New Corp. profits down 24%

A 23 percent jump in revenue for News Corp.’s television group in the third quarter of the fiscal year was canceled out in overall totals, due to an operating loss of US$165 million from its business unit that includes MySpace, the Los Angeles Times reported today.

In other words, “News Corp. can’t get MySpace off the books fast enough,” the report stated.

MySpace losses stem “largely from lower advertising and search revenues partially offset by lower operating expenses,” News Corp. explained in its earnings release.

Net income in the third quarter fell to $639 million (24 cents per share), from $839 million in the same quarter the previous year, the company said in a statement. The year-on-year drop came mainly from the 20th Century Fox film studio, as the previous year saw a box office record performance for James Cameron’s “Avatar,” the highest-grossing movie of all time with $2.8 billion in ticket sales worldwide. The current third quarter saw the performance of Darren Aronofsky’s “Black Swan” bring in global ticket sales of $300 million, the LA Times noted.

Cable network programming at News Corp. reported operating income in the third quarter of $735 million, up 25 percent over the third quarter last year, due to a 13 percent increase in revenue. Domestic channel operating income was up 22 percent, and earnings from international cable channels grew by 34 percent, according to the company’s earnings release.

Adjusted operating profit is expected to increase in the low double-digit range for the fiscal year ending June 30, CFO David DeVoe told investors in a call, according to Bloomberg. Analysts said they expect operating profit for FY 2011 to reach $4.91 billion, a 10 percent growth.

Image: News Corp.

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This entry was posted in Films, financial results, MySpace, News Corp., Television. Bookmark the permalink.

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