Digital leading robust recovery at News Corp
NEWS Corp has registered its most profitable year in almost a decade, underpinned by a bumper fourth quarter during which revenue surged by 30 per cent.
The result came on the back of soaring digital subscriptions and record profits at Harper-Collins and Dow Jones.
The company, which owns newspapers in Australia including this one, also enjoyed record subscriber growth at Foxtel, in which it has a majority stake.
The number of Foxtel subscribers eclipsed 2 million in the fiscal year 2021, an increase year-on-year of 155 per cent – a result described by News Corp chief executive Robert Thomson as “a profound escalation”, due in part to the successful launch of entertainment streaming arm Binge last year.
“The Foxtel narrative is particularly positive, as our early emphasis on streaming and on securing long-term, valuable sports and entertainment rights has put the company on a decidedly upward trajectory,” he said.
“Our paying subscribers were 40 per cent higher and fiscal year revenue rose 10 per cent.”
Mr Thomson also observed the strong performance of News Corp’s Australian mastheads. “We saw a 25 per cent increase in digital subscribers at the mastheads in the fourth quarter, while there was a healthy recovery in advertising,” he said.
“Clearly businesses are subject to the vagaries of the virus in Australia, but the robust recovery in recent months is a hopeful harbinger.”
Mr Thomson said the company’s end-of-financial-year results were all the more impressive given the trying circumstances brought about by the coronavirus.
“The past year has been a severe test for families, for countries and for companies – the stresses and strains of a pandemic have stretched the social fabric and the commercial canvas,” Mr Thomson said.
News Corp’s overall revenues were $US9.36bn ($12.64bn) in the year to endJune. This was a 4 per cent increase compared to $US9.01bn in the prior year, reflecting the 30 per cent increase in the fourth quarter.
Net profit for the full year was $US389m, compared to a net loss of $US1.55bn in the prior year.