Newscorp (ASX:NWS) says fiscal year 2021 second quarter net income has increased from $US103 million for the prior corresponding period to $US261 million.
News Corp chief executive Robert Thomson says, “the second quarter of fiscal 2021 was the most profitable quarter since the new News Corp was launched more than seven years ago, reflecting the ongoing digital transformation of the business.”
Revenue was $2.41 billion, a 3 per cent decline compared to $2.48 billion for the year earlier period.
The decline was mainly due to lower revenues at the News Media segment, primarily driven by a $191 million, negative impact from the divestiture of News America Marketing.
The business also experienced weakness in the print advertising market, and a $34 million hit from the closure or transition to digital of certain regional and community newspapers in Australia.
Growth in the book publishing, digital real estate services and Dow Jones segments, as well as a $75 million positive impact from foreign currency fluctuations helped to offset the declines.
Total Segment earnings EBITDA increased to $497 million compared to $355 million in the prior year.
Reported diluted EPS were $0.39 compared to $0.14 in the prior year and adjusted EPS were $0.34 compared to $0.18 in the prior year.
Free cash flow available to News Corporation in the six months ended December 31, 2020 was $277 million compared to $96 million in the prior year period. The improvement was primarily due to higher cash provided by operating activities and lower capital expenditures.
The Company declared a semi-annual cash dividend of $0.10 per share.
Investors are reacting positively to the news shares in NewsCorp (ASX:NWS) are trading 11.95 per cent higher at $28.10.