This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

News Corp (NWSA) Suffers in First Quarter Since Split

NEW YORK (TheStreet) -- News Corp (NWSA - Get Report) disappointed investors in the first quarter since splitting with 21st Century Fox (FOX - Get Report) in June. The Rupert Murdoch-owned conglomerate reported a 3% fall in first-quarter revenue to $2.07 billion, less than the $2.2 billion analysts surveyed by Thomson Reuters had expected. Net profit of 3 cents a share missed estimates by 2 cents.

The New York-based company said declining revenue in its core newspaper and information services units, which account for 70% of total revenue, were to blame. Buffeted by falling ad sales and declining print readership, the division saw revenue fall 10%, or $171 million, to $1.5 billion.

Weakness in its Australian newspaper properties was responsible for 70%, or $121 million, of total revenue loss, primarily due to a 25% decline in ad revenue. Advertising revenue across all newspaper properties declined 12%. Among its properties, News Corp owns The Wall Street Journal, Times of London, The New York Post and The Australian.

Speaking on a conference call, CEO Robert Thomson said the need to evolve was clear.

"We must generate more advertising revenue, but overall, be less dependent on advertising and much more subscription-focused," he said. "We must take advantage of the rise of mobile as a platform. Across our businesses, we are seeing exponential increases in the use of smartphones and tablets to access our content."

In morning trading, shares have fallen 3.2% to $16.86. Since its split on June 20, the stock has risen 6.7%.

--Written by Keris Alison Lahiff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
FOX $32.74 0.00%
NWSA $16.15 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs