News Corp profits nearly double as digital ads and subscriptions rise

Shares of News Corp. – owner of the New York Post, Wall Street Journal, HarperCollins and news groups in the UK and Australia – jumped 5.2% on Tuesday after the company said it nearly doubled its profits in the past exercise.

The media giant reported stronger growth in advertising revenue than in circulation and subscriptions during the quarter, even as other publishers and TV networks began to report a slowdown in the advertising market amid recession fears.

Revenue rose 11% to $10.39 billion for the year ended June 30. Pretax profit reached $812 million, up from $450 million a year earlier.

During the fourth quarter, News Corp made a profit of $110 million, compared to a loss of $14 million a year ago, which was linked to a higher tax benefit. Quarterly revenue increased 7.3% to $2.67 billion.

Shares of News Corp. closed at $18.27.

“The excessive use of superlatives is truly unseemly, but the last quarter and the entire year have created so many all-time highs that reflect everything at News Corp and we believe we have created a platform for future performance and returns. sustainable for our investors,” News Corp chief executive Robert Thomson told investors.

News Corp CEO Robert Thomson attributed the strong growth in advertising and subscriptions to the strong financial results.
Getty Images

“These achievements, which necessarily require the use of superlatives, follow intense digital business transformation and targeted acquisitions that we believe will drive increased revenues and healthy earnings well into the future,” Thomson added.

Last February, the CEO touted The Post’s first profit in “modern times”, and he said on Wednesday that the newspaper had built on that momentum.

“The New York Post has released a historic result – it officially announced a profit, possibly the first since Alexander Hamilton founded the paper, and we are now on track to increase profit contribution” , Thomson said. “The Post has distinguished itself with courageous journalism that has seen it rise far above media mediocrity.”

The Post’s digital network reached around 198 million unique users in June 2022, up from 123 million the previous year

The growing news media group, which includes The Post as well as the Sun and Times in the UK and newspapers in Australia, saw its revenue rise 5.7% to $629 million.

Thomson said Dow Jones, publisher of the Journal, MarketWatch and Barron’s, had the fastest growth, posting a 54% increase in revenue to $106 million and a 26% increase in revenue to $565 million. dollars.

The CEO said the unit’s subscriber base reached 4.9 million during the quarter.

News Corp’s book publishing division, HarperCollins Publishers, reported a 4.1% increase in revenue to $513 million. The executive said the recent acquisition of Houghton Mifflin Harcourt’s books and media is already paying off as the unit, which includes a catalog of works by Lord of the Rings author J.RR Tolkien, has seen its income to climb by 10%.

The company’s real estate services unit posted a 7.3% rise in revenue to $443 million, while its subscription video services division, which includes Foxtel, an Australian pay-TV provider, recorded a 3.3% drop in revenue to $524 million.