New York: News Corporation (NASDAQ: NWS, NWSA; ASX: NWS,NWSLV) has reported financial results for the third quarter ended March 31, 2010.Total revenue increased $1.4 billion or 19% over the prior year’s third quarter to $8.8billion, with growth reported in all major business segments.
The Company reported total segment operating income of $1.25 billion, a 55% increase compared to the $810 million reported a year ago1. This improvement rises to 67% after considering the absence of the $60 million in operating income from NDS Group plc (NDS) which is no longer consolidated this year. These results reflect particularly strong earnings growth at the Filmed Entertainment, Cable Network Programming, and Newspapers and Information Services segments. This growth was partially offset by decreases at the Direct Broadcast Satellite Television and Other segments.
The Company reported third quarter net income of $839 million ($0.32 per share)compared to net income of $2.7 billion ($1.04 per share) a year ago. In the prior year quarter, the Company recorded a net gain of $1.2 billion on the partial sale of its ownership stake in NDS as well as a $1.2 billion non-cash tax benefit.
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said:”Today’s earnings confirm that no content company is stronger than News Corporation at building both fiscal and operational momentum. Our global portfolio of sought-after content is ideally situated to benefit from the increase in consumer spending, advertising and access to new platforms we are seeing across our regions. The unique strengths of our cable channels’ young, vibrant franchises with phenomenal growth and potential — now generate almost half of our operating profit, ensuring that our stakeholders will continue to benefit from News Corporation’s sustain.