News Corp has just released its fourth quarter and full results. For the Australian and newspaper part of the business for Q4:
Within the segment, revenues at News Corp Australia and News UK declined 31% and 22%, respectively. Adjusted Revenues for the segment decreased 22% compared to the prior year.
Circulation and subscription revenues decreased $22 million, or 9%, compared to the prior year, which includes a $10 million, or 4%, negative impact from foreign currency fluctuations. The remainder of the decrease was driven by lower single-copy sales revenue, primarily at News UK, as a result of COVID-19, partially offset by digital subscriber growth and price increases.
And, for the full year:
Within the segment, revenues at News Corp Australia and News UK declined 16% and 13%, respectively. Adjusted Revenues for the segment declined 10% compared to the prior year.
There is also this re COVID-19:
News Media: We have seen, and expect to continue to see, adverse effects on advertising and single-copy sales revenues. Advertising revenues in July at the newspaper mastheads declined 25-30% in total compared to the prior year. As a reminder, advertising revenues in the prior year included results from News America Marketing and the suspended community titles in Australia. The overall decline in circulation volumes moderated in July from the lows experienced in April and May, particularly for the weekend papers. We continued to see strong growth in digital subscribers in July compared to the prior year at the Australian mastheads and at The Times and Sunday Times.
The Company continues to take various steps intended to offset the impact of COVID-19, including by reducing variable costs and implementing cost-savings initiatives across its businesses, with a particular focus on the News Media segment. For example, the Company is implementing a shared services program to centralize a number of functional areas. While it is still evaluating the cost savings opportunity from this program, the Company expects to recognize annualized cost savings of at least $100 million beginning in fiscal 2022.
The ultimate impact of the COVID-19 pandemic, including the extent of adverse impacts on the Company’s business, results of operations and financial condition, is highly uncertain and cannot be predicted.
The figures have just dropped. there is sure to be plenty of analysis, especially by competitor outlets.
In terms of COVID-19 it is interesting to see their commentary about their own business and to reflect on this in the context of their shrill and changing commentary which is often shouted at the public. If only their reporting and ‘news’ stories were as reflective and considered as what they write about themselves.
Another major company with a clear strategy of driving online sales whilst trashing their traditional product. Only problem for Newscorp is that they can’t replace their lost advertising revenue on their digital platform.
Another of our major companies using COVID as an excuse for regional closures and job cutting. Still not a bad result for Lord Rupert for the year with a reported EBITDA of $1.01b!
Also an example of the need for major tax reform in this country and in particular the need for the removal of punitive payroll taxes and the lowering of income tax rates to be funded by an increased consumption tax on all online sales for large business. I will never understand why we tax business for employing people which adds to our economic growth.
Add to this Steve the 2 million dollar donations from the fed. govt. to News Corp – $30M by PM Turnbull and $10M by PM Morrison with that coming from Covid funds.