News Corp has reported a Q3 loss of US$149m (AU$200m) after revenue dropped 7.3%.
Advertising revenue fell 9.7% and circulation and subscription revenue dropped 3.6% while the company also took a $US280m pre-tax hit from a lawsuit. Overall, profits were down by 5% compared to the same quarter a year before.
Chief executive Robert Thompson said in a statement: “Despite the difficult conditions for advertising we saw both Dow Jones and News Corp Australia contributing to Segment EBITDA growth, thanks to an increase in paid digital subscribers, digital advertising growth and ongoing cost reduction to improve efficiency.”
Due to the changing landscape of advertising, premium mastheads and audiences are currently “undervalued” by agencies, according to Thompson.
Moving forward, he says the business is evolving more into digital, with REA’s completion of the iProperty acquisition in South East Asia.
News Corp’s Australian operations include The Daily Telegraph, Herald Sun, The Australian, news.com.au, The Courier Mail, Fox Sports and a 50% stake in Foxtel.
Globally Foxtel revenues decreased US$42m to US$578m from US$620m in the previous year's period. Locally, Foxtel revenues increased 2% due to higher subscribers.
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