News Corp has reached a net loss of $1.4bn for the FY, writing off Foxtel and Fox Sports, following a 2017 result of -$643m in which it also wrote down the value of its Australian cable television service.
Advertising revenue for News Corp fell from $2.86bn to $2.79bn, with boosts in subscriptions, circulation, consumer, and real estate revenue bringing total revenues to $9bn from $8.1bn.
EBITDA for the FY comes to $1bn, a 21 per cent increase from the previous year’s result of $885m.
A spokeswoman for News Corp Australia says, “Our print numbers have stabilised, and our readership is growing. There has been strong growth growth in digital subscribers across all our brands, including The Australian and Herald Sun.”
Within print, the book publishing segment had the strongest performance, with full-year revenues increasing seven per cent from the prior corresponding period (pcp), reaching $1.75bn from $1.63bn. Digital sales increased six per cent from the pcp, while segment EBITDA increased by $45m, a 23 per cent increase from the previous year.
In News and Publishing, News Corp Australia increased revenue by one per cent, reaching $5.1bn from $5bn.
Digital is driving growth for the company in its News and Information Services segment, representing 30 per cent of total revenues, from 26 per cent in the pcp.
The Foxtel and Fox Sports Australia write-downs contributed to -$998m on the bottom line, as the company separated both assets into an entity called ‘New Foxtel’.
Robert Thomson, chief executive, News Corp, says, “Fiscal 2018 was a year of operational and transformational success at News Corp, with robust performance across our businesses, and positive and profound changes in the character of our revenue flows, which were more global, digital, and subscriptions-based. We generated strong revenue and segment EBITDA growth in digital real estate and book publishing, which, together with the consolidation of Foxtel, drove over $1bn in profitability for the year.
“Digital Real Estate Services continues to flourish and we expanded into meaningful adjacencies, broadening our audience and our revenue sources. HarperCollins’ success underscores the importance of intelligent editors and great writers in creating premium content. Algorithms are, as yet, unable to write empathetic, compelling books.
“We also saw meaningful operational improvements at the News and Information Services segment led by higher paid digital subscribers and disciplined cost initiatives, notably in Australia. Mastheads like The Times, The Sunday Times and The Wall Street Journal reached new heights in their digital transformation, with digital paid subscribers now exceeding print subscribers.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter