News Corp banks on cable growth

06 November 2009

NEW YORK: News Corporation has reported an 11% increase in profits in Q3, prompted largely by cable TV growth in the US.

Despite a 4.1% fall in revenues to $7.2 billion (€4.8bn; £4.3bn) in the last quarter, the media conglomerate produced net income of $571 million, compared with $515m a year ago.

Ice Age: Dawn of the Donosaurs, which has so far grossed $880m, triggered a $391m operating profit at Twentieth Century Fox, up 55%.

Over at News Corp's newspapers division however, things look less rosy as the company digests a 77% drop in profits to $25m.

Chairman and chief executive Rupert Murdoch has already announced his intention to charge for all online newspaper content by next June, but now believes that the deadline will not be met.

Despite ongoing talks with other media companies over the thorny issue of charging, most research suggests that consumers will not be prepared to cough up without a fight.

Data sourced from The Times; additional content by WARC staff