News Corporation (NWS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $289 million, or $ 0.50 a share in the quarter, against a net profit of $63 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $110 million, or $0.19 a share compared with $114 million or $0.20 a share, a year ago. Revenue during the quarter went down marginally by 2.08 percent to $2,116 million from $2,161 million in the previous year period. Operating margin for the quarter stood at negative 7.14 percent as compared to a positive 6.25 percent for the previous year period.
Operating loss for the quarter was $151 million, compared with an operating income of $135 million in the previous year period.
Commenting on the results, Chief Executive Robert Thomson said:“In the second quarter, we saw the efficacy of our strategic reinvestment and digital diversification. Both were evident in our significantly increased operating profitability in the quarter, despite continued headwinds in print advertising. Results were driven by strong performance at our Digital Real Estate Services segment and meaningful revenues at HarperCollins, along with appropriate and ongoing management of the cost base at our news mastheads.
Operating cash flow drops significantly
News Corporation has generated cash of $4 million from operating activities during the first half, down 98.84 percent or $342 million, when compared with the last year period. The company has spent $118 million cash to meet investing activities during the first six months as against cash outgo of $250 million in the last year period.
The company has spent $121 million cash to carry out financing activities during the first six months as against cash outgo of $99 million in the last year period.
Cash and cash equivalents stood at $1,564 million as on Dec. 31, 2016, down 16.94 percent or $319 million from $1,883 million on Dec. 31, 2015.
Working capital drops significantly
News Corporation has witnessed a decline in the working capital over the last year. It stood at $1,266 million as at Dec. 31, 2016, down 25.49 percent or $433 million from $1,699 million on Dec. 31, 2015. Current ratio was at 1.54 as on Dec. 31, 2016, down from 1.81 on Dec. 31, 2015.
Days sales outstanding went up to 63 days for the quarter compared with 59 days for the same period last year.
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