News Corp’s second quarter earnings were flat as growth in its book publishing and online real estate businesses offset a further slide in revenue from its UK and Australian newspapers.
Rupert Murdoch’s media group recorded earnings before interest, taxes, depreciation and amortisation for the three months to December 31, of $US328 million ($A420.35 million), compared to $US327 million for the same period a year ago.
Net income was $US142 million, down from $US150 million, though the company said both earnings and profit were weighed down by one-off costs.
Revenue from the company’s Australian newspapers – which include The Advertiser and the Sunday Mail – fell eight per cent during the quarter due to the lower Australian dollar and a three per cent slide in advertising revenue.
But chief executive Robert Thompson said earnings from the Australian division were actually higher, thanks in part to lower costs and price increases for its newspapers and subscriptions.
“We have reduced costs, including the closing of our Gold Coast printing site, while we have have successfully raised newsstand pricing and subscription rates to drive circulation revenues,” he said.
Thompson said the Australian mastheads now had close to 250,000 subscribers, which is 30 per cent rise from a year ago.
Meanwhile, Thompson said the company was working to lift digital ad sales for its UK newspapers, which include The Sun and The Times, following a nine per cent slide in advertising revenues during the quarter.
“The advertising climate in the UK remains very difficult, but we are renewing our efforts on digital ad sales and assiduously cultivating core clients,” he said.
Away from newspapers, Foxtel’s decision to cut subscription prices helped lift subscriber numbers five per cent during the quarter, while earnings were up two per cent.
The company’s book publishing division, which includes HarperCollins, remained one of its star performers, with revenue up 20 per cent and earnings up 13 per cent thanks to strong sales of Veronica Roth’s Divergent series and Chris Kyle’s autobiography American Sniper.
It also expects to receive a boost from the upcoming publication of To Kill a Mockingbird Author Harper Lee’s second novel in 55 years, Go Set a Watchman.
And News Corp’s digital real estate businesses, witch includes its stake in realestate.com.au owner REA Group lifted revenue 50 per cent during the quarter.
