News Corp posted a $817 million (€692m) year loss on the back of big falls in the value of newspapers in the UK and Australia and write offs on Australian pay-TV platform Foxtel. Revenue was $8.14 billion, down 2 per cent from $8.29 billion last year, on falling print advertising revenue and foreign currency fluctuations, the company said.
The Australian arm of the Murdoch empire should brace itself for another round of cost cutting as the $40 million cut from the business in 2017 would be repeated in 2018, the company confirmed.
The company wrote down the value of its 50 per cent stake in pay-TV company Foxtel by $290 million as well as cut the value of The Australian, The Daily Telegraph and The Herald Sun by 40 per cent.
News Corp chief executive Robert Thomson told investors the financial year was marked by a fast growing digital real estate services segment, growing digital subscriptions for the premium newspapers and cost cutting.
“News Corp led the global debate about content value and values, prompting the digital platforms to address a dysfunctional content eco-system, in which the fake and the fraudulent have flourished. We are now in advanced discussions with those platforms over the creation of payment mechanisms for news of verified veracity.”