News Corp Shares Drop

Shares of News Corporation [ASX:NWS] are down 5.44% today at time of writing. Shares decreased from $18.40 to $17.39.

Why did the News Corp Share Price Tank?

News Corp published its full year results for fiscal year 2017 today. It reported a loss of US$643 million, compared to a US$235 million gain last year, mainly due to lower newspaper values in Australia and the UK.

The company, which is controlled by Rupert Murdoch, publishes Australian newspapers like The Australian and the Herald Sun, and news site news.com.au

Yet as Chief Executive Robert Thomson said, growing profitability has been coming from the real estate services.

Move, the operator of realtor.com and REA Group continue to post record revenues driven by higher traffic and improved yields. Digital real estate overall accounted for nearly 40% of our profits.

REA Group [ASX:REA] also reported its FY17 results today. It announced a net profit of $206 million, a 19% fall from 2016, when it reported a profit of $252 million. The decrease is mainly due to weakness in the Asian property market.

Shares for REA also slid down 5.49% after the announcement, from $68.42 to $64.33.

Future bleak for News Corp?

As News Corp struggles with low newspaper values, it is becoming increasingly reliant on digital real estate. REA is now moving into home loans in an effort to capture a greater share of the mortgage industry.

Selva Freigedo

For Money Morning

Why Ethereum Could Be the One Coin to Rule Them All..find out here 


Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked. Born in Argentina, she has also lived in Brazil, the US, Spain, and now Australia. She has seen up close many of the economic phenomena that worry Fat Tail Investment Research readers, like hyperinflation, bank bail-ins and governments burdened with so much debt it cannot possibly be repaid.

Every week, she goes through each article, research note and recommendation produced by our experts around the world to give you information on how to build and protect your wealth. Selva packages the week’s best ideas into one easy to read report: Port Phillip Insider Extra.


Money Morning Australia