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News Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 10, 2012 06:17AM

News Corp. (NWS) filed Quarterly Report for the period ended 2012-03-31. News Corp Inc has a market cap of $49.26 billion; its shares were traded at around $19.6 with a P/E ratio of 15.1 and P/S ratio of 1.5. The dividend yield of News Corp Inc stocks is 0.9%.



Highlight of Business Operations:

For the three and nine months ended March 31, 2012, revenues at the Cable Network Programming segment increased $335 million, or 16%, and $770 million, or 13%, respectively, as compared to the corresponding periods of fiscal 2011, primarily due to higher net affiliate and advertising revenues. Domestic net affiliate revenues increased 15% and 11% for the three and nine months ended March 31, 2012, respectively, primarily due to increases at the RSNs, FOX News and FX. Domestic advertising revenues increased 10% for the three and nine months ended March 31, 2012 primarily due to increases at FX and FOX News. For the three and nine months ended March 31, 2012, international net affiliate revenues increased 31% and 25%, respectively, and international advertising revenues increased 7% and 11%, respectively, due to increases at FIC, primarily due to the consolidation of FPAS, and STAR in India.

For the three and nine months ended March 31, 2012, operating income at the Cable Network Programming segment increased $111 million, or 15%, and $374 million, or 18%, respectively, as compared to the corresponding periods of fiscal 2011, primarily due to the revenue increases noted above, partially offset by $224 million and $396 million increases in expenses, respectively, due to higher programming costs, including rights fees for the Ultimate Fighting Championship, which was not broadcast in the corresponding periods of fiscal 2011, and the consolidation of FPAS.

For the three and nine months ended March 31, 2012, revenues at the Filmed Entertainment segment increased $168 million, or 11%, and $697 million, or 14%, respectively, as compared to the corresponding periods of fiscal 2011, primarily due to the inclusion of revenues from Shine which was acquired in fiscal 2011, an increase in license fees for How I Met Your Mother and an increase in syndication revenue for Family Guy. Also contributing to the revenue increase for the nine months ended March 31, 2012 was approximately $250 million in digital distribution revenues from the licensing of the Company’s television content and higher licensing revenues for Avatar. The revenue increases for the three and nine months ended March 31, 2012 were partially offset by decreased home entertainment revenues and worldwide theatrical revenues. The three and nine months ended March 31, 2012 included the worldwide theatrical and home entertainment success of Alvin and the Chipmunks: Chipwrecked as compared to the corresponding fiscal 2011 periods which included the worldwide theatrical success of The Chronicles of Narnia: Voyage of the Dawn Treader and Black Swan. The nine months ended March 31, 2012 also included the worldwide theatrical and home entertainment success of Rise of the Planet of the Apes and the home entertainment success of Rio and X-Men: First Class as compared to the corresponding fiscal 2011 period which included the home entertainment and pay television performances of Avatar.

For the three months ended March 31, 2012, operating income at the Television Segment decreased $21 million, or 11%, as compared to the corresponding period of fiscal 2011, primarily due to the revenue decreases noted above, partially offset by lower programming costs due to the absence of costs related to the broadcast of the Super Bowl. For the nine months ended March 31, 2012 operating income at the Television Segment increased $45 million, or 10%, as compared to the corresponding period of fiscal 2011, primarily due to lower programming costs due to the absence of costs related to the broadcast of the Super Bowl, partially offset by higher prime-time entertainment and sports programming costs and higher marketing costs in support of the launch of new series.

For the three and nine months ended March 31, 2012, revenues at the Publishing segment decreased $59 million, or 3%, and $252 million, or 4%, respectively, as compared to the corresponding periods of fiscal 2011, primarily due to decreases at the Company’s newspapers businesses. The decreases at the Company’s newspaper businesses were primarily due to lower revenues in the U.K., principally resulting from the shutdown of The News of the World in July 2011 and lower revenues at the Australian newspapers. Also contributing to the revenue decline during the nine months ended March 31, 2012 was lower advertising revenues at the integrated marketing services business resulting from lower volume of in-store marketing products. The decrease in revenues during the nine months ended March 31, 2012 was partially offset by higher digital circulation revenues at The Wall Street Journal. The weakening of the U.S. dollar against local currencies, primarily the Australian dollar, resulted in revenue increases of approximately $19 million and $154 million for the three and nine months ended March 31, 2012, respectively, as compared to the corresponding periods of fiscal 2011.

Read the The complete Report



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