Washington, Feb. 10, (dpa/GNA) - Rupert Murdoch’s News Corp on Thursday announced it would reduce its workforce by some 1,250 positions after reporting a 7% decrease in revenue in the second quarter of fiscal 2023, missing analysts’ estimates.
Revenue in the three months to December 31 was $2.52 billion, a 7% decrease compared to $2.72 billion in the prior year, the company said.
Net income in the quarter was $94 million compared to $262 million in the prior year.
“The second quarter highlighted the progress made in certain of our business segments. Obviously, a surge in interest rates and acute inflation had a tangible impact on all of our businesses. But we believe these challenges are more ephemeral than eternal,” chief executive Robert Thomson said.
“Just as our company passed the stress-test of the pandemic with record profits, the initiatives now underway, including an expected 5 percent headcount reduction, or around 1,250 positions this calendar year, will create a robust platform for future growth.”
The company’s bottom line came in at $67 million, or $0.12 per share. This compares with $235 million, or $0.40 per share, in last year’s second quarter.
Excluding items, News Corp reported adjusted earnings of $83 million or $0.14 per share for the period. Analysts on average had expected the company to earn $0.19 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
GNA