Lower print advertising revenues and foreign currency fluctuations result in a two per cent decline in News Corp’s full-year results, now US$8.14bn from the pcp result of US$8.29bn.
The company failed to turn a profit in 2017, with a US$740m net loss attributable to stockholders. In 2016, the company made a profit of US$177m.
News Corp says the decline was driven by impairment charges, primarily related to the write-down of fixed assets at the U.K. and Australian newspapers.
Loss from continuing operations for 2017 is US$643m, compared to a positive US$235m result in 2016.
Advertising revenues of US$2.8bn are down from 2016’s result of US$3bn, while circulation and subscription revenues are also down for the FY, US$2.47bn from US$2.56bn. News Corp’s Consumer section held steady at US$1.57bn, while its real estate segment grew from US$619m to US$696m, partially offsetting the other losses across the board.
Digital as a proportion of the company’s news and information services is now 25 per cent, compared to 22 per cent in the pcp.
News Corp says advertising revenues would have declined five as opposed to seven per cent were it not for negative currency fluctuations, and the loss of a week of revenue which was attributed to 2016.
Robert Thomson, chief executive, News Corp says, “Fiscal 2017 was a significant year for News Corp as we saw tangible improvement in profitability, powered by the fast-growing Digital Real Estate Services segment, and we charged a premium for premium content while focusing on operating efficiencies.
“News Corp led the global debate about content value and values, prompting the digital platforms to address a dysfunctional content eco-system, in which the fake and fraudulent have flourished. We are now in advanced discussions with those platforms over the creation of payment mechanisms for news of verified veracity.
“Move, the operator of realtor.com, and the REA Group continue to post record revenues driven by higher traffic and improved yields. Digital real estate overall accounted for nearly 40 per cent of our profits and we expect to expand earnings in coming years as the sector is still at a relatively early stage of its e-evolution.
“HarperCollins posted higher EBITDA and margins this year through poignant books with broad appeal in the U.S. We believe that the emergence of digital audio and our expanding global footprint are potent sources of long-term growth.”
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