Shares were up 1.8% in after-hours trading Wednesday to $14.10.
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We have begun to execute on a capital return program that signifies our confidence in the prospects of the company and the efficacy of its long-term strategy.
On Wednesday, News Corp majority-owned REA Group reported a 24 per cent increase in full-year profit to 5.4 million, which was slightly below analyst expectations.
Net loss available to the company’s stockholders was $379 million, or 65 cents per share, in the quarter ended June 30, compared with a profit of $12 million, or 2 cents per share, a year earlier.
Company-wide revenues fell 2% to $2.14 billion, compared to Q4 revenues last year of $2.19 billion. Circulation revenues fell 5%, due to negative foreign currency fluctuations.
Overall, News Corp reported $US455 million in impairment and restructuring costs, with $US371 million associated with the Amplify write off.
News Corp had high hopes for its digital education business, but these would seem to have fallen short, as tonight’s results show the company taking a $371m writedown on the unit.
The company said it would cease marketing Amplify’s Access products to new customers but would continue to provide service to existing customers. Additionally, the Company is reviewing strategic alternatives with respect to Amplify’s remaining digital education businesses. The net loss for fiscal 2015 was $149 million, compared to net income of $237 million previous year.
News Corporation (NASDAQ:NWS) has been handed a rating of 3 on a consensus basis by Zacks Research. The actual EPS was 0% away from what analysts had expected, or a $0 difference.
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News Corporation is a diversified media and data services firm. The company comprises businesses across a range of media, including: news and information services, book publishing, cable network programming in Australia, digital real estate services, digital education, and pay-TV distribution in Australia. The original issuer is exclusively responsible for the accuracy of the information contained therein.
