News Corp Profit Tops Estimates; Revenue Drops

(RTTNews) - News Corp (NWS, NWSA) on Wednesday reported a slip to loss in the fourth quarter, hurt by lower advertising revenue at news and information segment, impairment charges and a stronger dollar, partly offset by growth in the digital real estate and book publishing businesses.

However, excluding one-time expenses, News Corp posted a profit that surpassed Wall Street estimates, while revenue missed expectations. News Corp shares gained more than 4 percent in after-hours trade on the Nasdaq, following the announcement.

The New York-based media company reported fourth-quarter net loss to common stockholders of $379 million or $0.65 per share, compared with a profit of $12 million or $0.02 per share last year.

Results for the quarter included impairment and restructuring charges of $424 million.

Excluding items, adjusted earnings for the quarter were $0.07 per share, compared with $0.01 per share a year ago. On average, seven analysts polled by Thomson Reuters estimated earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

News Corp, which owns the Wall Street Journal and the New York Post, said its revenues for the quarter edged down to $2.14 billion from $2.19 billion in the prior year. Six analysts had a consensus revenue estimate of $2.19 billion for the quarter.

Revenue at its key news and information services segment slid 10 percent from a year ago to $1.4 billion.

Among smaller segments, book publishing gained 8 percent; digital real estate surged 67 percent, driven by the results of Move which was acquired in 2014; while cable network programming fell 2 percent.

Chief Executive Robert Thomson observed, "We have begun to execute on a capital return program that signifies our confidence in the prospects of the company and the efficacy of its long-term strategy. The year ahead will be an opportunity to build on the sound and profitable platform we have collectively created."

News Corp separated itself in 2013 after Rupert Murdoch spun off its more profitable entertainment and TV assets into Twenty-First Century Fox (FOX, FOXA).

NWSA closed Wednesday at $14.12, up $0.16 or 1.15%, on a volume of 4.4 million shares. In after hours, the stock gained $0.58 or 4.11% at $14.70.