Media, real estate aid record for News Corp

MEDIA giant News Corp delivered record revenue and profitability in the past financial year, underpinned by powerful performances in the company’s news media segment, its real estate arm, and Foxtel’s ongoing renaissance.

The company’s revenue of $Us10.39bn ($14.9bn) in the year to June 30 was up 11 per cent on the previous year, while full-year earnings before interest, tax, depreciation and amortisation rose 31 per cent to $Us1.67bn. Net income rose 95 per cent to $US760M.

News Corp chief executive Robert Thomson was upbeat about the performance.

“Our provenance and principles endure at News Corporation but the business has been fundamentally transformed – we are vastly more profitable and have created a potent platform for even greater growth, to the benefit of all our investors and other stakeholders,” he said.

News Corp’s portfolio of mastheads includes The Australian, Herald Sun, The Daily Telegraph, The Courier-mail, The Advertiser and publications including this one.

“The news media segment was the single largest contributor to the enhanced profit picture this fiscal year with profitability expanding to $US217M from $US52M, bolstered by growth in digital advertising revenues and record digital subscriber numbers,” Mr Thomson said. “This spectacular result came as many other newspaper companies around the world struggled.

“News Corp Australia, under Michael Miller and his team, increased its profit contribution by $US109M, its highest since separation, as digital subscribers to News

Corp Australia properties rose by 12 per cent to 964,000 and advertising revenues remain robust.”

Mr Thomson also praised the performance of Foxtel, which continues its impressive trajectory with the success of leading platforms Kayo (sports) and BINGE (entertainment). “Foxtel’s renaissance continued, as streaming revenues from Kayo and BINGE offset broadcast declines during the year,” he said. Total streaming subscribers at the end of the fiscal year soared 31 per cent from a year ago to 2.8 million.

Total Foxtel Group subscribers increased to 4.529 million (4.413 million paid), a record high, up 13 per cent on the previous year.

Revenues for the company’s digital real estate services also grew 25 per cent in the year.

Chief financial officer Susan Panuccio noted in the coming quarter, News Corp would face ongoing challenges, including continued supply chain and inflationary pressures.

“We will take necessary action to address those pressures,” she said.