News Corp nearly doubles its profits thanks to digital advertising and subscribers | press company

Rupert Murdoch’s News Corporation nearly doubled its profits in 2021/22 to a record $760m (A$1.1bn).

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 the property advertising company REA Group.

Net profit rose 95% year-on-year, while revenue for the year ending June 2022 hit a new record high of $10.4 billion (A$14.9 billion), an increase of 11%.

The record result was driven by the company’s news media division, which reported profit growth of $217 million (A$311 million) thanks to the expansion of digital advertising revenue and to the record number of digital subscribers.

In an exuberant presentation to investors, the company said it had enjoyed seven years of uninterrupted double-digit growth, driven by acquisitions and digital transformation.

“The business has been fundamentally transformed, we are much more profitable and have created a powerful platform for even greater growth, to the benefit of all of our investors and other stakeholders,” said Chief Executive Robert Thomson, in the publication of the results.

In the last quarter, overall revenue rose 7% to $2.67 billion (A$3.83 billion), while net profit was back in the black at $127 million (A$182 million Australian dollars), compared to a net loss in the fourth quarter of last year.

Dow Jones, publisher of the Wall Street Journal, achieved the highest revenue since its acquisition, thanks to record advertising and growth in digital-only subscriptions.

Fourth-quarter profitability at Dow Jones soared 54% to $106 million (A$152 million), driving a 30% increase for the year to $433 million (A$620 million).

Broadcast viewing declines at Foxtel were offset by streaming revenue from Kayo and Binge, with more than 2.8 million total streaming subscribers.

Revenue from the Digital Real Estate division, including results from REA Group and Move, increased by a quarter.

The acquisition of HMH Books and Media boosted revenue 10% in News Corp’s book publishing division as consumer spending surged above pre-pandemic levels.