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Shares of the company fell 2.5% in after-market trading.
Total revenue decreased 1% to $2.48 billion in the quarter ended Sept. 30, while analysts were expecting $2.50 billion, according to Refinitiv data. Excluding the impact of foreign exchange, revenue grew 3%.
News Corp (NASDAQ:NWSA) said loss from foreign exchange and lower book sales as a result of Amazon.com Inc (NASDAQ:AMZN) reconfiguring its inventory and warehouse footprint dragged the topline, even as inflationary pressure shore up costs.
Business at the media conglomerate was boosted by growth in its Dow Jones unit, which earns primarily from subscription sales, offsetting weakness in the advertising market which has affected media and Internet firms across the board.
Revenue at the Dow Jones unit grew 16% to $515 million in the reported quarter, while all other units reported a drop in revenue.
Overall revenue from advertising grew to $406 million, a $1 million rise from a year ago.
Net income, however, declined 75% to $66 million. On an adjusted basis, News Corp reported earnings per share of 12 cents, missing analysts’ estimate of 15 cents.
News Corp grew revenue by 11% and profits by 95% in the fiscal year 2022 ended June.
