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News Corp Shares Fall After Reporting Lower Earnings

News Corp Shares Fall After Reporting Lower Earnings
May 06, 2015 By Matthew Dibb

Rupert Murdoch’s News Corp (ASX:NWS) has reported a fall in revenue in its Third Quarter Earnings announcement on Wednesday. The company’s reported fiscal 2015 third quarter revenue fell to $2.06bn, a 1 per cent decline compared to the $2.08bn revenue from the previous corresponding period. News Corp’s earnings before interest, tax, depreciation and amortisation (EBITDA) came to $163m, a 7 per cent fall compared to the $175m in the previous corresponding period. Adjusted earnings per share were 5c, down from 11c. Chief Executive Robert Thomson said that although earnings were down, he believe the company had a strong future. “We believe the company is firmly on track and the signs are positive for year-over-year EBITDA growth in the fourth quarter.”

 Headwinds for the company cited in the report include negative foreign currency fluctuations and lower advertising revenues at the News and Information Service Segment. These losses were partially offset by growth in Book Publishing and Digital Real Estate Services segments. New Corp benefitted from acquisition of both Harlequin Enterprises Limited and Move, Inc. Earnings were negatively influenced by fees and costs in its UK businesses and higher legal fees and stock-based compensation fees in the US. Net income available to shareholders came in at $23m, significantly below the $48m from the previous corresponding period. Adjusted net income available to shareholders came in at $28m, compared to the previous $66m. Shares of NWS have fallen 79c, or 3.91 per cent, at $19.41 per share around 3:22pm on Wednesday. NWS has risen 6.71 per cent in the last 12 months and 4.75 per cent so far this year.

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Matthew Dibb Author: Matthew Dibb May 06, 2015

Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.

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