Execs: Company Boosted by Foxtel Purchase, Digital Growth in Q4

News Corp FY2018 results chart

News Corp chief backs Foxtel despite subscription revenue fall

Foxtel loomed large in the News Corp's global figures with last quarter's $1bn write down of the subscription TV operator increasing the group's net loss to $US1.4bn, an increase from $US643 million previous year.

Our $17 price estimate for News Corp's stock is nearly 10% ahead of the current market price.

The company's news business, which houses the Wall Street Journal and the New York Post, made $1.29 billion in revenue, rising 1 percent from a year earlier and accounting for nearly half of overall revenue as the number of digital subscribers grew.

Telstra and News Corp merged Fox Sports, formerly 100 per cent News Corp owned, and joint-venture Foxtel in April.

"Fiscal 2018 was a year of operational and transformational success at News Corp, with robust performance across our businesses, and positive and profound changes in the character of our revenue flows, which were more global, digital and subscription-based", says CEO Robert Thomson.

However, the company's total revenue rose 11 per cent to US$9.02 billion during the last financial year, thanks to strong growth for its digital real estate and book publishing segments, and the inclusion of Foxtel's results.

On an adjusted basis that measures organic growth, News Corp grew revenues by 2% to $8.22 billion and EBITDA by 6% to $956 billion.

Global media giant News Corporation has suffered another nasty full year loss of $US1.4 billion ($1.9 billion) as it continues to write down the value of its Australian pay-TV subsidiary, Foxtel.

"We also saw meaningful operational improvements at the News and Information Services segment led by higher digital paid subscribers and disciplined cost initiatives, notably in Australia".

The digital real estate services unit reported a revenue rise of 19 per cent.

Rupert Murdoch's News Corp. fell the most in more than five years after the company said it will invest more in its Australian cable network.

"HarperCollins' success underscores the importance of intelligent editors and great writers in creating premium content".

"Mastheads like The Times, The Sunday Times and The Wall Street Journal reached new heights in their digital transformation, with digital paid subscribers now exceeding print subscribers".

Foxtel's revenues were flat with the positive impact from foreign currency fluctuations offset by falling subscription numbers and lower advertising revenues.

For that segment, the company expects "reinvestment this year" that will focus on launching new OTT products, 4K, the next generation of the Foxtel iQ digital set-top box and "managing our valuable broadcast base", she said.

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