Profits Surge at News Corp.

May 9, 2007  •  Post A Comment

A 34-percent spurt in operating income from Fox Cable Networks contributed to News Corp.’s 6 percent rise in profits from $820 million a year ago to $871 million for the quarter ended March 31.
The cable networks’ growth was attributed largely to increased affiliate revenues at Fox News Channel, FX Network and the Regional Sports Networks.
Losses associated with freshman MyNetworkTV and increased programming costs offset ad-revenue increases at Fox Broadcasting and Fox-owned stations and lowered operating income 4.5 percent to $273 million.
News Corp. Chairman Rupert Murdoch told analysts that the recent $5 billion offer for Dow Jones & Co., whose assets include the Wall Street Journal, is “more than fair,” the fit with News Corp. would be good, and “If we are fortunate enough to gain the support of the Dow Jones shareholders, there will be plenty of time to detail all of the areas where we think we can add and create real value for shareholders.”
News Corp. COO Peter Chernin said that even if the Dow Jones purchase does not happen, “We think there is a great competitive positioning” for the Fox Business Channel scheduled to launch this year.
(Editor: Fees)

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