News Corp Reports 4Q, Full-Year Gains

NEW YORK, August 9: Double-digit
percentage increases at News Corporation’s filmed entertainment, television,
cable network programming and DTH segments led the company to a full-year
profit of $2.3 billion, on revenues of $25.3 billion.

For the quarter,
meanwhile, revenues rose from $6.1 billion to $6.8 billion, delivering a profit
of $852 million, up from last year’s $717 million.

Chairman and CEO Rupert
Murdoch commented, "Our fiscal 2006 financial performance once again
demonstrates News Corporation's ability to deliver superior near-term results
while keeping our eye firmly focused on the long-term with smart, strategic
investments that we expect will accelerate our growth well into the future. We
generated our fourth consecutive year of record operating profits with
increases at nearly every one of our diverse segments; at the same time, we
leveraged our strong balance sheet by investing in businesses uniquely
positioned in the expanding digital world.”

He continued, "Longer
term, we're intently focused on developing ways not only to monetize our
acquired Internet assets, but also on how to exploit our vast content libraries
as broadband access proliferates. From aggressively growing advertising across
MySpace's now nearly 100 million registered users to providing on-demand
content to DIRECTV consumers, we are keen on maximizing whatever opportunities
technology provides. Our proven ability in taking advantage of new platforms
and the momentum we continue to generate at our established businesses gives us
great confidence as we head into fiscal 2007."

The Filmed Entertainment
segment reported fourth quarter operating income of $200 million, up 83 percent
from last year, and record full year operating income of $1.1 billion, up
slightly from fiscal 2005. The division saw strong worldwide theatrical and
home entertainment revenues, while full year results primarily include
increased worldwide theatrical, pay-TV and free-TV contributions as well as
higher syndication and home entertainment contributions from Twentieth Century
Fox Television (TCFTV).

The television segment
reported fourth quarter operating income of $403 million, an increase of 17 percent,
and full year operating income of $1 billion, an increase of 8 percent over
fiscal 2005. Both the quarter and full year reflect higher contributions from
the FOX Broadcasting Company and STAR.

Cable Network Programming
reported fourth quarter operating income of $194 million, an increase of $57
million over the fourth quarter a year ago, and record full year operating
income of $864 million, a 42-percent increase, thanks to the Fox News Channel,
FX and the Regional Sports Networks (RSNs).

SKY Italia reported fourth
quarter operating income of $84 million, an improvement of $10 million compared
to a year ago, and full year operating income of $39 million, a considerable
improvement on last year’s operating loss of $173 million. More than 513,000 net
new subscribers were added over the past year, bringing its customer base to
3.83 million.