• by Wayne Friedman , May 4, 2010

Strong financial results at News Corp. are another indicator that the media economy seems to be emerging from its doldrums.

The company lifted revenues 19% to $1.4 billion for its fiscal third quarter ending March 31, with a net income of $839 million -- well down from its $2.7 billion net income number of a year ago. News Corp. noted that the big gain of a year ago came from a one-time non-cash benefit do a partial sale of its NDS holding.

The biggest improvement came in News Corp.'s film entertainment division, where operating income rocketed 76% to $497 million. All this is thanks to "Avatar," which become the highest-grossing film of all time with worldwide box office revenue of $2.7 billion. Other films that contributed included "Alvin and the Chipmunks: The Squeakquel," which has generated more than $440 million in worldwide box office receipts.

Cable networks were also a major operating income contributor, rising to $588 million from $426 million of a year ago, with improved double-digit percentage results across a broad range of networks -- Fox News Channel, its Regional Sports Networks, FX, the Fox International Channels and STAR.

News Corp. said Fox News Channel achieved its highest-ever quarterly profit, with operating income rising 31% over the third quarter a year ago. This was the result of both higher advertising revenue and affiliate revenue rate increases.

The company's television unit -- Fox Broadcasting Co, its TV stations, and MyNetworkTV -- climbed to an operating income of $40 million from $9 million in the same period of a year ago.

While its TV stations showed signs of recovery, News Corp. said this was partially offset by lower numbers at Fox Broadcasting.

News Corp. satellite TV division was the only segment to have lower operating income results -- down to $35 million from $63 million. Sky Italia was the main reason due to unfavorable local currency exchange rates that lower revenue by 3%.

Newspapers also had a strong turnaround -- with operating income at $131 million from $29 million in the same period of a year ago. There were stronger advertising revenues at The Wall Street Journal and in the U.K. Advertising revenue climbed 25% at the Journal as well as higher circulation revenue.