News Corp revenue rises on digital subscription growth

Demand for digital subscriptions at The Wall Street Journal and its Australian operations has helped lift News Corp’s results.

News Corp chief executive Robert Thomson backed calls for an “Algorithm Review Board” to “analyse and remedy algorithmic distortions of competition”.

Demand for digital subscriptions at The Wall Street Journal, The Times, The Sunday Times and its Australian operations has helped News Corp report improved quarterly results.

Revenues at News and Information Services, which accounts for just under two-thirds of News Corp’s top line, pushed 2 per cent higher to $US1.3 billion ($1.7bn) for the three months ended March 31.

The results sent shares in the company up 0.81 per cent to $22.50 as newspapers around the world convert more people into paying customers.

Digital revenues now represent 29 per cent of the segment’s revenues, compared with 24 per cent in the previous year, reflecting the digital transformation of the company’s mastheads.

Digital subscribers at News Corp Australia’s mastheads reached 409,000, compared with 333,400 in the previous year — up 23 per cent.

The average number of daily digital subscribers to The Wall Street Journal rose to 1.49 million. The Times and The Sunday Times had 230,000 digital subscribers.

News Corp chief executive Robert Thomson said: “At our mastheads, digital audience ­expanded at a time when premium news has become more ­important to readers and advertisers.

WEB Business Newscorp revenue ppie

“The Wall Street Journal, The Times and Sunday Times and The Australian reported average growth in digital subscriptions of more than 20 per cent for the quarter, a testament to the success of their digital transformation.”

Mr Thomson backed calls for an “Algorithm Review Board” to “analyse and remedy algorithmic distortions of competition” as regulators get to grips with how the tech giants use computer code to select news stories and promote their own products in search ­results.

“There is no doubt that governments should create an Algorithm Review Board to oversee these historically influential digital platforms and ensure that there is no algorithmic abuse or censorship, commercially or politically,” said Mr Thomson.

Overall, News Corp reported a 5.8 per cent rise in revenue to $US2.1bn, driven by a strong performance in digital real estate and book publishing.

The company recorded a net loss of $US1.13bn compared with $US5m loss in the same period a year earlier, and a loss of $1.94 per share compared with a loss of US1c per share in the previous year. The loss was primarily driven by non-cash writedowns of $US998m related to Foxtel and Fox Sports Australia, as well as a non-cash impairment charge of $US165m at News America ­Marketing.

Total revenue at the company, which publishes The Weekend Australian, climbed to $US2.09bn from $US1.98bn.

News Corp recently finalised a merger of subscription TV businesses Foxtel and Fox Sports. News holds a 65 per cent stake in the combined entity, with Telstra holding the balance.

“We believe the company is uniquely positioned, given its potential in a rapidly expanding over-the-top market, with unrivalled sports offerings and premium entertainment and news content,” Mr Thomson said.