News Corporation (NWSA) Q3 Earnings Beat Estimates, Fall Y/Y
Zacks Investment Research | May 09, 2019 09:11PM ET
News Corporation (NASDAQ:NWSA) delivered the 10th straight quarter of positive earnings surprise when it reported third-quarter fiscal 2019 results. The company delivered adjusted earnings of 4 cents a share against the Zacks Consensus Estimate of a loss of 1 cent. Sturdy performance across Book Publishing and Subscription Video Services segments contributed to the results.
However, the bottom line declined 33.3% from the year-ago period on account of increased operating expenses, rise in SG&A expenses and higher interest expense. Even, impressive top-line performance failed to act as a savior. News Corp, which split from Twenty-First Century Fox, Inc. (NASDAQ:FOXA) , reported total quarterly revenues of $2,457 million, up 17% from the year-ago quarter. However, it fell short of the Zacks Consensus Estimate of $2,496 million.
The top-line growth can be attributed to the consolidation of Foxtel’s results, and persistent momentum in Book Publishing segment. This was partly offset by decline in print advertising revenues at the News and Information Services division, and adverse foreign currency fluctuations. Excluding the impact of acquisitions, divestitures and foreign currency fluctuations, adjusted revenues of $2,113 million improved 2% year over year.
While advertising revenues fell 5% to $670 million, circulation and subscription revenues surged 56% to $1,025 million. Consumer revenues also rose 6% to $403 million while revenues from real estate were up 5% to $218 million. Meanwhile, Other revenues dropped nearly 1% to $141 million.
Total segment EBITDA was $247 million, reflecting an improvement of 36% from the prior-year period. Further, adjusted total segment EBITDA fell 4% to $178 million.
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