News Corp Reports First Quarter Results for Fiscal 2015
Fiscal 2015 First Quarter?Key Financial Highlights
- Revenues of $2.15 billion compared to $2.07 billion in the prior year
- Reported Total Segment EBITDA of $170 million compared to $141 million in the prior year
- Adjusted EPS were $0.09 compared to $0.03 in the prior year – Reported EPS were $0.11 compared to $0.05 in the prior year
- Free cash flow available to News Corp improved by $83 million to $73 million
New York, NY – November 5, 2014 – News Corporation (“News Corp” or the “Company”) (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended September 30, 2014.
Commenting on the results, Chief Executive Robert Thomson said:
“We reported a 4% growth in revenues and a 21% growth in EBITDA, as well as meaningful increases to free cash flow and earnings per share, highlighting the power of our brands, the benefits of a balanced portfolio and the efficacy of our cost management, which will remain a focus of concerted attention. This past quarter demonstrates that our strategy to develop the new News for long-term growth is firmly on track.
Our digital offerings are expanding in reach and depth, while our global platform has been bolstered in books, online real estate and business information and analysis. The announced acquisition of Move will provide a new foundation for growth in digital real estate, and we will use our extensive resources at Dow Jones, News America Marketing and the New York Post to drive traffic and revenue in coming years. We also closed the acquisition of Harlequin and our team has already begun delivering on our expectations of increasing the international profile and potential of HarperCollins. Meanwhile, we have seen tangible improvement in our newspaper business in Australia and circulation revenue gains at The Times and The Wall Street Journal.
Overall, the results indicate that our stated mission of building on the company’s proud history and of focusing on digital and global expansion is very much on course.”
First Quarter Results
The Company reported fiscal 2015 first quarter total revenues of $2.15 billion, a 4% increase as compared to the prior year first quarter revenues of $2.07 billion. The majority of the revenue increase reflects strength in the Book Publishing, Digital Real Estate Services and Digital Education segments and the inclusion of the results of Harlequin following its acquisition in August 2014, partially offset by lower advertising revenues at the News and Information Services segment and the sale of the Dow Jones Local Media Group (“LMG”) in September 2013. Adjusted revenues (as defined in Note 1) increased 1% compared to the prior year.
The Company reported first quarter Total Segment EBITDA of $170 million, a 21% increase as compared to $141 million in the prior year. These results include $14 million and $17 million in fees and costs – net of indemnification – related to the U.K. Newspaper Matters (as defined below) in the three months ended September 30, 2014 and 2013, respectively. The year-over-year EBITDA improvement was driven primarily by strong revenue performances in the Book Publishing, Digital Real Estate Services and Digital Education segments, combined with lower expenses related to the capitalization of Amplify Learning’s software development costs, partially offset by declines at the News and Information Services segment. Adjusted Total Segment EBITDA (as defined in Note 1) increased 18% compared to the prior year.
Net income available to News Corporation stockholders was $65 million as compared to $27 million in the prior year. Adjusted net income available to News Corporation stockholders (as defined in Note 3) was $53 million compared to $17 million in the prior year. Impairment and restructuring charges were $4 million and $27 million in the three months ended September 30, 2014 and 2013, respectively.
Net income per share available to News Corporation stockholders was $0.11 as compared to $0.05 in the prior year. Adjusted EPS (as defined in Note 3) were $0.09 compared to $0.03 in the prior year.
Free cash flow available to News Corporation improved by $83 million in the three months ended September 30, 2014 to $73 million.
About News Corp
News Corporation?(NASDAQ: NWS, NWSA; ASX: NWS, NWSLV)?is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content to consumers throughout the world.?The company comprises businesses across a range of media, including: news and information services, book publishing, cable network programming in Australia, digital real estate services, digital education, and pay-TV distribution in Australia.?Headquartered in New York, the activities of News Corporation are conducted primarily in the United States, Australia, and the United Kingdom. More information is available at:?www.www.chicfaced.com.