Saturday, 18 August 2018
Latest news
Main » News Corp loses $1.4bn as paid subscriptions get a boost

News Corp loses $1.4bn as paid subscriptions get a boost

12 August 2018

"News Corp is now a more substantial company after the Foxtel transaction, with a much higher percentage of recurring, subscription-based revenues, which should help offset a volatile advertising environment", he said.

While reporting News Corp.'s Q2 results in a February 8 earnings call, Thomson pointed out: "Clearly, there are profound changes taking place in the creation and the distribution of digital content". Fox is now undergoing another breakup, with a plan to sell most of its TV and film assets to Walt Disney Co.

The company posted a net loss of $355M as reported, accounting for a noncash impact of $337M from the combination of Foxtel and Fox Sports Australia.

Total revenue surged 30 percent to $2.69 billion, above estimates of $2.65 billion.

The growth was partially offset by lower print advertising revenues at the news and information services segment.

More news: Ford celebrates production of 10 million Mustang sports cars

Bloomberg LP, the parent of Bloomberg News, competes with News Corp.in providing financial news and services.

The digital real estate services unit reported a revenue rise of 19 per cent.

Chief executive Robert Thomson said: "We also saw meaningful operational improvements at the news and information services segment led by higher digital paid subscribers and disciplined cost initiatives, notably in Australia". In the fourth quarter, the company claimed cable and satellite residential churn was 12.5% compared to 13.3% in the prior year.

The number of subscribers to Foxtel grew 2% to 2.8 million in the year to 30 June 2018.

Mr Thomson told an analyst briefing the "absolute focus" of the company in Australia would be the integration of Foxtel and Fox Sports, rather looking to buy a new business.

More news: Australian woman killed by garbage truck in New York City

We have created an interactive dashboard on what to expect from News Corp's fiscal 2019 earnings which outline our forecasts for the company's full-year fiscal 2019 results.

"We are seeing strong digital paid subscriber growth across many of our key properties, where digital subscribers now exceed print", CFO Susan Panuccio said on an earnings call August 9.

He highlighted the growth of digital paid subscribers at United Kingdom mastheads such as the Times and the Sunday Times, and hailed strong growth at the Wall Street Journal. The new Foxtel is focused on product innovation and leveraging its valuable content.

When the company launched the "new" News Corp. five years ago, "we promised to be relentlessly digital and global and that we would remain faithful to the principles and the values inherited from the founding company", Thomson told analysts.

More news: Tiger Woods electrifies PGA Championship crowd with back-to-back birdies

News Corp loses $1.4bn as paid subscriptions get a boost