News Corporation (ASX: NWS) ended September quarter by generating total revenues amounting to $2.52 billion which implies the YoY growth of 23% because of the Foxtel consolidation as well as robust momentum in the Digital Real Estate Services & book publishing segments. The company’s net income in September quarter was $128 million while during the same time in the previous year it was $87 million. The management of News Corporation reflected favorable views for the September 2018 quarter. They stated that because of the favorable momentum in the earnings as well as revenues it would continue to work towards digital development. The company would also be putting special emphasis on the subscriptions because of the continuous evolution of the advertising market.
The company witnessed favorable momentum in the digital real estate services, and they have also acquired Opcity. With the help of this acquisition, the quality of the engagement with the homebuyers as well as realtors would go more in-depth. The company’s net income witnessed robust growth in September quarter on the YoY basis thanks to the total segment EBITDA (earnings before interest, tax, depreciation, and amortization). However, the net income growth got partially offset by the increased depreciation and amortization expenses as well as interest expenses.
Of the total revenues of $2.52 billion which the company generated in September 2018 quarter, the highest contribution was made from News and Information Services, i.e. $1.24 billion. On the YoY basis, the revenues from News and Information Services rose 1%. Within this division, News UK, as well as Dow Jones revenues, witnessed a rise of 12% and 3%, respectively. However, the negative momentum was witnessed in the News Corp Australia as well as News America Marketing.
Of the total segment EBITDA of $358 million in September 2018 quarter, News and Information Services have made a contribution of $116 million while Subscription Video Services have contributed $113 million. The strong growth in the segment EBITDA and revenues from Subscription Video Services was witnessed in the September quarter on the YoY basis mainly because of the inclusion of Foxtel. The net cash which has been provided by or used in the operations improved substantially in the September 2018 quarter on the YoY basis mainly because of increased total segment EBITDA. Additionally, the company also showed improvement in the free cash flow available in the quarter on the YoY basis mainly because of increased cash with respect to the operating activities. This improvement got partially offset by the elevated levels of the capital expenditures or Capex.
The stock price of News Corporation witnessed strong momentum on November 8, 2018. The stock ended the day at A$19.290 per share which reflects the growth of A$0.770 per share or 4.158% intraday. The stock price is presently trading towards the lower range and has an annual dividend yield of 1.03%.
News Corporation’s market capitalization stood at $10.97 billion. Over the past six months, the stock as delivered the return of -15.78%.
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