News Corp. Posts Improved Results

NEW YORK: With revenues up 8 percent to $32.8 billion for fiscal 2010 News Corporation posted a full-year profit of $2.5 billion, as compared with the $3.4 billion loss in fiscal 2009.

For Q4, meanwhile, net profit was $875 million, as compared to a net loss of $203 million in the same period last year.
Commenting on the results, Rupert Murdoch, chairman and CEO, said, “I am very pleased with the overall 30 percent increase, which is more than three times the growth we were projecting when we started the fiscal year. Despite the volatility of world economies, News Corporation continues to thrive on a truly global scale. Having the biggest worldwide movie in history helped us achieve these fiscal 2010 results, but that was just a part of a much broader improvement at News Corporation. These results underscore just how well positioned we are—fiscally, operationally and strategically—for further growth across all of our markets. The opportunity for us to expand the scale of our franchises is significant, including through taking advantage of the continual technological advances that will broaden the reach of our core content and distribution businesses. So as we turn to fiscal 2011 and beyond, I am confident in our businesses and in our people to deliver superior results.”

In Q4, filmed entertainment delivered a segment operating income of $137 million, less than the $203 million reported for the same period year, due to lower contributions from worldwide theatrical releases as well as lower pay and free TV revenues. For the full year, segment operating income increased to a record $1.3 billion, from $848 million reported in fiscal 2009, led by the worldwide theatrical and home entertainment performances of Avatar, among other releases.

The television segment’s operating income rose by 13 percent in the quarter to $113 million and by 15 percent in the year to $220 million, with improved ad revenues at the stations being partially offset by higher programming expenses at the FOX network.
Cable network programming also had a strong year, with operating income up to $564 million in the quarter and a record $2.3 billion in the year. The quarter saw a 30 percent improvement at the U.S. channels and 40 percent increased contributions from the international networks.

SKY Italia, meanwhile, saw its operating income fall to $97 million in the quarter and to $230 million in the year. The platform reported a net decline of 56,000 subscribers for the year, but added 45,000 net new subscribers in the fourth quarter bringing the year-end closing subscriber base to approximately 4.7 million.