News Corp navigates choppy waters in record quarter
NEWS Corp has registered record revenues for the third quarter despite significant market volatility, with the company’s Australian news assets, Foxtel’s streaming services and REA Group enjoying strong year-onyear growth.
Announcing the results, the company’s chief executive Robert Thomson said: “News Corp revenues and profitability set new records for the third quarter, building on the momentum of preceding record quarters. We have now achieved more in profitability through the first three quarters of fiscal 2022 — at over $US1.3bn ($1.8bn) and rising 27 per cent compared to the prior year — than in any entire fiscal year since our rebirth in 2013.”
Revenues in the quarter were $US2.49bn — a record for third quarter revenue, and a 7 per cent increase compared to $US2.34bn in the prior year.
Total Segment EBITDA (earnings before interest, taxes, depreciation and amortisation) in the quarter was $US358bn, a 20 per cent increase on a year earlier.
“That growth has been underpinned by our continued transformation to a digital-led company,” Mr Thomson said.
Digital advertising across the company’s global assets surged 21 per cent in the third quarter.
“Notably, print advertising has actually expanded for four consecutive quarters in double digits,” Mr Thomson said.
News Media was the biggest contributor to News Corp’s growth in profitability in the quarter, with segment EBITDA 388 per cent higher in the quarter. In Australia, News Corp owns mastheads including The Australian, Herald Sun, The Daily Telegraph, The CourierMail and The Advertiser.
“News Australia had a strong quarter, with substantial improvement in profit contribution, thanks in part to our deals with the tech platforms, continuing cost discipline and the development of our digital platforms,” Mr Thomson said.
Foxtel registered a 62 per cent year-on-year spike in the number of its paid subscribers, with BINGE and Kayo boasting a combined subscriber base of nearly 2.6 million.