News Corp to cut harder as COVID-19 bites amid $1.8b loss

Max Mason and Natasha Gillezeau

Updated Aug 7, 2020 – 4.10pm, first published at 7.51am

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Key Points

Revenue ($USm) 9010.0, down -10.5%
EBITDA ($USm) 1010.0, down-18.5%
Net profit ($USm) -1550.0, down-779.8%

News Corp has flagged further staff cuts at its newspapers across the globe –outside of The Wall Street Journal – as it intensifies its focus on cost reduction and digital transformation of its newsrooms.

For the full year, News Corp reported a $US1.3 billion ($1.8 billion) loss, largely related to write-downs on Foxtel and News America Marketing, booked previously in the year. Its earnings before interest, tax, depreciation and amortisation (EBITDA) slumped 19 per cent to $US1 billion, down from $US1.2 billion in the previous year. EBITDA for three months to June 30 was down 28 per cent to $US195 million.

Max Mason covers financial crime, courts and corporate wrongdoing. A Walkley Award winner, Max’s journalism has also received awards from the National Press Club of Australia, the Kennedy Awards and Citibank. Message Max on Signal https://tinyurl.com/MaxMason

Natasha Gillezeau is a journalist for The Australian Financial Review based in the Sydney office.