Ad Revenues Climb At News Corp. Cable, Broadcast Units

More strong advertising revenues from News Corp.'s U.S. and international cable networks were among several bright spots in the company's first-quarter fiscal 2012 reporting results.

Advertising revenue at its U.S. domestic cable channels grew 13% -- led by pricing and ratings growth at the FX Network. The company says the network finished the quarter as the third-most-watched basic cable network in prime time among adults 18-49.

Overall, News Corp.'s cable networks grew to 10% to $2.1 billion from $1.9 billion versus the period a year ago.  Operating income was up 18% to $775 million.

TV advertising and retransmission fee revenues at its broadcast networks and stations climbed 8%, rising to $923 million from $851 million. News Corp. said a "robust national advertising market" continues. Pulling those revenues back were lower political advertising revenue and some higher costs -- to launch Fox network shows, "Terra Nova," "The New Girl" and "The X-Factor."

News Corp. says its TV business unit grew 27% in operating revenue, to $133 million.

Filmed Entertainment -- theatrical movies and home entertainment -- also grew in revenue (20% to $1.8 billion) and operating income (24% to $347 million). Big results from "Rise of the Planet of the Apes" contributed, pulling in over $450 million in worldwide box office receipts to date -- as well as worldwide home entertainment revenues of "Rio" and "X-Men: First Class."

Publishing continued to be challenged. Revenue was $2.07 billion, up slightly from $2.05 billion. But operating income was down 38% to $110 million, from $178 million.

The company says this comes from closing U.K. publication The News of the World, as well as lower advertising revenues at the Australian newspapers and integrated marketing services business. But there was higher advertising and circulation revenues at The Wall Street Journal.

Overall, News Corp. said revenue rose 7% to $7.96 billion, with net income slipping 5% to $738 million.



Next story loading loading..