News Corp reportes US$ 33.7Bn annual revenue with 1% surge over last year
News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months and full year ending June 30, 2012. Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said: “We are proud of the full year financial growth achieved over the last twelve months, led by our Cable Network Programming and Filmed Entertainment segments. Not only did we execute on our operating plan and deliver on our financial targets, we returned over $5 billion to shareholders through an aggressive buyback program and dividends. In addition, significant progress has been made in opportunistically addressing the Company’s non-consolidated assets, as demonstrated by the purchase of Fox Pan American Sports, the sale of NDS and the announced intention to purchase the remaining ownership stake of ESPN STAR Sports and Consolidated Media Holdings.
“Our Company has continued to innovate, grow and consistently adapt to the rapidly changing media industry landscape. We find ourselves in the middle of great change, driven by shifts in technology, consumer behavior, advertiser demands and economic uncertainty and change brings about great opportunity. News Corporation is in a strong operational, strategic and financial position, which should only be enhanced by the proposed separation of the media and entertainment and publishing businesses.”
Full Year Company Results
The Company reported annual revenue of $33.7 billion, a $301 million, or 1%, increase over the $33.4 billion of revenue reported a year ago. The annual revenue increase was led by 14% growth at the Company’s Cable Network Programming segment, partially offset by declines primarily at the Company’s Publishing and Other segments.
The Company reported annual total segment operating income of $5.4 billion compared to $4.9 billion reported a year ago. This increase was driven by operating income improvements at nearly all of the Company’s segments, led by a $535 million, or 19%, increase at the Cable Network Programming segment and a $205 million, or 22%, increase at the Filmed Entertainment segment. These improvements were partially offset by decreases at the Publishing segment, reflecting advertising weakness at the international newspaper and integrated marketing services businesses, and the absence of contributions from The News of the World. The full year results included a $224 million charge related to the costs of the ongoing investigations initiated upon the
closure of The News of the World. The prior year results included a $125 million charge at the Company’s integrated marketing services business related to the settlement of litigation. Excluding these charges from both years, respectively, this year’s adjusted total segment operating income of $5.6 billion increased $628 million, or 13%, from $5.0 billion in the prior year.
The Company reported annual net income of $1.2 billion ($0.47 per share), compared to net income of $2.7 billion ($1.04 per share) reported in the prior year. The full year results included a $3.0 billion pre-tax impairment and restructuring charge primarily related to the Company’s publishing businesses. This charge was partially offset by a $270 million pre-tax gain from the Company’s participation in British Sky Broadcasting’s (“BSkyB”) share repurchase program, which is reflected in Equity earnings of affiliates. The prior year results included a $254 million loss, net of tax resulting from the Company’s sale of Myspace. Excluding the net income effects of these items, the charge related to the investigations in the U.K., and comparable items in both years, adjusted earnings per share was $1.41 compared with the adjusted year-ago result of $1.18.
Fourth Quarter Company Results
The Company reported quarterly revenue of $8.4 billion, as compared to the $9.0 billion of revenue reported a year ago. The 15% growth at the Company’s Cable Network Programming segment was more than offset by declines at the Company’s remaining segments.
The Company reported quarterly total segment operating income of $1.2 billion, a $167 million decrease compared to $1.4 billion reported a year ago. The increase at the Cable Network Programming segment of $161 million, or 26%, was more than offset by decreases at the Company’s remaining segments. The quarterly results included a $57 million charge related to the costs of the ongoing investigations initiated upon the closure of The News of the World.
The Company reported quarterly net loss of $1.6 billion (-$0.64 per share) as compared to net income of $683 million ($0.26 per share) reported in the prior year quarter. The quarterly results included a $2.9 billion pre-tax impairment and restructuring charge primarily related to the Company’s publishing businesses, as well as $15 million of pre-tax loss in Other, net, which includes a loss on the sale of property in the U.K. These charges were partially offset by a $115 million pre-tax gain from the Company’s participation in the BSkyB share repurchase program. The prior year quarterly results included a $254 million loss, net of tax resulting from the Company’s sale of Myspace. Excluding the net income effects of these items, the charge related to the investigations in the
U.K., and comparable items in both years, quarterly adjusted earnings per share was $0.32 compared with the adjusted prior year quarter result of $0.35
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