News Corp Slumps To US$643m Full-year Loss

News Corp Slumps To US$643m Full-year Loss
SHARE
THIS



Rupert Murdoch’s News Corp has reported a loss of US$643 million ($816.8 million) for the last financial year primarily due to write-downs in its Aussie and UK newspaper businesses, as well as Foxtel.

The full-year loss was in stark contrast to the company’s US$235 million profit for FY16, and was driven by pre-tax non-cash impairment charges of approximately US$785 million, primarily related to the write-down of fixed assets for its UK and Aussie newspapers, which include The Daily Telegraph, The Australian and The Herald-Sun.

The decline was also due to “lower equity earnings of affiliates”, primarily from a US$227 million write-down of News Corp’s 50 per cent investment in Foxtel.

Overall revenues fell 2 per cent to US$8.14 billion in FY17, which the company said was partly due to lower print advertising revenues for its News and Information Services division.

Fiscal 2017 revenues for this division fell 5 per cent to $269 million, with ad revenues declining by US$202 million.

News Corp's FY17 results

News Corp’s FY17 results

News Corp’s digital real estate division, which includes REA Group and Move, made up almost 40 per cent of the company’s profit in the last financial year, and CEO Robert Thomson said he expects this figure to increase in the coming years.

Meanwhile, Foxtel saw its profit fall to $US59 million from $US180 million in FY16, which was mainly due to a $US58 million loss from a write-down in its investment in Network Ten, and $US53 million in losses from its shutdown of Presto.

“Fiscal 2017 was a significant year for News Corp, as we saw tangible improvement in profitability powered by the fast-growing digital real estate services segment, and we charged a premium for premium content while focusing on operating efficiencies,” Thomson said.

“FOX SPORTS Australia and reinforced its leadership in Australia with the successful launch of the Fox League channel and by extending its domestic soccer rights for another six years.

“FOXTEL and FOX SPORTS Australia are capitalising on the growing SVOD market with the recent roll-out of its rebranded Foxtel Now streaming service, which has been well-received and is improving subscriber volume.”

Please login with linkedin to comment

Advertising Standards Bureau Emaling

Latest News

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
  • Advertising
  • Media

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off

Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]

Industry’s Gamers Unite For UnLtd’s Virtual Rocket League Comp
  • Advertising
  • Marketing
  • Media

Industry’s Gamers Unite For UnLtd’s Virtual Rocket League Comp

Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]

Sam Worthington And Phoebe Tonkin To Star In New Stan Original Film ‘Transfusion’
  • Media

Sam Worthington And Phoebe Tonkin To Star In New Stan Original Film ‘Transfusion’

Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]

COVID-19 Saw Stock Imagery Return To Harmful Gender Stereotypes
  • Advertising
  • Marketing

COVID-19 Saw Stock Imagery Return To Harmful Gender Stereotypes

According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]

by B&T Magazine

B&T Magazine
Maddison Connaughton Ends Time As Editor Of The Saturday Paper
  • Media

Maddison Connaughton Ends Time As Editor Of The Saturday Paper

Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]

Teenage boy wearing headphones works at desk in his bedroom
  • Media

New Research Names Olivia Rodrigo And BTS The Most Popular Study Music

Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]

Happy woman drinking tea and waving to someone while having video call over desktop PC in the evening at home.
  • Marketing
  • Opinion

Building A Successful Remote Marketing Team

Dayna Stewart is the Business Director – Digital Marketing, Media & Creative Services at The Nudge Group. Here, she discusses the challenges that come with building a successful marketing team when working remotely. Before COVID-19 changed the way businesses work, most marketing teams spent their days together in a meeting room collaborating on the next […]

Opinion

by B&T Magazine

B&T Magazine
Australia’s The Kid LAROI Joins Billie Eilish, Dua Lipa, Olivia Rodrigo And More In iHeartRadio Festival Line-Up
  • Media

Australia’s The Kid LAROI Joins Billie Eilish, Dua Lipa, Olivia Rodrigo And More In iHeartRadio Festival Line-Up

The line-up for the 2021 iHeartRadio Music Festival has been announced as the legendary event returns live in Las Vegas in September. This year, the epic two-day lineup for the iHeartRadio Music Festival main stage will feature performances by Billie Eilish, Cheap Trick, Coldplay, Dua Lipa, Florida Georgia Line, Journey, Khalid, Lil Baby, Maroon 5, Nelly, […]