Business Context and Reporting Period
Company: News Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: November 8, 2018
Context: This filing provides supplemental pro forma financial information to reflect the impact of the April 2018 transaction where News Corporation and Telstra Corporation Limited combined their interests in Foxtel and FOX SPORTS Australia. Following this transaction, News Corporation owns a 65% interest in the combined business and began consolidating Foxtel in the fourth quarter of fiscal 2018. The results are reported within the Subscription Video Services segment.
Key Financial Metrics
This filing does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it serves as a cover document referencing Exhibit 99.1, which contains the unaudited supplemental pro forma results of operations for the fiscal quarters ended September 30, 2017, December 31, 2017, March 31, 2018, and June 30, 2018.
Material Changes
- Consolidation Change: The Company began consolidating Foxtel in the fourth quarter of fiscal 2018 due to the new 65% ownership stake.
- Segment Reporting: The combined business results are now reported within the Subscription Video Services segment (previously the Cable Network Programming segment).
- Pro Forma Adjustments: The filing provides supplemental data to show results as if the transaction had occurred on July 1, 2016, to enhance comparability across reporting periods.
Guidance, Outlook, and Risks
Management Commentary: Management states that the presentation of this supplemental pro forma information enhances comparability across reporting periods.
Legal Disclaimer: The information in this report, including Exhibit 99.1, is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into other filings unless expressly stated.
Risks/Contingencies: No specific risks or contingencies are detailed in the text of this 8-K summary; the focus is strictly on the accounting treatment of the transaction.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific unaudited pro forma revenue and earnings figures for the quarters ended Sept 30, 2017 through June 30, 2018.
- Verify the impact of the 65% consolidation of Foxtel on the Subscription Video Services segment margins.
- Confirm the pro forma adjustments made to align with the July 1, 2016 transaction date assumption.