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News Corp's newspaper revenue slides

Business

Media giant News Corp says declines in advertising, circulation and subscription revenues have contributed to a seven per cent slide in revenue for its news and information services business - which includes its Australian news mastheads.

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News Corp reported a fall in second quarter revenue of $US1.3 billion ($A1.7 billion) for its news division for the three months to December 31, 2016 on Friday.

The Rupert Murdoch-led News posted a group-wide loss from continuing operations of $US219 million ($A287 million) for the quarter, down from $106 million in the prior corresponding period.

The loss was driven by a $US310 million impairment on fixed assets at its Australian print newspaper business, which include the national newspaper The Australian and capital city tabloids including The Advertiser.

News also took $227 milion in non-cash writedowns on the value of its Foxtel cable TV business following the closure of the Presto streaming joint venture in 2016.

Across the News group, second quarter earnings rose 16 per cent to $US325 million on the back of gains in its digital real estate and book publishing divisions.

News Corp chief executive Robert Thomson said the second quarter result showed increased operating profitability “despite continued headwinds in print advertising”.

“Results were driven by strong performance at our Digital Real Estate Services segment and meaningful revenues at HarperCollins, along with appropriate and ongoing management of the cost base at our news mastheads,” Thomson said.

– AAP

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