Quantcast
Connect with us

Murdoch’s News Corp doubles profits in 2012

Published

on

News Corp said Wednesday it is on track to complete the split of the media-entertainment conglomerate by June, as the company reported a jump in profits from its accounting of broadcast operations.

The Rupert Murdoch-led group said profits more than doubled to $2.38 billion, boosted by income from newly acquired broadcasters.

ADVERTISEMENT

In releasing the earnings, Murdoch said the media-entertainment conglomerate was making “progress” toward the breakup of the group into two companies — one focused on publishing, the other on the fast-growing entertainment operations.

Chief operating officer and president Chase Carey told a conference call the company was “on track” for the breakup by the end of the company’s fiscal year on June 30.

The company announced the restructuring in June, a move partly seen as a nod to shareholders angered by the reputational damage and costs inflicted by a phone hacking scandal in Britain, and partly because of troubles within the group’s publishing arm.

Carey repeated the assertion that the move would “unlock value” for shareholders at News Corp, whose assets include the Fox studios and broadcasting operations, a broad array of cable and satellite TV properties, The Wall Street Journal and newspapers in Britain and Australia.

ADVERTISEMENT

News Corp. revenue for the fiscal second quarter to December 31 rose five percent from a year earlier to $9.43 billion, led by 18 percent growth in cable programming.

The profit adjusted for special items amounted to 44 cents a share, two cents better than Wall Street estimates.

Murdoch said the results show “our strong momentum” as the company “seized opportunities to invest in our core businesses for long-term and sustainable growth.”

ADVERTISEMENT

“The strategies we executed again in the quarter continue to bolster News Corporation’s competitive position and enhance our ability to benefit from global demand for content, especially sports programming,” he added.

“As we make progress toward the proposed separation of our entertainment and publishing businesses later this year, I am confident in the future prospects for both businesses.”

The company’s cable network programming accounted for an operating profit of $945 million and filmed entertainment $383 million.

ADVERTISEMENT

A big part of the profit jump came from gains posted in accounting for the company’s increased ownership stakes in Fox Sports Australia and Fox Star Sports Asia. This added $1.4 billion to profits.

The group saw a modest increase in publishing, a unit which includes The Wall Street Journal and other newspapers. The operating income for the segment was $234 million, a $16 million improvement from a year earlier, helped by improved results from British newspapers, the company said.

Among the disappointments in the past quarter were losses from its Sky Italia satellite TV, which Carey attributed to “the economic crisis in Italy,” and sports broadcasting, which we blamed on “a sports schedule which just didn’t bounce our way.”

ADVERTISEMENT

Profits dipped at the company’s film operations, reflecting negative comparisons to the prior year. The segment profit was $383 million, from $393 a year ago. The biggest contributor was “Life of Pi, which has brought in some $500 million in worldwide box office receipts, but the unit failed to keep up with the pace set last year from “Rio,” “Rise of the Planet of the Apes” and “X-Men: First Class.”

The results included $56 million set aside for investigations of the phone-hacking scandal in Britain, which led to the closure of The News of the World.

Some $23 million was set aside for charges related to the reorganization of the company.

ADVERTISEMENT

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from billionaires and corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Facebook

GOP lawmaker cut the mic on black woman’s facts — but let white men spew ‘lunacy and lies’: report

Published

on

The Republican chair of a Tennessee legislative committee is under fire for cutting off the microphone while a woman of color was speaking -- but allowing white men to spew "lunacy."

"It took all of five minutes for Sen. Mike Bell, chairman of the Tennessee General Assembly’s Judiciary Committee, to prove Cherisse Scott’s point. Scott is founder and CEO of Sister Reach, a Memphis organization that fights for reproductive freedom and health for rural women and girls of color struggling with poverty," Memphis Commercial Appeal columnist Tonyaa Weathersbee explained.

Continue Reading

Breaking Banner

Here’s why Jeffrey Epstein surrounded himself with scientists

Published

on

The list of confidants and friends who were fêted by the late financier and alleged sex trafficker Jeffrey Epstein included a number of prominent scientists. Among the eye-popping names that appeared on the list: the late cosmologist Stephen Hawking, Nobel-winning physicist Murray Gell-Mann, evolutionary biologist Stephen Jay Gould, physicist Frank Wilczek, neurologist Oliver Sacks, and geneticist George M. Church.

Continue Reading
 

Breaking Banner

Trump just humiliated his own son with an absurd tweet about Greenland

Published

on

President Donald Trump confirmed multiple reports this weekend when he said that he does, indeed, hope to buy Greenland and make it part of the United States.

Danish Prime Minister Mette Frederiksen has said that the country, which is part of the Kingdom of Denmark, is “not for sale”: “Greenland belongs to Greenland.” Which should be the end of the story. Unfortunately, it’s not.

On Monday, Trump sent the following tweet, apparently trying to quell suspicions that the president just regards Greenland as another place to expand his business empire:

Continue Reading
 
 

Thank you for whitelisting Raw Story!

As a special thank you, from now until August 31st, we're offering you a discounted rate of $5.99/month to subscribe and get ad-free access. We're honored to have you as a reader. Thank you. :) —Elias, Membership Coordinator
LEARN MORE
close-link
close-image