News Corporation Posts Profit Gains

NEW YORK, August 9: Fourth-quarter profit at News
Corporation rose 4.5 percent to $890 million, while full-year net income jumped
48 percent to $3.4 billion.

For the quarter, revenues were up 9 percent to $7.4 billion
and for the year they gained 13 percent to $28.7 billion.

Commenting on the results, Rupert Murdoch, chairman and CEO,
noted: "News Corporation once again delivered robust financial results in
fiscal 2007 with our fifth consecutive year of record profits on double-digit
revenue and operating income growth. While we continued to benefit from the
strength of our traditional assets, we also generated significant financial
momentum across our developing platforms, including $221 million of profits at
SKY Italia, continued growth at our international cable channels and the first
full year of profitability at Fox Interactive Media. The continued expansion of
these assets and the further evolution of our traditional businesses in the
digital world will pave the way for sustained growth in the years to come.”

Filmed Entertainment posted a fall in operating income for
the quarter, down 47 percent to $106 million. For the year, however, operating
income was up 12 percent to $1.2 billion. The year’s results were led by the
worldwide theatrical and home entertainment success of The Devil Wears Prada, Borat: Cultural Learnings of America for
Make Benefit Glorious Nation of Kazakhstan,
Night at the Museum and
Little Miss Sunshine. Twentieth Century Fox
Television (TCFTV) reported increased results for the fourth quarter and full
year with continued momentum in home entertainment sales, most notably from Prison
Break and 24.

In the Television segment, operating income fell by 4
percent in the quarter to $385 million and by 7 percent in the year to $962
million. News Corp. noted that gains at the FOX Broadcasting Company were
offset by losses from the first year of MyNetworkTV and lower results from Fox
Television Stations and STAR. STAR's fourth quarter and full year operating
income decreased versus the comparable periods a year ago, as advertising and
subscription revenue growth was more than offset by higher programming costs.

Cable Network Programming’s operating income grew by 46
percent in the quarter to $284 million and by 26 percent in the year to $1.1
billion. Gains for the quarter and for the year reflected higher contributions
from Fox News Channel, the Regional Sports Networks, the FX Network and the Fox
International Channels.

Direct Broadcast Satellite Television showed strong gains,
with operating income for the quarter up 85 percent to $155 million. For the
year, operating income soared from $39 million a year ago to $221 million. The
fourth quarter and full year improvements primarily reflect the addition of
368,000 net new subscribers over the past 12 months to SKY Italia, bringing the
subscriber base to 4.2 million at year end.

The Magazines and Inserts segment reported fourth quarter
operating income of $81 million, a 25-percent gain, and full year operating
income of $335 million, a 9-percent increase.

The Newspapers segment reported fourth quarter operating
income of $203 million, an increase of $33 million compared with the same
period a year ago, and full year operating income of $653 million, a $136
million increase versus fiscal 2006.

In the Book Publishing division, HarperCollins reported
fourth quarter operating income of $21 million, an improvement of $27 million
versus the fourth quarter of fiscal 2006. Full year operating income of $159
million declined $8 million from prior year results.