Jumat, 11 Mei 2012

News Corp. profit jumps 47% on film, cable

News Corp. reported Wednesday a strong gain in quarterly profits, boosted by Hollywood entertainment and cable television operations in the United States, Asia and Latin America.

The conglomerate controlled by magnate Rupert Murdoch said profits in the fiscal third quarter ended March 31 leapt 47 percent to $937 million, beating most analyst forecasts, as revenues rose two percent to $8.4 billion.

The profit amounted to 37 cents a share excluding special items, better than the Wall Street consensus of 31 cents per share.

"Once again News Corporation showed strong operational momentum in the quarter, driven by significant growth at our cable network programming and filmed entertainment segments," Murdoch, the chairman and chief executive, said in a statement.

"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."

News Corp. shares rose 2.55 percent in after-hours trade after the results.

Murdoch, who has faced growing pressure from a phone-hacking scandal which erupted in Britain, did not participate in the earnings conference call, but deputy chairman Chase Carey reaffirmed support for the Australian-born Murdoch.

Murdoch is "one of the smartest and most forward-thinking executives of our time and both I and the board rebut any notion that he is unfit to run the company," told the call.

The British report last week concluded that Murdoch "is not a fit person to exercise the stewardship of a major international company," but some contended the report was partisan.

"I flatly reject the notion that Rupert is unfit to run a major media company," Carey said.

The company previously expressed "full confidence" in Murdoch, who holds a powerful grip on the New York-based media giant through his holdings and a dual stock structure.

But the report added to pressure on Murdoch from a phone hacking scandal which erupted and led to the closure of News of the World in July 2011 after revelations that the tabloid had accessed the voice mails of a murdered schoolgirl.

The company results included a $63 million charge related to the costs of the ongoing investigations linked to The News of the World, which was shut down after revelations of its activities.

News Corp., which owns the Fox television networks and 20th Century Fox movie studio in addition to newspapers in Australia, Britain and the United States, reported gains in most of its units excluding broadcast television, which did not air the Super Bowl this year and saw declines in the "American Idol" show.

Cable operations generated $846 million in operating income, a 15 percent jump from a year ago, led by US sports channels and growth in Latin America and Asia.

The entertainment unit showed operating income up nearly 10 percent at $272 million, boosted by the latest "Alvin and the Chipmunks" film and "Rise of the Planet of the Apes," released for home users, as well as key TV shows.

The publishing unit accounted for operating earnings of $130 million, a sharp increase from a year ago when News Corp. took a $125 million litigation settlement charge.

But the company said revenues were hurt by advertising declines at the Australian and British newspapers, as well as the closing of The News of the World, offset in part by "improved contributions" from Dow Jones, which publishes The Wall Street Journal, and its HarperCollins book division.

Chief financial officer David DeVoe said he expected weaker results in the current quarter, especially in film and publishing, because of "difficult comparisons" to the period from a year earlier.

News Corp said the contribution from BSkyB, the British satellite unit in which it owns a 39 percent stake, more than doubled to $262 million. The Sky Italia satellite broadcasting unit reported improved results but News Corp said it sees a "continued challenging economic environment in Italy."

 

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News Corp. reported Wedn esday a strong gain in quarterly profits, boosted by Hollywood entertainment and cable television operations in the United States, Asia and Latin America.

The conglomerate controlled by magnate Rupert Murdoch said profits in the fiscal third quarter ended March 31 leapt 47 percent to $937 million, beating most analyst forecasts, as revenues rose two percent to $8.4 billion.

The profit amounted to 37 cents a share excluding special items, better than the Wall Street consensus of 31 cents per share.

"Once again News Corporation showed strong operational momentum in the quarter, driven by significant growth at our cable network programming and filmed entertainment segments," Murdoch, the chairman and chief executive, said in a statement.

"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."

News Corp. shares rose 2.55 percent in after-hours trade after the results.

Murdoch, who has faced growing pressure from a phone-hacking scandal which erupted in Britain, did not participate in the earnings conference call, but deputy chairman Chase Carey reaffirmed support for the Australian-born Murdoch.

Murdoch is "one of the smartest and most forward-thinking executives of our time and both I and the board rebut any notion that he is unfit to run the company," told the call.

The British report last week concluded that Murdoch "is not a fit person to exercise the stewardship of a major international company," but some contended the report was partisan.

"I flatly reject the notion that Rupert is unfit to run a major media company," Carey said.

The company previously expressed "full confidence" in Murdoch, who holds a powerful grip on the New York-based media giant through his holdings and a dual stock structure.

But the report added to pressure on Murdoch from a phone hacking scandal which erupted and led to the closure of News of the World in July 2011 after revelations that the tabloid had accessed the voice mails of a murdered schoolgirl.

The company results included a $63 million charge related to the costs of the ongoing investigations linked to The News of the World, which was shut down after revelations of its activities.

News Corp., which owns the Fox television networks and 20th Century Fox movie studio in addition to newspapers in Australia, Britain and the United States, reported gains in most of its units excluding broadcast television, which did not air the Super Bowl this year and saw declines in the "American Idol" show.

Cable operations generated $846 million in operating income, a 15 percent jump from a year ago, led by US sports channels and growth in Latin America and Asia.

The entertainment unit showed operating income up nearly 10 percent at $272 million, boosted by the latest "Alvin and the Chipmunks" film and "Rise of the Planet of the Apes," released for home users, as well as key TV shows.

The publishing unit accounted for operating earnings of $130 million, a sharp increase from a year ago when News Corp. took a $125 million litigation settlement charge.

But the company said revenues were hurt by advertising declines at the Australian and British newspapers, as well as the closing of The News of the World, offset in part by "improved contributions" from Dow Jones, which publishes The Wall Street Journal, and its HarperCollins book division.

Chief financial officer David DeVoe said he expected weaker results in the current quarter, especially in film and publishing, because of "difficult comparisons" to the period from a year earlier.

News Corp said the contribution from BSkyB, the British satellite unit in which it owns a 39 percent stake, more than doubled to $262 million. The Sky Italia satellite broadcasting unit reported improved results but News Corp said it sees a "continued challenging economic environment in Italy."

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