In a post-Foxtel world, News Corp CEO doubles down on digital and AI revenue

News Corp has posted a strong second-quarter performance for fiscal 2025, reporting a 5% revenue increase to $2.24 billion, driven by digital real estate, book publishing and Dow Jones.

The media giant’s net income from continuing operations surged 58% year-on-year to $306 million, while total segment earnings rose 20% to $478 million.

The results exclude Foxtel, which News Corp has agreed to sell to global sports streaming platform DAZN for $3.4 billion. The transaction marks a significant strategic shift, allowing the company to focus on its core digital growth areas.

A real estate boom

The company’s digital real estate segment - led by REA Group - delivered record revenues of $343 million, a 17% increase from the previous year, bolstered by Australia’s strong residential market.

The Dow Jones division also reported record revenues of $600 million, reflecting healthy circulation growth and an 11% rise in Risk & Compliance services alongside a 10% increase in Dow Jones Energy revenues. Meanwhile, the book publishing segment saw revenues rise 8% and earnings up 19%, fuelled by robust sales in both physical and digital formats.

A ‘fruitful’ quarter, says CEO

News Corp CEO Robert Thomson described the quarter as both "qualitatively and quantitatively fruitful", highlighting the company’s strong financial performance and ongoing digital transformation.

Thomson said the decision to offload Foxtel to DAZN signals News Corp’s strategic shift away from traditional pay-TV and towards digital-first operations.

“With a keen eye on those core areas of growth, we took a significant step towards simplification with the agreement to sell Foxtel to DAZN,” Thomson said.

“The agreement is tangible recognition of Foxtel’s successful digital transformation and should surely benefit our shareholders, our partners at DAZN and all Australian sports fans.”

AI, legal battles & the future of news

Thomson also touched on the company’s growing role in AI content licensing, praising its partnership with OpenAI while criticising rival AI firms.

“We are providing priceless content for Generative AI and remain vigilant in our pursuit of degenerative AI,” he said.

He confirmed News Corp’s ongoing legal battle with AI startup Perplexity and voiced scepticism about the rise of Chinese AI company DeepSeek, suggesting it lacks the immediacy of trusted news.

“The sudden rise of DeepSeek is itself a salutary lesson for all AI players. Data centers, chips, and energy costs aside, we believe DeepSeek lacks the immediacy of trusted news.

“Ultimately, content will be king in the world of AI,” he said.