This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

News Corp. Gains on Ad Rebound

(News Corporation article updated with information from the company's first quarter conference call.)

NEW YORK ( TheStreet) -- News Corporation (NWSA - Get Report) saw earnings rise during its first quarter, attributed to the rebounding advertising market.

For the quarter ended September 30, the company saw earnings rise 35.7% to $775 million, or 30 cents per diluted share, compared with earnings of $571 million, or 22 cents per diluted share, in the same period a year ago. Earnings came in ahead of analyst estimates of 24 cents a share.

Revenue was up 3.2% to $7.43 billion from $7.2 billion during the quarter as the company's cable network programming, television and publishing segments saw gains in advertising revenue.

Cable network programming revenue was up 16.6% to $1.87 billion from $1.61 billion while its operating income increased 28.5% to $659 million from $513 million.

Advertising revenue at domestic cable channels was up 16% due to higher volume. Fox News had more total viewers for both primetime and total day than CNN, MSNBC and CNBC combined in the first quarter. Revenue from international cable advertising gained 27% attributed to the improving ad market and more viewers.

"Our global cable network programming business continues to lead News Corporation's financial and operational momentum," chairman and CEO Rupert Murdoch said." With continued subscriber growth in new and established channels throughout the world, and a global advertising recovery, our domestic and international channels now account for 25% of our revenues, and uniquely position us for profitable expansion of these franchises in the years to come."

Television revenue was up 11.2% to $851 million from $765 million, attributed to the rebounding local ad markets. Publishing revenue rose 33.3% to $2.05 billion from $1.98 billion due to higher advertising revenue and operational efficiencies at the company's newspapers. Publishing advertising revenue increased 22%, reflecting gains in local advertising, particularly in the automotive, telecommunications and financial sectors, as well as political advertising.

On the first quarter conference call, COO Chase Carey said that the current season of Fox network programming isn't doing as well as the company had hoped, but it is looking forward to the shows that will return next season, such as American Idol and X Factor.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NWSA $12.15 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs