Rupert Murdoch controlled diversified media conglomerate,
) reported first-quarter fiscal 2014 results. The publisher of
The Wall Street Journal
and owner of Dow Jones posted quarterly earnings of 3 cents a
share that missed the Zacks Consensus Estimate by a penny, and
fell approximately 50% from the prior-year quarter. Softness
witnessed across the company's Australian newspaper muted the
Including one-time items, the company reported quarterly
earnings of 5 cents a share that showed a substantial improvement
from a loss of 16 cents.
The company, which split from
Twenty-First Century Fox, Inc.
) on Jun 28, 2013, said that total revenue for the quarter came
in at $2,072 million, down 3% from the year-ago quarter and also
fell short of the Zacks Consensus Estimate of $2,189 million.
Total revenue of this Zacks Rank #3 (Hold) stock was adversely
affected by lower advertising revenue that dropped 8% to $958
million, partially offset by a 12% jump in circulation and
subscription revenue of $679 million.
We observe that revenue across
News and Information Services
segment fell 10% year over year to $1,495 million primarily due
to waning advertising revenues, indicating a soft economic
scenario in Australia and a decline in advertising revenues at
Dow Jones and News UK. Australian newspapers revenues fell 22%.
Adjusted segment EBITDA increased 12% to $133 million.
Cable Network Programming
segment revenues came in at $132 million, while EBITDA was $29
million, reflecting the consolidation of FOX SPORTS Australia
since Nov 2012, attributable to the acquisition of Consolidated
Media Holdings Ltd. ("CMH"), a media investment company that has
its operations in Australia.
Digital Real Estate Services
segment soared 11% year over year to $90 million while adjusted
EBITDA jumped 43% to $50 million.
segment, which consists of HarperCollins Publishers, reported
revenues of $328 million, down 7% from the prior year due to the
divestment of the Women of Faith live events business,
discontinuation of the third party distribution business in the
U.S. and sluggishness witnessed in the Christian publishing
marketplace. These were partially offset by a 30% increase in
e-book sales. Adjusted EBITDA for News Corporation's book
publishing business, which competes with e-book devices sold by
), came in at $43 million, increasing 8% year over year.
segment, which comprises Amplify, a digital education business,
posted revenues of $27 million that plunged 21% from the previous
year. The divestment of Australian digital businesses in fiscal
2013 impacted the results. Adjusted EBITDA for the segment was a
loss of $91 million compared with a loss of $52 million in the
Other Financial Aspects
News Corporation ended the quarter with cash and cash
equivalents of $2,688 million, amounts due to Twenty-First
Century Fox of $413 million, and shareholders' equity of $12,821
million, excluding non-controlling interest of $118 million.
Capital expenditures for the year were $67 million, while the
company generated negative free cash flow of $10 million.
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