News Corp profit falls as Australian newspaper revenues decline
Rupert Murdoch's News Corporation has reported a decline in second quarter profit as Australian newspaper revenues fell.
The US-based publisher reported a 5 per cent slide in profit to $142 million, with adjusted net income (which takes out some one-off factors) falling 14 per cent from the same period a year earlier to $154 million.
That left earnings per share at 24 cents, down from 26 in the same period last year, or 26 cents adjusted, down from 31 previously.
The fall in profits came despite a 2 per cent rise in revenue, which News Corp attributed to strength in its book publishing and digital real estate segments.
However, News Corp reported a 6 per cent fall in revenues for its core news and information services division, including a steeper 8 per cent decline in its Australian newspaper revenues.
The company attributed much of this to negative currency fluctuations, but acknowledged "modest advertising revenue declines".
Earnings in this area of the company fell 15 per cent due to lower advertising revenues in the UK and in one of its key US businesses, but News Corp said a reduction of expenses at News Corp Australia helped prevent a worse decline.
The big driver holding up revenues across the business was digital real estate advertising, which recorded a 50 per cent (or $51 million) increase in turnover.
News Corp said that improvement reflects the inclusion of Move's results after it was acquired by the group, and higher pricing for real estate listings at REA Group.
The company also revealed that costs surrounding its News of the World phone hacking scandal had fallen to $13 million in the December quarter 2014, versus $19 million in the same period a year ago.
