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Sep 23, 2013

News Corp’s hall of mirrors can’t hide newspaper woes

News Corporation's full-year financial results are finally out -- but are those hefty profits reported legitimate? Crikey looks a little closer at the numbers.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

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To delve into News Corporation’s full-year financial results — filed late on Friday in New York — is to enter a wacky world in which things are not quite as they seem. On one reading, News Corp says it earned a profit of $US506 million (around $A540 million) for the 12 months to June 30, but another reading reveals it lost almost $US800 million ($A850 million). Which would you believe if the company also told us that revenues in its biggest business — the newspapers in Australia, the US and UK — fell 10%, thanks to an enormous slide in Australian ad revenues?

8 comments

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8 thoughts on “News Corp’s hall of mirrors can’t hide newspaper woes

  1. Mike Flanagan

    Since his bible publisher is probably an arm of Amplify, his educational arm that awaits all our school attendees, it is natural to assume creationism should inflict his accounts.
    It could also be suggested, with his anointment of our new ‘government’ he would expect to see advertising revenues explode here in Australia.
    It is shame he couldn’t find some scribblers to write some intelligent and readable honest copy to fill in between the Commonwealth Government’s coming avalanche of advertisements.

  2. Liamj

    Investors in News Corpse seem as ill-informed as its employees, but readers & advertisers know better!

  3. Suzanne Blake

    Ad sentiment will improve greatly now we have a stable, rational and effective Government

  4. klewso

    There’s millions in “Creative Accounting” isn’t there? How much did the Murdoch’s “earn” while this has gone on?

  5. Electric Lardyland

    One wonders why someone with such a strong belief in market economics, as Rupert Murdoch, would still be keeping his relentlessly contracting and loss making Australian newspaper business. Could it be that they come in quite handy, if want to get rid of a government?

  6. Eltherington Peter

    Literally yesterday’s news. Murdoch has trashed his brand in Australia with his appalling bias displayed during the election. I will not support his company or Foxtel. Moral and truth free zones.

  7. AR

    Basically anyone with a $5 calculator (or a pre 70s education in basic arithmetic) can see the figures are claptrap.
    SO the question to the investors is, if you’re so rich, how come you ain’t smart? With the corollary, “hey, that’s my pension fund you pissing up against the wall of delusion!”

  8. Harry Rogers

    Thanks Glen… finally someone who does not cop the outright lies of the corporates these days.

    What really pisses me off is that the fund managers (those that handle yours and my super) say nothing about this clearly un ethical and downright practice of cheating. Do you thin “Business Spectator” would dare to tell the truth about News Corp accounts.

    Glen , if you are really bored have a look at the Qantas accounts they have literally being going backwards both in cash and assets for 5 years now but produce accounts which are straight out of the fairy tale books.

    Keep up the good work.

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