NEWS (NWS) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $15 million, or $ 0.03 a share in the quarter, against a net profit of $175 million, or $0.30 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $6 million, or $0.01 a share compared with a net profit of $32 million, or $0.05 a share in the last year period.
Revenue during the quarter went down marginally by 2.43 percent to $1,965 million from $2,014 million in the previous year period. Operating margin for the quarter stood at negative 0.51 percent as compared to a positive 1.34 percent for the previous year period.
Commenting on the results, chief executive Robert Thomson said "News Corp made real progress as it continued to drive higher digital revenues and position the Company for long-term growth. While the quarter presented some obvious challenges, particularly in print advertising and the weakness of the Pound Sterling, our revenues were relatively stable, underscoring the strength and scale of our portfolio and shift to digital.
Operating cash flow turns negativeNEWS has spent $268 million cash to meet operating activities during the quarter as against cash inflow of $141 million in the last year period. The company has spent $11 million cash to meet investing activities during the quarter as against cash outgo of $86 million in the last year period.
The company has spent $59 million cash to carry out financing activities during the quarter as against cash outgo of $37 million in the last year period.
Cash and cash equivalents stood at $1,499 million as on Sep. 30, 2016, down 21.02 percent or $399 million from $1,898 million on Sep. 30, 2015.
Working capital drops significantly
NEWS has witnessed a decline in the working capital over the last year. It stood at $1,041 million as at Sep. 30, 2016, down 39.58 percent or $682 million from $1,723 million on Sep. 30, 2015. Current ratio was at 1.46 as on Sep. 30, 2016, down from 1.80 on Sep. 30, 2015.
Days sales outstanding were almost stable at 62 days for the quarter, when compared with the last year period.
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