News Corp (NASDAQ:NWS) declared a profit of $506 million for the financial year finished in June. The publishing company reports results after its earlier separation from 21st Century Fox Inc. (FOX, FOX.AU)
For the year closed in June, the reported a profit of 87% on each share or $506 million, in contrast to last year in which the company declared a loss of $3.58% on each share or $2.08 billion, While the Revenue rose 2.7% to $8.89 billion from prior period.
The publishing company owns The Wall Street Journal Dow Jones and publisher of this newswire. NWS had declared its financial result after its previous separation from Twenty-First Century Fox Inc (NASDAQ:FOX).
The fiscal year 2013 report is declared just after three months after the previous News Corp (NASDAQ:NWS) was separated from Twenty-First Century Fox Inc, and develop sole into a publishing business.
While Thomson Reuters, analyst had previously predicted the earnings of 57% on each share, with the revenue to expect to be $8.96 billion.
According to the company statement, the revenue for information and news services decreased 4.6%, which comprise of 76% of the firm’s revenues in financial 2013, while its advertising revenue decreased 10%.
The company attributes the shortage of ads revenue is greatly affected by the tough economic conditions in Australia and vaguely affected by ads revenue at Dow Jones.
The publishing company also declared restructuring charges of $293 million, mainly related to the U.K. and Australian newspaper businesses. The company reported $1.74 billion in restructuring and impairment charges in financial 2013, as compare to $2.76 billion in last year.
News Corp also said it acquires $183 million in professional and legal fees attached to the so-called use of unlawful reporting strategy at its U.K. newspapers. News Corp projected approximately $66 million in upcoming claims, increase from the $60 million estimated in a filing in August.
News Corp and 21st Century Fox, were separated as part of the separation agreement. They settled to divide in order to cover certain costs associated to contention that News Corp journalists unlawfully catch emails and voicemail messages. News Corp (NASDAQ:NWS) shares dropped -1.28% to $16.91 in last trading session.
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