News Corp (NWSA) Suffers in First Quarter Since Split

NEW YORK (TheStreet) -- News Corp (NWSA) disappointed investors in the first quarter since splitting with 21st Century Fox (FOX) 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.

More from Markets

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs