News Corp saw a loss of $1.4bn for the full year, in contrast to its loss of $643m the year before, primarily driven by writing off Foxtel and Fox Sports.
Total revenue for the year came in at $9.02m, increasing 11 per cent from $8.14m the year before, although News says the growth was partially offset by lower print advertising.
Advertising revenue for News Corp fell from $2.86bn to $2.79bn, with boosts in subscriptions, circulation, consumer, and real estate revenue bringing total revenues to $9bn from $8.1bn.
EBITDA for the FY comes to $1bn, a 21 per cent increase from the previous year’s result of $885m.
Within print, the book publishing segment had the strongest performance, with full-year revenues increasing seven per cent from the prior corresponding period (pcp), reaching $1.75bn from $1.63bn.
Digital sales increased six per cent from the pcp, while segment EBITDA increased by $45m, a 23 per cent increase from the previous year.
In News and Publishing, News Corp Australia increased revenue by one per cent, reaching $5.1bn from $5bn.
Digital is driving growth for the company in its News and Information Services segment, representing 30 per cent of total revenues, from 26 per cent in the pcp.
[Related: WA News to reduce print workers]
The company generated sales of $2.69bn for the fourth quarter, increasing by 29 per cent from $2.08bn for the same period the year before. News says the growth was partially offset by lower print advertising revenue in News and Information Services.
The Foxtel and Fox Sports Australia write-downs contributed to -$998m on the bottom line, as the company separated both assets into an entity called ‘New Foxtel’.
Robert Thomson, CEO of News says, “Fiscal 2018 was a year of operational and transformational success at News Corp, with robust performance across our businesses, and positive and profound changes in the character of our revenue flows, which were then more global, digital and subscription based. We generated strong revenue and segment EBITDA growth in the Digital Real Estate Services and Book Publishing segments, which, together with the consolidation of Foxtel, drove over $1bn in profitability for the year.
“Digital Real Estate Services continues to flourish and we expanded into meaningful adjacencies, broadening our audience and our revenue sources. The success at HarperCollins underscores the importance of intelligent editors and great writers in creating premium content. Algorithms are, as yet, unable to write empathetic, compelling books.
“We also saw meaningful operational improvements at the News and Information Services segment led by higher Sunday Times and the Wall Street Journal reached new heights in their digital transformation, with digital paid subscribers now exceeding print subscribers. The new Foxtel is focused on product innovation and leveraging its valuable content.
“News Corp is now a more substantial company after the Foxtel transaction, with a much higher percentage of recurring, subscription-based revenues, which should help offset a volatile advertising environment.
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