The News Corp (ASX: NWS) share price is down 5.9% in afternoon trade to $28.31 per share.
S&P/ASX 200 Index (ASX: XJO) investors are hitting the sell button following the release of the diversified media conglomerate's quarterly results for the three months ending 31 December.
Here are the highlights.
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News Corp share price slides as income tumbles
- Revenue of $2.52 billion, down 7% from $2.72 billion in the prior corresponding period (pcp). Quarterly revenue was negatively impacted by foreign currency fluctuations
- Net income of $94 million, down 64% from $262 million in the pcp
- Total segment earnings before interest, taxes, depreciation and amortisation (EBITDA) of $409 million, down from $586 million
- Earnings per share (EPS) of 12 cents, down from 40 cents in pcp
- The board declared an unfranked dividend of 10 cents per share, up from 9.4 cents per share in the pcp
What else happened during the quarter?
The News Corp share price could be gaining some support from a steeper fall after the company reported revenues from its professional information business increased 45% in its Dow Jones segment. The company attributed the increase to its acquisitions of OPIS and CMA alongside strength in its Risk & Compliance products.
While broadcast revenues continued to decline, News Corp reported this was offset by higher streaming revenues from Foxtel's Kayo and BINGE in its Subscription Video Services segment.
In an effort to cut costs, News Corp also announced its intention to slash its workforce by 5%, or some 1,250 positions, in the 2023 calendar year.
What did management say?
Commenting on the results sending the News Corp share price lower today, CEO Robert Thomson pointed to the "progress made in certain" of the company's business segments.
Thomson added:
Obviously, a surge in interest rates and acute inflation had a tangible impact on all of our businesses. But we believe these challenges are more ephemeral than eternal…
In terms of portfolio optimization, as publicly reported, we have been actively engaged in discussions with CoStar Group about a potential sale of Move. Any transaction would be designed to create shareholder value and strengthen Realtor.com's competitive position.
News Corp share price snapshot
As you can see in the chart below, with today's intraday slide factored in News Corp shares are down 14% over the past 12 months.
The past half year has seen a better performance from the company, with shares up 8% in six months.
