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News Corp 1Q helped by TV, cable results

News Corp 1Q helped by TV, cable results

News Corp. is benefiting from political ad spending and a hard-nosed bargaining strategy with pay-TV operators, as gains in its TV and cable segments helped net income grow in the latest quarter.
The New York-based media giant controlled by Rupert Murdoch said Wednesday that net income in the fiscal first quarter, which ended Sept. 30, rose 36 percent to $775 million, or 30 cents per share, from $571 million, or 22 per share, a year ago.
Revenue grew 3 percent to $7.43 billion from $7.20 billion.
Analysts polled by Thomson Reuters expected earnings of 24 cents per share on revenue of $7.42 billion.
Shares of the company's Class A shares jumped 46 cents, or 3.1 percent, to $15.40 in after-hours trading after the release of results Wednesday. It closed up 23 cents, or 1.6 percent, at $14.84 in the regular session.
The company recently concluded tough negotiations with Dish Network Corp. and Cablevision Systems Corp. In Dish's case, News Corp.'s Fox blacked out cable channels such as FX and regional sports networks to 14.3 million subscribers for a month. Fox played hardball and cut signals to two games of baseball's World Series to Cablevision's 3 million customers. Deals were reached last week to end both blackouts.
At the start of the year, Fox also ended a noisy fee fight with Time Warner Cable Inc. that threatened college football.
Fox News Channel continued its dominance, as the company said it drew more viewers in prime-time and over the course of the day than CNN, MSNBC and CNBC combined.
Its newspaper business, which includes The Wall Street Journal, also rebounded, benefiting from a 13 percent gain in advertising revenue.
Losses grew at its "other" segment, which includes its recently revamped social networking site MySpace.


Updated : 2021-06-22 22:27 GMT+08:00