Shares of News Corp (NWSA) - Get Report were rising Friday after the media organization reported an unexpected quarterly profit thanks to strength in its subscription video services and book publishing units.
The company reported a 17% increase in revenue to $2.46 billion, yielding adjusted earnings of 4 cents per share. Analysts were expecting the company to report revenue of $2.51 billion and a break-even quarter.
"News Corp reaped rewards from our digital strategy this quarter, underscored by a robust rise in digital subscriptions across our media properties, a sharp increase in digital audio book sales and continued expansion at our digital real estate businesses despite volatile conditions in property markets," said CEO Robert Thomson.
The company's HarpersCollins publishing unit reported a 29% increase in profitability driven by 30% revenue growth in the unit's digital audio books.
The company's news and information services segment continued to struggle, reporting a 5% decrease in revenue to $62 million. However, the company's Dow Jones group saw a 1% increase in revenue while revenue from its News UK and News America Marketing units fell 8% each.
News Corp was trading at $11.99 on Friday, up 4.9%.