News Corp sees return to revenue growth

The company reported net income of $254m (£158.5m) for the quarter to 31 December compared to a net loss of $6.4 (£3.99 b) for the same period in 2008.

In the quarter, total revenue increased by 10% to $8.7 billion (£5.42 b) as a result of double-digit percentage growth at the majority of business divisions, as compared to the same period a year ago.

Regarding the UK newspaper operations, that take in The Sun, The Times and News of the World, News Corp reports the group reported higher second quarter operating income contributions year on year quarter due to cost savings from lower
promotional expenses and “cost containment initiatives”.

The US-based Wall Street Journal saw ad revenues rise with 5% growth in the print edition and 17% in the WSJ digital networks.

In local currency terms, advertising revenues were flat as compared to Q2 2008 quarter and circulation revenues declined 5%.

Chairman and CEO Rupert Murdoch (pictured) says: “Our strong top-line revenue growth demonstrates that News Corporation is emerging from this recession with renewed vigour and strength. Moreover, our underlying operating trends this quarter far outpace those of the same quarter last year. We continue to reap the benefits from the restructuring and cost containment measures we instituted before the downturn began and I am pleased that our unrelenting focus has translated to growth across our businesses that will reward stockholders for years to come.

“News Corporation’s leadership position in news, sports and entertainment stems from our unique ability to produce the high quality content that consumers and distributors demand. We have a strong management team that knows how to nurture our core businesses, while taking prudent, creative risks like Avatar that lead the industry forward. I have every confidence that News Corporation is entering a new period of sustained growth.”