News Corp reports $839m net profit

News Corporation has reported a 69% decline in net profit to $839 million, although it was a better than expected performance boosted by improved newspaper and television advertising, and the success of blockbuster movie Avatar.

Avatar is the highest grossing film of all time, taking more than $2.7 billion worldwide at the box office.

News Corp’s film division, Twentieth Century Fox, reported profits of $497 million for the third quarter, a 76% year on year increase.

Fox Television stations enjoyed 18% revenue growth on the back of improved local advertising trends, particularly in the automobile and telecom sectors.

News Corp’s UK newspapers, including the Sun and Times, reported improved year on year results, with advertising revenue up 10%, although circulation revenues were down 4%.

Total revenue increased 19% year on year to $8.8 billion, with growth reported in all major business segments.

Rupert Murdoch, chairman and chief executive 0fficer, said: “Today’s earnings confirm that no content company is stronger than News Corporation at building both fiscal and operational momentum.

“Our global portfolio of sought – after content is ideally situated to benefit from the increase in consumer spending, advertising and access to new platforms we are seeing across our regions.

“The unique strengths of our cable channels – young, vibrant franchises with phenomenal growth and potential – now generate almost half of our operating profit, ensuring that our stakeholders will continue to benefit from News Corporation’s sustained revenue, profit and cash flow strength for years to come.”