News Corporation (NWSA) Q4 Earnings Top Estimates, Fall Y/Y
Zacks Investment Research | Aug 09, 2019 08:35AM ET
News Corporation’s (NASDAQ:NWSA) fourth-quarter fiscal 2019 results marked the 11th straight quarter of positive earnings surprise. The company delivered adjusted earnings of 7 cents a share, which surpassed the Zacks Consensus Estimate of 2 cents. However, the bottom line declined approximately 13% from the year-ago period on account of dismal top-line performance.
News Corporation — which recently announced a strategic review of News America Marketing, including a sale of the business — reported total quarterly revenues of $2,466 million that declined 8% from the year-ago quarter. Total revenues also fell short of the Zacks Consensus Estimate of $2,490 million, marking the second straight miss.
The year-over-year decline in revenues can be attributed to $105 million adverse impact of currency fluctuations, lower revenues at the Book Publishing segment, fall in broadcast subscriber revenues at the Subscription Video Services segment, decline in advertising revenues at the News and Information Services segment and $18 million of lower revenues as a result of the adoption of the new revenue recognition standard. Excluding the impact of acquisitions, divestitures and foreign currency fluctuations, adjusted revenues of $2,558 million fell 5% year over year.
While advertising revenues fell 9% to $686 million, circulation and subscription revenues decreased 5% to $1,016 million. Consumer revenues also declined 10% to $398 million, while revenues from real estate were down 4% to $215 million. Meanwhile, Other revenues fell nearly 23% to $151 million.
Total segment EBITDA was $269 million, reflecting a decline of 14% from the prior-year period. Further, adjusted total segment EBITDA fell 8% to $302 million.
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