News Corp reports loss amid writes-down but makes no mention of Australian newspapers

Screen Shot 2015-08-13 at 8.44.02 amPublisher News Corp has reported a financial year loss of US$149m ($201.7m) amid various write-downs and impairment costs, including a US$371m non-cash write-down the value of its struggling education business Amplify.

The full year result came despite an 11 per cent lift in earnings, off the back of strong growth in digital real estate businesses REA Group and Move Inc, with an EBDITA of US $852m ($1.153bn) and a one per cent rise in revenues which grew to $8.63bn.

News Corp’s news and information division, which publishes its newspapers globally, saw revenue and profits slip with revenues declining three per cent from US$6.1bn ($8.2bn) to US$5.9bn ($7.9bn) while EBITDA fell six per cent to US$620m ($839m).

Unusually the publisher made no specific mention of the performance of its Australian newspaper businesses or market conditions in its result statement.

News Corp resultsIt did however note the major impact on the earnings was $US455 million ($616.1m) in impairment and restructuring costs.

The News of World phone hacking scandal also continues to impact the company with the publisher noting that EBITDA performance was impacted by US$50m ($67.7m) in “UK newspaper matters.”

“Despite an uneven global economy, very tough currency headwinds and the ongoing transformation of the media landscape, for fiscal 2015 we posted stable revenues, robust EBITDA growth and healthy free cash flow,” said Robert Thomson CEO of News Corp.

The Wall Street Journal is today reporting that News Corp is in advanced negotiations to sell its education business Amplify and has stopped marketing the division’s products to new customers. 

News Corp chairman Rupert Murdoch is currently visiting Australia, and held a lavish lunch on Tuesday for politicians, advertisers and media buyers.

Nic Christensen 


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.