On a GAAP basis, News Corp. posted EPS of $0.94, which included about $1.45 billion in pre-tax gains related primarily to the sale of the company’s NDS Group to Cisco Systems Inc. (NASDAQ: CSCO) and a share repurchase at British Sky Broadcasting (BSkyB). Operating income totaled $1.378 billion, slightly less than the $1.385 billion posted in the same period a year ago.
The company’s CEO said:
Even against considerable currency headwinds due to a stronger dollar, we were able to increase News Corp’s revenue and adjusted segment operating profit over the prior year quarter while continuing to make key investments to position us for future growth.
The company’s operating revenue jumped 23% in its cable network programming segment, to $953 million, of which 33% came from domestic channels. Currency exchange rates cut the company’s international earnings by 7%. Advertising revenue grew 8% in the domestic market and 1% on a constant-currency basis internationally.
Satellite television operating income fell to $23 million, including $70 million in costs for Olympics broadcast rights for SKY Italia. Publishing operating income fell nearly 50% to $57 million. Operating income also grew at the company’s filmed entertainment and television segments.
News Corp. continues to pursue a previously announced tax-free separation of its publishing businesses, education division, and Australian assets from the company’s media and entertainment businesses. The split is expected to happen around the end of June next year.
The company did not provide further guidance, but the consensus estimate for the current quarter calls for EPS of $0.45 on revenues of $9.25 billion. For the fiscal year ending in June 2013, the company is expected to post EPS of $1.66 on revenues of $34.96 billion.
The company’s shares are up about 3% in after-hours trading today, at $25.00 in a 52-week range of $15.93 to $25.50. The consensus target price for the shares was around $27.40 before today’s report.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
