2 hours ago
2
News Corp’s Chief Executive Robert Thomson warned Thursday that artificial intelligence businesses must pay for the data and journalism they use, as the company reported revenue and profit increases in its first quarter.
“Creativity and content must not be stolen, but purchased for a reasonable price,” Thomson said in a Thursday statement.
“Information and sophisticated data are the essence of AI, and without these essential ingredients, AI is but empty, ignorant infrastructure,” the exec added. “Electricity without alacrity. Buildings without billings. Chips without chops.”
The comments came as News Corp, the parent company of The Post, reported higher fiscal first-quarter earnings, led by gains at Dow Jones and its digital real estate businesses.
News Corp’s revenue for the quarter ended Sept. 30 rose 2% to $2.14 billion, beating analyst expectations. Net income from continuing operations ticked up 1% to $150 million.
Profitability also improved at News Corp’s News Media segment, which includes The Post, The Times of London and The Australian.
“News Media had a very strong quarter with revenues rising 1% to $545 million led by higher cover and subscription prices in the UK and Australia,” said News Corp’s Chief Financial Officer Lavanya Chandrashekar.
“Advertising trends were mixed but with notable strength at the NY Post. Segment EBITDA grew 67% to $30 million driven by continued cost efficiencies.”
For News Corp as a whole, segment EBITDA — or earnings before interest, taxes, depreciation and amortization — climbed 5% to $340 million.
Adjusted earnings per share rose to $0.22 from $0.20 a year earlier.
Thomson said News Corp believes its shares are undervalued, “given the sum of our valuable parts and our profit trajectory.
“We will continue to focus on ways and means to maximize shareholder value,” he added.
Thomson pointed a finger at artificial intelligence for warping perceptions of the value of intellectual property.
“It is also patently clear that the value of IP in the age of AI is misconceived,” he said.
He noted a “positive trend” that “both enlightened companies and wise courts” have increasingly acknowledged the value of creativity and content.
News Corp stated its “current cash position is robust” and it expects “to generate strong free cash flow this fiscal year.”
Revenue at Dow Jones, which includes The Wall Street Journal, climbed 6% to $586 million, powered by a 16% gain in its professional information unit and rising digital subscriptions.
Realtor.com’s parent Move reported $152 million in revenue, up 9% — its strongest quarterly growth since early 2022.
Book publishing was weaker due to a $13 million receivable write-off, but News Corp said HarperCollins “has been showing signs of improvement in recent weeks.”
News Corp’s legal and licensing strategy with AI firms has been progressing, according to Thomson.
“Courtship and courts are both crucial components of our strategy,” he said.
“Our wooing has gained increasing traction, and we expect to announce further partnerships in the near future, which we expect to have a positive impact on our results.”
English (US)