News Corp. reported a 27% jump in its fiscal fourth-quarter net income Tuesday, fueled by proceeds from the sale of its stake in Gemstar-TV Guide International Inc., as well as double-digit growth from its film, cable networks and newspaper groups.
The media conglomerate reported net income of $1.1 billion, or 43 cents a share, for the quarter that ended June 30, compared with $890 million, or 28 cents, a year earlier. Revenue rose 17% to nearly $8.6 billion from $7.4 billion.
News Corp.'s performance exceeded Wall Street's projections. Thomson Financial said analysts that it polled expected profit of 34 cents a share on revenue of $8.51 billion.
"Other companies may indeed be struggling, but our confidence and ambitions are buttressed by very healthy balance sheets," said Chief Executive Rupert Murdoch, speaking from Beijing on Tuesday in a call with analysts.
The film group was the biggest driver of earnings growth. With operating income of $220 million, more than double that in the same quarter a year earlier, the studio was propelled by robust DVD sales of such popular films as "Alvin and the Chipmunks," "Juno" and "27 Dresses." Revenue for the group rose 5% to $1.5 billion, from $1.45 billion a year earlier.
Peter Chernin, News Corp. president and chief operating officer, said the outlook continued to be healthy over the next year, with upcoming releases such as "The Day the Earth Stood Still" and anticipated sequels "X-Men Origins: Wolverine" and "Night at the Museum 2: Battle of the Smithsonian."
Television was buffeted by the worsening economy. The group's fourth-quarter operating income was $279 million, a drop of $106 million from a year earlier. Chernin said local TV stations were bearing the brunt of the downturn, with declines in automotive, telecommunications and financial services ads. Revenue fell 7% to $1.3 billion, from $1.4 billion a year ago.
The Cable Network Programming group reported a 10% increase in operating income, to $313 million from $284 million.
The gain was fueled by Fox News Channel's double-digit income growth from increased advertising and affiliate rates, as well as contributions from the Regional Sports Networks and the Fox International Channels. Revenue rose 26% to $1.4 billion, from $1.1 billion a year earlier. Chernin said this helped offset the $160 million in first-year losses associated with starting up the Fox Business Network and the Big Ten Network.
