potentially worth over $250 million. Thomson also addressed ongoing legal actions against what he termed "AI aggressors," criticizing those who exploit News Corp's content without proper compensation. He asserted that the concept of "open source" should not justify the unrestricted use of proprietary material. Additionally, Thomson expressed gratitude for the efforts that led to the release of journalist Evan Gershkovich, acknowledging the collective actions that highlighted the injustice of his detention.