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.
We value local independent journalism. We hope you do too.
InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.