News Corp’s top profit projections after digital shift

NEWS Corp has delivered better-than-expected third-quarter pre-tax earnings as the media major said it was on track for its most profitable year in nearly a decade, underscoring the digital transformation of the business.

The company, which owns Australian newspapers including this masthead, and has a majority stake in Foxtel, posted total March quarter earnThis

ings before interest tax, depreciation and amortisation of $US298m ($382.9m), which was up 23 per cent from the same time last year.

takes total EBITDA for the nine months to end-March to $US1.06bn, up 30 per cent on the same period a year earlier.

The rebound in third-quarter profit also sees News Corp benefit from a rapidly strengthening Australian economy as it emerges from the COVID-19 downturn. At the same time the US economy is showing signs of recovery, helped by a massive stimulus program and ultra-low interest rates. “The financial year is on a trajectory to be the most profitable since our reincarnation in 2013. This highlights the transformed character of the company,” said News Corp chief executive Robert Thomson.

He said the latest results “vindicate the strategy” of simplifying News Corp’s asset mix, vigorously pursuing digitisation, slimming the cost base, and investing in growth areas — including Digital Real Estate,

Dow Jones and book publishing, which collectively delivered 55 per cent earnings growth for the quarter.

Mr Thomson also cited a sharp rebound in earnings in subscription television broadcaster Foxtel.

Total March quarter revenue was $US2.33bn, up 3 per cent on the same period a year earlier. News Corp’s Australian listed shares closed on Thursday up 0.7 per cent at $30.70.