Avatar helps Murdoch smile despite News Corp. net profit drop
According to Peter Kafka, senior editor at All Things Digital, Rupert Murdoch should be saying, “Thanks, Jim Cameron.”
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. posted a net profit of 839 million, or 32 cents per share, for the third quarter of its fiscal year compared with 2.7 billion dollars, or 1.04 dollars per share, a year ago.
News Corp. recorded a net gain of 1.2 billion dollars in the quarter a year ago on the partial sale of its ownership stake in television technology firm NDS and a 1.2-billion-dollar non-cash tax benefit.
News Corp. said third-quarter revenue increased by 19 percent over a year ago to 8.8 billion dollars.
“Today’s earnings confirm that no content company is stronger than News Corporation at building both fiscal and operational momentum,” Murdoch, News Corp.’s chairman and chief executive, said in a statement.
“Our global portfolio of sought-after content is ideally situated to benefit from the increase in consumer spending, advertising and access to new platforms we are seeing across our regions,” he said.
Media reporter Dylan Stableford reports for The Wrap that Cameron’s film — which lost the Best Picture award to an indie film about Iraq made by his ex-wife — and, oddly enough, a sequel to a movie featuring anormorphs who sound like they’re on speed.
Boosted by the box office smash “Avatar,” News Corporation reported strong earnings on Tuesday for its fiscal third quarter, the second straight quarter of positive results and another sign that the media giant is emerging from the recession.
News Corp.Ã¢â‚¬â„¢s operating income was $1.25 billion, a 55 percent increase compared to the $810 million reported a year ago. The company attributed the profit rise to strong earnings growth across nearly every business segment in which it operates, including its 20th Century Fox studio, which carried receipts from Ã¢â‚¬Å“AvatarÃ¢â‚¬Â into the quarter.
Specifically, News Corp.Ã¢â‚¬â„¢s Ã¢â‚¬Å“filmed entertainmentÃ¢â‚¬Â segment reported operating income of $497 million, up 76 percent from $282 million a year ago, driven by Ã¢â‚¬Å“AvatarÃ¢â‚¬Â and its $2.7 billion worldwide box office haul. (Ã¢â‚¬Å“Alvin and the Chipmunks: The SqueakquelÃ¢â‚¬Â also contributed to the cause, generating $440 million at the box office.)
(with AFP report)