News Corp. Q3 Profit & Revenue Up

NEW YORK: News Corporation has reported $9.54 billion in total revenue for the three months ended March 31, a 14-percent increase year-on-year.

More than half of this revenue increase was from growth at the Cable Networks Programming, Filmed Entertainment and Television segments, which helped to offset lower revenues at the Publishing unit. It also included revenues from the German pay-TV operator Sky Deutschland and Fox Sports Australia.

Total segment operating income was $1.36 billion, compared to the year ago’s $1.31 billion. The third-quarter results included $42 million in costs from the ongoing investigations from the News of the World closure.

Net income was $2.85 billion, a nice lift from Q3 2012’s $937 million.

Cable Networks Programming had a quarterly segment operating income of $993 million, up 17 percent, with a 17-percent increase in revenue. Operating income from the domestic channels increased 16 percent. Affiliate revenue was up 11 percent for domestic and 42 percent for international cable channels. Ad revenue for domestic cable grew 2 percent. International cable delivered ad revenues that were up 30 percent.

Filmed Entertainment had operating income of $289 million, compared to the $272 million from the same quarter the year before. Life of Pi contributed greatly to these results.

Television had operating income of $196 million, a gain of 15 percent year-on-year. This was from a near doubling of retransmission consent revenues and lower programming costs at the Fox Broadcasting Company.

Direct Broadcast Satellite (DBS) Television posted a loss of $11 million, compared to the income of $40 million in the same period a year ago. Publishing reported operating income of $85 million, which was down from the $130 million a year ago.

Rupert Murdoch, News Corp.’s chairman and CEO, said: “In our fiscal third quarter News Corp. achieved organic growth across our cable, film and television segments and, through the consolidation of Sky Deutschland and sale of stakes in SKY New Zealand and Phoenix Satellite Television, we advanced our strategic agenda to simplify our global portfolio. We also announced our plans to broaden our core cable business with the unveiling of our national sports channel Fox Sports 1 and our third branded FX channel, FXX. Both initiatives underscore our strategy of maximizing existing assets and leadership positions to drive sustainable growth and long-term value.

“We are on target to complete the proposed separation of our businesses near the end of our fiscal year. As we prepare to launch two new industry leaders with new News Corporation and 21st Century Fox, I am more confident than ever of the long-term value the separation will unlock for the Company and its shareholders.”