News Corp Australia saw its advertising revenue drop by six per cent in Q3 of this financial year, compared to the previous period in 2022. However, while its overall ad revenue took a hit, the company reported growth in its print advertising.
However, the company said that, when US and Australian dollar price fluctuations were accounted for, News Corp Australia reported a one per cent increase in its revenue.
“Advertising revenues decreased US$11 million, or 5 per cent, compared to the prior year, primarily due to a US$15 million, or 7 per cent, negative impact from foreign currency fluctuations, lower digital advertising at News Corp Australia, and lower print advertising at News UK. The decline was partially offset by growth in digital advertising at News UK and higher print advertising at News Corp Australia,” the Rupert Murdoch-owned company said.
The company also reported that digital revenues represented a higher proportion of its News Media segment’s revenue at 36 per cent, up one per cent from the previous period. News Corp Australia’s digital subscribers were up 10 per cent to 1,043,000.
“These results demonstrate the fundamental differences in the character of News Corp compared with other media companies,” said Robert Thomson, the company’s chief executive.
“In a period in which advertising was clearly insipid in certain parts of the world, our core nonadvertising revenue has been particularly robust, highlighted by a 38 per cent increase in revenues at the Dow Jones professional information business.”
News Corp’s CFO Susan Panuccio said during an analyst briefing that the company’s jump in print advertising was largely due to travel advertising.
“It really just depends on categories. Down in Australia, they’ve seen a pickup in travel advertising, which has really helped down there as the market has started to open up.
“They do get some good tailwinds through retail, in different quarters as well.”
However, while Thomson was keen to stress that News Corp had performed well, the company has been forced into cost-cutting measures including cutting 200 jobs in Australia and slashing staff perks for those left over.
“Our company-wide cost-cutting program [has begun] to gain traction,” added Thomson.
“That cost reduction drive includes taking the difficult but necessary step of reducing headcount by an expected five per cent, and we now anticipate that program will yield at least $160 million in annualized savings by the end of this calendar year.”
