News Corp (NASDAQ: NWSA) reported Q1 EPS of $0.04, $0.01 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $2.34 billion versus the consensus estimate of $2.4 billion.

FISCAL 2020 FIRST QUARTER KEY FINANCIAL HIGHLIGHTS

• Revenues were $2.34 billion, a 7% decline compared to $2.52 billion in the prior year, which reflects the negative impact from currency headwinds and the absence of a one-time benefit in the prior year relating to the exit from Sun Bets
• Net loss was ($211) million compared to net income of $128 million in the prior year. The loss includes non-cash impairment charges of $273 million
• Total Segment EBITDA was $221 million compared to $358 million in the prior year
• Reported EPS were ($0.39) compared to $0.17 in the prior year – Adjusted EPS were $0.04 compared to $0.17 in the prior year
• Announced in October a multi-year content partnership with Facebook for The Wall Street Journal, Barron’s Media Group and the New York Post – expected to drive incremental revenue and Segment EBITDA
• Expanded relationship with Apple to include News Corp publications in the U.K. and Australia for the launch of Apple News Plus in the respective regions
• Subscribers to Dow Jones’ consumer products grew 9% to approximately 3.3 million reflecting 17% growth in digital-only subscribers at The Wall Street Journal to nearly 1.9 million
• Revenues at Move, home of realtor.com®, grew 4% driven by 11% growth in real estate revenues compared to the prior year, with significantly larger audience, which rose 18% in the quarter, and improved lead volume

Commenting on the results, Chief Executive Robert Thomson said:

“In the first quarter of Fiscal Year 2020, News Corp showed strong growth at Dow Jones and higher revenues at Move, the operator of realtor.com®, but the results were affected by pronounced currency headwinds, a particularly sluggish Australian economy and property market, and comparisons with a prior year in which there was a significant one-time revenue item.

We are pleased to note tangible progress in our efforts to secure payment for our high-quality content from digital platforms, a global cause which News Corp has led for more than a decade. With the dominant platforms under intense regulatory scrutiny, there has been a fundamental shift in the content landscape, highlighted by Facebook's decision to pay a significant premium for our premium journalism. This development establishes a precedent that changes the terms of trade and we expect a positive financial impact at our News and Information Services segment, beginning this fiscal year.

Our efforts to simplify the company continue apace. We are in active discussions about a sale of News America Marketing and also are reviewing the potential sale of Unruly. We are taking steps to reduce our sum of the parts discount, while investing in our digital businesses, to the benefit of all shareholders.”

For earnings history and earnings-related data on News Corp (NWSA) click here.