News Corp Posts US$1.4B Loss

Global media group News Corp has posted a net loss of US$1.4 billion, more than double the previous year’s US$643 million.

Contributing to the loss was the value writedowns of Foxtel and Fox Sports by US$998 million following their consolidation into a single company.

“News Corp is now a more substantial company after the Foxtel transaction, with a much higher percentage of recurring, subscription-based revenues, which should help offset a volatile advertising environment,” said News chief executive Robert Thomson.

“We also saw meaningful operational improvements at the news and information services segment led by higher digital paid subscribers and disciplined cost initiatives, notably in Australia.”

The company’s revenue went up 11 per cent to US$9.01 billion, while earnings before interest tax and depreciation rose 21 per cent to US$1.07 billion.

Thomson said the group’s digital real estate services REA Group and publishing arm HarperCollins continued to drive growth. REA’s profit increased by 23 per cent to $252.8 million in 2017.