News Corp. Delivers Profit Gains

NEW YORK, August 6: Fourth
quarter net profit at News Corporation increased by 27 percent to $1.1 billion
on revenues of $8.6 billion, reflecting a 17-percent rise on the year-ago
period.

For the full year,
meanwhile, revenues were up by 15 percent to $33 billion, delivering a net
income of $5.4 billion, a 59-percent increase.

Rupert Murdoch, the company’s chairman and CEO, commented: “We are extremely pleased
with the continued growth we achieved during fiscal 2008—our sixth
consecutive year of record profits. All of our business segments generated
year-over-year gains, with record profits reported at our satellite
broadcasting, cable programming, film and television businesses. Although we
clearly face more challenging

macro-economic conditions
in fiscal ’09, we’re well positioned to deliver continued, if somewhat less
robust growth. Our balance sheet is strong, we have solid operating momentum in
many of our key businesses, and most importantly, our assets are diversified,
both geographically and along business lines, enabling us to better respond to
the economic challenges we may face this year.”

Filmed entertainment
reported quarterly revenues of $1.5 billion, with an operating income of $220
million—more than double the $106 million profit record last year.
Drivers included Alvin and the Chipmunks, Juno, AVP:
Requiem and 27 Dresses. For the full year, operating profit increased to
$1.25 billion, on revenues of $6.7 billion.

At the television segment,
meanwhile, Q4 revenues fell to $1.3 billion, and operating profit was down 28
percent to $279 million, as a result of lower contributions from the Fox
Television Stations, STAR and FOX Broadcasting Company. Revenues for the year
were up to $5.8 billion, and profit increased 17 percent to $1.1 billion.

Cable network programming
reported fourth quarter operating income of $313 million, on revenues of $1.4
billion, and record full year operating income of $1.3 billion, a 10-percent
gain, on revenues that were 28-percent higher to $5 billion.

SKY Italia reported fourth
quarter operating income of $212 million, an increase of 37 percent, and full
year operating income of $419 million, on revenues of $1.05 billion and $3.7
billion, respectively. The platform ended the period with 4.56 million
customers.

—By Mansha Daswani