News Corp. reports higher fiscal first quarter earnings
Nov 06, 2012 (Los Angeles Times - McClatchy-Tribune Information Services via COMTEX) --
Buoyed by the strength of its cable television businesses and an asset sale, media conglomerate News Corp. reported fiscal first quarter profits more than three times higher than a year ago.
For the period ended Sept. 30, the New York-based media company produced net income of $2.23 billion, or 94 cents a share, compared with $738 million, or 28 cents a share in the year earlier period.
Revenue for the global media giant increased 2% to $8.14 billion. Operating profit declined slightly.
Wall Street analysts had anticipated earnings of 37 cents per share.
The sale of pay-TV encryption business NDS Group to Cisco Systems in the summer allowed News Corp. to book an additional income of $1.38 billion. The company also received a pretax gain of $75 million for its participation in a share buy-back program initiated by pay TV operator British Sky Broadcasting, of which News Corp. owns 39%.
Filmed entertainment and the television segment also showed growth, while the company's broadcast satellite TV and publishing contributed lower revenue.
"Our operational discipline and focus on innovation continued to drive the company's momentum in our fiscal first quarter, led by double-digit growth in our channels business and the global success of our film and television content," News Corp. Chief Executive Rupert Murdoch said in a statement.
News Corp. said its first quarter results included a $67-million charge related to the costs of the ongoing phone hacking scandal at its British newspaper unit, bringing the costs to nearly $300 million.
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