News Corp Reports Profit Decline
February 04 2016 - 05:20PM
Dow Jones News
News Corp reported a drop in net income in its fiscal second
quarter, weighed down by foreign exchange fluctuations and lower
advertising revenue at its news and information services unit.
The company—which publishes The Wall Street Journal as well as
other newspapers in Britain, Australia and the U.S.—reported profit
of $63 million, or 11 cents a share, down from $143 million, or 24
cents a share, a year ago.
Revenue fell to $2.16 billion from $2.26 billion a year earlier
as the company saw an 8% drop in revenue at the news and
information services segment, which accounts for two-thirds of News
Corp's total revenue. Meanwhile, the small-but-growing digital
real-estate business reported a 35% jump in revenue.
The company reported adjusted earnings per share of 20 cents.
Analysts polled by Thomson Reuters had expected total revenue of
$2.12 billion in the quarter and adjusted per-share earnings of 21
cents.
Over all, News Corp's earnings before interest, taxes,
depreciation and amortization fell 20% in the period to $280
million because of declines in revenue at the news and information
services, book publishing and cable network programming units.
Foreign currency fluctuations reduced Ebitda by $25 million, the
company said.
"Macroeconomic conditions in most of our markets have not been
auspicious, and foreign exchange fluctuations have been
particularly volatile, but we believe in the enduring value of our
prestigious brands and the sound logic of our digital strategy,"
News Corp Chief Executive Robert Thomson said.
The company disclosed that digital ad sales accounted for
one-third of the advertising revenue in its news and information
services division, which includes The Wall Street Journal.
Write to Lukas I. Alpert at lukas.alpert@wsj.com
(END) Dow Jones Newswires
February 04, 2016 17:05 ET (22:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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