News Corp profits hit $254m
Profits at Rupert Murdoch’s News Corporation hit $254 million in the three months to the end of December, compared with a loss of $6.4 billion a year previously.
The figures were boosted by the success of films such as Ice Age: Dawn of the Dinosaurs and Night at the Museum: Battle of the Smithsonian and a strong performance by its cable TV network.
Film arm Twentieth Century Fox saw operating income rise to $324 million, a massive increase on the $112 million recorded in 2008.
Operating income at News Corp’s cable TV network was $604 million, an increase of $156 million year on year. This growth came on the back of record quarterly profits at the Fox News channel, with operating income up 51% year on year and primetime viewing figures 197% higher than its nearest competitor.
The company’s newspaper division reported operating income of $259 million, up an impressive $59 million year on year, with growth driven by increased ad revenues at the Wall Street Journal.
News Corp’s top-line revenue for the quarter hit $8.7 billion, up from $7.9 billion a year ago and above analysts’ expectations.
Murdoch, News Corp’s chairman and CEO, said: “Our strong top-line revenue growth demonstrates that News Corporation is emerging from this recession with renewed vigor and strength. Moreover, our underlying operating trends this quarter far outpace those of the same quarter last year.
“We continue to reap the benefits from the restructuring and cost containment measures we instituted before the downturn began and I am pleased that our unrelenting focus has translated to growth across our businesses that will reward stockholders for years to come.
“News Corporation’s leadership position in news, sports and entertainment stems from our unique ability to produce the high quality content that consumers and distributors demand. We have a strong management team that knows how to nurture our core businesses, while taking prudent, creative risks like Avatar that lead the industry forward. I have every confidence that News Corporation is entering a new period of sustained growth.”