Sector: Communication Services | Focus: Publishing
HQ: New York City, New York
Financial Risks
The company faces risks from legal proceedings (voicemail interception, payments to officials, and antitrust lawsuits) with uncertain outcomes and potential substantial costs. Fluctuations in foreign exchange rates and interest rates impact revenue and expenses. The company's borrowings have covenants and events of default that could trigger immediate repayment obligations. The performance of equity affiliates and investments in securities with uncertain fair values are also risks. Economic conditions, particularly in the US housing market, affect the Digital Real Estate Services segment.
Financial Upside
Increased revenues across several segments, including circulation and subscription, advertising, consumer, real estate, and other. Lower operating expenses, particularly in the News Media segment, due to cost-cutting measures. A decrease in interest expense, driven by higher interest income. Stronger performance at the Digital Real Estate Services segment, particularly REA Group, and the Book Publishing segment. Improved free cash flow.
