Digital push pays off
News Corp posts rise in quarterly revenue
NEWS Corp reported a 6 per cent rise revenue in the third quarter, driven by a strong performance in digital real-estate, book publishing and revenue growth in every segment.
The company posted revenue of $2.79 billion ($US2.10 billion) for the three months to March, up from $US1.98 billion in the prior corresponding period.
The revenue result was slightly ahead of estimates from analysts polled by Bloomberg.
News Corp recorded a net loss of $US1.13 billion compared to $US5 million in the same period a year earlier, and a loss of $1.94 per share, compared with a loss of 1c per share in the prior year.
The loss was primarily driven by non-cash writedowns 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 results comes after News Corp, which publishes the Gold Coast Bulletin, finalised a merger of subscription-TV businesses Foxtel and Fox Sports.
News holds a 65 per cent stake in the combined entity, with Telstra holding the balance.
Chief executive Robert Thomson said: “We finished the fiscal third quarter with strong revenue growth, led by outstanding performances at our digital real-estate services and book publishing segments.”
The update from News Corp came as shares in REA Group hit an all-time high after the operator of realestate.com.au posted a 19 per cent increase in revenue for the three months to March compared to the same period a year earlier.
Led by strong demand in its residential and commercial businesses and helped by its new financial services business, REA posted $186 million in revenue for the quarter. REA is majority owned by News Corp.
Robert Thomson is chief executive officer of News Corporation.