News Corporation reported financial results for the three months to the end of September, lifting revenue for news media as the advertising market strengthens.
Revenue was up 18% to $US2.50 billion compared to the same quarter last year. Net income was $US267 million, up from $US47 million.
News Media revenue grew 18% to $US576 million, benefiting from the rebound in the advertising market, strong digital subscriber gains and new content licensing revenue from agreements with major tech platforms
Foxtel’s streaming products reached 2.1 million paid subscribers, up 69%. Revenue for Subscription Video Services grew 3% to $US510 million.
CEO Robert Thomson: CEO Robert Thomson: “I am pleased to report that the first quarter of Fiscal 2022 was the most profitable of its kind since the re-launch of News Corp in 2013, building on the trends evident in the last financial year.
"News Media was an especially notable contributor to profitability this quarter, thanks to significant digital advertising growth and our groundbreaking agreements with Google and Facebook.
"We are primed to capitalise on the patent success of the Foxtel streaming strategy, which was highlighted during the Foxtel Strategy Day, and are reviewing potential permutations to maximize shareholder value and growth.
"It’s worth noting that Subscription Video Services Segment EBITDA rose an impressive 46% in the first quarter.
"These strong results underpin our confidence, our resilience, our ability to generate cash for our investors, and our potential for continued growth.”
Advertising revenues increased 21% to $US405 million, driven by growth in digital advertising across the businesses, recovery of print advertising at News UK and a $9 million, or 5%, positive impact from foreign currency fluctuations.
The growth was partially offset by lower print advertising in Australia due to the continued weakness in the print advertising market, exacerbated by the recent COVID-19 related restrictions across key states.
The numbers by segment:
And the consolidated results:
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