WSJ parent reports quarterly loss on lower revenue
News Corp., the parent of The Wall Street Journal, MarketWatch.com and Barrons, reported a loss in the March quarter as the company took a $280 million charge related to a legal settlement and turmoil in the advertising markets and foreign-currency fluctuations continued to weigh on the business.
Lukas Alpert of The Journal writes, “The news and information services segment, which accounts for two-thirds of News Corp’s total revenue, reported a 9% decline in sales. Advertising revenue declined 15% in the unit.
“‘With the advertising market in the midst of upheaval, advertisers and agencies are experimenting with their spend,’ News Corp Chief Executive Robert Thomson said in prepared remarks. ‘We believe that premium mastheads and audiences are currently undervalued by agencies, some of which are more focused on fashion than function.’
“News Corp Chief Financial Officer Bedi Singh said domestic advertising at the Journal declined 4% compared with the same quarter a year earlier.
“The company said digital revenue now amounted to more than 50% of total revenue at its Dow Jones unit, which includes the Journal, and that digital advertising contributed about a third of all advertising revenue.”
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