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Coronavirus losses may force Newscorp and Rupert Murdoch to rethink Foxtel business model

Byindianadmin

May 10, 2020 #Foxtel, #rethink
Coronavirus losses may force Newscorp and Rupert Murdoch to rethink Foxtel business model

News Corporation is the latest international media company to reveal that it has been hit hard by COVID-19, with third-quarter accounts showing a $US1 billion ($1.5 billion) loss.

It is a setback that spurred Rupert Murdoch to join the growing list of senior executives forgoing their bonuses for this year.

But while the US, like the rest of the world, is feeling the heat from COVID-19, much of News Corp’s pain came from Australia.

As the owner of 65 per cent of pay TV operator Foxtel, News Corp’s accounts give an insight into how Foxtel is travelling.

And it’s not pretty.

As Foxtel’s future becomes ever more precarious, News has written down the value of its investment by $1.4 billion.

Telstra, which owns the other 35 per cent, has taken a $300 million hit.

The Bulldogs NRL team's interchange players sit on a bench in front of an empty grandstand.

The NRL suspended its 2020 season on March 23 in a big blow to Foxtel’s Kayo Sports.(AAP: Dan Himbrechts)

It is a reflection of Foxtel’s deteriorating performance.

Earnings in the quarter were down 31 per cent, or $46 million, on 2019 and the 2019 third quarter result was 23 per

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