News Corp Reports Revenue Boost as CEO Robert Thomson Demands AI Firms Pay for Content

The media giant posts strong quarterly earnings driven by Dow Jones and digital real estate growth, while its chief executive calls on artificial intelligence companies to fairly compensate publishers for the data and journalism fueling their systems.

News Corp Chief Executive Robert Thomson issued a sharp warning to artificial intelligence companies on Thursday, insisting they must pay for the journalism and data that power their models — as the company reported higher revenue and profit for its fiscal first quarter.

“Creativity and content must not be stolen, but purchased for a reasonable price,” Thomson declared in a statement accompanying the results. “Information and sophisticated data are the essence of AI, and without these essential ingredients, AI is but empty, ignorant infrastructure — electricity without alacrity, buildings without billings, chips without chops.”

The comments underscore growing tension between media companies and AI developers, as publishers push for compensation for the use of their intellectual property in AI training.

Financial Performance

For the quarter ending September 30, News Corp reported a 2% increase in revenue to $2.14 billion, exceeding analyst forecasts. Net income from continuing operations rose 1% to $150 million, while overall profitability also improved.

Segment EBITDA climbed 5% to $340 million, and adjusted earnings per share increased to $0.22, up from $0.20 a year ago.

Thomson credited the strong results to solid performances in the company’s Dow Jones and digital real estate divisions. “News Media had a very strong quarter,” added CFO Lavanya Chandrashekar, noting a 1% revenue increase to $545 million, led by higher subscription and cover prices in the UK and Australia.

Advertising performance was “mixed,” but with “notable strength at the New York Post,” Chandrashekar added. The segment’s EBITDA jumped 67% to $30 million, fueled by continued cost efficiencies.

Divisional Highlights

• Dow Jones, which includes The Wall Street Journal, posted a 6% revenue increase to $586 million, driven by a 16% surge in its professional information unit and growing digital subscriptions.
• Move, the parent company of Realtor.com, reported $152 million in revenue, up 9% — its strongest growth since early 2022.
• HarperCollins, the company’s book publishing arm, was impacted by a $13 million receivable write-off, though News Corp said the division “has been showing signs of improvement in recent weeks.”

AI and Intellectual Property

Thomson used the company’s results to issue a pointed message to AI firms, accusing them of undervaluing intellectual property in the digital age.

“It is patently clear that the value of IP in the age of AI is misconceived,” he said, emphasizing that “both enlightened companies and wise courts” are beginning to recognize the true worth of creativity and content.

News Corp has been actively negotiating with AI companies over licensing deals, with Thomson noting that “courtship and courts are both crucial components of our strategy.” He hinted that further partnerships are on the horizon — arrangements that could positively impact the company’s financial results.

Outlook

News Corp described its current cash position as ‘robust’ and said it expects to generate strong free cash flow for the fiscal year.

Thomson also reaffirmed the company’s focus on shareholder value, pointing out that News Corp’s stock price has risen nearly 90% in the past five years under his leadership.

“We believe our shares remain undervalued given the sum of our valuable parts and our profit trajectory,” he said. “We will continue to focus on ways and means to maximize shareholder value.”