DIRECT BROADCAST SATELLITE TELEVISION
SKY Italia generated a quarterly segment operating loss of $20 million, compared to operating income of $6 million reported in the same period a year ago. The decline was driven by higher programming expenses, including nearly $30 million of rights costs primarily associated with expanded UEFA Champions and Europa League coverage. Although reported U.S. dollar revenue declined reflecting the impact of the strengthened U.S. dollar, quarterly local currency revenue was essentially in line with the corresponding period of the prior year. SKY Italia experienced a net reduction of approximately 28,000 subscribers during the quarter, bringing total subscribers to 4.83 million.
Publishing reported quarterly segment operating income of $234 million, a $16 million improvement from the $218 million reported in the same period a year ago. Increased contributions from the U.K. newspapers which benefitted from the launch of the Sunday edition of
in February 2012, integrated marketing services driven by higher custom publishing revenues, and book publishing businesses related to the acquisition of Thomas Nelson, Inc., a Christian book publisher, more than offset lower advertising revenues at the Australian newspapers.
The Other segment quarterly operating loss of $186 million improved slightly from the $191 million reported the same period a year ago. The current year quarterly results included $56 million of costs related to the ongoing investigations initiated upon the closure of
The News of the World
, as compared to $87 million of comparable costs included in the prior year quarterly results, as well as $23 million of costs related to the proposed separation of the Company’s entertainment and publishing businesses. As a result of the Company’s acquisition of Consolidated Media Holdings in November, the second quarter results also included a benefit from the consolidation of FOX SPORTS Australia. This benefit was largely offset by an increased operating loss at Amplify, the Company’s education business, reflecting increased product development costs.
Eredivisie Media & Marketing
In November 2012, the Company acquired a controlling 51% ownership stake in Eredivisie Media & Marketing CV (“EMM”) for approximately $350 million, of which $325 million was cash and $25 million was contingent consideration. EMM is a media company that holds the collective media and sponsorship rights of the Dutch Premier League. The remaining 49% of EMM is owned by the Dutch Premier League and the global TV production company Endemol.