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Tag: Robert Thomson

  • Q2-2016: News Corp lower ad, book publishing revenues, forex lower overall revenue

    Q2-2016: News Corp lower ad, book publishing revenues, forex lower overall revenue

    BENGALURU: Strong growth in the Digital Real Estate Services segment at News Corporation (News Corp) was offset by lower advertising revenues at the News and Information Services segment and lower consumer revenues at the Book Publishing segment for the quarter ended 31 December, 2015 (Q2-2016, current quarter). News Corp reported year-on-year (YoY) 4.3 per cent revenue decline in the current quarter at $2,161 million as compared to $2,258 million. As a matter of fact, except for News Corp’s Digital Real Estate Services segment, all other segments reported lower revenues and EBIDTA.

    News Corp’s News and Information Services segment revenue fell 8.1 per cent YoY in Q2-2016 to $1,400 million as compared to $1,523 million, while revenue from its Book Publishing segment declined 4.9 per cent YoY in the current quarter to $446 million as compared to $469 million. Digital Real Estate Services segment revenue increased 35.1 per cent YoY to $208 million from $154 million. The decline in total reported revenues includes a negative impact from foreign currency fluctuations of $141 million says the company.

    News Corp reported Q2-2016 Total Segment EBITDA of $280 million, a 20 per cent decline as compared to $352 million in Q2-2015. Adjusted Total Segment EBITDA in Q2-2016 declined 16.8 per cent to $317 million, compared to $381 million in the corresponding prior year quarter. The company says that continued strength at the Digital Real Estate Services segment was more than offset by the declines at the News and Information Services, Book Publishing, and Cable Network Programming segments. Negative foreign currency fluctuations reduced Total Segment EBITDA by $25 million as compared to Q2-2015.

    Company speak

    News Corp CEO Robert Thomson said, “News Corp is evolving rapidly into a more digital and increasingly global company with a diverse revenue mix that we believe will drive long-term growth in profits and shareholder returns. The company is, by most measures, the world’s largest player in digital real estate, a position certainly enhanced by the rapid growth in the US of realtor.com.”

    “In our News and Information Services segment, print advertising remained challenged, but we are seeing growth in digital advertising and circulation revenues. We are particularly focused on cost reductions and sharing services around News Corp to streamline operations at the newspapers in Australia and the UK,” he added.

    “Unruly, the viral digital advertising company acquired late last year, has been swiftly integrated into many of our companies, bringing cutting-edge metrics and a savvy social sensibility. We are developing advertising products for clients keen to benefit from the rise of video and mobile, and taking advantage of our world-class mastheads which are increasingly powerful platforms, editorially and commercially,” Thomson said.

    “Macro-economic conditions in most of our markets have not been auspicious, and foreign exchange fluctuations have been particularly volatile, but we believe in the enduring value of our prestigious brands and the sound logic of our digital strategy,” he added.

    Segment results

    News and Information Services segment

    News and Information Services segment revenues have been mentioned above. News Corp says that total segment advertising revenues declined 12 per cent, primarily due to weakness in print advertising, negative foreign currency fluctuations and lower revenues at News America Marketing, partially offset by growth in digital advertising revenues, including at Dow Jones, where digital revenues accounted for approximately one-third of advertising revenues in the quarter. Circulation and subscription revenues declined five per cent, due to negative foreign currency fluctuations. Growth in paid digital subscribers in the US and Australia, higher subscription pricing and selected cover price increases offset print volume declines and the impact from the change in the digital strategy at The Sun. At Dow Jones, the company continued to see modest growth of professional information business revenues.

    Segment EBITDA decreased $58 million in Q2-2016 to $158 million as compared $216 million in Q2-2015. Adjusted Segment EBITDA decreased 22 per cent compared to the prior year, driven by lower advertising revenues, higher promotion and marketing costs in the UK and transaction costs of $5 million related to the acquisition of Unruly.

    Book Publishing segment

    Book Publishing segment revenues mentioned above declined due to lower e-book sales, negative foreign currency fluctuations and lower revenues from the Divergent series, partially offset by strong sales in General Books resulting from the popularity of The Pioneer Woman Cooks: Dinnertime by Ree Drummond. Digital sales represented 16 per cent of consumer revenues for the quarter. Segment EBITDA for the quarter decreased $20 million, or 26 per cent, from the prior year, primarily due to the factors noted above. Adjusted revenues decreased three per cent and Adjusted Segment EBITDA decreased 25 per cent compared to the prior year.

    Digital Real Estate Services segment

    Digital Real Estate Services revenues mentioned above increased primarily driven by the inclusion of the results of Move, acquired in November 2014. At REA Group Limited, increased revenues from greater residential listing depth product penetration were offset by negative foreign currency fluctuations. Segment EBITDA in the quarter increased $16 million, or 28. per cent to $73 million, compared to the $57 million in the corresponding prior year quarter, primarily due to the increased revenues noted above and the absence of one-time transaction costs of $16 million related to the acquisition of Move, partially offset by negative foreign currency fluctuations.

    Cable Network Programming segment

    In Q2-2016, revenues decreased $6 million, or 5.4 per cent YoY to $106 million, compared to $112 million in the corresponding prior year quarter. Adjusted revenues increased 10 per cent, primarily due to higher affiliate and advertising revenues. Segment EBITDA in Q2-2016 decreased $15 million, or 27.8 per cent YoY to $39 million from $54 million as compared with the corresponding prior year period. Adjusted Segment EBITDA declined 22 per cent, primarily due to expected higher programming rights and production costs related to the Rugby World Cup of $11 million. Negative foreign currency fluctuations reduced reported revenues and Segment EBITDA for the second quarter of fiscal 2016 by $17 million and $3 million, respectively, as compared to the prior year.

    ‘Other’ segment

    Reported revenue for Q2-2016 was $1 million as compared to nil in Q2-2015. Segment EBITDA in the quarter improved by $5 million compared to the prior year, primarily due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (UK Newspaper Matters). The net expense related to the UK Newspaper Matters was $7 million for the Q2-2016 as compared to $13 million for Q2-2016.

  • Q2-2016: News Corp lower ad, book publishing revenues, forex lower overall revenue

    Q2-2016: News Corp lower ad, book publishing revenues, forex lower overall revenue

    BENGALURU: Strong growth in the Digital Real Estate Services segment at News Corporation (News Corp) was offset by lower advertising revenues at the News and Information Services segment and lower consumer revenues at the Book Publishing segment for the quarter ended 31 December, 2015 (Q2-2016, current quarter). News Corp reported year-on-year (YoY) 4.3 per cent revenue decline in the current quarter at $2,161 million as compared to $2,258 million. As a matter of fact, except for News Corp’s Digital Real Estate Services segment, all other segments reported lower revenues and EBIDTA.

    News Corp’s News and Information Services segment revenue fell 8.1 per cent YoY in Q2-2016 to $1,400 million as compared to $1,523 million, while revenue from its Book Publishing segment declined 4.9 per cent YoY in the current quarter to $446 million as compared to $469 million. Digital Real Estate Services segment revenue increased 35.1 per cent YoY to $208 million from $154 million. The decline in total reported revenues includes a negative impact from foreign currency fluctuations of $141 million says the company.

    News Corp reported Q2-2016 Total Segment EBITDA of $280 million, a 20 per cent decline as compared to $352 million in Q2-2015. Adjusted Total Segment EBITDA in Q2-2016 declined 16.8 per cent to $317 million, compared to $381 million in the corresponding prior year quarter. The company says that continued strength at the Digital Real Estate Services segment was more than offset by the declines at the News and Information Services, Book Publishing, and Cable Network Programming segments. Negative foreign currency fluctuations reduced Total Segment EBITDA by $25 million as compared to Q2-2015.

    Company speak

    News Corp CEO Robert Thomson said, “News Corp is evolving rapidly into a more digital and increasingly global company with a diverse revenue mix that we believe will drive long-term growth in profits and shareholder returns. The company is, by most measures, the world’s largest player in digital real estate, a position certainly enhanced by the rapid growth in the US of realtor.com.”

    “In our News and Information Services segment, print advertising remained challenged, but we are seeing growth in digital advertising and circulation revenues. We are particularly focused on cost reductions and sharing services around News Corp to streamline operations at the newspapers in Australia and the UK,” he added.

    “Unruly, the viral digital advertising company acquired late last year, has been swiftly integrated into many of our companies, bringing cutting-edge metrics and a savvy social sensibility. We are developing advertising products for clients keen to benefit from the rise of video and mobile, and taking advantage of our world-class mastheads which are increasingly powerful platforms, editorially and commercially,” Thomson said.

    “Macro-economic conditions in most of our markets have not been auspicious, and foreign exchange fluctuations have been particularly volatile, but we believe in the enduring value of our prestigious brands and the sound logic of our digital strategy,” he added.

    Segment results

    News and Information Services segment

    News and Information Services segment revenues have been mentioned above. News Corp says that total segment advertising revenues declined 12 per cent, primarily due to weakness in print advertising, negative foreign currency fluctuations and lower revenues at News America Marketing, partially offset by growth in digital advertising revenues, including at Dow Jones, where digital revenues accounted for approximately one-third of advertising revenues in the quarter. Circulation and subscription revenues declined five per cent, due to negative foreign currency fluctuations. Growth in paid digital subscribers in the US and Australia, higher subscription pricing and selected cover price increases offset print volume declines and the impact from the change in the digital strategy at The Sun. At Dow Jones, the company continued to see modest growth of professional information business revenues.

    Segment EBITDA decreased $58 million in Q2-2016 to $158 million as compared $216 million in Q2-2015. Adjusted Segment EBITDA decreased 22 per cent compared to the prior year, driven by lower advertising revenues, higher promotion and marketing costs in the UK and transaction costs of $5 million related to the acquisition of Unruly.

    Book Publishing segment

    Book Publishing segment revenues mentioned above declined due to lower e-book sales, negative foreign currency fluctuations and lower revenues from the Divergent series, partially offset by strong sales in General Books resulting from the popularity of The Pioneer Woman Cooks: Dinnertime by Ree Drummond. Digital sales represented 16 per cent of consumer revenues for the quarter. Segment EBITDA for the quarter decreased $20 million, or 26 per cent, from the prior year, primarily due to the factors noted above. Adjusted revenues decreased three per cent and Adjusted Segment EBITDA decreased 25 per cent compared to the prior year.

    Digital Real Estate Services segment

    Digital Real Estate Services revenues mentioned above increased primarily driven by the inclusion of the results of Move, acquired in November 2014. At REA Group Limited, increased revenues from greater residential listing depth product penetration were offset by negative foreign currency fluctuations. Segment EBITDA in the quarter increased $16 million, or 28. per cent to $73 million, compared to the $57 million in the corresponding prior year quarter, primarily due to the increased revenues noted above and the absence of one-time transaction costs of $16 million related to the acquisition of Move, partially offset by negative foreign currency fluctuations.

    Cable Network Programming segment

    In Q2-2016, revenues decreased $6 million, or 5.4 per cent YoY to $106 million, compared to $112 million in the corresponding prior year quarter. Adjusted revenues increased 10 per cent, primarily due to higher affiliate and advertising revenues. Segment EBITDA in Q2-2016 decreased $15 million, or 27.8 per cent YoY to $39 million from $54 million as compared with the corresponding prior year period. Adjusted Segment EBITDA declined 22 per cent, primarily due to expected higher programming rights and production costs related to the Rugby World Cup of $11 million. Negative foreign currency fluctuations reduced reported revenues and Segment EBITDA for the second quarter of fiscal 2016 by $17 million and $3 million, respectively, as compared to the prior year.

    ‘Other’ segment

    Reported revenue for Q2-2016 was $1 million as compared to nil in Q2-2015. Segment EBITDA in the quarter improved by $5 million compared to the prior year, primarily due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (UK Newspaper Matters). The net expense related to the UK Newspaper Matters was $7 million for the Q2-2016 as compared to $13 million for Q2-2016.

  • News Corp sells digital education businesses

    News Corp sells digital education businesses

    MUMBAI: Rupert Murdoch’s News Corp has sold its Amplify Insight and Learning businesses to a management team supported by a group of private investors.

     

    As a result of the sale, beginning in first quarter of fiscal 2016, News Corp will reflect the results of its digital education segment as discontinued operations.

     

    “We are extremely proud of the crucial work that the Amplify team has done to create a digital platform for the future. It is tragic that so many children are digitally literate but functionally illiterate, and it has been the cherished vision of all at Amplify to ensure that students, regardless of their background, have access to a contemporary curriculum delivered on a contemporary platform,” said News Corp CEO Robert Thomson.

     

    “There is no doubt that the foundations laid by the creative team at Amplify will be profoundly influential in coming years as both curriculum and classroom evolve. All who have been involved in the Amplify business at News Corp should be conscious of their contribution to education in the US and beyond,” he added.

     

    Amplify was founded in 2011 and is a provider of educational analytics and assessments. To date, Amplify has supported more than 200,000 educators and three million students in all 50 US states, empowering teachers to offer more personalised instruction, so that students become more active, engaged learners. Amplify’s best-in-class digital curriculum targets K-12 reading, math and science, using immersive and rigorous learning experiences and a comprehensive portfolio of educational games.

     

    Financial terms of the transaction were not disclosed.

  • Rupert & James Murdoch to host PM Narendra Modi in New York

    Rupert & James Murdoch to host PM Narendra Modi in New York

    MUMBAI: Media baron 21st Century Fox chairman Rupert Murdoch along with his son and CEO of the company James Murdoch, will host Indian Prime Minister Narendra Modi in New York.

     

    The Murdochs – Modi rendezvous will also be attended by senior executives from Fox including News Corp CEO Robert Thomson, Star India CEO Uday Shankar and a selective group of peers from media and entertainment companies.

     

    Known for his powerful international image and charismatic personality, Modi is expected to lay solid ground for further propagation of brand India through this high profile gathering of world media heads.

     

    It may be recalled that earlier in March, the media world was taken in a frenzy when 21st Century Fox CEO (then COO) James Murdoch along with Shankar met Modi in Delhi.

     

    The Murdochs hosting Modi doesn’t come as a surprise given the important role Star India is playing in Fox’s revenues and reach internationally. As was reported earlier by Indiantelevision.com, global brokerage company Morgan Stanley valued Star India at $11.2 billion earlier this year. Following the report, Fox chief financial officer John Nallen was also heard pitching high hopes on Star India for the global network’s growth. “The top opportunity continues to be international, led by Star. Star clearly is going to lead a lot of our international growth,” he had said.

     

    Nallen had further added that the parent company expects Star India’s growth to contribute $500 million by 2018.

     

    This indicates how the Murdochs have advocated higher foreign direct investment (FDI) ceilings in India’s media industry and are keen to expand their presence in the country. A case in point is Star India’s acquisition of Maa TV’s broadcast assets earlier this year.

     

    During his US trip, Modi will also visit Silicon Valley giant Facebook followed by a meeting with Google’s Indian born CEO Sundar Pichai, and Apple CEO Tim Cook.

     

    “I’m excited to announce that Prime Minister Narendra Modi of India will be visiting Facebook HQ later this month for a Townhall Q&A,” said Facebook CEO Mark Zuckerberg, who had earlier sent an open invitation to the Indian Prime Minister to visit Facebook’s headquarters. “Prime Minister Modi and I will discuss how communities can work together to address social and economic challenges…. The event will be on Sunday, September 27 at 9:30 a.m. pacific time,” he later added to the post.

       

    Modi too took to Facebook to share his excitement of visiting the tech giant’s HQ, and to chalk out the agenda for the meeting. “I thank Mr. Mark Zuckerberg for the invite to visit the Facebook HQ. The interaction will cover a wide range of issues and will surely be a memorable one.”

     

    On Sunday, Modi added, “I will also see some recent technological innovations at the Google (Alphabet) campus and Tesla Motors.”

     

    His final post – “It would be after a gap of almost 33 years that an Indian PM would be visiting the west coast — the home of start-ups, innovation and technology,” – rightly reflects the overall expectations India media has from his visit to the US.

  • AFL signs colossal $2.5 billion deal with Murdoch’s Seven & Foxtel

    AFL signs colossal $2.5 billion deal with Murdoch’s Seven & Foxtel

    MUMBAI: The AFL will reap a major financial windfall after striking a colossal new six-year broadcast rights agreement for $2.508 billion. The new deal will see Channel Seven, Foxtel and Telstra continue as the League’s broadcasters, which will run from 2017 to 2022.

     

    The current deal expires at the end of the 2016 season. The existing deal was effectively worth $250 million a year while the new deal is 67 per cent bigger at $418 million a year.

     

    AFL commission chairman Mike Fitzpatrick and CEO Gillon McLachlan while announcing the deal were joined by News Corp executive chairman Rupert Murdoch, News Corp CEO Robert Thomson, Seven West Media chairman Kerry Stokes and Telstra CEO Andy Penn, among others. 

     

    Channel Seven will broadcast matches in HD free-to-air from the start of the new deal in 2017. The AFL will continue to retain full control of the fixture, including whether the grand final is scheduled as a day, twilight or night match. The AFL fixture will remain at 22 rounds, with nine games each weekend.

     

    Foxtel will continue to broadcast every game, except the AFL Grand Final, which will be aired live on Pay TV. Foxtel will have the right to sub-licence one game per round each weekend in the Saturday 3.20 pm AEST timeslot to a free-to-air provider, if it chooses. Meanwhile Telstra will once again hold the rights for hand-held devices, AFL.com.au and the club digital network. Telstra will broadcast every match on mobile devices.

     

    McLachlan said, “The historic deal delivered for clubs, players, supporters and the community. The deal would provide financial security for clubs and players to allow future growth and certainty. The deal would see resources directed towards the foundations of the game, while growing into new communities to create new generations of supporters, members, players and volunteers.”

     

    The existing deal was sealed for $1.25 billion in April 2011. AFL Commission chairman Mike Fitzpatrick said the new deal will help the League grow its reach over the next decade. “We need to continue to be the first choice for our elite and talented athletes, we need to strengthen our clubs at all levels, and we need to invest in the community level of our game. This agreement with News Corporation, the Seven Network and Telstra will allow us to make the right investment to keep our game strong,” he said.

     

    Murdoch added, “AFL was Australia’s premium football code. This is a very significant investment for us. We’ve always believed that this is the premium code in Australia – it’s the national game. We’re very happy to be doing this. We believe in the strength of the game and we’ll do everything we can to make it stronger.”

     

    Kerry Stokes revealed the broadcaster would search for ways to broadcast in HD before the next agreement kicks off. “It’s a matter under review. It’s been a technical issue for the network, as you’re aware, and we’re reviewing it again this summer with the hope that we can find a way of bringing high definition to Melbourne,” he said. provides for a separate dispensation in so far as commercial establishments are concerned and hence we hope that the regulator keeps the same in mind while formulating the new tariff regime.”

     

     

    BBC India COO Naveen Jhunjhunwala added, “We strongly advocate a distinction between ordinary and commercial subscribers as far as tariff is concerned since the place of viewing the TV signal and type of usage of TV signals is inherently different in both these categories. Having a global presence, we have seen that the regulators have left determination of tariffs to forbearance thereby ensuring dynamic competition.  With Government focus on making India an easier place to do business, leaving things to market forces will ensure growth and be in line with international scenario.” 

  • FY-2015: News & Info services retard News Corp revenue growth to 0.7%

    FY-2015: News & Info services retard News Corp revenue growth to 0.7%

    BENGALURU: A seven per cent drop in revenue in its largest segment – News & Information services dragged News Corporation’s total revenue to just 0.7 per cent growth to $8633 million in the year ended 30 June, 2015 (FY-2015) as compared to $8574 million in FY-2014. During the quarter ended ?30 June, 2015 (Q4-2015), the company’s NIS segment 10 per cent drop in revenues combined with the drop of two per cent from the Cable Programming Segment (CPS) saw News Corp total revenue drop 2.1 per cent to $2141 million as compared to the $2186 million in Q4-2014.

     

    The company explains that the majority of the revenue decline reflects adverse foreign currency fluctuations and lower advertising revenues at the News and Information Services segment, partially offset by growth in the Digital Real Estate Services and Book Publishing segments, primarily as a result of the acquisitions of Move and Harlequin, respectively.

     

    News Corp total EBIDTA however increased 10.6 per cent in the current year to $852 million as compared to the $770 million in FY-2014. YoY, News Corp total EBIDTA improved 50.4 per cent to $191 million in Q4-2015 as compared to the $127 million in Q4-2014. The company says that this increase was primarily driven by lower expenses at the News and Information Services and Digital Education segments, partially offset by adverse foreign currency fluctuations. Adjusted Total Segment EBITDA increased 62 per cent compared to the prior year.

     

    News Corp CEO Robert Thomson said, “Thanks to solid performance across a number of our businesses, including the fast-growing realtor.com, we had a strong fourth quarter finish to a good fiscal year. Despite an uneven global economy, very tough currency headwinds and the ongoing transformation of the media landscape, for fiscal 2015 we posted stable revenues, robust EBITDA growth and healthy free cash flow.”

     

    “With disciplined internal investments, strategic acquisitions and ongoing product innovation, we have aggressively shifted the company to be more global and more digital. We have clearly emerged as an international leader in digital real estate, opened up new territories at HarperCollins, expanded digital subscriber penetration at our mastheads and successfully integrated our programmatic exchange, creating new digital and mobile advertising opportunities across News Corp. We have begun to execute on a capital return program that signifies our confidence in the prospects of the company and the efficacy of its long-term strategy. The year ahead will be an opportunity to build on the sound and profitable platform we have collectively created,” he added.

     

    Net loss available to News Corp stockholders in FY-2015 was $379 million as compared to net income available to News Corp stockholders of $12 million in FY-2014. Impairment and restructuring charges were $424 million and $21 million in Q4-2015 and Q4-2014 respectively. The impairment and restructuring charges for the three months ended 30 June, 2015 include an impairment charge of $371 million related to Amplify, as discussed above. Adjusted net income available to News Corp stockholders was $38 million compared to $6 million in the prior year.

     

    Segment Results

     

    News & Information Services (NIS)

     

    NIS FY-2015 full revenues decreased by $422 million, or seven per cent, compared to the prior year. Total segment advertising revenues declined 10 per cent, driven primarily by weakness in the print advertising market coupled with the negative impact of foreign currency fluctuations. Circulation and subscription revenues declined four per cent, due to adverse foreign currency fluctuations. Adjusted revenues declined three per cent compared to the prior year.

     

    In FY-2015, NIS segment EBITDA decreased $62 million, or nine per cent, as compared to the prior year. The corporation says that results were impacted by lower advertising revenues, higher legal expenses at News America Marketing of $20 million, negative foreign currency fluctuations and one-time expenses of $11 million related to the termination of a distribution contract in connection with continued cost reduction initiatives, which more than offset lower operating expenses. Adjusted Segment EBITDA decreased six per cent compared to FY-2014.

     

    Revenues for the fourth quarter of fiscal 2015 decreased $154 million, or 10 per cent, compared to the prior year, as a result of a 13 per cent decline in advertising revenues and a five per cent decline in circulation revenues, driven by negative foreign currency fluctuations. Adjusted revenues declined two per cent compared to the prior year. Segment EBITDA increased $38 million in the quarter, or 29 per cent, as compared to Q4-2014. The increase was driven by lower operating expenses, partially offset by lower advertising revenues, one-time expenses of $11 million related to the termination of a distribution contract in connection with continued cost reduction initiatives and negative foreign currency fluctuations. Adjusted Segment EBITDA increased 34 per cent compared to the prior year.

     

     

    Book Publishing

     

    FY-2015 revenues for News Corp Book Publishing segment increased $233 million, or 16 per cent, compared to the prior year driven by the inclusion of Harlequin results and strong backlist sales in the general books category, resulting from the success of American Sniper by Chris Kyle, partially offset by lower revenues from the Divergent series by Veronica Roth. Digital sales, which consist of revenues generated through the sale of e-books and digital audio books, represented 22 per cent of Consumer revenues for fiscal 2015. Segment EBITDA increased $24 million, or 12 per cent, from the prior year primarily due to the inclusion of the results of Harlequin and lower expenses, partially offset by lower contribution from the Divergent series. Adjusted revenues and Adjusted Segment EBITDA each decreased 2 per cent, compared to the prior year.

     

    Book Publishing Revenues in Q4-2015 increased $29 million, or eight per cent, compared to Q4-2014 driven by the inclusion of Harlequin results, partially offset by lower revenues from the Divergent series. Digital sales represented 23 per cent of Consumer revenues for the quarter. Segment EBITDA was flat from the prior year as the inclusion of results from Harlequin and lower expenses offset lower contribution from the Divergent series.

     

    Digital Real Estate Services (DRES)

     

    FY-2015 revenues increased for the DRES segment to $217 million, or 53 per cent, compared to FY-2014, primarily due to the inclusion of the results of Move, which was acquired in November 2014, coupled with higher revenues at REA Group Limited (REA Group) due to the impact of increased listing depth product penetration and higher pricing, despite a decline in Australian listing volumes across the market and the negative impact of foreign currency fluctuations. Segment EBITDA decreased $13 million, or six per cent, compared to the prior year primarily due to the inclusion of a loss of $39 million related to the acquisition of Move and negative foreign currency fluctuations, partially offset by increased revenues at REA Group. Segment EBITDA includes $21 million of stock-based compensation expense and $19 million of one-time transaction costs, both related to the acquisition of Move. Adjusted revenues and Adjusted Segment EBITDA increased 18 per cent and 23 per cent, respectively, compared to the prior year.

     

    For the full year, Move saw strength in its Connection for Co-Brokerage product and Media revenues. Based on Move’s internal data, average monthly unique users of realtor.com’s web and mobile sites for the fiscal fourth quarter grew 42 per cent year-over-year to approximately 45 million, which was driven by almost 80 per cent growth in mobile users; traffic accelerated in July to 48 million monthly unique users, or 43 per cent growth year-over-year.

     

    Revenues in Q4-2015 increased $76 million, or 67 per cent, compared to Q4-2014 due to the inclusion of the results of Move coupled with higher listing depth product penetration and higher pricing at REA Group. Segment EBITDA in the quarter decreased $17 million, or 27 per cent, compared to the prior year due to certain expenses at Move and the negative impact of foreign currency fluctuations, partially offset by the improvement at REA Group. At Move, strong revenue performance was offset by $7 million of legal expenses and $5 million of stock-based compensation expense related to the acquisition.

     

    Adjusted revenues and Adjusted Segment EBITDA increased 15 per cent and 18 per cent, respectively, compared to the prior year.

     

    Cable Networking Programming (CNP)

     

    CNP’s FY-2015 revenues increased $9 million, or two per cent, compared to the prior year driven by higher affiliate and advertising revenues, partially offset by adverse foreign currency fluctuations. Segment EBITDA increased $7 million, or five per cent, from FY-2014, primarily driven by higher revenues, partially offset by adverse foreign currency fluctuations and higher programming costs. Adjusted revenues and Adjusted Segment EBITDA for FY-2015 increased 11 per cent and 15 per cent, respectively, compared to FY-2014.

     

    In Q4-2015, revenues decreased $3 million, or two per cent, compared to Q4-2014, as higher affiliate and advertising revenues were more than offset by negative foreign currency fluctuations. Segment EBITDA in the quarter increased $3 million, or 16 per cent, compared to the prior year. Adjusted revenues increased 15 per cent and Adjusted Segment EBITDA increased 37 per cent, compared to the prior year.

     

    Digital Education

     

    Revenues for the full year increased $21 million, or 24 per cent, compared to the prior year. Segment EBITDA improved $100 million, or 52 per cent, compared to the prior year, primarily due to the impact of the capitalization of Amplify Learning’s software development costs of $53 million, reduced development expenses and increased revenues.

     

    Revenues in Q4-2015 increased $6 million, or 33 per cent, and Segment EBITDA improved $29 million, or 55 per cent.

     

    Others

     

    In FY-2015, Others Segment EBITDA improved by $26 million, primarily due to decreased fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the U K Newspaper Matters”).

     

    The net expense related to the U K Newspaper Matters was $50 million for the full year, as compared to $72 million in the prior year.

     

    Segment EBITDA in the quarter improved by $11 million. The net expense related to the UK Newspaper Matters was $8 million for the three months ended 30 June, 2015, as compared to $16 million in the prior year.

  • News Corp launches initial stock buyback programme

    News Corp launches initial stock buyback programme

    MUMBAI: News Corp has begun repurchasing shares of Class A Common Stock under its previously disclosed buyback program.

    This marks the first time that the company has bought back stock under the program since the “new” News Corp was established as a separate, publicly-traded company in mid-2013.

    “We had indicated to investors that we needed two years to set the new News firmly on a digital and global course, and are confident that the substantial progress made thus far enables us to take this positive action ahead of schedule. The development of our print businesses, the prudent extension of our portfolio and the stewardship of our resources mean that we are able to consider our capital allocation options from a position of strength. Our buyback program is clearly a vote of confidence in the company’s prospects and its potential,” said News Corp CEO Robert Thomson.

    Future repurchases, if any, will depend on the company’s liquidity and cash flow, as well as general market conditions and other considerations.

    Since the separation of News Corporation into two companies in 2013, News Corp has pursued a strategy of digital and global growth, and has created a diverse line of businesses, bolstered by such acquisitions as Harlequin and Move, Inc.

  • News Corp net profit down 52%; revenue down 1%

    News Corp net profit down 52%; revenue down 1%

    MUMBAI: News Corp’s quarterly profit was down 52 per cent due to foreign-exchange fluctuations and lower advertising sales offset revenue gains in book publishing and the digital real-estate business.

     

    The company’s net income for the three months ended 31 March, 2015 fell to $23 million, or four cents a share, from $48 million, or eight cents, in the same period a year earlier.

     

    For the fiscal 2015 third quarter, total revenues slipped one per cent to $2.06 billion as compared to $2.08 billion in the prior year. The majority of the revenue decline reflects negative foreign currency fluctuations and lower advertising revenues at the News and Information Services segment, offset in large part by growth in the Book Publishing and Digital Real Estate Services segments as a result of the acquisition of Harlequin Enterprises Limited and Move, Inc., respectively.

     

    News Corp CEO Robert Thomson said, “The new News Corp continues to build a firm foundation for digital growth. We see that most clearly in the successful integration of realtor.com®, which grew audience and revenue at record levels in the third quarter. News Corp is now a global leader in digital real estate, which we believe will underpin long-term expansion and complement our expertise in news and financial analysis, both of which have been important ingredients in realtor.com’s accelerated growth. While the quarter faced some revenue challenges, particularly at News and Information Services, including currency headwinds, our adjusted EBITDA was relatively stable, underscoring the strength of our assets and the diversification of our revenue base. We believe the company is firmly on track and the signs are positive for year-over-year EBITDA growth in the fourth quarter.”

     

    As compared to $175 million in the prior year, News Corp’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell seven per cent to $163 million on legal costs, currency fluctuations and increased stock-based compensation expenses from the acquisition of Move Inc.

     

    These results include $15 million and $20 million in fees and costs – net of indemnification – related to the U.K. Newspaper Matters in the three months ended 31 March, 2015 and 2014, respectively. Declines at the News and Information Services segment, including higher legal costs at News America Marketing, negative foreign currency fluctuations and increased stock-based compensation expense resulting from the acquisition of Move were partially offset by lower expenses at Amplify and increased revenues in the Book Publishing segment due to the inclusion of Harlequin results.

     

    Free cash flow available to News Corporation decreased by $105 million in the nine months ended March 31, 2015 to $391 million, primarily as a result of certain one-time items.

  • News Corp acquires Indian tech media company VCCircle

    News Corp acquires Indian tech media company VCCircle

    MUMBAI: Rupert Murdoch’s News Corp has signed a definitive agreement to acquire the VCCircle Network, which includes VCCircle.com, Techcircle.in, VCCEdge, VCCircle Training, in addition to a premium-content driven conference business.

     

    VCCircle.com is a company focusing on private equity, venture capital, and M&A related information and analysis of the Indian investment ecosystem. It tracks M&A, venture capital, private equity, investment banking, and emerging companies and sectors, and was the first such website in India to launch a premium subscription-led offering.

     

    Terms of the acquisition, which is expected to close in March, were not disclosed.

     

    “This significant investment is a sign of our faith in India’s future and our enthusiasm for working with and building up emerging talents in the country. India is an increasingly meaningful part of our portfolio, which is itself increasingly digital and global,” said News Corp CEO Robert Thomson.

     

    “For the past decade, we have built a strong franchise with proprietary data, information, content, and networking capabilities around India’s digital business world. Being a part of News Corp will now allow us to accelerate our already aggressive growth plans,” said VCCircle Network founder and CEO P.V. Sahad.

     

    VCCircle Network is owned by Mosaic Media Ventures Pvt Ltd and has about 100 employees across India, with its headquarters in Noida. Sahad, and the management group, will become part of News Corp’s India team. Sahad will report to News Corp senior vice president, strategy Raju Narisetti.

     

    The VCCircle acquisition builds on News Corp’s recent digital investments in India. In November, News Corp acquired a 25 per cent stake in PropTiger.com, Indian online residential real estate platform. In December, News Corp acquired BigDecisions.com, which aims to help Indian consumers make smarter financial decisions through interactive, decision-making tools powered by sophisticated algorithms and data. News Corp also has a presence across India through its Dow Jones, Wall Street Journal and HarperCollins Publishers businesses.

  • Q2-2014: News Corp reports flat results due to lower advertising, forex; EPS down

    Q2-2014: News Corp reports flat results due to lower advertising, forex; EPS down

    BENGALURU: A 3.9 per cent drop in advertising revenue and negative foreign exchange (forex) impacted News Corporation (News Corp., company) numbers for the quarter ended 31 December, 2014 (Q2-2015, current quarter).

     

    Total revenues went up marginally by 2.8 per cent to US$ 2280 million in the current quarter from US$ 2238 million in the corresponding year ago quarter (Q2-2014, quarter ended 31 December, 2013). The company says that the majority of the revenue increase reflects strength in the Book Publishing and Digital Real Estate Services segments.

     

    News Corp adds that Australian newspapers revenues declined 8 per cent due to negative foreign currency fluctuations and modest advertising revenue declines. Total News and Information Services segment advertising revenues declined 9 per cent, driven primarily by weaknesses in the UK print advertising market, lower revenue from free-standing insert products at News America Marketing and negative foreign currency fluctuations.

     

    Net income available to News Corp stockholder was down 5.3 per cent in Q3-2015 to US$ 142 million  from US$ 150 million in the corresponding year ago quarter resulting in a 7.7 per cent drop in basic and diluted EPS to US$ 0.24 in Q2-2015 from the US0.26 in Q2-2014. Adjusted was US$ 0.26 compared to US$ 0.31 in the prior year.

     

    The Company reported almost flat second quarter total segment EBITDA of US$ 328 million compared to US$ 327 million in the prior year quarter. The company says that these results include US$ 13 million and US$ 19 million in fees and costs – net of indemnification – related to the U K Newspaper Matters in the three months ended 31 December, 2014 and 2013, respectively, as well as US$ 16 million of one-time transaction costs in the second quarter of fiscal 2015 related to the acquisition of Move, Inc. (Move). Strong revenue performances in the Book Publishing and Digital Real Estate Services, combined with lower expenses related to the capitalization of Amplify Learning’s software development costs, which were offset by the above mentioned declines at the News and Information Services segment and negative foreign currency fluctuations. Adjusted total segment EBITDA increased 4 per cent compared to the prior year.

     

    Company Speak

     

    News Corp chief executive Robert Thomson said, “The development of the new News Corp continued apace in the second quarter as we began the transformation of the just acquired realtor.com, which has certainly exceeded our expectations in traffic growth in recent weeks. We were clearly buffeted by currency headwinds, but the strength of our brands, the breadth of our reach, the intensifying focus on cost discipline and the power of our portfolio meant that we saw continued growth in revenue and increasing upside in our long-term prospects. Our digital personality has evolved quickly, with realtor.com having given us a new and influential platform, digital subscribers on the rise at our news mastheads, robust growth at REA, and healthy e-book sales at HarperCollins. The vision we outlined for the company is becoming a reality, and while we have much work ahead, the foundations we have laid over the past 18 months put us in a strong position for enduring success and increased shareholder value.” 

     

    Segment Results

     

    News and Information services

     

    This segment had witnessed revenue decline in the previous quarter (Q1-2015). In Q2-2015 also revenue declined 5.5 per cent to US$ 1523 million from US$ 1612 million in Q2-2014. This segment’s EBIDTA declined 15.3 per cent to US$ 216 million from US$ 255 million in the year ago quarter.

     

    The declines mentioned above were partially offset by higher advertising revenues at Dow Jones, across the Wall Street Journal franchise. Circulation and subscription revenues declined 3 per cent, due to the decline in professional information business revenues at Dow Jones and lower print circulation volume, partially offset by higher subscription pricing, cover price increases says News Corp.

     

    Book Publishing

     

    Book publishing segment revenues increased 19.9 per cent to US$ 469 million from the US$ 391 million reported for the year ago quarter. This segment’s EBIDTA increased 13.2 per cent to US$ 77 million in the current quarter as compared to the US$ 68 million in Q2-2014.

     

    News Corp informs that revenue growth in this segment was driven by the inclusion of the results of Harlequin Enterprises Limited (Harlequin) and strong performances in Children’s and General Books resulting from higher backlist sales during the holiday season, which largely offset the lower revenues from the Divergent series. E-book revenues improved by 14 per cent versus the prior year period, driven by Harlequin, and represented 17 per cent of consumer revenues.

     

    Cable Network Programming

     

    Revenue from this segment increased marginally by 1.8 per cent to US$ 112 million in the current quarter from US$ 110 in the year ago quarter primarily due to higher affiliate pricing and increased subscribers says the company. Segment EBIDTA was correspondingly up 1.9 per cent to US$ 54 million from US$ 53 million in Q2-2014. The company attributes increase in EBIDTA to higher revenues, partially offset by negative foreign currency fluctuations and higher programming rights and production costs.

     

    Digital Real Estate Services

     

    This segment reported a whopping 49.5 per cent increase in revenue from US$ 103 million in the year ago quarter to US$ 154 million in the current quarter. News Corp says that the increase was primarily driven by the inclusion of the results of Move, coupled with higher residential listing depth product penetration and higher pricing at REA Group Limited (REA Group). However, this segment’s EBIDTA increased marginally by 3.6 per cent in the current quarter to US$ 57 million from US$ 55 million in Q2-2014. The company says that increase in revenue was partially offset by US$16 million of one-time transaction costs related to the acquisition of Move. Excluding the contributions from Move, divestitures and foreign currency fluctuations, Adjusted revenues and Adjusted Segment EBITDA increased 26 per cent and 38 per cent, respectively, compared to the prior year.

     

    Digital Education

     

    This segment reported flat revenue in Q2-2015 and Q2-2014 at US$ 22 million as higher subscription revenues at Amplify Insight and higher revenues at Amplify Access were offset by lower Amplify Insight consulting revenues and lower revenues at Amplify Learning, related to the early grade print and hybrid learning products says the company. Segment EBIDTA improved 45.5 per cent to a negative US$ 24 million in the current quarter from a negative US$ 45 million in the year ago quarter primarily due to the impact of the capitalization of Amplify Learning’s software development costs of US$ 14 million and lower expenses.

     

    Other

     

    News Corp explains that Segment EBITDA in the quarter improved by US$ 8 million compared to the prior year, primarily due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the U.K. Newspaper Matters) of approximately $ US6 million. The net expense related to the U.K. Newspaper Matters was US$ 13 million for the three months ended 31 December, 2014 as compared to US$ 19 million for the three months ended 31 December, 2013.