How Is News Corp Expected To Perform In 2016?

News Corp’s revenues declined 4% in 2015, as compared to the year-ago period. The decline was a result of the continued fall in print revenues, as well as lower advertising revenues in its cable network programming segment. The digital real estate segment remained the growth engine for the company. On the other hand, News Corp managed to curtail its expenses, by reducing its workforce and incurring less on production costs. Consequently, its EBITDA margin was 12.7% in 2015.

Going forward, we expect these broad trends to stay in place. News Corp’s growth will likely be driven by its digital real estate segment, while the news and information service will suffer due to the secular shift away from print media. The company expects costs to fall further, resulting in a slight improvement in its EBITDA margin during the 2015-16 period.

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?
• What Is News Corp’s Fundamental Value Based On Expected 2016 Results?

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.