News Corp(NASDAQ:NWSA) stock rose over 7.2% on November 10th, 2017 (As of 1:22PM EST; Source: Google finance) driven by the solid first quarter of 2018 update. The group’s first quarter of 2018 revenues rose 5% yoy to $2.06 billion, against $1.97 billion in the prior year period, driven by the ongoing rise in the Digital Real Estate Services segment, the acquisitions of Australian Regional Media and Wireless Group. Moreover, a positive $26 million impact from foreign currency fluctuations also contributed to the performance.
News Corp Adjusted Revenues (which exclude the foreign currency impact, acquisitions and divestitures as defined in Note 1) rose 1% while the Net income reached $87 million against nil in the prior year driven by better EBITDA. Overall Segment EBITDA surged 92% yoy to $249 million, during the first quarter of FY18 from $130 million in the prior corresponding period. U.K. Operational improvement was boosted by the ongoing growth in the Digital Real Estate Services segment, coupled with falling costs at the News and Information Services segment and at FOX SPORTS Australia.
The group’s News and Information Services revenues enhanced $19 million, or 2%, during the quarter from pcp. Adjusted Revenues fell 3% against pcp. But, Advertising revenues were flat as compared to the prior year as the growth was boosted by $23 million from the acquisition of Wireless Group, $21 million from the acquisition of ARM. Circulation and subscription revenues enhanced 3%. Digital Real Estate Services Revenues enhanced $45 million, or 20%, during the quarter driven by ongoing growth at REA Group and Move. Segment EBITDA enhanced $28 million, or 42%, against pcp.
The group is positive over their premium media businesses, driven by the major changes agreed by Google in the ranking of news content. The group continues to make discussions with both Google as well as Facebook about further facilitating subscriptions and the sharing of permissioned personal data. During August, the group along with Telstra made a non-binding agreement to combine Foxtel and FOX SPORTS Australia, with News Corp owning 65% of the new company. The group forecasts to close this in the first half of calendar year 2018, Pending definitive documentation and regulatory approval.