News Corp.'s (NWS, NWS.AU) earnings more-than doubled in the
three months to December because of one-time gains related to
acquisitions and strength in the cable networks division.
Net profit totaled $2.4 billion, or $1.01 a share, compared with
$1.1 billion, or 42 cents a share, a year earlier. Much of the
increase was related to the acquisition of the 50% stakes in Fox
Sports Australia and Fox Star Sports Asia that News Corp. didn't
already own.
Revenue rose 5% to $9.4 billion. Operating income rose 6%
because of strength in the network and TV divisions.
By the end of June, News Corp. plans to split its giant
entertainment businesses, which include its 20th Century Fox film
studio and Fox television assets, from its publishing division to
create two separately listed companies.
In the publishing division, which includes newspapers such as
The Wall Street Journal, the Australian and the Times of London,
book publishing and marketing inserts, revenue was roughly flat at
$2.1 billion.
The results reflect lower advertising revenue at the Australian
publications offset by higher contributions from the U.K. division.
The publishing group's operating income rose to $234 million from
$218 million.
News Corp. took a $56 million charge in the quarter related to
the costs of continuing investigations into phone hacking at its
U.K. newspaper unit. The company took $87 million in such charges
in the prior quarter and $224 million of them in fiscal 2012.
Meanwhile, most of the entertainment businesses increased their
earnings contributions. The strongest performer was the
cable-network programming division, where revenue rose 18%, to $2.6
billion. The group, which includes Fox News and FX, reported a 7%
increase in operating income to $945 million.
Ad revenue at the domestic cable channels increased 8%, while
international ad revenue rose 29%. Total cable programming expenses
rose 26%, because of the costs to acquire sports rights.
In the film division, operating income fell to $383 million from
$393 million, as profits from "Taken 2" and "Life of Pi" were not
enough to match home-entertainment income a year earlier from "Rio"
and "X-Men."
News Corp.'s TV division, which includes the Fox broadcast
network and TV stations, reported a 19% rise in operating income,
to $224 million. The increase was due in part to higher advertising
revenue during the political elections.
News Corp. owns Dow Jones & Co., publisher of this newswire,
and The Wall Street Journal.
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