A solid 3rd quarter return perhaps, but what does the future hold for News Corporation?

A solid 3rd quarter return perhaps, but what does the future hold for News Corporation?

Declining print revenues are an increasing challenge facing News Corp – Roger Montgomery discusses News Corp’s future with David Taylor of ABC’s PM program. Read and Listen here.

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Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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3 Comments

  1. Can i ask how much of newscorps revenue comes from its newspapers Roger? I know it is a big beast of a company but i would expect it to be a lot.

    The newspaper environment is in a state of deep change as they venture into a more online version of dispensing the news. I have been catching public transport to Sydneys CBD for about ten years and where once you used to see newspapers everywhere you now see iphones and ipads.

    The success will come from how well it can implement pay walls for content. Sooner or later this will become the norm and accepted practice (subscribing for online news content) but i am unsure as to what the industry landscape will look like.

    • The publishing division of News Corporation, which includes its newspapers and book-publishing business, reported revenues of $2.03bn in the three months to the end of March 2012, down 2.8% from $2.08bn the previous year. Total Revenue was $8.4bln
      Operating income of $130m during the first three months of 2012, was two-and-a-half times the year before, when it paid a $125m litigation settlement charge. Group net income during the first three months of 2012 was $937m. Skaffold ++!!!

  2. Dear Roger and Others
    I have bought a News Corp. paper every day except sundays since I started work when I was sixteen – I have to say I have held the stock from time to time but not since the GFC. I refuse to buy now because i rate it as a perpetual underperformer like a hand full of others – you know them they were and still are one of the ones financial advisers have been heard to say you should buy. It is a pity the shareholders have not done so well. Are they a company that practices world’s best governance ?? I was born 1948.
    Gabe

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