News Corp. Reports Q3 Revenue Hike

NEW YORK: News Corporation’s third-quarter profits gained 47 percent to reach $937 million, on revenues that were 2-percent higher at $8.4 billion, with double-digit growth at the cable network programming and filmed-entertainment segments.

The period’s results include a $111 million pretax gain from participation in BSkyB’s share repurchase program and a $27 million pre-tax income on the sale of its stake in Hathway Cable, as well as a $27 million impairment charge on its U.K. newspaper operations.

Pointing to "strong operational momentum" in the period, Rupert Murdoch, the chairman and CEO of the company, said, "With our disciplined approach to monetizing our brands, I believe we are better situated than ever to capitalize on the increasing global demand for our superior content."

"Beyond the ongoing growth of our core businesses, I am very pleased with the company’s progress as we execute upon other elements of our strategy to produce sustained, meaningful value for shareholders. We continue to pursue our share buyback program, repurchasing nearly $4 billion worth of stock over the last nine months and have just increased the authorization for future buyback purchases by $5 billion. In addition, we continue to opportunistically address non-core assets, as demonstrated by the announced sales of our ownership stakes in Hathway Cable and NDS in the quarter. I am confident in the execution of our strategy which will continue to drive growth, create value for our shareholders and ensure the long-term strength of the company."

Cable network programming revenues were up 16 percent to $2.4 billion, with operating income of $846 million. Affiliate revenues gained 15 percent in the U.S. and 31 percent internationally. Ad revenues were up by 10 percent in the U.S. and 7 percent internationally. Profit contributions from the U.S. channels, including FX and FOX News, were up 17 percent, while the international portfolio saw its profits rise by 9 percent.

Filmed entertainment revenues rose to $1.7 billion, delivering an operating income of $272 million. The segment’s results were driven by the theatrical and home-entertainment performance of Alvin and the Chipmunks: Chipwrecked and The Descendants, plus the home entertainment performance of Rise of the Planet of the Apes and the pay-TV performance of Rio. This segment also saw higher digital distribution revenues from TV product, an increase in license fees for How I Met Your Mother and an increase in syndication revenues for Family Guy.

Television revenues fell to $1.2 billion from $1.4 billion, while operating profit dropped to $171 million. News Corp. noted that last year’s results included revenues from the 2011 Super Bowl. The segment benefited from the doubling of retransmission consent revenues, the company said.

SKY Italia’s operating profit rose to $40 million on flat revenues of $923 million despite a reduction in subscribers to 4.94 million.