News Corp releases positive Q2 results despite ongoing hacking scandal
News Corporation has reported second quarter revenue of $8.98 billion, a 2% increase on the $8.76 billion revenue it reported a year ago.
The quarterly revenue increase was led by growth in the company’s cable network programming, television and filmed entertainment segments, partially offset by declines at News International, its publishing arm.
News Corp reported second quarter total operating income of $1.50 billion, a 16% increase year on year – led by a more than doubling of contributions at the company’s filmed entertainment segment, as well as strong double-digit increases at the cable network programming and television segments.
These increases more than offset declines at the publishing and other segments, the company’s release said. The decline at the group’s publishing arm primarily resulted from the inclusion of an $87 million charge ($0.03 per share) related to the costs of the ongoing investigations initiated upon the closure of The News of the World.
The company reported second quarter net income of $1.06 billion ($0.42 per share), compared to net income of $642 million ($0.24 per share) a year ago. This year’s
Q2 results include $125 million of pre-tax income, which reflects a non-cash gain from the consolidation of Fox Pan American Sports following the acquisition of the remaining outstanding ownership stake not already owned by News Corp.
The second quarter results also include a $44 million pre-tax gain from BSkyB’s share repurchase programme, included in equity earnings of affiliates, which was essentially offset by a $36 million pre-tax restructuring charge primarily related to the UK and Australian newspapers.
Excluding the net income effects of these items, the charge related to the investigations in the UK and comparable items in both years, second quarter adjusted earnings per share this year are $0.39 compared with the adjusted year-ago result of $0.29.
Chairman and chief executive officer Rupert Murdoch said: “I am particularly pleased with the success of our business strategies in spite of the uncertain economic conditions that we continue
to face. News Corporation’s commitment to delivering value to our stockholders is unwavering and we will continue to focus on generating superior shareholder returns, as evidenced by our strong year to date earnings and the successful completion of over half of our previously announced share repurchase programme.”