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MUMBAI:
News Corp's third quarter revenue has increased by 16 per
cent to $8.75 billion.
Operating
income from television was up 53 per cent, led by lower prime-time
programming costs and advertising strength at the Fox broadcast
network, improved results from
MyNetworkTV
and the positive impact of Super Bowl XLII at the television stations.
Star's
third quarter operating income increased versus the same period
a year ago as 15 per cent revenue growth was driven by higher
subscription revenues, primarily from India. The revenue growth
was partially offset by increased programming costs for new
programme launches.
The
television segment reported third quarter operating income
of $419 million, an increase of $146 million versus the same
period a year ago. The 53 per cent growth was led by higher
contributions from Fox and Star and improved results at MyNetworkTV.
At
Fox third quarter operating income nearly doubled versus a
year ago, primarily reflecting lower prime-time programming
costs and advertising revenue growth. The increased advertising
revenues were driven by higher pricing for sports and prime-time
programming, as well as by strong ratings for the National
Football League post-season.
These
results were partially offset by costs associated with the
broadcast of Super Bowl XLII.
News
Corp chairman and CEO Rupert Murdoch said, "Our 16 per
cent revenue and operating income growth this past quarter
is a great illustration of how the diversity of our asset
base is translating into sustained financial success.
"We
delivered growth from advertising based businesses, such as
our television stations and broadcast network, and we delivered
growth from subscription based businesses, such as our domestic
cable channels. We delivered growth from established businesses,
such as our newspapers and we delivered growth from our developing
assets, such as our international cable channels and Fox Interactive
Media.
"Our
ability to generate returns from a multitude of sources puts
us in a great position to maintain our financial
momentum even in times of economic uncertainty." The
film segment reported third quarter operating income of $261 million as compared
with the record third quarter results of $410 million reported in the same period
a year ago. The current year results were led primarily by a string of successful
theatrical releases, as well as by strong contributions from film and television
home entertainment releases.
Third
quarter film results were driven by the continued theatrical
success of Alvin and the Chipmunks, which has delivered
over $350 million in worldwide box office to date, and Oscar
winner Juno, which has now generated over $225 million
in worldwide box office.
Additionally,
the current quarter also included continued home entertainment contributions from
The Simpsons Movie, Live Free or Die Hard and Fantastic Four:
Rise of the Silver Surfer, as well as pay-TV contributions from Night at
the Museum and Eragon. The third quarter also reflected the initial
releasing costs and results for several new successful theatrical releases, including
Horton Hears a Who! and Jumper, with more than $275 million and
$219 million, respectively, in worldwide box office to date.
Cable
network programming reported third quarter operating income
of $330 million, a 17 per cent increase over the third quarter
a year ago, reflecting increased contributions from Fox News
Channel, the Regional Sports Networks, FX and the Fox International
Channels, partially offset by launch costs associated with
the Fox Business Network and
the Big Ten Network. Quarterly results also reflect the inclusion
of National Geographic Channels which were not consolidated
in the same period a year ago.
Fox
News Channel (FNC) reported operating income growth of 11
per cent compared to the third quarter a year ago as affiliate
revenues increased from higher rates and additional
subscribers and ad revenues expanded primarily from increased
pricing.
Partially
offsetting the revenue growth was higher programming costs
from coverage of the presidential primaries. For the quarter,
FNC's viewership was more than 40 per cent greater than its
nearest competitor in primetime and on a 24-hour basis, reflecting
FNC broadcasting the top five shows in cable news.
At
the other cable channels, operating income increased 20 per
cent as compared with the third quarter a year ago as increased
contributions from the Regional Sports Networks (RSNs), FX
and Fox International Channels were partially offset by launch
costs for the Fox Business Network and the Big Ten Network.
Higher affiliate revenues from
increased rates and additional subscribers contributed to
the growth at the RSNs and FX, which also increased its advertising
revenues versus the same period a year ago.
The
increased contributions from the Fox International Channels
were driven by continued advertising and affiliate growth
in Latin America and Europe.
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