News Corp. reports higher earnings on stronger cable, film and TV revenue; publishing income, revenue lower
It is clear to see why Rupert Murdoch would be eager to spin off his publishing assets at News Corp. as the company saw generally strong revenue performance across all its segments of the business except that of publishing, with overall operating income up 3.8 percent to 1.362 billion. The global media company reported Q3 earnings at the close of the bell today.
The publishing division saw operating income fall almost 35 percent to $85 million from $130 million one year ago. For the first three quarters of its fiscal year, News Corp.’s publishing division has seen income fall 17.9 percent for the year so far.
“We are on target to complete the proposed separation of our businesses near the end of our fiscal year. As we prepare to launch two new industry leaders with new News Corporation and 21st Century Fox, I am more confident than ever of the long-term value the separation will unlock for the Company and its shareholders,” Rupert Murdoch, Chairman and Chief Executive Officer of News Corp. said in the earnings report statement.
News Corp. pointed to declining revenue at its Australian newspapers for most of the revenue declines in its publishing division, while touting the launch of the Sunday edition of The Sun in the U.K.
The earnings report also revealed that the ongoing investigations in the U.K. over the phone hacking scandal that resulted in the closing of The News of the World continue to cost the company money – $42 million in the last quarter.