65 Per Cent Of The Australian Subscribers Are Now Digital-Only: News Corp Results
News Corp Australia has seen an 23 per cent growth in digital subscriptions, with 65 per cent of masthead The Australian being digital-only, according to the latest figures.
Digital subscribers across News Corp Australia currently sits at 566, 600.
This growth is despite a ‘listless economy,’ to chief executive Robert Thomson said.
But advertising revenue, on the other hand, has suffered a 5 per cent decline across the entire business, with News Corp blaming a ‘weakness in the print advertising market, primarily in Australia,’ Mumbrella’s Hannah Blackiston reports.
Foxtel is also set to benefit from the strong business of Kayo Sports, with a 3 per cent increase in Foxtel subscribers, reflecting the growth of Kayo. Foxtel’s subscriber base sits at 3 million, including subscribers of Kayo.
Thomson said the platform was doing well and had received overwhelmingly positive customer reviews.
But News Corp did report lower subscription revenues at Foxtel, with an 11 per cent fall in revenues from the subscription video services segment – or US $61 million.
The slowdown of Kayo subscribers was put down to cricket, with Thomson saying the sport no longer compelled Australian viewers and that the streaming service would capitalise on the upcoming AFL and NRL seasons, which see’s peak subscribers.
The overall News Corp business reported a stagnated result for the second quarter of FY20, with revenues dropped 6 per cent to US $2.4 billion.
Net income was US $103 million compared to US $119 million from last year, with total segment earnings before tax, interest, depreciation and amortisation (EBITDA) came in at US $355 million, compared to US $370 million.
Overall, News Corp Australia revenue dropped 9 per cent.
But Thomson defended the business and said that ‘no company has been more influential in the transformation’ of news businesses, both print and digital, than News Corp because of Rupert and his son Lachlan’s leadership.
The focus on digital growth isn’t exclusive to Australia, however, with the Wall Street Journal (WSJ) hitting 2 million digital subscribers.
Digital growth is now said to be outpacing print subscriptions across the business.