News Corp. quarterly profit up 1% on Web, TV operations
The media conglomerate is parent of Fox, whose telecast of the Super Bowl was the second-most-viewed show ever.
The New York Giants weren't the only ones to walk away winners from Super Bowl XLII.
News Corp. said it reaped $250 million in advertising revenue for the day of the game -- the biggest day in Fox network history. The football game, with the Giants' unexpected victory over the previously undefeated New England Patriots, was the second-most-watched telecast ever, with 97.5 million viewers, according to Nielsen Media Research. Only the finale of "MASH" 25 years ago attracted a larger audience -- 106 million.
"The night couldn't have gone better for us," News Corp. Chairman Rupert Murdoch said in a call Monday with analysts.
News Corp. on Monday reported fiscal second-quarter profit of $832 million, or 27 cents a share, for the three months ended Dec. 31. That's up 1% from the $822 million it earned in the same period a year earlier. Revenue rose 9.5% to $8.6 billion, buoyed by strong performance at its Fox broadcast and cable networks (the Super Bowl will be included in News Corp.'s third-quarter results).
The Fox Interactive Media division, which includes social networking site MySpace, also showed steady growth in search and ad revenue. It reported $233 million in revenue for the quarter, up 87% from the same time a year earlier. The deal Google Inc. struck to provide search and advertising on MySpace contributed $62 million in revenue for News Corp.
"This really just shows how substantial a business MySpace has become," said Richard Greenfield, a media analyst with Pali Research, who has a "buy" recommendation on News Corp. stock. "While investors continue to stress about MySpace versus Facebook, it's our belief that social networking is in the early innings."
MySpace is also expected today to announce a platform that would encourage software developers to write applications for the social network's 110 million registered users.
"Given our scale, we provide the largest and most attractive platform for developers, and we think it will be a home for innovation in social network applications," said Peter Chernin, News Corp. president. "And it positions us to reap the rewards from new concepts that our user base desires."
The television division's operating income of $245 million for the quarter was more than double the $112 million reported in the same period a year earlier, despite lower revenue.
