News Corp posts $1.6bn losses in Q2
09 August 2012
Rupert Murdoch’s News Corp has reported a $1.6bn net loss for the quarter ended June 30 and a year-on-year decrease in revenue to $8.4bn, according to its latest financial statement.
Total quarterly operating income was $1.2bn, down from $1.4bn for the same period in 2011. Its cable network programming contributed $792m operating income, a 26% increase compared to the year-ago quarter, and $2.5bn to the overall quarterly revenue.
Ad revenue at its domestic cable channels grew 5% year-on-year, led by growth at the RSNs and National Geographic Channel, while revenue at its international cable channels grew 18%, due to improving ad markets in India and Latin America.
Filmed entertainment reported quarterly operating income of $120m, down from $210m in the year-ago quarter, and $1.7bn in revenue. Television was also down, with operating income $20m lower to $213m and revenues were $1.1bn.
Direct broadcast satellite television/Sky Italia posted $89m in operating income, compared to $145m in the same period a year ago. This was due to lower subscription revenues and a lower subscriber base. Revenues at this segment decreased to $880m.
At its publishing arm, operating income was down $131m from the year-ago quarter to $139m. This was accounted to lower ad revenues at the international newspapers and integrated marketing services business, as well as reflecting the impact of the closure of the News of the World in the UK. Revenues were down to $2.0bn.
“Our company has continued to innovate, grow and consistently adapt to the rapidly changing media industry landscape,” says News Corp chairman and chief executive Rupert Murdoch. “We find ourselves in the middle of great change, driven by shifts in technology, consumer behaviour, advertiser demands and economic uncertainty and change brings about great opportunity.”
Looking ahead, Murdoch also noted that the proposed separation of its media and entertainment and publishing businesses should enhance News Corp’s operational, strategic and financial position.
Jenni Baker, London