News Corp posts 1Q profit on lower expenses
Wall Street Journal owner News Corp (NASDAQ:NWSA) reported a quarterly profit on Thursday, compared with a year-ago loss, driven by a tight control on expenses amid a decline in print advertising sales.
Revenue in the company’s news and information division, which accounts for about two-thirds of total revenue, rose 1.6 percent to $1.24 billion in its first quarter.
Increased competition from the digital media and a declining readership is driving print advertising down. Spending on print advertising in the U.S. is expected to fall 14 percent this year to about $18 billion, a third of what it was 10 years ago, according to media research firm Magna Intelligence.
Net income available to shareholders was $68 million, or 12 cents per share, in the first quarter ended Sept. 30, compared with a loss of $15 million, or 3 cents per share, a year earlier.
On an adjusted basis, the company earned 7 cents per share. Total revenue rose to $2.06 billion from $1.97 billion.