At 91, Rupert lands a cool billion as ‘transformed’ News Corp doubles its profits
Rupert Murdoch’s News Corporation has almost doubled its profits in 2021/22 to a record $US760 million ($A1.1 billion).
Malcolm Turnbull (left) supported a petition calling for an inquiry into the influence of Rupert Murdoch (right). (Photo: AP Photo/Pablo Martinez Monsivais)
The US-listed company owns News Corp Australia, as well as numerous mastheads in the US and UK, alongside book publisher HarperCollins and a majority stake in real estate advertising company REA Group.
Net income increased 95 per cent on the previous year, while revenue for the year ended June 2022 reached another record at $US10.4 billion ($A14.9 billion), an increase of 11 per cent.
The unprecedented result was driven by the company’s news media division, which saw $US217 million ($A311 million) profit growth through digital advertising revenue expansion and record digital subscriber numbers.
In an ebullient presentation to investors, the company said it had seen seven years of uninterrupted double-digit growth, which has resulted from acquisitions and digital transformation.
“The business has been fundamentally transformed, we are vastly more profitable and have created a potent platform for even greater growth, to the benefit of all our investors and other stakeholders,” chief executive Robert Thomson said in the results release.
In the most recent quarter, overall revenues were up seven per cent to $US2.67 billion ($A3.83 billion), while net income was back in the black at $US127 million ($A182 million), compared to a net loss in the fourth quarter of the previous year.
Dow Jones, publisher of the Wall Street Journal, achieved the highest revenue since its acquisition, driven by record advertising, and growing digital only subscriptions.
Fourth-quarter profitability at Dow Jones soared 54 per cent to $US106 million ($A152 million), leading to a 30 per cent increase for the year to $US433 million ($A620 million).
Declines in broadcast viewing at Foxtel were offset by streaming revenues from Kayo and Binge, with more than 2.8 million streaming subscribers in total.
Digital real estate division revenues, including results for REA Group and Move, grew by a quarter.
The acquisition of HMH books and media saw revenues climb 10 per cent in News Corp’s book publishing division, with consumer spending above pre-pandemic levels.
