Blow for Murdoch as News Corp misses analyst estimates for FQ3
DetailsMichelle Clancy | 06 May 2015
Rupert Murdoch's News Corp failed to meet analyst expectations for its fiscal third quarter, reporting $2.06 billion in revenue and adjusted earnings per share (EPS) of $0.05.
CEO Robert Thomson said that an 11% ad-revenue loss year-over-year for the Wall Street Journal was the main culprit for the 2% year-over-year decline, along with international currency fluctuations.
"While the quarter faced some revenue challenges, particularly at news and information services, including currency headwinds, our adjusted EBITDA was relatively stable," Thomson said, "underscoring the strength of our assets and the diversification of our revenue base. We believe the company is firmly on track and the signs are positive for year-over-year EBITDA growth in the fourth quarter."
He added: "There's no doubt that there are short-term trends in place, but we're seeing a recovery in product advertising."
Wall Street analysts had forecast EPS of $0.07 on $2.26 billion in revenue.
Losses were offset in large part by growth in the book publishing and digital real estate services segments, as a result of the acquisition of Harlequin Enterprises Limited and Move. For this and other reasons, Thomson struck a bullish note.
"The new News Corp continues to build a firm foundation for digital growth," Thomson said. "We see that most clearly in the successful integration of realtor.com, which grew audience and revenue at record levels in the third quarter. News Corp is now a global leader in digital real estate, which we believe will underpin long-term expansion and complement our expertise in news and financial analysis, both of which have been important ingredients in realtor.com's accelerated growth."