News Corporation 2011 Net Income $2.74 Billion
; published on August 11, 2011 at 11:29 am
News Corporation has reported 2011 full year net income at $2.74 billion. Growth in the fourth quarter has been led by the television segment. Fourth quarter total segment operating income was $1.35 billion, a $420 million or 45% increase compared to $932 million reported a year ago.
Chairman and Chief Executive Officer Rupert Murdoch said of the results:
“I’m pleased that once again News Corporation exhibited operational momentum in both the final quarter of fiscal 2011 and for the full year driven by significant increases at our market-leading Cable Network Programming and Television segments. While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again.
“It is important to note that there has been no material impact on our other operations. Our broad, diverse group of businesses across the globe is extremely strong today. The drivers of our businesses are intact, our position is strong and our future is promising. Our fundamental goals at News Corp are to produce sustained, meaningful value for shareholders, provide outstanding content and services to customers and consumers – and do it with integrity. These goals are interrelated and all three are critically important. And we will deliver on them.”
The cable network programming segment saw increases led by the Latin American and Asian markets. Television revenues increased because of lower costs associated with the cessation of filming of 24, increased revenue from the Super Bowl XLV and more retransmission.
Filmed entertainment income decreased from the historic highs delivered by Avatar and Ice Age: Dawn of the Dinosaurs, which together contributed more than half of 2010’s segment operating profit. Publishing income was affected by litigation settlement charges of $125 million in 2011 and $500 million in 2010. However, ad revenues on The Wall Street Journal were up.
Myspace had increased losses offset by cost cutting at the Digital Media Group. The business as a whole also benefited from the strong Australian Dollar and British Pound.