TV stars for News Corp as profits slide
Joseph O'Halloran ©RapidTVNews | 05-05-2011
No doubt offering compelling evidence as to why it is so keen to fully acquire the hugely profitable BSkyB, News Corp has posted declining profits for its Q3 2011 period.In detail, for the third quarter ended 31 March 2011, News Corp posted a profit of $1.063 billion, a 15% decrease compared with the same period in 2010. Out of all the operating division, the TV elements performed most strongly with TV business incomes soaring from $40 million to $192 million over the twelve month period. Cable network programming performed strongly leaping to $ 735 million from the $588 million posted in 2010.
However there was a marked fall in operating incomes from direct broadcast satellite TV from $35 million in 2010 to $17 million by the end of Q3 2011. Publishing profits showed a particular fall from grace. In mitigation, the company says that publishing incomes for Q3 2011 exclude a litigation settlement charge of $125 million.
In somewhat of an understatement, CEO Rupert Murdoch said that the figures were what the company anticipated and that any comparisons in 2011 and 2001 performance would be challenging given that 2010 included the contribution from Avatar contribution at its filmed entertainment business where profits halved from nearly half a billion dollars at the end of Q3 2010 to $248 million at 31 March 2011.
Undimmed, Murdoch added that the company could look forward with anticipation: “Our confidence in our upcoming releases, indicate that the difficult comparisons in this segment over the past nine months are now behind us. Looking beyond our film business, I am delighted with the continued and significant operational momentum of our channels businesses, with their market-leading positions across the globe
"I’m particularly pleased that our television segment, viewed by the market just one year ago as a challenged business, more than quadrupled its earnings contributions over the prior year quarter on the strength of the national advertising market, increased retransmission consent revenues, and the popularity of our programming. “
