News Corp Reports First Quarter Results for Fiscal 2021

Fiscal 2021 First Quarter Key Financial Highlights:
*Revenues were $2.12 billion, a 10% decline compared to $2.34 billion in the prior year, primarily driven by the sale of News America Marketing
*Net income of $47 million compared to a net loss of $(211) million in the prior year, which included non-cash impairment charges of $273 million
*Total Segment EBITDA was $268 million compared to $221 million in the prior year
*Reported EPS were $0.06 compared to $(0.39) in the prior year – Adjusted EPS were $0.08 compared to $0.04 in the prior year
*Segment EBITDA at Digital Real Estate Services grew 45%, with record revenue and profit contribution by Move, operator of realtor.com®, led by its referral model
*Segment EBITDA at Dow Jones grew 47%, driven by record average consumer product subscriptions of 3.88 million, led by 29% growth in digital-only subscriptions
*Book Publishing saw 13% and 45% growth in revenues and Segment EBITDA, respectively, benefiting from continued strong performance in digital sales

News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended September 30, 2020.

Commenting on the results, Chief Executive Robert Thomson said: “News Corp has started the fiscal year strongly, with higher revenue in many of our segments during the first quarter, and a 21 percent increase year-on-year in profitability, despite the disruptive economic consequences of COVID-19.

Total revenues for the quarter were $2.1 billion, a fall of 10 percent, but that contraction was largely due to the sale of News America Marketing, and the adjusted decline was 3 percent. Meanwhile, three of our segments, Dow Jones, Digital Real Estate Services and Book Publishing, reported year-over-year Segment EBITDA increases of at least 45 percent, highlighting the success of our investment strategy in publishing and digital real estate.

Dow Jones posted a record first quarter in profitability and higher revenues, thanks to its role as one of the world’s most trusted providers of business news and analysis. There is undoubted U.S. and international potential for Dow Jones to expand audiences and revenues, and the team is pleased by the early returns on a subscriber offering for the previously free MarketWatch service.”

The Company reported fiscal 2021 first quarter total revenues of $2.12 billion, 10% lower compared to $2.34 billion in the prior year period. The decline was due to a $200 million, or 9%, negative impact from the divestiture of News America Marketing, weakness in the print advertising market, a $35 million, or 2%, negative impact from the closure or transition to digital of certain regional and community newspapers in Australia and lower subscription revenues at the Subscription Video Services segment. The decline was partially offset by growth in the Book Publishing and Digital Real Estate Services segments, as well as a $50 million, or 2%, positive impact from foreign currency fluctuations. Adjusted Revenues (which exclude the foreign currency impact, acquisitions and divestitures as defined in Note 2) decreased 3%.

Net income for the quarter was $47 million compared to a net loss of $(211) million in the prior year, reflecting the absence of impairment charges and higher Total Segment EBITDA, as discussed below, partially offset by higher tax expense.

The Company reported first quarter Total Segment EBITDA of $268 million, a 21% increase compared to $221 million in the prior year. The increase was primarily due to strong growth at the Digital Real Estate Services, Dow Jones and Book Publishing segments, partially offset by a decline at the News Media segment, reflecting the absence of a net $12 million contribution due to the divestitures of News America Marketing and Unruly. Adjusted Total Segment EBITDA (as defined in Note 2) increased 23%.

Net income (loss) per share attributable to News Corporation stockholders was $0.06 as compared to $(0.39) in the prior year.
more detail at: https://newscorp.com/2020/11/05/news-corp-reports-first-quarter-results-for-fiscal-2021/

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Why print can be child’s play

While the rise of digital has led many publishers to reduce their print offering, Dennis Publishing has continued to invest. Kerin O’Connor, chief executive of The Week at Dennis, explains how it’s found success with a print version of The Week for children – and what it can teach the industry about the future of print… Jon Watkins spoke to him ahead of the 41st FIPP World Congress, taking place from 9-11 October where Kerin will be among 100 speakers from around the world sharing insights on a variety of industry and related topics. Join the conversation at the Congress. Tell us about the drivers behind the launch of The Week Junior – how much of it was that you’d seen an opportunity in the market and how much was it driven by the desire to help kids engage with issues? So, the best place to start was by looking at the success we’d had with The Week. One of the things that we’ve done, particularly over the last 10 years, was to build a suite of products that are designed to help people in their lives by providing expert opinion. Through those, there are four things that we do. We inform, we advise, we indulge, and we distil content. Our audiences are clever people who appreciate expert opinion that allows them to make up their own minds. Click Read More below for more of the story.
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