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MUMBAI:
US media conglomerate News Corp has reported second quarter
net income of $832 million as compared with $822 million in
the year-ago period.
Led
by Star, Fox and MyNetworkTV, the television segment reported
second quarter operating income of $245 million, more than
double the $112 million reported in the same period a year
ago. This was partially offset by lower contributions from
the television stations.
Star
saw a 17 per cent revenue growth, primarily driven by gains
in India. As a result, operating income increased versus the
same quarter a year ago. The revenue growth, though, was partially
offset by increased programming costs from new programme launches,
most notably at Star Plus.
News
Corp's consolidated operating income for the second quarter
of $1.4 billion was up 24 per cent versus the $1.1 billion
reported a year ago, mainly driven by double-digit percentage
increases at nearly every operating segment and a $74 million
improvement in the direct broadcast satellite segment.
At Fox second quarter operating results nearly doubled compared
to a year ago, due to increased advertising pricing in conjunction
with strong network ratings for prime-time and sports programming.
Additionally, the improved quarterly results benefited from
lower programming costs, primarily from reduced coverage of
Major League Baseball?s post-season and decreased cancellation
costs versus the prior year.
Following
the end of the quarter, the network further strengthened its
schedule with the launch of The Moment of Truth and
the return of American Idol.
News
Corp chairman and CEO Rupert Murdoch said, "We are obviously
proud of the results we delivered during the second quarter,
the highest operating income quarter in our history, but most
important is the balanced nature of our earnings momentum
with double-digit growth at nearly
every operating segment.
"
Domestically, the strength of our broadcast network and cable
assets has enabled us to capitalise on the current advertising
market, while at the same time we continue to ramp up affiliate
revenues across our cable channels. And our internet platform
is now delivering real profits from locked in search revenues
as well as from ad revenue growth as a result of our hyper-targeting
initiatives.
"We
are also generating increased profits internationally led
by continued subscriber growth at Sky Italia, expanded offerings
from our Fox International Cable channels, and sustained strength
at our Australian newspaper group. Our unrelenting focus on
exploring new opportunities as consumer choice evolves and
developing market leadership positions regardless of borders
has enabled us to deliver consistently strong financial results
irrespective of individual market conditions."
The
film segment reported second quarter operating income of $403
million as compared with the record results of $470 million
reported in the same period a year ago. The current year results
were led primarily by strong contributions from film and television
home entertainment releases and also included several successful
theatrical releases.
Results
were driven by the home video success of theatrical hits The
Simpsons Movie, Live Free or Die Hard and Fantastic
Four: Rise of the Silver Surfer as well as by the pay-TV
availability of Night at the Museum and Borat.
The
second quarter also included the initial results and releasing
costs for theatrical releases including Alvin and the Chipmunks,
which has grossed over $310 million in worldwide box office
to date, as well as Juno, which has grossed over $110
million at the US box office to date and received four Oscar
nominations.
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