News Corp Reports First Quarter Results for Fiscal 2018
Fiscal 2018 First Quarter Key Financial Highlights
- Revenues of $2.06 billion, a 5% increase compared to $1.97 billion in the prior year
- Net income was $87 million compared to nil in the prior year
- Total Segment EBITDA was $249 million compared to $130 million in the prior year
- Reported revenue and Segment EBITDA growth in every segment
- Reported EPS were $0.12 compared to ($0.03) in the prior year – Adjusted EPS were $0.07 compared to ($0.01) in the prior year
- Digital revenues represented 27% of News and Information Services segment revenues, compared to 24% in the prior year
New York, NY – November 9, 2017 – News Corporation (“News Corp” or the “Company”) (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended September 30, 2017.
Commenting on the results, Chief Executive Robert Thomson said:
“In the first quarter, revenues and Segment EBITDA increased across every segment of our business, in particular, in digital real estate services, which have become core to our character and are on track for significant growth in coming quarters. Total reported revenues this quarter increased 5% to $2.1 billion, net income increased to $87 million and Total Segment EBITDA rose 92% to $249 million. Excluding one-time items and foreign currency impacts, our underlying Total Adjusted Segment EBITDA grew 46%.
We have reason for optimism about the future of our premium media businesses, in light of the profound changes agreed by Google in the ranking of news content. These changes follow almost a decade of campaigning by News Corp, which led the world in understanding the threat to and the opportunities for quality journalism in the digital age. We are continuing our discussions with both Google and Facebook about further facilitating subscriptions and the sharing of permissioned personal data. And we look forward to serving our advertisers with data that is reliable, not risible.
In August, we and Telstra announced a non-binding agreement to combine Foxtel and FOX SPORTS Australia, with News Corp owning 65% of the new company. Pending definitive documentation and regulatory approval, we expect to close in the first half of calendar year 2018. The combined company, with majority control by News Corp, is expected to fundamentally transform our revenue and EBITDA profile, and increase the relative share of digital subscription businesses.”
First Quarter Results
The Company reported fiscal 2018 first quarter total revenues of $2.06 billion, a 5% increase compared to $1.97 billion in the prior year period, reflecting continued growth in the Digital Real Estate Services segment, the acquisitions of Australian Regional Media (“ARM”) and Wireless Group plc (“Wireless Group”) and a $26 million positive impact from foreign currency fluctuations. Growth was partially offset by lower print advertising revenues at the News and Information Services segment. Adjusted Revenues (which exclude the foreign currency impact, acquisitions and divestitures as defined in Note 1) increased 1%.
Net income for the quarter was $87 million as compared to nil in the prior year. The increase was primarily driven by higher Total Segment EBITDA, as discussed below, and lower depreciation and amortization expense, partially offset by higher income tax expense associated with higher pre-tax income.
The Company reported first quarter Total Segment EBITDA of $249 million, a 92% increase compared to $130 million in the prior year. The increase was primarily due to strong performances across all segments as well as a one-time $46 million benefit from the reversal of certain previously accrued net liabilities related to certain employment taxes in the U.K. Operational improvement was driven by the continued growth in the Digital Real Estate Services segment, as well as lower costs at the News and Information Services segment and at FOX SPORTS Australia. Adjusted Total Segment EBITDA (as defined in Note 1) increased 46%.
Income (loss) per share available to News Corporation stockholders was $0.12 as compared to ($0.03) in the prior year.
Adjusted EPS (as defined in Note 3) were $0.07 compared to ($0.01) in the prior year.
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About News Corp
News Corp (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, digital real estate services, and cable network programming and pay-TV distribution in Australia. Headquartered in New York, the activities of News Corp are conducted primarily in the United States, Australia, and the United Kingdom. More information: http://www.www.chicfaced.com.
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