Full-Year Loss For News Corp Amid Amplify Write-Down
The loss compares to net income of US$237 million in the prior year, with News Corp recording a non-cash impairment charge of US$371 million related to Amplify. Adjusted net income was US$272 million, up from US$268 million in the prior year.
News Corp stated that it is now reviewing strategic alternatives with respect to Amplify’s remaining digital education businesses.
News Corp posted a slight increase in revenue for the full year, up 1 per cent year-on-year to US$8.63 billion, with EBITDA of US$852 million representing an 11 per cent increase.
While News Corp’s news and information services business, which includes its global stable of newspapers, posted revenue and EBITDA declines, its book publishing business delivered a boost.
News and information services’ revenue declined 7 per cent year-on-year to US$5.73 billion, with EBIDTA of US$603 million down 9 per cent, while revenue of US$1.67 billion for book publishing was up 16 per cent and EBITDA of US$221 million up 12 per cent.
News Corp chief executive Robert Thomson stated that News Corp had “posted stable revenues, robust EBITDA growth and healthy free cash flow” for the fiscal 2015 year, “despite an uneven global economy, very tough currency headwinds and the ongoing transformation of the media landscape”.
“The year ahead will be an opportunity to build on the sound and profitable platform we have collectively created,” Thomson stated.