Shares are down about 2.7% in postmarket trading after News Corp reported disappointing results for the quarter ended September 30. The company generated net income of $38M, up from an $83M loss in the period last year, on revenues of $2.07B, -2.9%. Analysts expected revenues to come in at $2.2B. Earnings at 5 cents a share matched the consensus forecast. The News and Information Services unit — which includes The Wall Street Journal — was hit hardest, with revenues -10% to $1.5B. The Australian newspapers weighed on the results, with revenues -22% accounting for a majority of the decline. But the company says it also saw “moderating declines at Dow Jones and News UK.” Ad sales fell 12%, and circulation was -6%. In Book Publishing, which includes HarperCollins, revenues fell 7% to $328M. News Corp says e-book sales were up 30%, accounting for 22% of revenues, but were offset by the company’s divestiture of the Women of Faith live events business and softness in Christian publishing. Revenues would have fallen 5% without the one-time changes and fluctuations in foreign exchange rates.
Meanwhile, revenues were virtually flat at $132M for the mostly Australia-based Cable Network Programming business. CEO Robert Thomson says that while “there are certainly headwinds in Australia,” News Corp has been “consistently cost conscious” and is transforming publishing into “multi-platform businesses.”
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