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News Corporation Reports Second Quarter Results For Fiscal 2014

Stocks in this article: NWS NWSA

However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The following table reconciles reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three and six months ended December 31, 2013 and 2012.

    Revenues     Total Segment EBITDA
For the three months ended December 31, For the three months ended December 31,
2013   2012   Difference 2013   2012   Difference
(in millions) (in millions)
 
As reported $ 2,238 $ 2,321 $ (83 ) $ 327 $ 300 $ 27
 
Impact of acquisitions (60 ) - (60 ) (25 ) - (25 )
 
Impact of divestitures (1 ) (59 ) 58 - (8 ) 8
 
Impact of foreign exchange fluctuations 74 - 74 16 - 16
 
Net impact of U.K. Newspaper Matters - - - 19 49 (30 )
                       
As adjusted $ 2,251   $ 2,262   $ (11 ) $ 337   $ 341   $ (4 )
 
 
Revenues Total Segment EBITDA
For the six months ended December 31, For the six months ended December 31,
2013 2012 Difference 2013 2012 Difference
(in millions) (in millions)
 
As reported $ 4,310 $ 4,454 $ (144 ) $ 468 $ 389 $ 79
 
Impact of acquisitions (194 ) - (194 ) (54 ) - (54 )
 
Impact of divestitures (35 ) (120 ) 85 (4 ) (16 ) 12
 
Impact of foreign exchange fluctuations 154 - 154 26 - 26
 
Net impact of U.K. Newspaper Matters - - - 36 110 (74 )
                       
As adjusted $ 4,235   $ 4,334   $ (99 ) $ 472   $ 483   $ (11 )
 

Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and six months ended December 31, 2013 and 2012 are as follows:

        For the three months ended December 31,
2013   2012   % Change
(in millions)
 
Adjusted Revenues:
News and Information Services $ 1,663 $ 1,729 (4 ) %
Cable Network Programming 57 53 8 %
Digital Real Estate Services 115 87 32 %
Book Publishing 394 365 8 %
Other   22     28   (21 ) %
Total Adjusted Revenues $ 2,251   $ 2,262   -   %
 
Adjusted Segment EBITDA:
News and Information Services $ 261 $ 285 (8 ) %
Cable Network Programming 31 19 63 %
Digital Real Estate Services 61 46 33 %
Book Publishing 69 50 38 %
Other   (85 )   (59 ) 44   %
Total Adjusted Segment EBITDA $ 337   $ 341   (1 ) %
 
       

 For the six months ended December 31, 

2013   2012   % Change
(in millions)
 
Adjusted Revenues:
News and Information Services $ 3,195 $ 3,351 (5 ) %
Cable Network Programming 57 53 8 %
Digital Real Estate Services 215 168 28 %
Book Publishing 719 707 2 %
Other   49     55   (11 ) %
Total Adjusted Revenues $ 4,235   $ 4,334   (2 ) %
 
Adjusted Segment EBITDA:
News and Information Services $ 394 $ 404 (2 ) %
Cable Network Programming 31 19 63 %
Digital Real Estate Services 111 81 37 %
Book Publishing 112 90 24 %
Other   (176 )   (111 ) 59   %
Total Adjusted Segment EBITDA $ 472   $ 483   (2 ) %
 

The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months ended December 31, 2013 and 2012.

      For the three months ended December 31, 2013
      Impact of   Impact of  
Foreign U.K.
As Impact of Impact of Exchange Newspaper As
Reported Acquisitions Divestitures Fluctuations Matters Adjusted
(in millions)
 
Revenues:
News and Information Services $ 1,612 $ - $ (1 ) $ 52 $ - $ 1,663
Cable Network Programming 110 (59 ) - 6 - 57
Digital Real Estate Services 103 - - 12 - 115
Book Publishing 391 (1 ) - 4 - 394
Other   22     -     -     -   -   22  
Total Revenues $ 2,238   $ (60 ) $ (1 ) $ 74 $ - $ 2,251  
 
Segment EBITDA:
News and Information Services $ 255 $ - $ - $ 6 $ - $ 261
Cable Network Programming 53 (25 ) - 3 - 31
Digital Real Estate Services 55 - - 6 - 61
Book Publishing 68 - - 1 - 69
Other   (104 )   -     -     -   19   (85 )
Total Segment EBITDA $ 327   $ (25 ) $ -   $ 16 $ 19 $ 337  
 
     

For the three months ended December 31, 2012

      Impact of   Impact of  
Foreign U.K.
As Impact of Impact of Exchange Newspaper As
Reported Acquisitions Divestitures Fluctuations Matters Adjusted
(in millions)
 
Revenues:
News and Information Services $ 1,772 $ - $ (43 ) $ - $ - $ 1,729
Cable Network Programming 53 - - - - 53
Digital Real Estate Services 87 - - - - 87
Book Publishing 377 - (12 ) - - 365
Other   32     -   (4 )   -   -   28  
Total Revenues $ 2,321   $ - $ (59 ) $ - $ - $ 2,262  
 
Segment EBITDA:
News and Information Services $ 292 $ - $ (7 ) $ - $ - $ 285
Cable Network Programming 19 - - - - 19
Digital Real Estate Services 46 - - - - 46
Book Publishing 51 - (1 ) - - 50
Other   (108 )   -   -     -   49   (59 )
Total Segment EBITDA $ 300   $ - $ (8 ) $ - $ 49 $ 341  
 

The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the six months ended December 31, 2013 and 2012.

      For the six months ended December 31, 2013
      Impact of   Impact of  
Foreign U.K.
As Impact of Impact of Exchange Newspaper As
Reported Acquisitions Divestitures Fluctuations Matters Adjusted
(in millions)
 
Revenues:
News and Information Services $ 3,107 $ - $ (30 ) $ 118 $ - $ 3,195
Cable Network Programming 242 (191 ) - 6 - 57
Digital Real Estate Services 193 - - 22 - 215
Book Publishing 719 (3 ) (5 ) 8 - 719
Other   49     -     -     -   -   49  
Total Revenues $ 4,310   $ (194 ) $ (35 ) $ 154 $ - $ 4,235  
 
Segment EBITDA:
News and Information Services $ 388 $ - $ (4 ) $ 10 $ - $ 394
Cable Network Programming 82 (54 ) - 3 - 31
Digital Real Estate Services 99 - - 12 - 111
Book Publishing 111 - - 1 - 112
Other   (212 )   -     -     -   36   (176 )
Total Segment EBITDA $ 468   $ (54 ) $ (4 ) $ 26 $ 36 $ 472  
 
      For the six months ended December 31, 2012
      Impact of   Impact of  
Foreign U.K.
As Impact of Impact of Exchange Newspaper As
Reported Acquisitions Divestitures Fluctuations Matters Adjusted
(in millions)
 
Revenues:
News and Information Services $ 3,438 $ - $ (87 ) $ - $ - $ 3,351
Cable Network Programming 53 - - - - 53
Digital Real Estate Services 168 - - - - 168
Book Publishing 729 - (22 ) - - 707
Other   66     -   (11 )   -   -   55  
Total Revenues $ 4,454   $ - $ (120 ) $ - $ - $ 4,334  
 
Segment EBITDA:
News and Information Services $ 418 $ - $ (14 ) $ - $ - $ 404
Cable Network Programming 19 - - - - 19
Digital Real Estate Services 81 - - - - 81
Book Publishing 91 - (1 ) - - 90
Other   (220 )   -   (1 )   -   110   (111 )
Total Segment EBITDA $ 389   $ - $ (16 ) $ - $ 110 $ 483  
 

NOTE 2 – TOTAL SEGMENT EBITDA

Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: Depreciation and amortization, impairment and restructuring charges, equity earnings of affiliates, interest, net, other, net, income tax benefit and net income attributable to noncontrolling interests. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts a measure to analyze operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

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