News Corp. Profit Up 36 Percent

NEW YORK: First-quarter profit at News Corporation reached $775 million, a 36-percent gain, on revenues that rose to $7.4 billion, led by the cable network and television segments.

"Our global cable network programming business continues to lead News Corporation’s financial and operational momentum," said Rupert Murdoch, chairman and CEO. "With continued subscriber growth in new and established channels throughout the world, and a global advertising recovery, our domestic and international channels now account for 25 percent of our revenues, and uniquely position us for profitable expansion of these franchises in the years to come. At the same time, our Television segment enjoyed significant operating income growth compared to the first quarter a year ago as local ad markets continue to rebound."

He added, "We continue to invest in superior content across all of our businesses, ensuring the best in news, sports and entertainment, competitively positioning our business for long term growth."

Cable Network Programming posted revenues of $1.9 billion, a 17-percent hike, with operating income up 28 percent to $659 million. Operating income contributions from the domestic channels increased 23 percent, while the international cable channels grew earnings by 48 percent. Ad revenues at the U.S. channels were up 16 percent, and at the international channels 27 percent. Affiliate revenues were also up, by 14 percent in the U.S. and 12 percent internationally.

Television also fared well, with improved results at Fox Television Stations helping to drive a $67 million increase in operating income to $105 million, despite lower contributions from Fox Broadcasting. Revenues were up to $851 million in the television segment.

In Filmed Entertainment, revenues fell slightly to $1.5 billion, while operating income was down from $391 million to $280 million, largely as a result of difficult prior-year comparisons.

SKY Italia reported first quarter segment operating income of $82 million, a decrease of $46million, on revenues that were down to $856 million. The quarter included increased subscriber acquisition, as well as programming costs related to the FIFA World Cup coverage. The platform ended the period with 4.8 million subs.