News Corp: Australian Assets Create Upside Catalyst
Alpha Gen Capital
Alpha Gen Capital
The 'New' News Corp.: Unwanted And Very Undervalued
Eliot Murray • 16 Comments
Eliot Murray • 16 Comments
Thu, May 5, 6:51 PM
- News Corp. (NWS, NWSA) swung to a loss as it took costs tied to litigation and revenue slipped, but the company beat expectations on an adjusted basis in its fiscal Q3.
- Segment EBITDA of $185M excluded a legal settlement charge of $280M and beat an expected $150M; including the charge, reported segment EBITDA was -$122M.
- Excluding the legal charge and currency headwinds, "revenues and EBITDA declined 5% and 8%, respectively, which was still disappointing," said CEO Robert Thomson; he thinks Q4 is on track, though, "with the expansion of our digital real estate business, foreign currency comparisons hopefully beginning to ease, and cost saving initiatives taking firmer root."
- Revenue by segment: News and Information Services, $1.23B (down 9%); Book Publishing, $358M (down 11%); Digital Real Estate Services, $194M (up 14%); Cable Network Programming, $107M (down 8%).
- In EBITDA terms, its largest segment swung to a loss: News and Information Services, -$187M; Book Publishing, $36M (down 36%); Digital Real Estate Services, $39M (down 7%); Cable Network Programming, $34M (up 26%).
- The company noted Realtor.com hit record traffic with 50M average monthly unique users (up 30%).
- Press Release
Thu, May 5, 6:05 PM
Wed, May 4, 5:35 PM
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Thu, Feb. 4, 8:12 PM
- Shares of News Corp. (NWS, NWSA) have had no movement in after-hours trading following an earnings report where revenue slipped for the fourth quarter in a row.
- Advertising continued its decline in core news services. Revenue overall beat slightly but fell 4.4% Y/Y; EPS of $0.20 missed by $0.01, but fell by a third from the prior year (and by more in continuing operations). Real estate services (paced by Realtor.com) provided the bright spot.
- "Macro-economic conditions in most of our markets have not been auspicious, and foreign exchange fluctuations have been particularly volatile," said CEO Robert Thomson, "but we believe in the enduring value of our prestigious brands and the sound logic of our digital strategy.”
- Revenue by segment: News and Information Services, $1.4B (down 8%); Book Publishing, $446M (down 5%); Digital Real Estate Services, $208M (up 35%); Cable Network Programming, $106M (down 5%).
- EBITDA by segment: News and Information Services, $158M (down 27%); Book Publishing, $57M (down 26%); Digital Real Estate Services, $73M (up 28%); Cable Network Programming, $39M (down 28%).
Thu, Feb. 4, 4:56 PM
- News (NASDAQ:NWSA): FQ2 EPS of $0.20 misses by $0.01.
- Revenue of $2.16B (-4.4% Y/Y) beats by $30M.
Nov. 5, 2015, 8:14 PM
- News Corp. (NWS, NWSA) posted results for its fiscal first quarter that were largely in line although revenue fell for the third straight quarter as a strong dollar continued to present issues for multinationals.
- Income from continuing operations was $143M, up from a prior $109M. Digital education is listed as discontinued after the company wrote down the business for $371M last quarter.
- CEO Robert Thomson praised the real estate results, chiefly momentum at Realtor.com, "which is significantly ahead of schedule on key metrics. We are now, by some reckoning, the world’s largest digital property listings company and we see a particularly bright future in the sector, especially in the U.S. where we believe the national real estate market is still returning to health."
- Revenue by segment: News and Information Services, $1.29B (down 11%); Book Publishing, $409M (up 1%); Digital Real Estate Services, $191M (up 71%); Cable Network Programming, $124M (down 11%).
- Free cash flow available to News Corp. was $67M, down from the prior year's $130M.
Nov. 5, 2015, 6:05 PM
- News (NASDAQ:NWSA): FQ1 EPS of $0.05 misses by $0.01.
- Revenue of $2.09B (-0.9% Y/Y) in-line.
Aug. 13, 2015, 3:08 PM
- Investors are cheering a News Corp. (NWS +7.8%, NWSA +7.4%) decision to bail out of the education business, a pricey $1B bet that didn't pay off.
- Earnings yesterday featured a $371M writedown on Amplify, the digital-education unit headed by former New York City schools chancellor Joel Klein.
- News Corp. is in "active conversations with an outside investor" about a sale that are in the "final phase," according to a company memo.
- The education segment made up a little over 1% of total revenues, but was seen as a possible growth engine amid slowdowns elsewhere (News and Information Services revenue declined 10%).
- Earlier this summer, Amplify began winding down sales of its custom tablet device after very light uptake, but said it would continue to support existing customers.
- While Digital Education revenues were up 33% to $24M, the segment's EBITDA was -$24M.
- Previously: News Corp. beats, but takes $371M writedown on education (Aug. 12 2015)
Aug. 12, 2015, 5:04 PM
- News Corp. (NWSA) beat profit expectations with its fiscal fourth quarter, but revenues were light of consensus and the company took a sizable writedown on its ballyhooed education business.
- Adjusted EPS of $0.07 beat a consensus of $0.05, while reported EPS was -$0.65 after a $371M impairment charge taken related to its Amplify education business -- of which News Corp. is beginning a strategic review.
- Revenues by segment: News and Information Services, $1.4B (down 10%); Book publishing, $390M (up 8%); Digital real estate services, $189M (up 67%); Cable Network Programming, $133M (down 2%); Digital Education, $24M (up 33%).
- In EBITDA by segment, News and info services carried its weight with $169M, up 29%, while digital education EBITDA was a loss of $24M.
- The company had invested $1B in a large bet on education. Earlier this summer, Amplify began winding down sales of its custom tablet device after very light uptake.
- NWSA shares are unchanged in late trading; NWS is up 1.8% after hours.
- Conference call to come at 6 p.m. ET.
Aug. 11, 2015, 5:35 PM
Jul. 27, 2015, 5:19 PM
- News Corp. (NWS, NWSA) outperformed the broader market today after Macquarie upgraded the stock to Outperform.
- Tim Nollen and team are expecting a strong rebound from earnings as the company "cycles a number of one-off impacts and Education losses are curtailed.”
- Overall, Macquarie sees EBITDA gaining 22.9% to $176M in Q4 (consensus expectations are for $177M) and gaining 4.4% to $879M for the full year (somewhat below the consensus of $926.3M).
- The firm says that News Corp. has "demonstrated a focused approach to M&A by containing larger spend to existing areas of competence (Books and Digital RE)," which it says alleaviates some worries from the separate from (now) Twenty-First Century Fox.
- The company is set to report quarterly results Aug. 6.
May 5, 2015, 5:54 PM
- News Corp. (NASDAQ:NWSA) is up 1.1% after a fiscal Q3 earnings miss that showed declining revenues driven by dropping ad sales as well as currency-based challenges.
- Revenue by segment: News and Information Services, $1.353B (down 9%); Book Publishing, $402M (up 14%); Cable Network Programming, $116M (up 3%); Digital Real Estate Services, $170M (up 67%); Digital Education, $21M (flat).
- "News Corp is now a global leader in digital real estate, which we believe will underpin long-term expansion," said CEO Robert Thomson.
- Segment EBITDA dropped $23% in News and Information Services (to $113M) and dropped 21% in Digital Real Estate Services (to $42M), but gained 6% in Book Publishing (to $56M).
- In News and Information Services, ad revenues dropped 12% and circulation and subscription sales fell 6%.
May 5, 2015, 5:16 PM
- News Corp. (NASDAQ:NWSA): FQ3 EPS of $0.05 misses by $0.02.
- Revenue of $2.06B (-1.0% Y/Y) misses by $60M.
Feb. 20, 2015, 9:37 PM
- Graham Holdings (NYSE:GHC) -- the former Washington Post Company -- was up 3.7% at the open and easily crested the $1,000/share mark again, following its Q4 earnings, before giving back all of the day's gains by midday.
- Education revenues from Kaplan operations ($551.4M, nearly flat) still made up the bulk of its $925.3M in revenues, but particularly strong were revenues in TV broadcasting, up 20% to $102.4M (aided by political ads in a midterm election year). Operating income in broadcast was up 24% to $54.4M.
- Revenue from "other businesses" (which includes digital-heavy publishing operations like Slate, Foreign Policy, The Root) more than doubled to $73.8M, from $30.7M.
- Seems like unloading The Washington Post to Jeff Bezos made the rest of the business great, Benjamin Freed says. He notes that now-GHC shares opened at $560.14 that summer 2013 day, headed to $584.97 that week and it's been a "robust trajectory" ever since. From the time of the sale, shares are up 83% vs. the S&P's +22%.
- Other companies are doing the same, he notes: See News Corp. (NASDAQ:NWSA) splitting off Twenty-First Century Fox (FOX, FOXA); Tribune Media (NYSE:TRCO) dropping publications into Tribune Publishing and thriving as a broadcast/real estate company; and Gannett (NYSE:GCI), which plans to spin off USA Today and its dailies.
Feb. 5, 2015, 5:07 PM
- News (NASDAQ:NWSA): FQ2 EPS of $0.26 beats by $0.02.
- Adjusted Revenue of $2.23B (flat Y/Y).
News Corp. is a media and information services company, which focuses on creating and distributing authoritative and engaging content to consumers and businesses. The company's media businesses include news and information services, digital real estate services, book publishing, digital... More
Industry: Entertainment - Diversified
Country: United States
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