Posts Tagged ‘Satellite

04
Aug
10

News Corp. Posts $875 Million Profit as Ad Sales Rise

NEWS
News Corp. Posts $875 Million Profit as Ad Sales Rise

Wednesday, August 04, 2010

••• Media and entertainment giant News Corp. reported, Wednesday, that it has swung to profit in the fiscal fourth quarter on the back of strong performance from its television networks division which posted impressive ad sales.

News Corp. said its net profit in June quarter was $875 million or $0.33 per share as against loss of $203 million or $0.08 per share in the year ago period.

The company said its revenue moved up 5.7 percent to $8.11 billion.

Analysts, on average, had expected News Corp. to report profit of $0.20 per share on revenue on $7.87 billion.

However, operating profit, or sales minus the cost of goods sold and administrative expenses, slipped 1.7 percent year-on-year in June quarter to $932 million from $948 million.

The media conglomerate said its earnings were driven by strong performance put up by its television networks division, which accounted for more than half of its operating income.

Profits at domestic channels surged by 30 percent while international channels improved 40 percent. Overall, operating profit at cable television networks division, which include channels such as Fox News Channel and FX, surged 31 percent to $563 million on the back of advertising revenue which jumped 11 percent. The division also saw double-digit growth in revenue from fees paid by cable, satellite and fiber video providers.

Operating profit at News Corp.’s broadcast television division also surged 13 percent to $113 million on improved ad sales offsetting higher programming expenses at the company’s national broadcast network – Fox Broadcasting.

The group’s filmed entertainment division also did well but could not beat third quarter performance. Operating income in June quarter dropped 32 percent year-on-year to $137 million. In March quarter, profit stood at $497 million. At the time of announcing third quarter earnings, News Corp. had warned that one should not expect stellar performance from this division in the fourth quarter, largely due to an expected year-over-year decline in the film business due to the timing of releases.

The newspapers and information services division, which include the Wall Street Journal, Barron’s, MarketWatch and Dow Jones, also reported 20 percent surge in profit to $115 million on higher ad revenue, though it was below Street estimates.

The company’s digital media division, which include social networking site MySpace, however, disappointed, reporting an operating loss of $174 million in the June quarter on lower search and advertising revenue. News Corp. said MySpace is set for a “major overhaul.”

News Corp.’s satellite TV division also disappointed, reporting a 37 percent slide in operating income to $97 million on the back of continued weakness at Sky Italia.

To reduce dependence on the economically sensitive advertisement-based revenue, News Corp. said it is beefing up its portfolio of subscription-based assets. In June, it said it has made a bid for the 61 percent stake of pay-TV operator British Sky Broadcasting Group Plc (BSkyB) it doesn’t already own.

“The opportunity for us to expand the scale of our franchises is significant, including through taking advantage of the continual technological advances that will broaden the reach of our core content and distribution businesses,” News Corp. CEO Rupert Murdoch said in a statement.

The company’s full-year results were more impressive.

News Corp. said its net profit in fiscal year 2010 was $2.5 billion, helped primarily by blockbuster movie “Avatar.” DVD sales of other films like “Ice Age: Dawn of the Dinosaurs,” “X-Men Origins: Wolverine” and “Night at the Museum: Battle of the Smithsonian” also bumped up its profits. In the prior year, News Corp. incurred a net loss of $3.4 billion, which included a one-time pre-tax impairment and other charges of $9.2 billion.

“These results underscore just how well positioned we are – fiscally, operationally and strategically – for further growth across all of our markets,” Murdoch said.

Shares of News Corp., which owns Dow Jones, Wall Street Journal, New York Post, MySpace and 20th Century Fox among other things, closed up 1.61 percent at $13.85. Following the financial results announcement, the company’s shares were up 3.25 percent in the after-market hours.
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• Source(s): News Corporation
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05
Jun
10

Sky buys Virgin Media TV channels for $231 million

NEWS
Sky buys Virgin Media TV channels for $231 million

Saturday, June 5, 2010

British Sky Broadcasting (BSkyB) has bought Virgin Media Television, the current owner of seven TV channels including Living and Bravo.

Sky, the owner of Sky News, is paying $231 million (£160 million) in cash under the deal, which also sees it acquire the channels Challenge, Challenge Jackpot and Virgin1, the latter of which will be rebranded.

The purchase expands Sky’s portfolio of basic pay TV channels and means it does not have to pay carriage fees to offer the Virgin Media Television (VMtv) channels to its customers.

Meanwhile, Virgin Media will be given the option of carrying any of Sky’s basic HD channels, Sky Sports HD 1 and Sky Sports HD 2, and all Sky Movies HD channels for an incremental wholesale fee.

It will also make Sky’s basic and premium channels available to subscribers through its on-demand TV service.

VMtv said its seven channels – which span pay and free-to-air television – reach more than 24 million adult viewers every month.
Living is the third most popular pay TV channel in the U.K., and is the self-styled home of ‘guilty pleasures and trashy glamour’.

It offers a variety of popular programmes including Four Weddings and America’s Next Top Model in its schedules.

Virgin Media said the sale of VMtv would allow it to focus on providing subscribers with ‘super-fast’ cable TV and broadband provision.

Meanwhile BSkyB chief executive Jeremy Darroch described the acquisition as ‘an attractive investment opportunity’ that offered strategic and financial benefits.

‘We are pleased that, through commercial negotiation, we have been able to ensure wide distribution of our channels to a growing pay TV universe,’ he said.

Virgin launched Virgin1 in October 2007 although channels such as Living and Bravo came from the former ntl/Telewest business.

This in turn merged with Virgin Mobile in 2007 and was then rebranded as Virgin Media.
• Latest News & Headlines » Home «
• Source(s): British Sky Broadcasting / News Corporation
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