News Corp posts big profit on subscription growth

At a time when most media companies are facing falling advertising revenue, News Corp is posting a net profit thanks to its 2021 acquisition of a US oil pricing company to boost its data and analytics services.

Cost-cutting measures have helped the company counter the impact of inflation and high interest rates on its operations.

News Corp said it hoped to save at least $160 million a year from cutting 5% of its workforce, or 1,250 people, under previously announced plans.

CEO Robert Thomson also spoke to shareholders about the potential impact of general AI on the journalism industry and the company. Mr. Thomson said the company is still in the early stages of experimenting with general AI.

He also said AI will not only have an impact on content but “will have a profound impact on business management, from customer service to payments”.

Revenue from paid subscriptions and circulation rose 2.09% in the third quarter of the current fiscal year, after the company's newspapers such as the Wall Street Journal and Sunday Times recorded slight growth in paid readers.

News Corp reported revenue of $2.45 billion in the third quarter, beating analysts' average estimate of $2.37 billion. News Corp's adjusted profit of 9 cents per share was nearly double what was previously expected.

Trung Kien (according to WSJ, Reuters)

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