News Corp Beats The Street Despite Advertising Sales Tumble

Feb 6 2014, 3:43pm CST | by

News Corp beat Wall Street earnings estimates for its 2014 second quarter on Thursday, sending the stock up in after hours trading — despite substantial declines in advertising revenue across the majority of the company’s news business.

News Corp reported earnings per share of $0.31 against consensus estimate of $0.20, and revenues for the quarter of $2.24 billion, squeaking $100 million higher than the estimates. Investors like to hear that, but the beat was largely due to pessimistic outlook on behalf of analysts, who expected even larger declines in ad sales. Overall, the company’s revenue dropped 4% from the same quarter last year.

“The earnings report demonstrates a measure of progress as we navigate a challenging advertising market,” CEO Robert Thomson said in a statement. “The digital transformation is certainly underway, as the acquisition of Storyful and the robust growth in digital sales at HarperCollins attest. Digital subscriptions and website traffic are on the rise at most of our sites, and revenue at REA, the online real estate company, continues to expand encouragingly.”

Challenging advertising market indeed. Sales at the company’s largest division, News and Information Services, fell 9% year over year. EBITDA also fell 13% in that segment. Australian newspapers, where revenues dropped 17% (10% related to foreign currency), were the weakest performers. Circulation and subscription sales were down too, with Dow Jones the primary cause of that. Gains in book publishing and digital real estate couldn’t make up those losses.

News Corp stock, which was up 2.29% during the day, bumped up another 1.40% in after hours trading as of 4:30pm EST.

Follow Brian on Facebook and Twitter.

2014 30 Under 30: Marketing & Advertising

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

UN chief condemns American journalist's killing
United Nations, Aug 21 (IANS) UN Secretary-General Ban Ki- moon Wednesday strongly condemned the killing of American journalist James Foley by extremist Islamist militants, calling it "an abominable crime".
 
 
Russia suspends four McDonald restaurants
Moscow, Aug 21 (IANS) Russia's consumer rights watchdog said Wednesday it has temporarily shut down four McDonald's restaurants here, including the first ever outlet in the country, citing sanitary violations.
 
 
Egypt mufti's adviser slams killing of US journalist
Cairo, Aug 20 (IANS) Ibrahim Negm, advisor to the mufti of Egypt, Wednesday denounced the beheading of US journalist James Foley by the Islamic State (IS) Sunni extremist group in Iraq, state-run MENA news agency reported.
 
 
White House says beheading video authentic
Washington, Aug 20 (IANS/EFE) The Barack Obama administration Wednesday confirmed the authenticity of a video showing the decapitation of a US journalist who was abducted in November 2012 while covering the civil war in Syria.
 
 
 

Latest from the Network

UN chief condemns American journalist's killing
United Nations, Aug 21 (IANS) UN Secretary-General Ban Ki- moon Wednesday strongly condemned the killing of American journalist James Foley by extremist Islamist militants, calling it "an abominable crime". "The...
Read more on Ad Balla
 
Humanitarian convoy to Ukraine ready to advance: Russia
Moscow, Aug 21 (IANS) A day after Ukraine agreed to ensure safe passage for the humanitarian aid convoy in areas controlled by government forces, a senior diplomat Wednesday said the Russian convoy for Ukraine's...
Read more on Politics Balla
 
Russia suspends four McDonald restaurants
Moscow, Aug 21 (IANS) Russia's consumer rights watchdog said Wednesday it has temporarily shut down four McDonald's restaurants here, including the first ever outlet in the country, citing sanitary violations. "During...
Read more on Politics Balla
 
Rihanna, Drake back together?
New York, Aug 21 (IANS) Singer Rihanna and her on-again, off-again boyfriend Drake were recently spotted flirting at a party here. The duo, who were rumoured to have split in May, spent almost two hours in deep...
Read more on Celebrity Balla
 
Nicki Minaj gives lap dance to Drake in video
New York, Aug 21 (IANS) Rapper Nicki Minaj has spiced up the video of her song "Anaconda" with a lap dance for Canadian rapper Drake. The new clip features Minaj and some more ladies. In the climax, Drake gets a lap...
Read more on Celebrity Balla
 
Zac Efron and Michelle Rodriguez split
Zac Efron and Michelle Rodriguez have split up. The 26-year-old actor and the 36-year-old actress, who were first spotted kissing on holiday in Sardinia, Italy in early July, have reportedly ended their romance after...
Read more on Celebrity Balla
 
Emma Stone to star in 'Cabaret'
Emma Stone will officially make her Broadway debut in 'Cabaret.' The 'Amazing Spider-Man' actress has signed on to take over the lead role of Sally Bowles from Michelle Williams in the New York production and will take...
Read more on Celebrity Balla
 
Dave Grohl and wife welcome third daughter
Dave Grohl's wife has given birth to their third child. The Foo Fighters star and Jordyn Blum, whom he married in 2003, quietly welcomed daughter Ophelia into the world earlier this month. The happy news comes at a...
Read more on Celebrity Balla
 
London warns of threat from British fighters in Syria, Iraq
London, Aug 20 (IANS/EFE) British Foreign Secretary Philip Hammond warned Wednesday of the "threats" posed by a "significant number" of Britons working with jihadis in Syria and Iraq, as he condemned the video of the...
Read more on Politics Balla
 
Hungary honours Nobel laureate, Rubik's cube inventor
Budapest, Aug 20 (IANS) Hungarian President Janos Ader presented Nobel laureate author Imre Kertesz and inventor Erno Rubik with the Order of Saint Stephen, Hungary's highest award, Wednesday. The award marks the...
Read more on Celebrity Balla