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Media company $NWS said it has settled a class action lawsuit alleging various antitrust claims from past operations at its News America Marketing division. As per settlement terms, company will pay about $250MM and the pending litigation will be dismissed, subject to court approval. Also, $NWS will pay about $30MM to resolve related claims.
$NWS $NWSA issued statement regarding the European Commission's decision to fine Google, a $GOOG $GOOGL company, for breaching EU antitrust rules. News Corp. said Google has profited from commodifying content and enabling the proliferation of flawed and fake news, to the detriment of journalism and of an informed society.
$NWS $NWSA issued statement regarding the European Commission's decision to fine Google, a $GOOG $GOOGL company, for breaching EU antitrust rules. News Corp. strongly believes that the abuse of algorithms by dominant digital platforms should be of concern to every country and company seeking a fair, competitive and creative society.
$NWS said in relation to News Australia and the ARM acquisition, it will have integration costs largely offsetting synergies in 2017 but benefits are expected to come through in the next financial year. So the benefits are not included in its cost reduction target of $40MM. $NWS is on track to deliver the $40MM cost reduction target in 2017.
Revenue from News and Information Services, the largest segment of $NWS $NWSA, grew 3% to $1.26Bil in 3Q17. The Wall Street Journal average daily digital subscribers grew to 1,198,000 from 893,000 a year ago. Revenue of Book Publishing segment, Digital Real Estate Services and Cable Network Programming grew 4%, 13% and 14% respectively.
Move, Inc, a subsidiary of $NWS and operator of realtor.com, has expanded relationship with Terra Holdings, LLC, giving leading luxury residential firms Halstead and Brown Harris Stevens access to two of Move's professional real estate software products, FiveStreet and Top Producer CRM.
$NWS said Kelly Ayotte has been elected to its BoD, effective April 1, 2017. Senator Ayotte most recently served as a United States Senator for the State of New Hampshire from 2011 to 2017. Her appointment follows the departure of Elaine L. Chao, who resigned from the Board upon her confirmation as Secretary of the US Department of Transportation.
$NWS $NWSA said Bedi Singh will be departing as CFO effective March 1, 2017. Susan Panuccio, currently CFO of News Corp Australia, will become new CFO of the company. Singh has agreed to serve as senior advisor to News Corp on its digital property interests in India, and will also join the advisory board of Move Inc., which operates realtor.com.
$NWS $NWSA said advertising revenue at News Australia remains challenged. For 2Q17, advertising revenue declined 12%, or approx. 15% in local currency. The company said it continues to seek additional cost reduction in 2017, as it is on track for an additional A$40MM in cost savings in the second half of FY17.
In News Australia, $NWS $NWSA's advertising revenue fell 7%, while circulation revenue was up modestly, as a result of cover price increases. In 2017, the company expects an additional AUD40MM in cost savings. In News UK, ad revenue was down mid teens in local currency, while circulation revenue fell mid teens sequentially.
$NWS $NWSA said that by the end of FY18, the company is targeting about 8% or $100MM reduction of the cost structure on an annualized basis. The implementation of the restructuring program will begin in 2Q17 and is expected to continue into 3Q17, with an expected restructuring charge of $50-60MM pre-tax during FY17.
$NWS $NWSA's 1Q17 News and Information Services revenue fell 5% YoverY, while adjusted revenues fell 4%. In Book Publishing, revenues fell 5% compared to the year ago, hurt by the absence of revenues from Go Set a Watchman by Harper Lee. Digital Real Estate Services revenue rose 18% YoverY, driven by continued growth at REA Group and Move.
Media company $NWS $NWSA posted a net loss for 1Q17, hurt by lower segment revenue and foreign currency fluctuations. The company reported a net loss available to NWSA stockholders of $15MM or $0.03 per share for the quarter compared to net income of $175MM or $0.30 per share a year ago. Total revenue fell 2.43% to $1.96Bil.