News Corporation Back in the Black for Fiscal Q1

06 November 2002

International media mammoth News Corporation erased the red ink from its numbers during the first quarter of its fiscal year ending June 30 2003.

In New York Tuesday chairman/ceo Rupert Murdoch unveiled a 51% increase in operating income to $548 million (€550.36m; £351.96m), while net profits almost doubled to $162 million, with margins boosted by cost-cutting.

According to Murdoch, the results “resoundingly” confirm the company’s strength. Revenues rose 12% to $3.8 billion and net profits almost doubled to $162 million. But bucking the upward trend, operating profit in filmed entertainment fell from $122m to $100m.

Last year the company – the globe’s fifth largest media organization, headquartered in New York but founded in Australia – posted the largest corporate loss ever recorded in that country.

In that [fiscal] year’s final quarter, NewsCorp reported a “significant improvement” which, translated from NewsCorp-speak, equated to a loss of $1.71 billion arising from its writedown of a controlling stake in Gemstar-TV Guide International.

Data sourced from: Times Online (UK); additional content by WARC staff