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News Corp profits up threefold on NDS sale | News Corp profits up threefold on NDS sale |
(35 minutes later) | |
Rupert Murdoch's News Corp has reported a sharp rise in profits thanks to a one-off asset sale and strong revenue growth at its cable networks division. | Rupert Murdoch's News Corp has reported a sharp rise in profits thanks to a one-off asset sale and strong revenue growth at its cable networks division. |
Net profit for the three months to the end of September was $2.3bn (£1.4bn), almost three times the $786m the company made a year earlier. | Net profit for the three months to the end of September was $2.3bn (£1.4bn), almost three times the $786m the company made a year earlier. |
Total revenue rose 2% to $8.14bn, which included $1.38bn from the sale of pay-TV encryption company NDS. | Total revenue rose 2% to $8.14bn, which included $1.38bn from the sale of pay-TV encryption company NDS. |
Boosted by advertising sales, cable networks' revenue grew 16% to $2.45bn. | Boosted by advertising sales, cable networks' revenue grew 16% to $2.45bn. |
The results were better than analysts had expected and News Corp shares rose about 3% in after-hours trading. | |
Publishing problems | |
"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," said Mr Murdoch. | |
He said the company managed to grow revenue despite being hit by a stronger dollar. He also said he would provide further details later this year of the company's proposed split of its entertainment and publishing businesses. Mr Murdoch will chair both divisions. | |
Operating income at cable networks was up 23% at $953m, while the films and television divisions saw more modest growth in income. | |
However, operating income at the publishing division almost halved, to $57m from $110m, largely due to a fall in advertising revenue. | |
The fall would have been greater had it not been for the contribution of the division's UK business, which benefited from the launch of the Sunday Sun. | |
After a difficult year which has seen the phone-hacking scandal in the UK, many shareholders voted last month to separate the roles of chief executive and chairman, currently held by Mr Murdoch. | |
But because the family holds 40% of the voting rights, the notion was rejected. |
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