Two questions emerge in the aftermath of Paddy Manning’s remarkable revelations in Crikey (here) of the disastrous fall in earnings at News Corp Australia in 2013: why did News Corp take so long to disclose what had happened; and what happened next?
The news from 2014 is not good. News Corp Australia’s publishing operations appear to have dropped another 73 per cent in operating income in 2014, from $88 million to $A24 million. That’s after a 69 per cent drop in 2013. News Ltd was almost certainly losing money in the first half of F2014 before it inched its way back into the black in the second half. Now CEO Robert Thomson talks of “green shoots in the Nullabor”, by which he means it’s currently not actually loss-making. But you can write off this massive economic unit as a serious money earner. Continue reading