- Despite a raging worldwide pandemic, Rupert Murdoch’s News Corp has recorded one of its best quarters in years.
- The company reported second quarter Total Segment EBITDA of $497 million, a 40% increase compared to $355 million in the prior year.
- News Corp reported fiscal 2021 second quarter total revenues of $2.41 billion, 3% lower compared to $2.48 billion the year prior.
NEW YORK, New York – Despite a raging worldwide pandemic, Rupert Murdoch’s News Corp recorded one of its best quarters in years in the 3 months to 31 December.
The company reported second quarter Total Segment EBITDA of $497 million, a 40% increase compared to $355 million in the prior year. The increase, says the company, was primarily due to the strong performance at key segments, driven by a combination of improved operating trends and cost reductions, as well as an $18 million, or 6%, positive impact from foreign currency fluctuations.
News Corp reported fiscal 2021 second quarter total revenues of $2.41 billion, 3% lower compared to $2.48 billion in the prior year period. The decline was mainly due to lower revenues at the News Media segment, primarily driven by a $191 million, or 8%, negative impact from the divestiture of News America Marketing, weakness in the print advertising market, and a $34 million, or 1%, negative impact from the closure or transition to digital of certain regional and community newspapers in Australia, the company said in a SEC filing on Thursday. The decline was partially offset by growth in the Book Publishing, Digital Real Estate Services and Dow Jones segments, as well as a $75 million, or 3%, positive impact from foreign currency fluctuations.
“The second quarter of fiscal 2021 was the most profitable quarter since the new News Corp was launched more than seven years ago, reflecting the ongoing digital transformation of the business. We reported the largest profits for Dow Jones since the acquisition of the company in 2007, with Segment EBITDA increasing 43 percent and traffic across the Dow Jones digital network surging 48 percent,” Chief Executive Officer Robert Thomson said Thursday.
“There was also a 77 percent rise in Segment EBITDA at the Subscription Video Services segment, where the exponential evolution at Foxtel continued apace, with streaming customers increasing over 90 percent, rights costs reset and audiences for summer sports at unprecedented levels.”
“Rapid expansion continued at Move, which accounted for about 80 percent of Segment EBITDA growth in the Digital Real Estate Services segment, while revenue grew 28 percent compared to a year earlier. Realtor.com’s traffic growth has now outpaced that of Zillow for the last 11 months in a row, according to Comscore, and monthly average unique users were 37 percent higher during the quarter compared to the prior year,” the News Corp CEO said.
“In the Book Publishing segment, HarperCollins’ revenues rose 23 percent, with double digit growth across every category, and a 65 percent burgeoning of Segment EBITDA. And history was also made at The New York Post, which reported its first profit in modern times a notable feat for what had been a chronic loss-making masthead founded in 1801 by Alexander Hamilton.”
Highlights of the group’s fiscal second quarter:
Revenues were $2.41 billion, a 3% decline compared to $2.48 billion in the prior year Adjusted Revenues increased 2% compared to the prior year
Net income of $261 million compared to $103 million in the prior year
Total Segment EBITDA was $497 million compared to $355 million in the prior year
Reported diluted EPS were $0.39 compared to $0.14 in the prior year Adjusted EPS were $0.34 compared to $0.18 in the prior year
Book Publishing Segment EBITDA increased 65% compared to the prior year, driven by strong revenue growth across every category
Move, operator of realtor.com, reported 28% revenue growth and was a key driver of Segment EBITDA growth at the Digital Real Estate Services segment
Dow Jones reported 43% Segment EBITDA growth, driven by record digital advertising revenues and continued growth in digital subscriptions
Subscription Video Services Segment EBITDA grew 77% as Foxtel benefited from lower costs while reaching a record of more than 1.3 million paying OTT subscribers as of the quarter end.
By Lola Evans, Nigeria Sun
