Margins have been bolstered by the acquisitions
of OPIS and Chemical Market Analytics, and by the
continuing, double-digit growth of Risk & Compliance,
where revenues have risen six-fold over the past decade,
and prospects remain bright with the imperative to
minimize risk and maximize compliance in an ever-more
complex regulatory regime.
We believe the epochal energy transition is an
enormous global opportunity for OPIS, one which we
will capitalize on through compelling products, insightful
indices and must-have data, pricing and analytics.
Dow Jones’ accelerating digital subscription growth
has been helped in part by the bundling of products
to capitalize on clients’ needs for market analysis and
professional prescience. Moreover, we are increasing
our international digital focus for The Wall Street Journal,
where there is much untapped potency and potential.
Subscription Video Services reported adjusted revenue
and profit growth, which excludes currency impact, for
the second straight year – a remarkable turnaround for
Foxtel. We have long-term rights to the key Australian
sports and prime international sports for Australians and
have created a model that streamers around the world
are now trying to emulate.
Streaming revenue growth again outpaced broadcast
declines, with paid subscribers scaling at a double-digit
rate, so we are particularly confident about Foxtel’s
future and our optionality, especially with our successful
refinancing. We were asked frequently in the past how
much more capital we would need to commit to Foxtel,
but the question now is how much cash we will receive
in coming years.
REA continued to be impacted by macroeconomic
challenges in the Australian housing market, though we
do see an easing as the interest rate cycle peaks. Home
prices have started to increase, as has the auction
completion rate.
REA’s audience share against its nearest competitor
expanded, as have visits to the site. REA also benefited
from improved products and related price increases,
while India remains a source of significant potential
given that Housing.com is already the market leader in a
country on a positive economic trajectory with a rapidly
expanding middle class.
In the U.S., we have new leadership at Move, where
Damian Eales brings vast digital experience and a fiercely
competitive spirit. He will collaborate with REA and
leverage News Corp’s powerful platforms to build the
brand and expand market share. Not only does Move
have scale in residential sales, but we also believe we can
continue to monetize that audience successfully.
For HarperCollins and other book publishers, fiscal
2023 was challenging, with the post-Covid market
resetting, logistical issues at Amazon and inflationary
pressures.
Still, we saw success with Joanna Gaines’ Magnolia
Table, Volume 3, and Remarkably Bright Creatures by
Shelby Van Pelt. And we are optimistic about books
like Tom Lake by Ann Patchett, The Collector by Daniel
Silva and, in the U.K., TV: Big Adventures on the Small
Screen by Peter Kay. We see promise, too, for the next
Pioneer Woman Cooks by Ree Drummond and The
Little Liar by Mitch Albom.
In News Media, in the U.K., The Sun had a
successful year, with digital outpacing print advertising
again. This was accentuated by the year-over-year
growth of The Sun in the U.S., which reported a
surge in page views and even higher yields than the
successful U.K. site.
The Times and Sunday Times also hit 565,000 digital
subscriptions at the end of June, an 11% increase,
underscoring the strength of their journalism and the
global potential of the brands.
News Corp Australia achieved almost 1.1 million
digital subscriptions, an increase of 10%. News.com.au
was the leading news website in Australia, according
to the Ipsos iris rankings, while The Australian was also
in the top 10.
In the U.S., the New York Post reported another year
of strong profits after decades of losses. The paper’s
improved fortunes have been accompanied by growing
influence in New York, Washington and beyond. As the
paper’s founder, Alexander Hamilton, sagely observed:
“Those who stand for nothing fall for everything.”
In a fiscal year aected by the reverberations of war,
inflation and other macroeconomic challenges, News
Corp is proud to report its second most profitable year
since its reincarnation a decade ago.
We ended the year on an upswing, and with inflation
abating and interest rates plateauing, we have sound
reasons for optimism, especially as we have become
more digital, more global, and with increased recurring
revenues in higher margin segments. We have
navigated the media waters adroitly and are particularly
proud of our provenance, based on commitment,
curiosity and integrity.
We look forward with a sense of genuine, tangible
excitement for the potential of our people and our
businesses, and we remain determined to deliver
positive results for our customers, our employees and,
most certainly, for our shareholders.
Robert Thomson
Chief Executive