Rupert Murdoch’s News Corporation has recorded an $817 million loss across the year as the values of its newspaper mastheads declines.
Despite $40 million in cuts to many of its papers and a profit of $300 million last year News Corp has been unable to slow the loss of money as print media is abandoned and digital media grows.
Digital subscriptions and advertising revenue both saw growth, with digital subscriptions to the Australian growing from 225,600 in 2014-2015 to 363,000 this year.
Digital advertising revenue has grown from 22% to 25% of the revenue from the news and information division.
News Corp’s Chief Executive Robert Thomson said that while the current growth in digital wasn’t enough, he was confident it would grow stronger in the future.
“I think it’s fair to say on the digital advertising front that in the last half of the fiscal year, we didn’t see the growth that we wanted,” he said.
“We’re confident there will be an improvement in advertising, coordinated with the improvement in digital audience.”
“News Corp led the global debate about content value and values, prompting the digital platforms to address a dysfunctional content eco-system, in which the fake and the fraudulent have flourished.”
“We are now in advanced discussions with those platforms over the creation of payment mechanisms for news of verified veracity.”
Digital Real Estate was a growth driver in News Corp, however, accounting for 37% of the company’s pre-tax earnings, though profits were down 19% from last year to $206m.
News Corp wrote down the value of its 50% share in Foxtel to $290 million.