News Corporation sees its quarterly profits double

Press Release   •   Feb 07, 2013 10:23 GMT

Strong growth in News Corporation's cable networks helped it double net income in the second fiscal quarter of 2012 over the previous year.

The media conglomerate, controlled by Rupert Murdoch, reported earnings on Wednesday night for the quarter that ended December 31 and confirmed that costs arising from the closure of the News of the World amid the hacking scandal fell to $56 million (£35.7m) in the period.

Net income for the three months to December came in at $2.38 billion (£1.52bn) thanks to strong growth at its cable networks, which include Fox TV. Newscorp also owns newspaper titles, including the Wall Street Journal and the Times newspapers in the UK.

The cost to News Corp of its continuing investigations into the News of the World during the three-month period represented just 2.4% of its profits, and was down from $87 million a year ago.

The company said its publishing division, which reported a $16 million increase in profits to $234 million, benefited from the launch of the Sun on Sunday in February 2012.

Mr Murdoch, who is both chairman and chief executive of Newcorp, said: "The strategies we executed against in the quarter continue to bolster News Corporation's competitive position and enhance our ability to benefit from global demand for content, especially sports programming.

Murdoch said News Corp was making progress in its plan to split the $54 billion global empire into two separate publicly listed companies - a newspaper, book publishing and education division and a media and entertainment company. Work on splitting up the company cost the company $23 million in the latest quarter.

Follow us on Twitter @CandMResesrch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.