News Corp delivered solid earnings beating EPS estimates, sending the stock up a tad after hours.
News Corp.’s profits are almost entirely driven by cable networks and films, which both saw big gains in the quarter.
Here’s the key numbers:
- EPS of $0.22 versus Street estimates of $0.18.
- Net income $571 million, up 11%.
- Revenue came in at $7.2 bilion versus Street estimates were $7.16 billion.
- Operating income of $1.04 billion, up 9%.
Filmed entertainment operating income was up to $391 million compared to $251 million from the previous year. Ice Age: Dawn of the Dinosaurs, was a smash hit!
Fox’s broadcast station was way off, with operating income down to $38 million, compared to $83 million from a year ago. The crappy ad market is killing the broadcast stations, which explains why News Corp. wants to get subscription fees from cable companies for the broadcast stations.
Cable networks had a big gain in operating income for News Corp, rising $145 million year over year. Fox News had its highest ever profit and increased operating income by 79%.
Newspapers saw a steep drop in operating income of $109 million, driven by advertising declines.
Digital was also killed by the bad ad market, dropping $22 million because of weak search and advertising revenue.