Rupert Murdoch’s News Corporation has reported a 75 percent drop in full-year profit but sees opportunities ahead as it plans to take advantage of advances in generative AI.
The US-listed media group—which owns News Corp Australia, mastheads in the US and UK, book publishers and real estate advertising assets—recorded $US187 million ($A287 million) in profit for the financial year, down from the previous year’s $US760 million record.
Revenue for the year ended June 31 was $US9.9 billion ($A15.1 billion), a five percent decrease on the prior year.
News Corp Chief Executive Robert Thomson attributed the drop in profitability to challenging macroeconomic conditions, supply chain pressures and currency headwinds.
“Our results showed marked improvement in the second half, so with inflation abating, interest rates plateauing and incipient signs of stability in the housing market, we have sound reasons for optimism about the coming quarters,” he said on Friday morning AEST.
Digital accounted for more than half of News Corp’s revenues for the full year as the company seeks to take fuller use of generative AI to create new revenue streams and cut costs.
The group’s book publishing arm recorded lower revenues as book sales dropped, while digital real estate suffered from challenging housing market conditions in Australia and the US.
This was partially offset by growth at Wall Street Journal publisher Dow Jones and in the subscription video service and news media segments.
News Corp reported an eight percent increase in earnings before interest, taxes, depreciation and amortisation for the fourth quarter, primarily due to cost savings from the sacking of one in 20 staff.
