News Corp profits nearly double as subscriptions drive post-pandemic recovery

News Corp, the publishing company controlled by Rupert Murdoch, said profits in the year to June were almost 100% as growth in digital advertising and subscriptions helped its news business recover from losses during the pandemic. doubled.

The U.S.-listed company, which publishes newspapers including The Wall Street Journal, The Australian and The Times, reported an 11 percent rise in revenue this year to $10.4 billion, with pretax profit rising to $812 million from $450 million the year before. billion dollar year.

“The news media segment was the largest contributor to profit growth in the fiscal year, with profitability expanding from $52 million to $217 million, driven by growth in digital advertising revenue and record numbers of digital subscribers,” News Corp Chief Executive Robert Thomson said, adding that the company “set important records”.

Susan Panuccio, Chief Financial Officer inflation Limited advertising visibility will lead to “necessary action” on costs in the new financial year.

The strong performance in fiscal 2022 is in stark contrast to 2020, when the company posted a $1 billion loss in the three months to March as ad revenue and pay-TV subscriptions plunged.News Corp Close the print edition 100 Australian newspaper headlines, hitting the local media industry hard.

strong performance media Revenue from the business rose 10 percent year-on-year, helped by the company’s operations in Australia and the United Kingdom, which include Wireless Group’s radio business.

Publishing and subscription revenue rose 8%, or $83 million, while advertising revenue rebounded 14%, driven by a recovery in digital sales and print advertising in the UK. The segment’s EBITDA rose to $165 million, but was offset by currency fluctuations and $20 million in costs related to the UK launch of TalkTV and other digital investments.

The company’s overall profits, which also include real estate website and book publisher HarperCollins, were also hit by $20 million in litigation costs. The company did not disclose the relevant content of the case.

Macquarie analyst Darren Leung said the stronger-than-expected results were driven by cost control and solid user growth.

The company’s Kayo sports streaming service added 142,000 visits in the fourth quarter, helped by the timing of the Australian Rules football season. The increase helped offset a more static performance in the broader Foxtel pay-TV segment.

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