New york :News Corporation (NASDAQ: NWS, NWSA; ASX:NWS, NWSLV) has reported full year total segment operating income1 of $4.0 billion, a $401 million or an 11% increase from the $3.6 billion reported a year ago. Excluding the one-time $500 million litigation charge from the current year and considering the
absence of the $121 million earnings contributions from NDS Group plc (Ã‚â€œNDSÃ‚â€), which was not consolidated in fiscal 2010, total segment operating income growth was 30%.
Current year revenues of $32.8 billion increased 8% from the $30.4 billion reported in fiscal 2009. The higher full year total segment operating income was the result of double digit growth at the majority of the CompanyÃ‚â€™s business segments, partially offset by lower contributions from the Direct Broadcast Satellite Television and Other segments.
The Company reported net income for the full year of $2.5 billion ($0.97 per share) as compared to a net loss of $3.4 billion ($1.29 per share) reported in fiscal 2009. The full year results primarily reflect the increased total segment operating income results noted above as well as improved equity earnings of affiliates. Additionally, the prior year results included $9.2 billion in pre-tax impairment and other charges partially offset by a non-cash tax benefit of $1.1 billion from the resolution of various tax matters and a net gain of $1.2 billion on the partial sale of the CompanyÃ‚â€™s interest in NDS.
For the fourth quarter, the Company reported total segment operating income of $932 million, compared with $948 million reported a year ago. This slight decline was primarily driven by increased contributions from the Cable Network Programming, Television and Newspapers and Information Services segments, which were more than offset by lower contributions from the remaining business segments.
The Company reported fourth quarter net income of $875 million ($0.33 per share) as compared to a net loss of $203 million ($0.08 per share) reported in the fourth quarter a year ago. Fourth quarter results include a gain on the sale of the Company’s Bulgarian TV station, the CompanyÃ‚â€™s share of a favorable British Sky Broadcasting Group plc (Ã‚â€œBSkyBÃ‚â€) litigation settlement and a non-cash tax benefit related to the recognition of certain prior year tax credits. The positive impact from these items was partially offset by an impairment and restructuring charge of $217 million related to the Company’s international outdoor and mobile businesses. The fourth quarter a year ago included $680 million in impairment and restructuring charges.
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said:”I am very pleased with the overall 30% increase, which is more than three times the growth we were projecting when we started the fiscal year”.