(L to R) Rupert Murdoch, executive chairman of News Corp as well as chairman of Fox News, as well as Lachlan Murdoch, co-chairman of 21st Century Fox, walk together as they arrive on the third day of the annual Allen & Company Sun Valley Conference, July 13, 2017 in Sun Valley, Idaho.
News Corp reported quarterly earnings which beat as well as revenue which missed analysts’ expectations on Thursday.
Here’s how the company did compared with what Wall Street expected:
- EPS: 11 cents vs. 9 cents, according to Thomson Reuters
- Revenue: $2.08 billion vs. $2.1 billion, according to Thomson Reuters
Revenue fell 7 percent via the same time last year. The company reported earnings of 11 cents per share, compared with 10 cents per share inside the year-ago quarter.
Rupert Murdoch’s News Corp owns names such as HarperCollins, Dow Jones as well as the fresh York Post. An evolving digital media landscape as well as declines in advertising revenue have weighed on News Corp’s flagship business news outlet, The Wall Street Journal, as the idea has on numerous others inside the industry.
Advertising revenue for the company’s news as well as information services declined 12 percent via the year-ago quarter, which the company attributed to a weak print advertising market. Circulation as well as subscription revenues fell 9 percent. The company said having one less week This kind of year, negative currency fluctuations as well as lower print volume contributed to the decrease.
Adjusted for those factors, the company said circulation would certainly have actually increased 1 percent. Dow Jones experienced a 10 percent increase in circulation revenue, led by The Wall Street Journal.
Digital revenue represented 26 percent of news as well as information services revenue, up via 23 percent at the same time last year. The Wall Street Journal’s daily digital-only subscribers increased to 1.27 million via 948,000 last year.
The company did not specify the number of Wall Street Journal print subscribers, though the idea did mention lower print volume contributed to a decrease in circulation as well as subscription revenue. However, the idea said a decrease in full-year earnings before interest, tax, depreciation as well as amortization was partially offset by lower costs due to restructuring as well as savings via lower print volume.
Digital real estate services such as realtor.com continued to fuel News Corp’s growth. Revenue increased 10 percent via the year-ago quarter. the idea was the only category where revenue increased. News as well as information services, book publishing as well as cable network programming all decreased via the same time last year.
Chief Financial Officer Susan Panuccio said on a call with investors which News Corp’s expansion into digital real estate is usually poised to fuel the company’s growth. CEO Robert Thomson reiterated Panuccio’s confidence.
“As custodians of the company with the proudest of histories, we know which our past is usually a platform for our future,” Thomson said. “For these reasons as well as more, we’re looking forward to the coming year with much confidence inside the prospects for shareholders as well as our partners.”
The Journal announced last month the idea would certainly continue restructuring the company to try as well as transform the idea into a digital-first operation. The news outlet’s editor-in-chief, Gerard Baker, told employees in a memo which the newsroom’s staff size of about 1,300 jobs would certainly stay “roughly stable.” The Journal started out its reorganization last fall.
Despite struggles at the company’s media outlets, shares of News Corp have risen about 20 percent This kind of year.