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News Corp posts $1.46 billion loss

Business

Media mogul Rupert Murdoch’s News Corp has posted a third-quarter net loss of $US1.1 billion ($A1.46 billion), mainly due to its revaluing of Foxtel and Fox Sports Australia.

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The media conglomerate’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the first three months of 2018 were $US182 million, down from $US215 million in the same quarter last year.

News Corp said an increase in expenses related to the launch of a National Rugby League channel and higher NRL sports programming rights costs alongside higher expenses at News UK weighed on its earnings.

“As a result of lower-than-expected revenues from certain new products and broadcast subscribers at Foxtel, the company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows,” the company said today.

The loss for the quarter was primarily driven by non-cash write-downs of $US998 million related to Foxtel and Fox Sports Australia, as well as a non-cash impairment charge of $US165 million at News America Marketing.

The company’s total revenue for the quarter of $US2.1 billion was up six per cent compared to the same period a year ago, thanks to strong growth in the group’s digital real estate services and book publishing segments and a $US70 million positive impact from foreign currency fluctuations.

The growth was partially offset by lower print advertising and from its US news and information division.

– AAP

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