HarperCollins Has Large Drop in Revenue; Parent NewsCorp Posts Billon Dollar Loss
06. Feb, 2009 | by Jane |
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Yesterday NewsCorp, Rupert Murdoch's media empire, posted a $6.4 Billion loss . NewsCorp indicated that it would be instituting across the board staff cuts. HarperCollins had its second consecutive losing quarter with fiscal year earnings down 75%. Given the disappointing results at HarperCollins and the overall decline in fortune at NewsCorp, Harper's parent company, I think it's safe to say that there will be layoffs at HarperCollins but layoffs alone can't account for a 75% drop in fiscal year earnings on a 16% decline in revenue.
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I wonder if one of the pockets that performed well was ebooks…
Good Lord. On what books is HarperCollins losing all that dough? Did they have any recent big deals that turned out to be duds?
My bad. HC is still profitable. Just less profitable.
Murdoch gets no sympathy from me. He is, after all, responsible for FAUX News and 8 years of GWB.
@Sherry Thomas: HC said their FOC is too high, so they’re not attributing it to inflated advances that didn’t earn out.
I just bought an HC book yesterday. Does that mean I’m part of the solution, not part of the problem???
What does “FOC” stand for?
Sorry about the acronym.
FOC = fixed operating costs
@Ann Bruce Do you think that FOC is really responsible for two dismal quarters?
I was echoing HC’s claims.
I have my own theory about why so many companies performed dismally in the last year or so–and so far it’s been proven as company after company announce their financial results. There’s a reason why companies like XOM and Apple do well even in a downturn while their competitors flounder.
EDITED because of poor grammar.
@Ann Bruce Who is XOM?
@Ann Bruce: Care to share the theory? I’ve grown quite interested in economics and the financial sector since the Wall Street meltdown.
XOM is Exxon Mobile on the NYSE.
They perform well because I don’t have stock. *sigh*
@Jane: Sorry. I usually cut myself off from the Internet on weekends and couldn’t get to your question earlier, but Joanne is correct. XOM is ExxonMobil.
@Evangeline: I make it a point to never give out stock tips or specific financial advice because if people act upon them and lose money, it can get nasty. But, basically, I like companies with low to no debt, large cash positions, a certain price-to-earnings ratio, and decent dividends. I think that’s general enough without getting me into trouble.