News Corp profits nearly double, revenue jumps

Subscription video revenues fell $US46 million ($65.9 million) – or 2 per cent – due to a $US61 million impact from foreign currency fluctuations. Streaming revenues – predominantly from Kayo and Binge, more than offset revenue decline from Foxtel’s traditional broadcast product. The streaming subscription revenue makes up about 20 per cent of total subscription revenues in the fiscal year.

Foxtel’s traditional broadcast product has 1.5 million residential subscribers, a decrease of 1.7 million in 2021, and 242,000 commercial subscribers, a slight increase on the previous year.

Kayo has 1.3 million paid subscribers – just 200,000 less than the number of residential subscribers – while Binge has 1.2 million. Total paid Foxtel subscribers was 4.4 million for the full year, compared to 3.9 million. The company’s news-focused streaming service, Flash has 11,000 paid subscribers.

Earnings [before interest, tax, depreciation and amortisation] for subscription services were flat for the year due to an $US8 million impact from foreign currency fluctuations. Expenses were flat as higher sports and entertainment programming costs were offset by the absence of the $US57 million negative impact seen in the first half of fiscal year 2021 caused by deferred programming costs.

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ASX-listed REA Group was one of the key drivers of growth for News Corp, with full-year revenue for its digital real estate services segment increasing by 25 per cent to $US348 million. REA Group’s revenue increased by 37 per cent to $US1 billion, driven by growth in financial service revenues and higher residential depth revenues.