News Corp posts net $1.4bn loss, but sees digital subs grow

Rupert Murdoch’s worldwide News Corp has reported a net loss of $1.4bn for the full year, compared to $643m in the previous year.

The business, which owns News UK, the publisher of the Times and the Sun, as well as numerous US and Australian titles alongside publisher Harper Collins, said the loss was due to a $998m accounting write-down relating to the consolidation of Foxtel and Fox Sports in Australia.

Remaining upbeat, chief executive Robert Thomson said the last year was one of “operational and transformational success” in which News Corp focused on more global, digital and subscription-based revenue flows.

Last month Mediatel reported that News UK hit a major milestone for its subscription-based model: The Times and The Sunday Times now together reach half a million subs across digital and print.

Digital-only subs were up 20% year-on year to 255,000. Not only is this the most successful year the newsbrands have had since launching the digital subscription model in 2010, digital subs have also overtaken print subs for the first time.

On Friday News Corp reported that digital revenues represented 30% of news and information services segment revenues, compared to 26% in the prior year.

Meanwhile, revenue from the group totalled US$9.01bn, up 11%, while earnings before interest tax and depreciation hit US$1.07bn, up 21%.