Shares of print and digital advertising business, News Corp (ASX: NWS), fell as much as 4.5% today on the back of a weaker-than-expected third quarter profit result.
In an announcement to the ASX, News Corp said revenues for the third quarter ended 31 March 2015 were $2.06 million, down from $2.08 billion in the prior year and below analyst consensus of $2.06 billion.
Unfortunately profit for the period fell 52% to just $23 million, from $48 million a year earlier. Earnings per share fell 50% to just four cents.
Commenting on the result, News Corp CEO Robert Thomson said, "While the quarter faced some revenue challenges, particularly at News and Information Services, including currency headwinds, our adjusted EBITDA was relatively stable, underscoring the strength of our assets and the diversification of our revenue base."
The owner of publications such as The Wall Street Journal and major shareholder of REA Group Limited (ASX: REA), continues to push into digital property listings, recently acquiring realtor.com.
"News Corp is now a global leader in digital real estate, which we believe will underpin long-term expansion and complement our expertise in news and financial analysis, both of which have been important ingredients in realtor.com's accelerated growth," Mr Thomson said.
He added, "We believe the company is firmly on track and the signs are positive for year-over-year EBITDA growth in the fourth quarter."
