News Corporation (NASDAQ: NWSA) gained ground first thing Friday after the media company reported an earnings and revenue beat. News Corp posted nine cents earnings per share and $2.45 billion in revenue for the third fiscal quarter. Analysts polled by StreetAccount had estimated earnings of five cents per share and $2.38 billion in revenue. The company announced cost-cutting measures, which include laying off 5% of its workforce, are expected to result in $160 million in annualized savings by the end of 2023.
Commenting on the results, Chief Executive Robert Thomson said:
“These results demonstrate the fundamental differences in the character of News Corp compared with other media companies. In a period in which advertising was clearly insipid in certain parts of the world, our core non-advertising revenue has been particularly robust, highlighted by a 38 percent increase in revenues at the Dow Jones professional information business.
“Overall, our fiscal third quarter results demonstrated meaningful progress compared to the first half, with various macro and sectoral trends decidedly more positive. Revenues were over $2.4 billion, down only 2% from the prior year, but higher in constant currency, while our company-wide cost cutting program began to gain traction.”
NWSA shares gained $1.46, or 8.7%, to $18.20.
