News Corp Reports Rise in Global Profits Amidst Challenges

Highlights:

• Global revenues for News Corp rise by 3% to $US2.59 billion in Q2, driven by Dow Jones and Real Estate Australia.
• Foxtel witnesses a significant decline of 6% in total paying subscribers, marking its largest drop in a quarter.
• News Corp CEO emphasizes ongoing content negotiations with AI providers and digital platforms amidst concerns about journalism's future.

Global Revenues Surge: Despite economic challenges and declining advertising revenues, News Corp (ASX: NWS) reported a 3% rise in global revenues to $US2.59 billion ($3.97 billion) in the second quarter. The surge was primarily driven by its Dow Jones and Real Estate Australia businesses.

Foxtel Faces Subscriber Decline: However, Foxtel, a part of the News Corp Group, witnessed a significant decline in total paying subscribers, dropping by 6% to 4.32 million. This decrease, the largest in a quarter, comes ahead of the launch of its new streaming aggregation product, Hubbl.

Kayo Subscriptions Drop: Notably, almost 250,000 Kayo customers paused or cancelled subscriptions, attributed to a challenging sports season and inflationary pressures. Despite a marginal rise in paying Binge subscribers, Kayo's paying subscribers fell to 1.17 million from 1.4 million in the previous quarter.

Content Negotiations and Challenges: News Corp CEO Robert Thomson highlighted ongoing content negotiations with artificial intelligence providers and digital platforms. Thomson emphasized concerns about AI's impact on journalism and the need for fair treatment of content by digital platforms.

Digital Transformation Continues: Thomson noted News Corp's progress in the digital realm, with digital subscriptions now constituting 52% of total revenues. Despite challenges, the company saw growth in its core pillars, including Dow Jones, book publishing, and digital real estate services.

Australian Mastheads Struggle: News Corp's Australian mastheads experienced a 6% decrease in revenues, primarily due to lower advertising revenues. However, the digital real estate division, particularly in Melbourne and Sydney, contributed to a 15% profit increase.

Conclusion: News Corp's global performance reflects a mixed picture of rising profits amidst challenges in its traditional media and broadcasting segments. As the company navigates the evolving media landscape, it emphasizes digital transformation and strategic negotiations to sustain growth.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com