Another interesting element in News Corp results : the cost...

Another interesting element in News Corp results : the cost trend.

During Q3, main costs (SGA + operating expenses excluding depreciation) increased by only 0.6 % while revenues increased by 3 %.
This is explained in particular for the trend for operating expenses (excluding depreciation). These costs decreased by 7.5 % (and by 11 % on 9 months).
As usual with them and given the complexity of the group, it is a combination on several elements, including some one offs.
The main underlying trend that I find interesting : operating expenses are basically variable costs which benefit from the fact that the group moves toward more digitalisation.
As the group sells less print items (newspapers and books), its variable costs are reduced.

I expect this trend to continue both for their sales of books and newspapers and will probably continue to support their margins.