Earnings at Rupert Murdoch’s News Corporation more than doubled in its first quarter with the media conglomerate’s movie unit reporting the largest growth.
The company posted a net profit of $422 million in the three months to the end of September, up from $162 million in the same period last year (see
Price War Drives Down News International Income). Group revenues rose by 22% to $4.6 billion.
Operating income at the company’s film studio, Twentieth Century Fox, more than trebled to £328 million on the back of strong DVD sales. However, News Corp announced a 5% decline in its broadcast television business as ratings fell at the Fox network.
A ceasefire in the UK tabloid price war helped the newspaper division achieve operating profits of $102 million. This compares with $36 million in the first quarter last year when the cover price of The Sun was cut to boost circulation at the expense of the rival Daily Mirror (see News Corp UK Papers Feel Effects Of Sun’s Price War).
“Overall, the first quarter has given us a great start to the fiscal year, and we are well on our way to meeting our growth forecast for 2004,” Mr Murdoch said.
