News Corp Boss Blames Aussie Newspapers For Second-Quarter Loss

News Corp Boss Blames Aussie Newspapers For Second-Quarter Loss

News Corporation has reported a significant loss for the second quarter of the 2017 fiscal year, with CEO Robert Thomson citing an impairment of its Aussie newspaper assets as a major factor.

Huntley Mitchell
Posted by Huntley Mitchell

The Rupert Murdoch-owned media conglomerate posted a second-quarter loss of US$219 million from continuing operations – down from US$2.16 billion on the previous corresponding period.

The loss includes US$537 million of non-cash impairments and write-downs and a one-time gain of US$120 million as a result of cash proceeds from the sale of REA Group’s European business, according to a News Corp statement.

The company’s revenues were at US$2.12 million for the final three months of 2016, down from US$2.16 million on the year prior.

News Corp’s digital revenues now account for 27 per cent of its news and information services segment revenues, up from 22 per cent last year.

Commenting on the less than desirable results, Thomson cited an impairment of its Aussie newspaper business, along with non-cash charges due of a change in the carrying value of Foxtel, as key factors.

He also said News Corp had been facing “continued headwinds in print advertising”.

On a more positive note, Thomson praised the strong performance News Corp’s digital real estate services segment, which recorded a 16 per cent jump in revenue, along with “meaningful revenues” at HarperCollins.