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News Corporation Sees 28% Interim Earnings Rise to $625 Million

Strategic Insights

— 1 min read

The varied talents of Robin Williams, Michael Jordan, and Margaret Thatcher have contributed to News Corporation's interim earnings rising 28% to $625 million. This result exceeded expectations, leading analysts to revise their forecasts for the full year to around $1.25 billion. The boost came from improved performances at Fox Film, Fox Television, British Sky Broadcasting, and Ansett Transport Industries.

Key Takeaways:

  • Interim earnings of News Corporation rose by 28% to $625 million, with a significant contribution from Fox Film's success with "Mrs. Doubtfire".
  • Fox Film's revenue from "Mrs. Doubtfire" reached $US170 million ($A237 million) in the US market, while Fox Television operations lifted its contribution to trading profits to $205 million.
  • HarperCollins, News Corporation's book publishing unit, saw a seven percent profit increase despite stagnant earnings for several years.
  • Net interest charges decreased by $43 million, and the book publishing unit's improved earnings offset lower earnings from newspapers and the US free-standing inserts business.
  • Net abnormal profits of $144 million, largely driven by profits from the sale of 34.9% of the South China Morning Post and assets owned by BSkyB, significantly boosted the bottom line.
  • The contribution from associates more than doubled to $190 million, reflecting the growth of BSkyB and the resurgence of Ansett.
  • BSkyB earned $68 million ($A142 million) for the half, with 41 million coming in the December quarter.

Statistics:

  • Interim earnings rose 28% to $625 million
  • Fox Film's revenue from "Mrs. Doubtfire" reached $US170 million ($A237 million)
  • HarperCollins' profit increased by 7%
  • Net interest charges decreased by $43 million
  • Net abnormal profits reached $144 million
  • BSkyB earned $68 million ($A142 million) for the half
  • The contribution from associates more than doubled to $190 million
  • Ansett's earnings for the half increased to $128 million, up from $57 million previously

Sources:

  • "News Corporation Sees 28% Interim Earnings Rise to $625 Million"
  • Sydney Morning Herald, by Ben Potter, date not provided

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