News Corp. reports 3% decline in ad revenues, rise in EBITDA in its Q1 earnings report
“Our first quarter as the new News was the beginning of a journey in the digital development of the company.”
The spun off publishing company News Corp. has reported its Q1 earnings. The company, which now includes newspapers, book publishing, and other information and advertising services, reported that its revenue was down slightly, but profits up due to cost savings.
“Our first quarter as the new News was the beginning of a journey in the digital development of the company,” Chief Executive Robert Thomson said. “There are certainly headwinds in Australia, magnified by inauspicious foreign currency movements, but we have been consistently cost conscious and are transforming our publishing operations longer-term into multi-platform businesses. We are vigorously pursuing a strategy to improve our revenue prospects and we look forward to updating all in future quarters.”
The company reported revenue down 3 percent due to lower ad revenue in its news segments, which included the sale of the Dow Jones Local Media Group. Total EBITDA was $141 million. which was an increase of 58 percent over the prior year and was due to lower costs due to consolidation of FOX SPORTS Australia.
Obviously, it will take several quarters of overlapping results to truly see performance patterns emerge with the new media company.
News America Marketing, the company’s in-store advertising business, reported higher revenue. Book publishing, though, saw a 7 percent decrease in revenue against the same quarter last year.