Star India's acquisition of BCCI media rights for a whopping
price has resulted in US media conglomerate News Corp's international
cable channels earnings contributions decline by 7 per cent
in the first quarter ended 30 September from a year earlier.
at News Corp's cable network programming grew by 11 per cent
in part due to the BCCI rights. Star India earlier this year
acquired BCCI media rights for Rs 38.51 billion for six years
Corp has reported total revenue for the first quarter of $8.14
billion, a $177 million, or two per cent, increase over the
$7.96 billion a year earlier.
revenue increase was led by 16 per cent growth at the company's
cable network programming segment, which was partially offset
by declines at the company's direct broadcast satellite television
and publishing segments. The international affiliate's revenue
increase was boosted by Star India.
network programming reported quarterly segment operating income
of $953 million, a $178 million, or 23 per cent, increase
over the prior year quarter, driven by a 16 per cent increase
in revenue. Operating income contributions from the domestic
channels increased by 33 per cent, led by growth at the Regional
Sports Networks (RSNs), FX Network and Fox News Channel.
local currency operating profit growth at the Fox International
Channels was more than offset by the adverse impact of the
strengthened US dollar and the impact of the inaugural broadcasts
of the new BCCI cricket rights at Star.
two-thirds of the international affiliate revenue increase
reflects strong local currency organic growth at FIC and Star
in India. The balance of the growth was from the inclusion
of Fox Pan American Sports partially offset by the impact
of strengthened US dollar.
revenue at the domestic cable channels grew by eight per cent
in the quarter over the prior year period, led by growth at
the RSNs and Fox News Channel. The international cable channels'
advertising revenue improved on a local currency basis but
reported a one per cent decline from the prior year quarter,
as the impact of the strengthened US dollar more than offset
local currency growth at both the Fox International Channels,
which benefitted from the consolidation of the Fox Pan American
Sports network, and Star in India.
at cable network programming grew by 11 per cent in the quarter
over the corresponding period in the prior year, due to increased
programming costs including rights fees for the BCCI cricket
in India, expanded Big 12 and PAC 12 college football coverage,
the launch of the Ultimate Fighting Championship, as well
as increased expenses associated with the consolidation of
the Fox Pan American Sports network and the launch of new
sports networks in Brazil and San Diego.
reported quarterly segment operating income of $400 million,
$53 million higher than the $347 million reported in the same
period a year ago. Quarterly results reflect the successful
worldwide theatrical performance of 'Ice Age: Continental
Drift', which has grossed over $850 million in worldwide box
office to date and is now the biggest animated film of all-time
at the international box office.
year first quarter film results included the successful worldwide
theatrical performance of 'Rise of the Planet of the Apes'
and the worldwide home entertainment performances of 'Rio'
and 'X-Men: First Class'. The quarter also included increased
contributions from the television production studios, including
increased digital distribution revenue related to the timing
of delivery of content to Netflix.
reported quarterly segment operating income of $156 million,
an increase of $23 million versus the same period a year ago.
This increase reflects a more than doubling of retransmission
consent revenues and increased local advertising, driven by
record first quarter political advertising revenues. These
improvements were partially offset by lower national advertising
revenues primarily reflecting lower primetime ratings and
the market impact from the Olympics in August.
Corp chairman, CEO Rupert Murdoch said, "Our operational
discipline and focus on innovation continued to drive the
company's momentum in our fiscal first quarter, led by double-digit
growth in our channels business and the global success of
our film and television content. Even against considerable
currency headwinds due to a stronger dollar, we were able
to increase News Corp's revenue and adjusted segment operating
profit over the prior year quarter while continuing to make
key investments to position us for future growth."
are committed to leading the change that the marketplace and
our customers demand as the company builds on its success
at leveraging multi-platform opportunities for our content.
We believe that our ability to do so will be enhanced by the
flexibility and management focus that will result from the
proposed separation of our entertainment and publishing businesses.
We have made considerable progress in this process and look
forward to providing more details by the end of the calendar
Italia generated quarterly segment operating income of $23
million, compared to $119 million of operating income reported
in the same period a year ago. The decline was driven by higher
programming expenses, including nearly $70 million of rights
costs associated with the broadcast of the Olympics. This
year's quarterly results were also adversely impacted by the
strengthened U.S. dollar. While reported U.S. dollar revenues
declined, quarterly local currency revenue increased 1% from
the corresponding period of the prior year led by higher subscription
revenues. SKY Italia experienced a net reduction of approximately
40,000 subscribers during the quarter, bringing total subscribers
to 4.86 million.
reported quarterly segment operating income of $57 million,
a $53 million decrease compared to the $110 million reported
in the same period a year ago, due to lower advertising revenues
across all divisions, led by declines at the Australian and
U.S. publishing businesses. The declines were partially offset
by increased contributions at the U.K. newspapers, which benefitted
from the launch of the Sunday edition of The Sun in February
2012, and at HarperCollins, which benefitted from the acquisition
of Thomas Nelson, a Christian book publisher.