News Corp. Posts Strong Quarterly Earnings

NEW YORK: News Corp. recorded a 65-percent increase in second-quarter profit, led by strong performances from Cable Network Programming, Television and Filmed Entertainment segments.

Q2 revenue was $8.98 billion, a 2-percent increase from the $8.76 billion in revenues posted a year ago. Total segment operating income was $1.5 billion, an increase of 16 percent from the prior year period. The strong double-digit increases at the cable networks and TV segments more than offset the declines in publishing and other units. The declines at the Other segment were primarily from an $87 million charge related to the investigations from the closure of The News of the World. Net income in the second quarter rose to $1.06 billion, compared to last year’s $642 million.

The Cable Network Programming unit reported Q2 operating income of $882 million, a 20-percent increase on the year ago’s second quarter, led by a 9-percent increase in revenue. Domestic channels brought in a 25-percent increase in operating income, while the earnings at the international nets grew 8 percent. Ad revenues at the domestic cable channels grew 6 percent, and 5 percent for international.

Filmed Entertainment brought in $393 million for the quarter, an increase of $204 million over the same period a year ago. Television posted segment operating income of $189 million, a 25-percent gain from last year’s Q2. SKY Italia’s second-quarter segment operating income improved from the year ago loss of $12 million to a positive $6 million. Publishing was down 43 percent, to $218 million.