How Are News Corp’s Revenue And EBITDA Trending?

News Corp’s revenue fell by 3% over the last five years, due to the industry-wide shift from print media to digital. However, operating expenses declined 4% in the last five years, owing to lower SG&A expenses, which declined due to a decrease in severance costs (workforce reduction) and lower distribution costs. Consequently, the company’s EBITDA rose by 2% as lower revenues were offset by a decline in costs.

Going forward, we expect the revenue declines to continue, even as the company makes strides to return to profitability. Moreover, we expect a majority of the growth in the long term to come from the company’s digital real estate segment. If News Corp fails to maintain a strict control over its expenses, the EBITDA will most likely deteriorate.

Have more questions about NWSA? See the links below:

• How Has News Corp’s Revenue & EBITDA Composition Changed Over The Past 5 Years?
• How Has News Corp’s Revenue And EBITDA Changed In The Last Five Years?
• What’s News Corp’s Revenue And Gross Margin Breakdown By Segment?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comments section

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for News Corporation.