Cable was once again stronger for News Corporation, with fiscal Q1 (July-September) revenues up 16.6% to $1.87 billion. But the Television division had a strong quarter, with revenues up 11.2% to $851 million.
When it comes to operating income growth, though, television was the star performer. Its operating income shot up 176.3% to $105 million. The Cable segment grew operating income 28.5% to $659 million.
For all of News Corporation, fiscal Q1 revenues were up 3.2% to $7.43 billion and combined segment operating income rose 8.1% to $1.15 billion.
The Television segment growth was driven by the Fox Television Stations, where ad revenues were up 22%. “These higher revenues reflect stronger overall local advertising trends, particularly in the automotive, telecommunications and financial sectors, as well as increased levels of political advertising,” the company said. Financial results for the Fox Network were down, with higher ad revenues from NFL games more than offset by program cancellation costs and higher promotional costs for launching new shows.
The TV stations are going strong in the current quarter as well. COO Chase Carey said the O&O stations are expected to post revenues up more than 20% in fiscal Q2 (October-December).
In the Cable segment, ad revenues for the domestic cable channels grew 16%. CFO Dave DeVoe noted that Fox News Channel had more viewers in the quarter than its three challengers combined – CNN, MSNBC and CNBC. The international channels posted even stronger growth, with ad revenues up 27%.
News Corporation does not provide detailed guidance for its individual business segments. However, for the entire company it is sticking with its previous guidance that combined segment earnings growth will be in a low double digit percentage growth range.
