News Corp profits grow

Published:  9 Feb at 6 PM

As reported by the BBC, media group News Corporation watched its net revenues rise 65 per cent in the three months up to the end of December 2011, comparing positively to the same time period in 2010. The growth is the first time the firm’s profits have risen compared to 2010 since New Year 2011.

The media group made $1.06 billion (£888 million) net revenue in the period, rising from $624 million in 2010. The company’s figures were fuelled mostly by income from marketing and fees from its cable TV networks.

CEO Rupert Murdoch said the enormous growth reported in the cable network television and filmed entertainment segments shows the efficacy of the firm’s strategy to develop and broadcast “superior wide-ranging content”. The firm had also completed over 50% of its share repurchase program, added Mr Murdoch.

The repurchasing program was publicised after News Corp's failed bid to buy up the remaining shares of British Sky Broadcasting in 2011 following the News of the World phone hacking scandal. The money prepared for the Sky purchase was put into the share acquisition scheme.

Revenues at News Corporation's American cable TV networks went up 9% as the firm benefited from the cheaper cost of broadcast privileges to the national basketball league (NBA). Fox News, the firm’s cable news network, also saw an 8% jump in profits.

The firm's film sector performed strongly as well, with “Alvin and the Chipmunks: Chipwrecked” generating over $300 million in worldwide sales.