News Corporation has reported that quarter three profits have jumped 69% to reach $465 million, driven by increased sales in home entertainment and strong advertising growth.
Chairman and chief executive, Rupert Murdoch said: “We are extremely pleased with News Corp’s third quarter results, 22% operating income growth was achieved across all of our business segments.”
News Corporations consolidated revenues grew by 19% to reach $5.2 billion, up from $4.4 billion on the same period last year.
Strong advertising growth at Fox News and Regional Sports Networks saw operating income at Cable Network Programming up 51%. Television operating income also increased, advertising revenues were up 25% thanks to hit reality TV show American Idol.
In the UK, print businesses reported double-digit earnings growth says the statement, however, earlier this week, it was reported that Times Newspapers, owned by News Corporation, are expected to see losses reach in excess of £28.6 million this year, up from £16.3 million last year (see Tabloid Pushes Times Losses To £28m). As reported in the Independent, Murdoch commented that The Sunday Times is very profitable while The Times also made money. He said: “It doesn’t make fortune but it doesn’t lose money.”
Sky Italia added 180,000 new subscribers during the last quarter and operating losses are down to $25 million. Murdoch said: “Sky Italia continues to exceed expectations with higher than anticipated revenues per user and strong subscriber growth.”
Murdoch plans to move the group to the US from its current operating location in Australia. He said: “Our unique asset balance combined with the strong earnings growth throughout the company and the recent announcement to seek reincorporation in the United States, puts us in a great position to continue to generate value for our shareholders.
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