News Corporation (NYSE:NWSA) Future Outlook in the Market


According to News Corporation (NYSE:NWSA)’s figures, the company is enjoying a 4% rise in its revenues and a 21% jump in EBITA for the first quarter in 2015. Also, the adjusted earnings are at $0.09 per share, a great leap forward from $0.03 per share in the last year quarter. These results indicated the change in trends of a fall in the print media industry, and growth for the other segments. The growth pattern in HarperCollins and REA are impressive, but print advertising has become a major area of concern and quick measures are required if it stands a chance of survival.

According to latest figures, news and information services faced a fall of 3% to $1.45 billion, along with a 7% fall in the advertising segment. And this decline was witnessed globally, with a remarkable 5% drop in Australia and 6% in UK.

News Corporation (NYSE:NWSA) was most hit by the News and Information Services, as it is its most valued segment. It caters to 40% of the stock’s value. Digital media is on a hike, but it’s causing print media to fall. And with free internet availability now, users have shifted to the internet for information instead of print. But News Corp (NYSE:NWSA) has a strong brand to its name, The Wall Street Journal, which has been showing steady growth patterns. The company expects a revenue for 2014 at $6.5 billion and 7.5% EBITDA which will translate to $475 million as the year ends.

New Corps (NYSE:NWSA) has also recently acquired Harlequin, which played a big role in the company’s $57 million in quarterly sales. Veronica Roth’s Divergent series being among the best seller has been beneficial for the company. The e-book version sales went up by 28%, accounting for 22% of the entire consumer revenue for the quarter. Since these e-version deduct the cost of printing, production and distribution, the company will continue to see sales growth. The company was fast to shift to the digital platform with big authors like Mitch Albom, Veronica Roth and Rick Warren, along with popular best sellers, like The Hobbit, Goodnight Moon and To kill a Mockingbird as well as Divergent series. This would result in sale boast in the segment and lowering costs associated with it.

The current estimation for 2014 in $1.51 billion, with EBITDA at 10%, meaning EBITDA of $150 million. The book publishing revenues have also been revised, predictions are set at $1.4 billion to $1.51 billion, with a 7.5% to 10% margin in EBITDA translating to $300 million. All this has been made possible due to the Harlequin acquisition and the changing trends and patterns for e-book sales and the fall of the prices. These trends are most probably going to be set for a long time eventually, translating into big figures for those who make an attempt to cater to this market.

News Corp. (NYSE:NWSA)’s latest efforts of bringing in established names in the world of information is bound to play an integral part in its growth and development.