• by Wayne Friedman , August 10, 2011

U.S. cable networks were a big driver for News Corp.'s strong fiscal fourth-quarter 2011. 

A significant factor was that advertising revenues for cable networks surged 23% during the period, especially for the top-five prime-time network, FX. All this pushed revenues for the entire cable unit to $2.2 billion from $1.9 billion in the fourth quarter of 2010. Operating income rose 12% to $631 million from $563 million.

Cable network affiliate fees in the U.S. climbed 7% -- but soared by three times that amount at its international networks, especially in Latin America and Asia.

Broadcast television also grew -- but more modestly -- from ad sales and retrans fees, up 7% to $1.12 billion. Operating income for the group more than doubled to $233 million from $113 million. Some of this came from TV production cost savings, given the absence of Fox network show "24."

Thanks to big results from the theatrical movie "Rio," which has grabbed $475 million in box office revenue, News Corp.'s filmed entertainment unit pushed revenues to $2.0 billion from $1.8 billion, and operating income to $210 million from $137 million during the period.

Home entertainment revenues were also higher. Twentieth Television digital TV revenue and the "Glee" concert tour contributed to better overall results.

Still, overall revenue and income growth were not what News Corp. witnessed a year ago for its filmed products, with rocketing financial results from bigger theatrical releases "Avatar" and "Ice Age: Dawn of the Dinosaurs." That helped push down yearly operating income for the unit by 31% for the year to $927 million, from $1.4 billion.

Direct Satellite Television -- in the form of Sky Italia -- grabbed $1.04 billion in revenues, up from $900 million, with operating income growing to $145 million from $97 million. News Corp. cited lower programming costs from the absence of the FIFA World Cup and higher prices from premium services.

Publishing rose to $2.4 billion from $2.1 billion in revenue, and operating income grew to $270 million from $196 million -- much of this from higher ad revenue at The Wall Street Journal and lower costs from integrated marketing services.

News Corp.'s digital media group -- in the form of social network Myspace -- still landed in the red, a $137 million operating loss. But significant cost reductions help to trim losses for the digital social site from $174 million in the fourth quarter of 2010. News Corp. recently announced a deal to sell Myspace.

News Corp. -- like many media stocks and others industries -- was hammered again on Wednesday, closing down 4.7% to $14.21.