CEO of NewsCorp Robert Thompson released the company’s financial results for the three months ending March 31, 2022.
Thomson said: “News Corp’s revenue and profitability set new records for the third quarter, building on the momentum of previous record quarters. We have now achieved more profitability in the first three quarters of fiscal 2022 – at over $1.3 billion [all figures US$] and a 27% increase over the previous year – more than in any full year since our relaunch in 2013.
“In the first three quarters of fiscal 2022, News Corp is on track for its most profitable year since its separation. Clearly, surpassing last year’s record results.
News media was the biggest contributor to News Corp’s third-quarter profitability growthwith segment EBITDA up about 388% in the quarter, Thomson said.
“We saw continued strong digital advertising performance across the segment, alongside a notable rebound in print advertising at News UK. News Australia had a strong quarter with a substantial improvement in earnings contribution, in part due to our agreements with technology platforms, our continued cost discipline and the development of our digital platforms.
Australian Newspaper Headlines Add Over 100,000 YOY
News Corp Australia’s digital subscriber count at March 31, 2022 was 946,000 (876,000 for news banners), down from 807,000 (760,000 for news banners) the previous year.
(Source: News Corp internal data)
Dow Jones broadcast and subscription revenue increased $48 million, or 15%, including contributions of $18 million and $10 million from the acquisitions of IBD and OPIS, respectively . Stream revenue increased 16%, reflecting the acquisition of IBD and continued strong growth in digital-only subscriptions to The Wall Street Journal.
Total subscriptions to The Wall Street Journal grew 10% year over year to reach over 3.7 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 16% to over 3 million average subscriptions in the quarter and accounted for 82% of the total the wall street journal subscriptions.
The New York Post revival continued with its large audience, strong ad growth and improved profit contribution, Thomson said.
“The New York Post The digital network now ranks among the top news sites in the United States and has grown nearly eightfold since fiscal 2014, reaching more than 172 million average monthly unique users in the third quarter.
“News UK also had a healthy profit contribution with a significant improvement in revenue from The sun where digital advertising has overtaken print. It should also be noted that thesun.com, the brand extension of The sun in the US market grew page views in the third quarter by more than 260% year-over-year to 500 million, with significantly improved returns. »
Thomson also mentioned the recently launched TalkTV channel and its star attraction:Piers Morgan’s highly anticipated program launched on April 25. And it more than exceeded expectations in terms of reach in the UK, US and Australia, thanks to the power of our platforms, the essential partnership with Fox News and the quality of the programming. Not only does TalkTV plan to be a broad church of diverse views and lively discussions, but it offers a new opportunity to leverage our strong brands, talented people and premium video content in the UK and around the world. .
“In subscription video services, the third quarter saw continued progress in reshaping the Foxtel Group as a growth-driven subscription business, with continued streaming success, stable revenue and strong generation. Notably Kayo and BINGE, both of which surged in the quarter and are now reaching record numbers of subscribers, Kayo plans to implement a price increase as it benefits from its scale platform and its high-quality production, driving record early-season ratings for the NRL and AFL Overall, total paid streaming subscriptions reach nearly 2.6 million, up 62% .
See also: Foxtel Group’s third quarter results reveal an increase in the number of streaming subscribers
Payments from tech platforms boost News profits
News media was the company’s largest contributor to News Corp’s profitability growth in the third quarter, with top segment EBITDA up approximately 388% in the quarter. “We saw continued strong digital advertising performance across the segment, alongside a notable rebound in print advertising at News UK. News Australia had a strong quarter with a substantial improvement in earnings contribution, in part due to our agreements with technology platforms, our continued cost discipline and the development of our digital platforms.”
Chief Financial Officer of News Corp Susan Panuccio added, “News media momentum continued during the quarter. Revenue reached $580 million, up 5% from the prior year. We again saw improved advertising as well as strong growth in streaming and subscription revenue, benefiting from the contribution of our recent content licensing revenue.
“Within the segment, revenues for NewsCorp Australia and News UK increased by 2% and 4% respectively. wireless group and the New York Post also continue to show strong revenue growth.
“Streaming and subscription revenue increased 5% driven by strong digital subscriber growth, incremental revenue from platform deals and coverage price increases. Currency headwinds negatively impacted broadcast and subscription revenue by $12 million or four percentage points.
“Advertising revenue was up 9% year-on-year, driven by digital strength in all of our key markets. In particular to The sun, which more than doubled digital advertising revenue from the previous year. Foreign exchange negatively impacted advertising revenue by $10 million or five percentage points. Segment EBITDA of $39 million increased $31 million from the prior year, reflecting higher revenues.
“Margins have improved to almost 7% from 1% last year. Results were partially impacted by TalkTV-related hiring investments and marketing support for new digital product offerings at NewsCorp Australia.
In response to an analyst’s question, Thomson provided some details on ad revenue growth: “Dow Jones advertising grew 20%; News UK, 32%; New York Post, 13%; and News Australia, 2%.”
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