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2019 Vault Rankings

About News Corporation

News Corp is one of the biggest news organizations in the world, publishing well-known mastheads such as The Wall Street Journal and New York Post, Australia's Herald Sun, and The Sun and The Times in the UK. The company owns the Dow Jones and Factiva information services, as well as book publisher HarperCollins. In TV, News Corp has a majority stake in Foxtel in Australia and owns the Australian News Channel. Other properties are the real estate websites REA Group and Motive. North America supplies about 45% of News Corp's revenue.

Operations

News Corp divides its operations into five segments -- news and information services, more than 55% of revenue; book publishing, about 20% of revenue; digital real estate services, about 13%; subscription video services, about 10%; and other, 2%.

The news and information services segment includes News America Marketing (NAM), a publisher and distributor of coupons in newspapers and on the SmartSource.com website. NAM's customers include many of the largest consumer packaged-goods advertisers in the US and Canada. It reaches 74 million households for its freestanding coupon inserts and about 52,500 retail outlets for its in-store advertising.

In book publishing, the imprints under Harper Collins include Harper, William Morrow, Avon, and Harlequin. Among its recent best-sellers have been Hillbilly Elegy and The Woman in the Window.

The Digital Real Estate Services segment consists of News Corp's 62% in REA Group, a publicly-traded company based in Australia, and its 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA lists properties for sale in Australia and Asia and offers financial services. Move operates the realtor.com website in the US.

The Subscription Video Services segment provides sports, entertainment, and news services to pay-TV subscribers via cable, satellite, and over the internet. Properties include the new Foxtel network in Australia, of which News Corp owns 65%, and the Australian News Channel.

Geographic Reach

News Corp. is based in New York City and has subsidiaries elsewhere in the US, Australia, and the UK. In addition, book publisher HarperCollins has a warehouse in Scotland and Dow Jones runs an office in Hong Kong. North America accounts for more than 45% of News Corp.'s sales, followed by the Australasia region with about 35%, and Europe (mostly the UK and Ireland), about 20%.

Sales and Marketing

News Corp. spends an average of about $620 million a year on advertising.

Financial Performance

News Corp.'s revenue has been uneven since 2014 and it has lost money for three out of those five years, including the last two, as sales generated by its news operations have diminished. The news operation's share of revenue fell to 57% in 2018 from 72% in 2014.

In 2018 (ended June), revenue rose 11% to $9 billion from the year before. The increase was driven by the combination of Foxtel, in which News Corp. and Telstra held 50% stakes, and FOX SPORTS that created the new Foxtel in Australia. The News and Information segment posted slightly higher revenue on a 5% increase in circulation and subscription sales. The Digital Real Estate Services segment also delivered more sales, as did the Book Publishing segment, which was boosted by strong sales in the general books category and a sublicensing agreement for The Lord of the Rings trilogy. Advertising sales slipped 2% for the year.

In 2018, News Corp.'s net loss about doubled to $1.5 billion from a loss of $738 million in 2017. The 2018 loss included write-offs and other charges related to the Foxtel deal.

News Corp. had about $2 billion in cash and equivalents in its coffers in 2018, about the same as 2017. In 2018, operations generated $757 million while investing activities used $321 million and financing activities used $398 million.

The company's flexibility to maneuver financially might be compromised by an increase in debt that resulted from the Foxtel deal. News Corp's debt jumped to about $1.5 billion in 2018 from $276 million and $369 million in 2017 and 2016, respectively.

Strategy

Revenue from News Corp's News and Information segment has declined in recent years as advertising revenue has shifted from newspapers to companies like Google and Facebook. The challenge for News Corp and other media companies is to find businesses that can produce growth to make up for the news and advertising revenue decline.

In 2018, News Corp and Telstra merged their 50% each ownership in Foxtel with News Corp's FOX SPORTS to create a new version of Foxtel. After the combination, Foxtel provides a greater range of programming to viewers in Australia on a wider range of devices.

The digital real estate services segment has become News Corp's fastest-growing business and produces outsized earnings. The segment's sales rose more than 20% in 2018 from 2017, adding four times more revenue than the news and information segment did. The real estate segment provides more than two-thirds of gross earnings while accounting for about 13% of revenue. News Corp beefed up the real estate properties with the acquisitions of Opcity in the US and Hometrack in Australia in 2018.

Mergers and Acquisitions

In 2018 News Corp and Telstra combined their 50% interests in Foxtel and News Corp's ownership of FOX SPORTS Australia into a new company, which took the new Foxtel name. Under the new setup, News Corp owns 65% of Foxtel and Telstra, 45%. The combination helped both entities expand programming and the range of devices on which the service can be accessed.

News Corp. beefed up its real estate-related websites and services with two acquisitions in 2018. It acquired Opcity, a real estate technology platform that matches buyers and sellers in real time, for $210 million. The acquisition broadened realtor.com's lead generation product portfolio.

REA Group acquired Hometrack Australia, provider of property data services to the financial sector, for $130 million. The acquisition allows REA to deliver more property data and insights to customers and consumers.

In fiscal 2016 News Corporation spent around $800 million on acquisitions. The company acquired Checkout 51 Mobile Apps ULC, Unruly Holdings Limited, DIAKRIT International Limited, iProperty Group Limited, Flatmates.com.au Pty Ltd, Australian Regional Media, and Wireless Group plc.

 

News Corporation

1211 AVE OF THE AMERICAS
New York, NY 10036-8705
Phone: 1 (212) 416-3400

Stats

Employer Type: Publicly Owned
Stock Symbol: NWSA
Stock Exchange: , NASDAQ
Co-Chairman, News Corp and 21st Century Fox: Lachlan K. Murdoch
Chairman: K. Rupert Murdoch
CEO: Robert Thomson
Employees (This Location): 277
Employees (All Locations): 28,000

Major Office Locations

New York, NY

Other Locations

Scottsdale, AZ
Los Angeles, CA
Northridge, CA
San Francisco, CA
Wilton, CT
Washington, DC
Miami, FL
Panama City, FL
Atlanta, GA
Lagrange, GA
Chicago, IL
Highland, IL
La Porte, IN
Chicopee, MA
Silver Spring, MD
Livonia, MI
Minneapolis, MN
Cranbury, NJ
Monmouth Junction, NJ
Toms River, NJ
Bronx, NY
Brooklyn, NY
Deer Park, NY
Jericho, NY
New York, NY
Bowling Green, OH
Cincinnati, OH
Dunmore, PA
Moosic, PA
Philadelphia, PA
Pittsburgh, PA
Beaumont, TX
Dallas, TX
Houston, TX
Edgewood, WA
Federal Way, WA
Beijing, China
Shanghai, China
Mumbai, India
Noida, India
Roma, Italy
Chiyoda-Ku, Japan
Montréal, Canada
Moscow, Russia
London, England
Berlin, Germany
Hamburg, Germany
München, Germany
Singapore, Singapore