Join our daily newsletter At The Bell to receive exclusive market insights
- News Corp (NWS) has reported total revenue of $2.72 billion for the second quarter of FY2022, representing a 13 per cent increase from the previous corresponding period
- The company said the increase reflects growth in all of its revenue, which primarily stems from real estate, advertising and recent acquisitions
- Total segment EBITDA was $586 million, representing 18 per cent growth from the prior year
- Net income was $262 million, which is relatively flat compared to the previous year
- Shares closed 5.73 per cent higher today at $33.38 each.
News Corp (NWS) has reported total revenue of $2.72 billion for the second quarter of FY2022, representing a 13 per cent increase from the previous corresponding period. This figure excludes foreign currency impact, acquisitions and divestures.
The company said the increase reflects growth in all of its revenue, which primarily stems from real estate, advertising, and recent acquisitions.
Operating costs for the quarter came in at $1.28 billion, an increase from the previous corresponding period.
Total segment EBITDA was $586 million, representing 18 per cent growth from the prior year.
Net income was $262 million, which is relatively flat compared to the previous year.
Its digital real estate services arm saw revenue increase by 35 per cent from the previous corresponding period to $117 million. This growth was partially offset by the increase in expenses from the acquisitions of Mortgage Choice and REA India, higher employee costs, and higher marketing costs.
The company also saw revenue growth across its book publishing, Dow Jones, and News Media segments.
However, subscription video services revenue decreased to $13 million.
This is despite an increase of 19 per cent in Foxtel’s paid subscribers to over 3.9 million, which was primarily driven by growth in BINGE and Kayo.
The company said revenue dropped due to COVID-19 resulting in fewer residential broadcast subscribers and lower commercial subscription revenues.
Free cash flow available to News Corp for the six months ending December 31, 2021, is $144 million, a decrease from $277 million. The company attributes the decline to lower cash from operating activities, and higher capital expenditures, partially offset by higher dividends received from REA group.
Chief Executive Robert Thomson said he expects future agreements to drive further growth for the company.
“The landmark agreements with Big Tech continued to benefit our journalism and our bottom line,” Mr Thomson said.
“In addition to the substantial deals with Google and Facebook, we expanded our multi-year global agreement with Apple, which is expected to be an important source of subscriptions and of advertising revenue for our news sites around the world.”
Shares closed 5.73 per cent higher today at $33.38 each.
