© Reuters. Copies of The Wall Street Journal newspaper are displayed for sale at a newsstand inside Moynihan Train Hall, after the announcement that Rupert Murdoch would step down as chairman of News Corp and Fox in favor of his son Lachlan Murdoch, in New York City
(Reuters) – Media conglomerate News Corp (NASDAQ:) beat Wall Street estimates for second-quarter revenue on Wednesday, driven by growth in digital subscriptions and a rebound in its book publishing unit.
News Corp, a part of media baron Rupert Murdoch’s empire, saw a surge in digital subscriptions for its Dow Jones unit, which includes leading publications such as The Wall Street Journal, Barron’s and Market Watch.
It benefited from bundling products as customers look for one-stop-shop products to consume market analysis and professional insights services.
After a slowdown during the COVID-19 pandemic, the media company is also seeing a rebound in its book publishing segment, comprising HarperCollins that has publishing operations in around 15 countries.
Revenue in the quarter ended Dec. 31 rose 3% to $2.59 billion for News Corp, compared with estimates of $2.55 billion, according to Visible Alpha data.
Excluding items, the company earned 26 cents per share, compared with estimates of 21 cents.
Revenue at the Dow Jones business grew 4% to $584 million, while that at its Digital Real Estate Services unit, which operates Realtor.com, rose 9%.
Strength in the professional information business, which rose 13%, boosted the quarter.
The company’s revenue at its book publishing segment grew 4% to $550 million.
News Corp posted about 5.6% decline in its advertising revenue in the quarter as marketers kept a tight leash on ad budgets in an uncertain economy.
Earlier on Wednesday, News Corp’s peer Fox Corp reported a 20% fall in advertising revenue, while New York Times missed revenue expectations due to a slowdown in advertising sales.
