News Corp shares jumped on Friday after the global media giant reported financial results for the December quarter.
Boosted by Digital Real Services division, revenues in the quarter were $2.72 billion, a 13% increase on the prior year and the highest quarterly revenue since the company was formed. Net income in the quarter was $262 million, flat compared to the prior year, although net income in the first half rose 72% year-over-year.
The Digital Real Estate Services segment saw revenues grow 35% in the quarter, with continued traffic gains at Move, operator of realtor.com®, and strong listing volumes at REA Group. While Dow Jones again saw its highest quarterly profitability since its acquisition and highest revenue since fiscal 2011.
As of the end of December, Foxtel’s total streaming subscribers grew 66% compared to the prior year with BINGE and Kayo each reaching more than 1 million total subscribers.
News Media Segment EBITDA in the quarter grew 68% as the businesses continued to benefit from the rebound in the advertising market, new content licensing revenues and strong digital subscriber gains.
Commenting on the results, Chief Executive Robert Thomson said: “For the first half of fiscal year 2022, News Corp’s profitability reached nearly $1 billion, up 30% year-over-year, with the second quarter delivering record revenues and the highest profit of any quarter since the company was formed in 2013. Our businesses are thriving, particularly at the Digital Real Estate Services, Dow Jones and Book Publishing segments, and there was a pronounced surge in profitability at our News Media segment. Meanwhile, Foxtel’s streaming products flourished, with a 66 percent increase in total customers, and Kayo and BINGE both exceeding one million."