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News Corp revenues down 4 per cent but Australian newspapers stablise with ‘green shoots on the Nullarbor Plain’

New News Corp logoNews Corp has reported that its revenues were down 4 per cent decline to US$8.57bn, compared with US$8.89bn last year, a result brought about in part through the continued cost cutting and improvements in the results in its real estate classified business and book publishing.

Today’s the company issued its first full-year results since Rupert Murdoch split the former News Corp in two, with chief executive Robert Thomson playing down 18 per cent declines in Australian newspaper revenues by noting that 10 per cent of that was due to changes in foreign currency as the Australian dollar fell rapidly, arguing Australian revenue was stabilising and that there are “green shoots on the Nullarbor Plain”.

“On the question of costs clearly we are finding new opportunities to consolidate and cut costs and that frankly is not going to stop,” said Thomson on an investor call this morning.

“That is separate from the trends in the advertising revenue, clearly the winds have been buffeting, but what we are seeing is different circumstances in different regions and at the moment there are indications that the rate of decline has declined in Australia. There are green shoots on the Nullarbor Plain.”

According to the announcement today, earnings before interest, tax, depreciation and amortisation (EBITDA) grew to US$770 million up from US$688 million one year ago.

Foxtel subscriber numbers were stable at 2.6 million as of June 30, 2014 with full year Foxtel revenues up 2 per cent in the current year as a result of growth in subscriber revenues. However, currency fluctuations meant the revenue decreased year on year US$287m to US$2.8bn from US$3.18bn.

News Corp’s result also record a $US72 million charge in fees and costs related to the News of World hacking investigation and charges in the UK newspaper business.

The company’s adjusted earnings per share fell to $0.46 compared to $0.62 in the prior year – reported earnings per share were $0.41 compared to $0.87 in the prior year.

Nic Christensen 

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