Newspapers Help Boost News Corp.

By: (AP) Australian media giant The News Corp. Ltd. said Wednesday its profit climbed sharply in the latest quarter, boosted by strong growth at its newspapers and its cable networks such as Fox News Channel.

Overcoming flat results from its broadcast television and film operations, News Corp. reported net profit of $361 million, or 27 cents per U.S. share, for the fiscal second quarter ended Dec. 31.

That compares with the prior year's $239 million, or 18 cents a share.

Excluding items, profit increased 28% to $410 million, or 30 cents per U.S. share, from the previous year's $320 million, or 24 cents, per share. Analysts surveyed by Thomson First Call had forecast, on average, a profit of 28 cents per share.

Revenue rose 19% to $5.59 billion.

News Corp. reported a marginal drop in operating income from its Hollywood studio, 20th Century Fox, to $253 million. The results were affected by the cost of marketing new movies like "Master and Commander: The Far Side of the World," but helped by video revenue on films such as "X-2: X Men United" and DVD revenue on TV shows such as "The Simpsons."

Fox Broadcasting Co., the TV network, reduced its operating loss to $133 million from $154 million, helped by popular shows such as "American Idol" and strong ad sales for Major League Baseball, Fox said.

Cable programming reported second quarter operating income of $187 million, up 55% from last year, in part due to the recovery of $15 million from Adelphia which had been previously written off.

On a percentage basis, News Corp. experienced the greatest amount of growth in its newspaper unit, where operating income was up 67% to $170 million, thanks to circulation revenue increases in Britain as well as advertising strength in Britain and Australia. News Corp.'s overseas publications include the Sun and the Times. In the U.S. the company owns the New York Post.

News Corp.'s U.S. shares were at $38.50 in midday trading Wednesday, up 80 cents, or 2.1%, on the New York Stock Exchange.