News Corp. Operating Income Up 23%


News Corp. announced third-quarter earnings Wednesday. Operating income was $1.2 billion, up 23% over the same quarter a year ago. Filmed entertainment delivered what News Corp. called a “record” operating income contribution of $410 million, up 82% thanks to successful theatrical releases and film and television home entertainment titles.

Cable programming operating income was up 34% thanks to increased affiliate revenues driving growth at Fox News Channel, FX and the regional sports networks. Fox had pledged to get a lot more in affiliate fees for FNC given its ratings lead over CNN.

News Corp. said third-quarter net income of $871 million, compared to $820 million for the same quarter a year ago.

Chairman and CEO Rupert Murdoch cited filmed entertainment, Sky Italia subscriptions, broadcast ratings, and cable growth as reasons for the robust numbers.

He also said the corporation had “just begun to scrape the surface” on its internet potential. “Along those lines we took several additional steps during the quarter to further capitalize on the evolving digital world,” said. Murdoch. “We announced, along with NBC Universal, the

launch of the largest internet video distribution network ever assembled.”