Earnings: News Corp. In line; FIM Income Down On Higher Costs; TV Crushed
This story was written by Joseph Weisenthal.
News Corp (NYSE: NWS). has reported revenue of $8.59 billion for the quarter ended June 30, for 16.5 percent growth over the prior year's quarter. Op income grew 21 percent to $1.48 billion. The company provides a net income figure of $1.12 billion ($.43 per share), well above last year's net income of $890 million ($.25 per share), though the numbers aren't comparable, as this quarter includes gains on the sale of Fox Sports Bay Area and Gemstar-TV Guide International. Like last quarter, the company isn't providing an adjusted or non-GAAP figure, so the op income growth looks like the best bet for the moment.
On a divisional breakdown, TV op income was hit hard, falling 28 percent to $279 million. Broadcast TV has been getting crushed across the board this quarter, as the company chalked up the decline to lower ratings and lower revenue. Things were much brighter on the cable side of the business, with op income up about 10 percent to $313 million.
On Fox Interactive Media: "Operating income contributions from Fox Interactive Media decreased for the quarter as strong search and advertising revenue growth was more than offset by increased development and technical costs related to the addition of new features and costs associated with the startup of new ventures." As is usual, the company didn't offer any nominal figures, although this is a change from last quarter, when op income grew slightly to $27 million, from $24 million. At the time, it noted that higher costs were affecting growth, just not so much that income was actually in the decline. On the call, we should get nominal figures for this quarter.
Total newspaper operating income was $262 million, an increase of $59 million, though the inclusion of Dow Jones in this quarter messes up comparability.
By Joseph Weisenthal