Back to top

Image: Bigstock

Is News Corp Looking to Offload News America Marketing Unit?

Read MoreHide Full Article

Shares of News Corporation (NWSA - Free Report) rose 5.3% on Jun 18 following its announcement of exploring strategic options for News America Marketing (NAM) business, including a potential sale. This move will enable the company to simplify its structure, optimize portfolio and enhance shareholders’ value. Also, it will be able to focus on core areas that include creation and distribution of premium content along with digital real estate services.

This provider of home-delivered shopper media, in-store marketing products and services, and digital marketing solutions has been in troubled waters for a while now. We saw a drop in revenues from NAM unit to the tune of 8% in the third quarter of fiscal 2019 and 7% in the nine months period ended Mar 31, 2019, owing to reduced home-delivered revenues.

Management informed that NAM has extensive in-store marketing media options in more than 60,000 outlets in the United States and Canada. It has reach in households across the country, with circulation of more than 60 million via roughly 2,000 publications. Further, its mobile cash back apps, retailer load-to-card programs and print-at-home couponing help convert shoppers into potential buyers.

For now, News Corporation has not provided any details regarding the timing of review. The company has been looking into every corner for growth prospects. Its efforts to expand digital offerings, with greater emphasis on real estate businesses, bode well. Additionally, the company is diversifying its revenue streams through acquisitions and operational enhancement. It is also concentrating on augmenting the digital subscriber base.

We note that this Zacks Rank #3 (Hold) company gained 14% in the past six months outperforming the industry’s growth of 7.2%.


Three Stocks You Can’t Miss

Imax Corporation (IMAX - Free Report) has a long-term earnings growth rate of 17.5%, with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

New York Times (NYT - Free Report) delivered an average positive earnings surprise of 29.4% in the trailing four quarters. It currently flaunts a Zacks Rank #1.

Tribune Media Company has a long-term earnings growth rate of 9.30%, with a Zacks Rank #2 (Buy).

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

IMAX Corporation (IMAX) - free report >>

News Corporation (NWSA) - free report >>

The New York Times Company (NYT) - free report >>