News Corporation yesterday reported a return to third quarter profits as a strong performance from the television unit overshadowed losses at the newspaper business.
The media giant said that revenues were up 14% year on year to $4.4 billion as income rose in the the US TV and cinema sectors. Fox Broadcasting has enjoyed ratings success as a result of its pro-American news coverage and hit reality shows such as American Idol 2 and Joe Millionaire. In addition, video sales have hoisted income at the company’s film division by 25%.
Net profit across the News Corp empire was $275 million in the three months to the end of March. This is a far cry from twelve months ago when an exceptional write-off resulted in a quarterly loss of $4.2 billion (see News Corp Profits Hit By Gemstar Write-Off).
However, income fell by 9% at the group’s newspaper division as the price war with Trinity Mirror hit circulation revenues at The Sun. This more than offset gains in display and classified advertising.
Rupert Murdoch, chairman and chief executive of News Corp, has again ruled out a bid for Channel 5, claiming that he would vote against any motion to buy the station. Peers, led by Lord Puttnam, are calling on the government to amend the Communications Bill, which allows for the foreign ownership of UK media assets (see Puttnam Threatens To Quash Communications Bill).
