News Corp. Delivers Profit, Revenue Gain

February 3, 2010 World Screen

NEW YORK: News Corporation’s second-quarter revenues climbed 10 percent to $8.7 billion, delivering a net income of $254 million, versus the year-ago loss of $6.4 billion.

Rupert Murdoch, chairman and CEO, said of the results: "Our strong top-line revenue growth demonstrates that News Corporation is emerging from this recession with renewed vigor and strength. Moreover, our underlying operating trends this quarter far outpace those of the same quarter last year. We continue to reap the benefits from the restructuring and cost containment measures we instituted before the downturn began and I am pleased that our unrelenting focus has translated to growth across our businesses that will reward stockholders for years to come. News Corporation’s leadership position in news, sports and entertainment stems from our unique ability to produce the high quality content that consumers and distributors demand. We have a strong management team that knows how to nurture our core businesses, while taking prudent, creative risks like Avatar that lead the industry forward. I have every confidence that News Corporation is entering a new period of sustained growth."

Filmed entertainment was a strong performer for the company in the period, nearly tripling its operating income to $324 million. The television segment returned to profit, with $29 million, as compared with a year-ago loss of $2 million. The improved results reflect increased contributions from the Fox Television Stations (FTS) and reduced losses at MyNetworkTV, partially offset by lower contributions from FOX Broadcasting Company. At the cable network programming division, operating income was up by 35 percent to $604 million, with increased contributions from FOX News Channel (FNC), the Regional Sports Networks (RSNs), the Fox International Channels and STAR. SKY Italia, meanwhile reported a Q2 operating loss of $30 million, as compared with a year-ago $10 million profit, due to lower subscription revenue. The subscriber base fell by 63,000 to 4.74 million.

 

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