News Corp flags job cuts as revenue, earnings decline

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About 1250 positions are expected to be impacted globally as part of cost-cutting efforts at News Corp.

“Obviously, a surge in interest rates and acute inflation had a tangible impact on all of our businesses,” Thomson said. “But we believe these challenges are more ephemeral than eternal.”

News Corp’s second quarter total revenues fell 7 per cent to $US2.5 billion , largely caused by a 6 per cent negative impact from foreign currency fluctuations, lower revenues in book publishing and challenging housing market conditions in Australia and the US. Net income fell 64 per cent in the quarter ending December 31, from $262 million to $94 million.

Revenue from the subscription video segment - which includes Foxtel and its services Kayo, Binge and Foxtel Now - fell 7 per cent in the period, but earnings climbed by 5 per cent. The number of people watching streaming services Kayo and Binge climbed year-on-year to 1.13 million and 1.38 paying subscribers respectively.

The volatile property market in the US and Australia weighed down the real-estate listings segment. with earnings falling by almost 30 per cent. Thomson said the company was continuing talks about the sale of digital real-estate company MOVE, and that any deal would be designed to create shareholder value., was the only division to report growth in revenue and earnings, climbing 11 per cent in revenue to $563 million.as well as cable TV operator Foxtel and streaming services Kayo and Binge.

 

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