News Corp Class B (NASDAQ:NWS) stock rose 3.48% (As on August 11, 11:22:05 AM UTC-4, Source: Google Finance) after the company beat quarterly profit estimates thanks to its cost-cutting efforts and talked up how generative artificial intelligence will support future results. For the first time, digital revenue accounted for over half of the company’s total revenue for the full year. Net loss in the quarter was $(32) million, inclusive of $166 million related to higher non-cash writedowns and restructuring charges, compared to net income of $127 million in the prior year, which included a $149 million tax benefit. The Company reported fourth quarter Total Segment EBITDA of $341 million, an 8% increase compared to $315 million in the prior year primarily due to cost savings across the businesses related to the previously announced headcount and other cost reductions and lower costs at the Other segment due in part to the absence of one-time legal settlement costs of $20 million recognized in the prior year. The increase was partially offset by lower revenues, and higher sports programming rights costs at Foxtel. Adjusted Total Segment EBITDA increased 2%. Adjusted Total Segment EBITDA does not exclude the impact from the additional week in the prior year. Net cash provided by operating activities of $1,092 million for the fiscal year ended June 30, 2023 was $262 million lower than $1,354 million in the prior year, primarily due to lower Total Segment EBITDA. Free cash flow in the fiscal year ended June 30, 2023 was $593 million compared to $855 million in the prior year. Free cash flow available to News Corporation in the fiscal year ended June 30, 2023 was $450 million compared to $663 million in the prior year.

NWS in the fourth quarter of FY 23 has reported the adjusted earnings per share of 14 cents, beating the analysts’ estimates for the adjusted earnings per share of 8 cents, according to Refinitiv data. Core earnings rose 8% to $341 million in the quarter due to cost cuts, including a 5% headcount reduction it had announced earlier. The company had reported 9 percent decline in the adjusted revenue growth to $2.43 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $2.48 billion. This drop in revenues was mainly due to lower book sales impacting the Book Publishing segment and challenging housing markets affecting the Digital Real Estate Services segment in the U.S. and Australia. Higher revenues in the Subscription Video Services segment partially offset the decline.