TV revenues drive News Corp to shrug off scandals
Editor ©RapidTVNews | 03-11-2011
Even though the true effect of the phone hacking scandal has been a hit of $91 million in restructuring charges, News Corp has posted strong quarterly earnings driven mainly by its TV divisions.
Overall for the first quarter of fiscal 2012 ended 30 September 2011, Rupert Murdoch’s under fire media giant reported first quarter net income of $738 million a $37 million drop compared to Q1 2010 yet also reported total revenue of $7.96 billion, a year on year 7% increase of $533 million. Driving this strong sales performance was double-digit percentage affiliate revenue growth at the company’s cable network programming and television concerns, such as BSkyB, and double-digit revenue growth at the filmed entertainment concerns. The television division alone reported first quarter segment operating income of $133 million, an increase of 27% versus the same period a year ago, led by an 8% increase in revenues. The company says that the growth reflects increased broadcast network advertising revenues, underpinned by what it calls the robust US advertising market and the broadcast of the 2011 Emmy Awards, as well as a greater than two-fold increase in retransmission consent revenues.
In addition to the traditional cash engine that is BSkyB which posted 9% revenue growth of £1.66 billion, driving an adjusted profit of £295 million, itself up 26% year on year, .for the DBS satellite business Sky Italia was highlighted as a strong performer with segment operating income of $119 million, a year on year rise of 45%. The filmed entertainment segment reported first quarter segment operating income of $347 million, a $67 million or 24% increase over the $280 million reported in the same period a year ago.
Taking the rare opportunity in recent times to comment on good news CEO Rupert Murdoch said: “The exceptional strength of our financial results during the first quarter across the majority of our segments is confirmation that News Corp’s core operations are strong and that we are 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.”