News Corporation Delivers a Solid Fiscal 2021 First Quarter Result

The coronavirus is likely to have a material negative impact on News' earnings. Advertising and marketing activities ultimately hinge on corporate confidence and consumer sentiment, two qualities in short supply amidst the current global health crisis. This is especially dire for the news and information division, which generates over 40% of its revenue from advertising. As the health crisis mutates into an economic one, other revenue sources are also under siege, as pressure mounts on units such as subscription video services and property market-sensitive digital real estate services. However, News is the best-placed among the media names under our Australian coverage to weather the storm, with USD 255 million of net cash on the balance sheet.