News Corp., the global company that owns realtor.com operator Move, Inc., reported its financial results for fiscal year 2016 — which ended in June — and it’s no surprise that the company’s recap is praising its digital real estate properties for their contributions to its bottom line.
“Since the advent of the new News three years ago, revenue at Digital Real Estate Services has more than doubled, and it is expected to become the biggest contributor to EBITDA [earnings before interest, taxes, deductions and amortizations] in the future thanks to the ongoing success of REA and the rapid growth at Realtor.com in the U.S.,” said News Corp. CEO Robert Thomson in a statement.
“Our reach in digital real estate is unparalleled and highlights the potential of the News Corp. network, which is monetizing shared data and maximizing the value of content and traffic.”
Total operating expenses were about $1.3 billion, leaving the company with a profit of $89 million for the quarter and $177 million for the fiscal year.
Revenue
Revenue for News Corp’s fourth quarter was $2.2 billion, a 5 percent increase over the previous quarters’ $2.1 billion.
The company attributed much of this growth to its digital real estate properties, REA Group and Move.
In particular, Move’s revenue increased to $98 million from $81 million the previous year, “primarily due to the continued strength in its Connection for Co-Brokerage product, as well as growth in non-listing Media and professional software revenues,” said the company in a press release.
“We now look forward to bringing Move’s profitability in the coming fiscal year,” said Thomson, who added that “the freshest listings, unique content and tools that benefit both Realtors and consumers” are contributing to the company’s growth.
For the entire segment, EBITDA in the quarter was $175 million, compared to an EBITDA of $45 million the year before. That includes a hefty “one-time gain of $122 million related to the settlement of the Zillow litigation at Move,” said the company, and was partially offset by $10 million of higher legal expenses at Move also associated with the litigation.
Adjusted revenue increased 17 percent, and adjusted segment EBITDA (including $15 million of legal expenses at Move) increased 24 percent year-over-year.
“Based on Move’s internal data, average monthly unique users of realtor.com’s web and mobile sites for the fiscal fourth quarter grew 17 percent year-over-year to approximately 53 million,” reported the company. “Mobile continues to drive audience growth and now makes up over half of all unique users.”
For the entire fiscal year, Move’s revenues increased 27 percent to $357 million from $282 million on a stand-alone basis in the prior year.
News Corp. attributed this growth “to the continued strength in its Connection for Co-Brokerage product, as well as growth in non-listing Media and professional software revenues.”
Thomson also mentioned the company’s inroads into creating an international property portal.
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