News Corp. net profit dips on British charges

Nov 02, 2011
News Corporation headquarters is seen in Manhattan in New York City. News Corp. said Wednesday that net profit declined five percent in the first quarter of its 2012 fiscal year to $738 million while revenue was up seven percent to $7.96 billion.

Rupert Murdoch's News Corp. posted a slight decline in quarterly net profit on Wednesday, partly due to one-time charges stemming from the phone-hacking scandal in Britain.

News Corp. said net profit slipped five percent in the first quarter of its 2012 fiscal year to $738 million compared to the same quarter a year ago while revenue was up seven percent to $7.96 billion.

Earnings per share of 32 cents were slightly better than the 29 cents per share expected by Wall Street analysts.

News Corp. said the quarterly results included a fee related to the withdrawal of its bid for British broadcaster BSkyB and a $91 million restructuring charge related to its British newspaper business.

News Corp. abandoned its bid for BSkyB following the phone-hacking scandal in Britain that also led to the closure of the tabloid weekly The News of the World and an appearance before British MPs by Rupert Murdoch and his son James.

In an earnings call with financial analysts and reporters, News Corp. chief operating officer Chase Carey defended the company's board of directors and James Murdoch, who has come under fire as the head of News Corp.'s embattled British newspaper arm News International.

"We have great confidence in James," Carey said. "James has done a good job and we are not contemplating any changes."

James Murdoch has been seen as the heir apparent to his 80-year-old father.

Rupert Murdoch, News Corp.'s chief executive, did not participate in the call but said in a statement that the company's "core operations are strong" and it is "on course to achieve our strategic and financial objectives."

"While we continue to remain mindful of the persistent economic uncertainty in many parts of the globe, I am proud of News Corporation's achievements over the past quarters," Murdoch said. "We have leveraged our strong assets and solid management team to successfully navigate these unpredictable times.

"Coupled with our long-term view, I have every confidence that we will build upon these results in the coming quarters and continue to provide consistent stockholder value," he said.

News Corp. said revenue growth during the quarter that ended on September 30 was driven by its cable, broadcast and satellite television networks and its movie releases including "Rise of the Planet of the Apes."

Cable networking programming revenue rose to $2.12 billion in the quarter from $1.87 billion a year ago, News Corp. said, while filmed entertainment segment revenue increased to $1.78 billion from $1.50 billion.

Broadcast television revenue was $923 million, up from $851 million a year ago, while satellite television revenue rose to $922 million from $856 million a year ago.

Publishing revenue was up slightly, to $2.07 billion from $2.05 billion a year ago, but operating income for the segment fell to $110 million from $178 million a year ago.

News Corp. said the decline in operating income reflected the impact of the closure of The News of the World and lower advertising revenue in Australia.

News Corp. shares were up 2.13 percent at $17.26 in after-hours trading.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

News Corp. net profit down but beats expectations

May 04, 2010

Rupert Murdoch's News Corp. said Tuesday that quarterly net profit declined 69 percent but revenue rose by 19 percent and the results beat the expectations of Wall Street analysts.

News Corp. board backs Murdoch after hacking scandal

Aug 11, 2011

Rupert Murdoch claimed boardroom backing Wednesday to remain at the helm of News Corp. as he worked to shift attention from the phone-hacking scandal to his media behemoth's healthy bottom line.

News Corp. net profit up on movie, cable TV showing

Nov 04, 2009

Global media giant News Corp. posted an 11 percent rise in quarterly net profit on Wednesday as strong results from its movie, cable television and book publishing divisions offset a newspaper slump.

News Corp. net profit up 36 percent

Nov 03, 2010

News Corp. said Wednesday that its net profit rose 36 percent in the first quarter of its 2011 fiscal year to 775 million dollars, beating the expectations of Wall Street analysts.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Thex1138
not rated yet Nov 02, 2011
...But nobody wants Rupert at the helm any more.
Core operations being 'News'... most of the money comes from movies and entertainment, not news aggregation.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.