By: E&P Staff News Corporation said Thursday its first quarter operating income jumped 19% to $909 million on a 10% growth in revenue compared to the same period last year.
Much of the growth could be attributed to strong performance in its cable network programming division, including the Fox News Channel and Regional Sports Networks affiliates, which offset a 32% declining in broadcast TV operating income.
But the company led by mogul Rupert Murdoch said its results included operating income gains in its newspaper division, chiefly from its Australian properties.
News Corp. said its newspapers segment reported a first quarter operating income of $125 million, an increase of $7 million from 2004. "The inclusion of results from the Queensland Press Group, which was acquired in November 2004, as well as higher advertising revenues in Australia, drove the year-on-year growth," the company said.
British newspapers showed an operating income decline in local currency terms as circulation revenue growth was more than offset by lower ad revenues and higher depreciation costs associated with new color printing operations. "The circulation revenue gains were the result of increased cover prices across all major titles, as well as from the conversion to a compact version at The Times," News Corp. said.
Cable network programming income jumped 19% on ratings and advertising growth at channels such as Fox News, the company said. Broadcast television revenues grew 4% in the period, but higher costs drove operating income down 32%, News Corp. said.
In a statement, Murdoch noted that this was the 15th consecutive quarter in which News Corp. reported year-over-year operating income and revenue growth.
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