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Published 07 February 2013 08:26, Updated 08 February 2013 07:54
News Corp chairman and CEO Rupert Murdoch says he’s confident of the company’s future as it splits into separate publishing and entertainment businesses. Photo: WPA
News Corp has doubled its second-quarter net income to $US2.38 billion, up from $US1.06 billion during the same period in 2012.
The company reported that revenue increased by 5 per cent or $450 million to $US9.43 billion over the same period.
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“The revenue increase was led by $US398 million or 18 per cent growth at the company’s Cable Network Programming segment,” News Corp executives said in a statement to investors.
Investors were also told that newspaper ad revenue was lower in the second quarter and that the company said it expected to execute the planned split of its entertainment and publishing business at the end of June.
News booked $US65 million in restructuring and impairment costs stemming from its international newspaper business during the quarter, while the proposed split accounted for $US23 million in costs.
The result also included $US56 million in costs associated with investigations resulting from the News of the World phone hacking scandal and closure of the paper, compared to $US87 million in the same period in 2012.
“News Corporation’s fiscal second-quarter performance reflects our strong momentum,” News Corp chairman and chief executive Rupert Murdoch said in the statement.
“Double-digit gains in our cable and television businesses, along with improvements in our publishing segment, drove revenue and earnings growth even as we seized opportunities to invest in our core businesses for long-term and sustainable growth.
“The strategies we executed against 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.”
Mr Murdoch said he was confident of the future for both the entertainment and publishing arms of News Corp.
In its publishing business, News Corp reported a $US16 million increase in operating income to $US234 million, thanks largely to its British newspapers, custom publishing revenue, and book publishing businesses related to the acquisition of Christian book publisher Thomas Nelson.
News Corp executives said the gains “more than offset lower advertising revenues at the Australian newspapers”.