News Corp. writes down part of digital education business by $371 million, takes 4Q loss



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NEW YORK — News Corp. said Wednesday it wrote down the value of part of its Amplify digital education unit by $371 million and says it will review strategic options for the rest of the business.

The impairment charge to Amplify Access pushed the publishing company to a loss in its fiscal fourth quarter. News Corp. said it will stop marketing Amplify Access, which sells tablet computers and instructional software for students, to new customers but will continue to provide support and services for current customers. The company will review its options for the rest of the business, including divisions that develop content for classes and analytic software, and provide data and assessment services for teachers and school districts.

News Corp. reported a fiscal fourth-quarter loss of $378 million, or 65 cents per share, including $455 million in impairment and restructuring costs. The New York-based publisher of The Wall Street Journal said it turned a profit of 7 cents per share if one-time items are excluded. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 6 cents per share.

Its revenue fell 2 percent to $2.14 billion in the period.

The company said its lost $147 million, or 26 cents per share, in the fiscal year that ended on June 30. Revenue rose 1 percent to $8.63 billion.

Class A shares of News Corp. have fallen 10 percent in 2015 and closed at $14.12 on Wednesday. In aftermarket trading, the shares rose 78 cents, or 5.5 percent, to $14.90.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on NWSA at http://www.zacks.com/ap/NWSA

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Keywords: News Corp., Earnings Report

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