Blog Post

Earnings: Dow Jones Posts Lower Q2 Profits; Revenue Up 16.2 Percent; Director Resigns

In what could be its last earnings report before it becomes part of News Corp., Dow Jones (NYSE: DJ) said its profits fell 26.5 percent, posting earnings of $21 million, or 25 cents per diluted share, for Q2, versus $28.8 million, or 34 cents a share, one year ago. Excluding special items, the company earned 45 cents per diluted share for the quarter, up 15.4 percent from the 39 cents per diluted share earned in Q206.

On the revenue side, Dow Jones was up $529.7 million, a gain of 16.2 percent year-over-year. The company pointed to a number of factors pushing revenues up: the acquisition of Factiva, plus growth at Dow Jones Indexes, international media (including the acquisition of eFinancialNews) and The Wall Street Journal Digital Network (previously Dow Jones Online). The revenue success of those areas were able to offset a decline in print ad sales at WSJ in the U.S. and newspapers in its Local Media segment. Other highlights from the release:

— Dow Jones recorded special items that reduced earnings per share by 20 cents. Included in those special items is a charge of 13 cents for incremental stock-based compensation expenses as a result of an increase in Dow Jones’ stock price after the announcement of News Corp.