News (NASDAQ:NWS) reported higher revenue and profit for its fiscal first quarter of 2027, as growth at Dow Jones, digital real estate and book publishing offset a weaker performance in its news media division.
Revenue rose 6% from a year earlier to $2.3 billion, while total segment EBITDA increased 19% to $403 million. The company’s segment EBITDA margin expanded to 17.7%, up 180 basis points, Chief Financial Officer Lavanya Chandrashekar said.
Earnings per share rose to $0.29 from $0.20, and adjusted earnings per share increased to $0.28 from $0.22. On an adjusted basis, revenue grew 4% and total segment EBITDA rose 13%.
Chief Executive Robert Thomson said the company’s three growth businesses—Dow Jones, Digital Real Estate Services and Book Publishing—collectively increased segment EBITDA by 24%. News also recorded its 14th consecutive quarter of year-over-year total segment EBITDA growth on a continuing operations basis.
Dow Jones subscriptions and advertising grow
Dow Jones revenue rose 8% to $630 million, while segment EBITDA increased 11% to $160 million. Its margin expanded to 25.4% from 24.6% a year earlier.
Risk & Compliance revenue increased 11% to $104 million, supported by customer growth, product expansion and pricing, Chandrashekar said. Dow Jones Energy revenue grew 8% to $79 million, with customer retention at approximately 90%.
In the news business, circulation revenue rose 4%, and digital-only subscriptions increased 10% to nearly 6.5 million. The company added approximately 219,000 digital-only subscriptions sequentially, its largest quarterly increase in almost three years, helped by the timing of enterprise deals.
Dow Jones advertising revenue grew 9% to $93 million, including a 12% increase in digital advertising. Chandrashekar said technology and finance advertisers contributed to strength at The Wall Street Journal.
Real estate gains despite softer listings
Digital Real Estate Services revenue increased 10% to $529 million, and segment EBITDA rose 34% to $212 million. On an adjusted basis, revenue grew 4% and EBITDA increased 23%.
REA revenue rose 13%, or 5% in constant currency, as pricing and product gains offset a decline in listings. Australian national new buy listings fell 2% during the quarter, with Sydney and Melbourne down 16%, Chandrashekar said.
REA completed the sale of its India business in September, and News said its results will no longer include that operation starting in the second quarter. REA also agreed to acquire a 35% stake in Irish marketplace operator Distilled for an expected AUD 409 million, or approximately $290 million.
In the U.S., Realtor.com revenue rose 5% to $160 million, marking its eighth consecutive quarter of revenue growth. Chandrashekar said demand for its premium agent marketing product helped lift yield, although lead volume declined 11% amid broader market conditions and a shift toward higher-value leads.
Looking ahead, Chandrashekar said Australian listings in October were down 13% year over year, or 8% after adjusting for one fewer working day. She said News remains focused on growing Realtor.com revenue and profitability despite higher mortgage rates.
Books rise as news media profit declines
Book Publishing revenue rose 9% to $582 million, while segment EBITDA increased 29% to $75 million. The company cited strong demand for new releases and a comparison with a prior-year bad debt write-off. Audiobook revenue grew 13%.
News Media revenue slipped 1% to $540 million, and segment EBITDA fell by $12 million to $18 million. Chandrashekar cited difficult advertising conditions, tougher trading and investment at the New York Post. She expects broadly similar trends in the second quarter, including modest incremental costs associated with the California Post rollout.
AI negotiations and cash flow
Thomson said News is negotiating with several AI platforms over the use of its content and already has partnerships with OpenAI and Meta. He reiterated concerns about unlicensed use of copyrighted material and said the company continues to pursue legal cases against Perplexity and Brave.
Thomson and Chandrashekar said they expect payments from the $1.5 billion Anthropic settlement to begin in the near term. Thomson said News still has issues with Anthropic; he did not specify News’ share of the settlement.
Chandrashekar declined to quantify AI-related cost savings but said the technology is being used in areas including engineering, customer service and data analytics.
First-quarter free cash flow was affected by the timing of capital spending and working capital, Chandrashekar said. Revenue at Dow Jones and HarperCollins was weighted toward the final month of the quarter, with collections expected in the second quarter, while HarperCollins also increased inventories. She said cash flow is typically weighted toward the second half of the fiscal year and expressed confidence in generating strong free cash flow for the full year.
About News (NASDAQ:NWS)
News Corporation (NASDAQ: NWS) is a global media and information services company with businesses spanning news, publishing, digital real estate services and subscription-based content. The company operates through a portfolio of brands that serve consumers, professionals and businesses across multiple markets.
Its major operations include Dow Jones, which provides business news, financial information and data through publications such as The Wall Street Journal and Barron’s; News Corp Australia and News UK, which publish newspapers and digital news platforms; and HarperCollins Publishers, a global book publishing company.
