RTE 2.59pm: News Corp will cut its 2017 profit forecast by $5 billion to $14.7bn.
The company’s financial results for the quarter to March 2018 will show a $2.2 billion reduction compared to the same period last year, said chief financial officer Mark Johnson in a statement.
“This is the result of an aggressive review and improvement of our core business, the result in large part of which was driven by the strong performance of the Australian dollar,” he said.
The news comes as a new study by PricewaterhouseCoopers found that News Corp had the most robust outlook in the Australian financial markets. “
While the forecast is negative, we remain confident that our core businesses will deliver strong results over the next 12 months and beyond.”
The news comes as a new study by PricewaterhouseCoopers found that News Corp had the most robust outlook in the Australian financial markets.
Mr Johnson said that although the company’s business had been affected by a significant downturn in the oil price, it remained confident that the outlook was positive.
He said the company would continue to focus on its core business of delivering high quality news and information, which has benefited from a strong Australian dollar over the past two years.
He also revealed that NewsCorp had a strong dividend yield.
“In 2018, we expect our dividend yield to increase over the longer term and it will be a factor in our growth outlook over the long term,” Mr Johnson added.
“Our dividend is a strong component of our earnings and we are committed to reinvesting dividends back into our business.”
We are also committed to focusing on our core portfolio of businesses, and we have been improving our performance in key areas such as content, publishing and social media and are making improvements to our digital strategy.
“News Corp continues to deliver solid performance and we expect that our business will continue to deliver strong returns for our shareholders.”
News Corp was founded in 1896 and has more than 160 million Australian customers.
It was bought by Rupert Murdoch’s News Corporation in 2002 for $3.3 billion.
The deal was worth $7.2billion.