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News Corp reports record revenue spike, up 11% to $14.9bn

News Corporation has today reported its financial results for the three months and fiscal year which showed an 11% increase in 2022 full-year revenue to $US10.39 billion (A$14.85 billion).

Net income for the year to June was $US760 million (A$1.08 billion), a 95% lift from the $US389 million (A$556 million) of the prior year.

Commenting on the results, chief executive officer, Robert Thomson, said: “The News Media segment was the single largest contributor to the enhanced profit picture this fiscal year with profitability expanding to $217 million from $52 million, bolstered by growth in digital advertising revenues and record digital subscriber numbers.

“Foxtel’s renaissance continued, as streaming revenues from Kayo and BINGE offset broadcast declines during the year. While down slightly for the year due to currency fluctuations, both revenue and profitability were markedly higher on an adjusted basis.

“Our provenance and principles endure at News Corporation but the business has been fundamentally transformed – we are vastly more profitable and have created a potent platform for even greater growth, to the benefit of all our investors and other stakeholders.”

In the Subscription Video Services segment, Foxtel saw its streaming revenues from Kayo and BINGE offset broadcast declines during the year while achieving over 2.8 million total streaming subscribers as of year-end.

At News Corp Australia, revenue increased 9% for the full year and 6% in the June quarter.

Closing digital subscribers at News Corp Australia as of June 30, 2022, were 964,000 (882,000 for news mastheads), compared to 859,000 (810,000 for news mastheads) in the prior year.

REA Group Ltd (ASX: REA), owned by News Corp, also released its results for the year ended 30 June 2022.

Group financial highlights from core operations included revenue growth of 26% to $1,170 million, an increase in EBITDA including associates of 19% to $674 million, and a 25% increase in net profit to $408 million.

Foxtel Group also reported several wins, including record high subscriber growth of 13% on the previous year. Total Foxtel Group subscriber count increased to 4.529 million (4.413 million paid).

Thomson added: “Foxtel’s renaissance continued, as streaming revenues from Kayo and BINGE offset broadcast declines during the year. While down slightly for the year due to currency fluctuations, both revenue and profitability were markedly higher on an adjusted basis.

“Our Digital Real Estate Services segment reported 25% revenue growth for the year and a healthy 12 percent improvement in profitability, as we continued to build brands and products for future success across Realtor.com® and REA Group.”

News Corp (NWS) shares were trading on the ASX at $A24.27 as of 9 August, with a market cap of US$10.21 billion (A$14.6 billion).

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