News Corp profits rise 65%
February 9, 2012
News Corp has seen its net profits rise 65 per cent in the three months to the end of December 2011 compared to the same period in 2010.
The company made $1.06 billion net profit in the period, up from $624 million in 2010. The firm’s results were fuelled mainly by income from advertising and carriage feed at its cable television networks.
“The significant growth we reported in the quarter in the cable network programming, television and filmed entertainment segments clearly validates our strategy to develop and distribute superior wide-ranging content,” said chairman and chief executive Rupert Murdoch.
Income at News Corporation’s US cable television networks rose 9 per cent as the company benefited from the lower cost of broadcast rights to the NBA national basketball league.
On television, News Corp’s sold 25 per cent more advertising around its flagship US programmes, X Factor and The New Girl as well as its baseball and American football coverage.
The firm also saw a 100 per cent increase in the amount it charges other networks to broadcast its content.
Illustrating the declining importance of print the company reported the troubles at the UK newspapers cost $104m in the last six months of last year. Publishing income fell $162 million to $218 million, a 43 per cent drop from the same period a year ago. News Corp blamed lower advertising revenues at its Australian newspapers, as well as the loss of the News of the World in the UK.