Profit Soars at News Corp.

NEW YORK: Second-quarter net income at News Corporation more than doubled from $254 million to $642 million, on revenues of $8.76 billion.

“News Corporation’s second-quarter results demonstrate the mounting vigor of our global channels business,” said Rupert Murdoch, chairman and CEO. “In the U.S. market, our cable channels are still expanding and adding subscribers, while increasing their revenues and profits at a double-digit pace on the strength of affiliate fee increases and buoyant advertising markets. I am also pleased with the continued recovery of our U.S. broadcasting business, including our local TV stations and the Fox Broadcasting Company, which posted its best quarterly profit in two and a half years. Momentum at our international businesses is equally brisk, with international channel revenues in the quarter up 20 percent on particular strength in Latin America and our STAR channels in India. And at SKY Italia, operating results indicate that the business is back on track, achieving its highest quarterly net subscriber additions in the last two years.”

He added, “I am confident that the significant positive momentum from these businesses will not only continue to drive News Corporation’s growth for the remainder of the fiscal year, but also strengthen the Company for growth in the years to come.”

The cable network programming segment was the biggest revenue contributor, at $1.97 billion, up 12 percent from the year-ago period, with operating income up 22 percent to $735 million. The U.S. channels saw operating income rise 16 percent, with ad revenues up 12 percent and affiliate revenues up 10 percent. The international networks recorded a 27-percent increase in ad revenues and a 17-percent gain in affiliate revenues, with a 37-percent boost in operating income.

Revenues slipped in filmed entertainment, to $1.8 billion, with operating income dropping $324 million to $189 million.

Television revenues, meanwhile, from the owned and operated stations and Fox Broadcasting, rose to $1.4 billion, with operating income soaring from $29 million to $151 million. The company attributed the gains to an improved ad market.

SKY Italia was able to narrow its loss from $30 million to $12 million, on revenues that were down slightly to $944 million. The platform added 71,000 subs in the quarter to reach 4.87 million.