News Corp reported revenue of $US2.48 billion in the September quarter, down 1% on the same three months last year and slightly below market expectations.
The decrease was driven by a $153 million, or 6%, negative impact from foreign currency fluctuations and lower book publishing revenues. Adjusted revenues increased 3%.
Net income for the quarter was $66 million, a 75% decline compared to $267 million in the prior year.
Foxtel revenue was $502 million in the quarter, a decreased of $8 million, or 2%, compared with the prior year, mainly due to a $40 million, or 8%, negative impact from foreign currency fluctuations.
Adjusted revenues of $542 million increased 6% compared to the prior year, improving from the prior quarter rate. Higher revenues from Kayo and BINGE, higher commercial revenues and an increase in advertising revenues were partially offset by the impact from fewer residential broadcast subscribers.
As of September 30, Foxtel’s total closing paid subscribers were nearly 4.5 million, a 16% increase.
CEO Robert Thomson said: ““While the macro environment is patently more volatile, the results highlight the resilience of News Corp and the potential for sustained growth and increased profitability.
"Headline revenues were down one percent to $2.5 billion, but the decline was obviously a consequence of foreign currency fluctuations. On an adjusted basis, our revenues grew a healthy three percent, building on the robust results from last year.
"Profitability for the quarter was $350 million, down 15 percent, although that reflects the forex headwinds and a fundamental reset by Amazon of its book inventory levels and warehouse footprint. We view neither factor as reflective of core business conditions or of our long-term potential.
"Dow Jones posted its best first quarter results since its acquisition with revenues rising 16 percent and Segment EBITDA an even more impressive 19 percent, benefiting from the successful integration of OPIS and Chemical Market Analytics, strong digital advertising growth, record digital subscriptions and continued momentum at Risk & Compliance. News Corp is building on a sturdy base.
"We have reported record profitability in each of the last two fiscal years and bolstered our fortunes through savvy investments and by streamlining the cost base.”
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