What drove NWS's positive earnings surprise in 2025 Q1?

News Corporation (NWS) reported a positive earnings surprise in Fiscal Q1 2025, with a revenue surprise of $10 million, driven by several key factors:

1. Growth in Digital Real Estate Services: REA Group, part of the Digital Real Estate Services segment, achieved a record revenue of $318 million, marking a 22% increase from the previous year. This growth was fueled by strong performance in the Australian residential market.
2. Increase in Book Publishing Sales: The Book Publishing segment reported a 4% revenue growth, with a 15% increase in digital book sales and strong backlist performance. This contributed to the overall revenue growth.
3. Dow Jones Segment Expansion: The Dow Jones segment saw an 8% revenue increase, supported by significant rises in Risk & Compliance (16%) and Dow Jones Energy (11%). This segment's performance, including the growth in circulation and subscription revenues, particularly in consumer products like The Wall Street Journal, contributed to the company's revenue growth.
4. Cost Discipline and Digital Development: News Corporation's focus on rigorous cost discipline and digital development in the News Media segment led to a meaningful rise in overall margins compared to the prior year. This strategic approach likely improved operational efficiencies and boosted profitability.

These segments' robust performance and strategic initiatives collectively drove News Corporation's positive earnings surprise in Fiscal Q1 2025.