Rupert Murdoch's News Corporation has gone into the red, largely due to costs associated with a lawsuit and continued negative effects of currency.
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In the third quarter, News Corp reported a loss of $US149 million, compared with a profit of $US23 million in the previous corresponding period.
Total revenues slipped 7.3 per cent to $US1.9 billion. Advertising revenue fell 9.7 per cent to $816 million, while circulation and subscription revenue dropped 3.6 per cent to $615 million.
"The third-quarter results were materially affected by a $US280 million pre-tax charge at News America Marketing to resolve a legacy lawsuit and related claims, and continued currency headwinds, which impacted revenues by $US72 million and EBITDA (earnings before interest, tax, depreciation and amortisation) by $US9 million. Excluding those and other items, revenues and EBITDA declined 5 per cent and 8 per cent, respectively, which was still disappointing," News Corp chief executive Robert Thomson said.
"We believe, however, that the company is on track to see improvements in the fourth quarter, with the expansion of our digital real estate business, foreign currency comparisons hopefully beginning to ease, and cost saving initiatives taking firmer root."
More to come
