News Corporation (NYSE: NWS, NWSA; ASX:NWS, NWSLV) has reported first quarter consolidated operating income of $953 million, a decline of 9% as compared to the $1.05 billion reported a year ago. This result reflects double-digit percentage profit increases at the Direct Broadcast Satellite Television, Cable Network Programming and Newspapers and Information Services segments, being more than offset by decreases at the Television, Filmed Entertainment
and Other segments.
First quarter net income of $515 million ($0.20 per share) decreased versus net income of $732 million ($0.23 per share) reported in the first quarter a year ago. The year-onyear decrease is largely driven by declines in Equity contributions from affiliates and operating profit, which were partially offset by the gain on the sale of eight television stations included in Other, net. The lower contribution from affiliates reflects the inclusion of $447 million in losses from Premiere AG, principally representing a writedown of our investment, and the absence of contributions from The DIRECTV Group, which was divested in February 2008.
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said: “I am pleased that our cable group continues to perform extremely well, SKY Italia remains a top performer and Fox Interactive Media is seeing revenue growth even in the face of negative macroeconomic conditions around the globe, including weak advertising markets. All media companies are being tested and the year ahead will be difficult. I am confident that our long-term strategy of cultivating diversified assets at different stages of development, judicious investment of our capital and a strong balance sheet will guide us through these difficult times.”