Sluggish print advertising is being blamed by Media giant News Corp for a downturn in profit in the second quarter. The company has released its earnings ending December 31, 2015 posting a 20 per cent drop in EBITDA to $280m, on a four per cent decline in total revenues to $2.16bn, from $2.26bn reported the previous year. The company reported total revenues were negatively impacted by foreign currency fluctuations of $141m. The report identified weaknesses in advertising revenue in the news and information services sector, and consumer revenues in its book publishing segment.
News Corp has blamed it’s down turn on sluggish print advertising
Total segment advertising revenues in news and information services dropped 12 per cent which News Corp has blamed on sluggish print advertising, this figure was offset by growth in digital advertising. Revenues in the Book Publishing segment decreased by $23m or five per cent. News Corp chief executive Robert Thomson noted with print advertising declining and digital advertising and circulation continuing to climb, the company would be exploring digital avenues going forward. “Unruly, the viral digital advertising company acquired late last year, has been swiftly integrated into many of our companies, bringing cutting-edge metrics and a savvy social sensibility,” he says. “We are developing advertising products for clients keen to benefit from the rise of video and mobile, and taking advantage of our world-class mastheads which are increasingly powerful platforms, editorially and commercially.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at [email protected]
Sign up to the Sprinter newsletter