News Corp. has released results for the latest quarter. Embedded in the results is this information relating, in part, to Australia.
Revenues in the quarter decreased $99 million, or 8%, as compared to the prior year, reflecting a $35 million, or 3%, negative impact from foreign currency fluctuations. Within the segment, Dow Jones revenues grew 6%, while revenues at News America Marketing and News Corp Australia declined 10% and 11%, respectively. Revenues at News UK declined 22%, primarily due to the absence of the $48 million net benefit related to the exit from the gaming partnership in the prior year. Adjusted Revenues for the segment decreased 5% compared to the prior year.
Advertising revenues declined 8% compared to the prior year, of which $15 million, or 3%, was related to the negative impact from foreign currency fluctuations. The remainder of the decline was driven by weakness in the print advertising market, primarily in Australia, and lower home delivered revenues, which include free-standing insert products, at News America Marketing.
No real surprise in the results. Publishing is tough. Print news is tough.
Glenn Dyer at Crikey provided some commentary:
There was nowhere to hide for the Murdochs’ News Corp in the three months to September 30.
Every part of the business saw double digit falls in earnings as a perfect storm of negatives hit the company hard, including, as CEO Robert Thomson described it, “a sluggish Australian economy” and “harsh economic conditions”.
It was not a quarter to boast about, with some of the only positives being a rise in digital subscriptions for Dow Jones and for the Foxtel streaming service Kayo.