News Corp. (NWSA) Tops Views as Cable, Filmed Entertainment Gain
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News Corporation (Nasdaq: NWSA) is looking a little flat late Wednesday following stronger-than-expected fourth-quarter results from the media giant.
Revenue increased 10.5 percent from $8.11 billion to $8.96 billion at the end of June.
Net income fell 22 percent in the quarter to $683 million, or 35 cents per share.
The Street was looking for revs of $8.46 billion and earnings of 30 cents per share.
The best performer in the quarter was led by a 12.1 percent increase in operating income from its Cable Network Programming segment. News Corp said, "The growth was driven by a 15% increase in revenue, which was partially offset by higher programming expenses and the write down of other assets. The programming expense increase was driven by the closure of two underperforming channels in Europe and the cancellation of certain general entertainment programming."
Filmed Entertainment saw a 53.3 percent increase to $210 million. Publishing operating income increased about 37 percent to $270 million, "reflecting higher advertising and circulation revenues at The Wall Street Journal and lower costs at the integrated marketing services business."
"While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again," said Chairman Rupert Murdoch. "It is important to note that there has been no material impact on our other operations."
The company also declared a quarterly dividend of 9.5 cents per share, an increase from the current quarterly rate of 3.75 cents per share. Based on current outstanding shares, the payout amounts to about $250 million for its next fiscal year.
Revenue increased 10.5 percent from $8.11 billion to $8.96 billion at the end of June.
Net income fell 22 percent in the quarter to $683 million, or 35 cents per share.
The Street was looking for revs of $8.46 billion and earnings of 30 cents per share.
The best performer in the quarter was led by a 12.1 percent increase in operating income from its Cable Network Programming segment. News Corp said, "The growth was driven by a 15% increase in revenue, which was partially offset by higher programming expenses and the write down of other assets. The programming expense increase was driven by the closure of two underperforming channels in Europe and the cancellation of certain general entertainment programming."
Filmed Entertainment saw a 53.3 percent increase to $210 million. Publishing operating income increased about 37 percent to $270 million, "reflecting higher advertising and circulation revenues at The Wall Street Journal and lower costs at the integrated marketing services business."
"While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again," said Chairman Rupert Murdoch. "It is important to note that there has been no material impact on our other operations."
The company also declared a quarterly dividend of 9.5 cents per share, an increase from the current quarterly rate of 3.75 cents per share. Based on current outstanding shares, the payout amounts to about $250 million for its next fiscal year.
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