How Did News Corp. Turn Profits Around?
A filing shows that the publishing company News Corp. (NASDAQ:NWSA) made a profit, which is a turn around from last year’s loss. The company under chairman Rupert Murdoch split this off from the rest of his entertainment business in June.
News Corp. made a profit of $506 million ending in June, which is a good boost from the loss of $2.08 billion a year. The profit was 87 cents per share this year while the loss was $3.58 the year before.
The loss that had occurred the year before could mainly be attributed to a non-cash charge of $2.8 billion. This was mainly due to the Australian business.
Rupert Murdoch is planning on focusing on larger publications, such as the Wall Street Journal, U.K. Times, and the New York Post, says Bloomberg. As part of shaking things up, the producers of AllThingsD, the very successful site, are leaving News Corp, says the Guardian. After splitting from 21st Century Fox Inc., the company had no debt and about $2.6 billion in cash.
A filing from News Corp. states that the board of directors is in charge of determining when a dividend is paid. Although the company has not given a specific date for paying out a dividend, it has stated that one will be coming up soon.
The stock price did not change much after the filing last week. The company has had problems in the past with the hacking scandal at British newspapers owned by the news giant. With that in the background, the company is switching things up.