News Corp. (NASDAQ:NWSA) reported better-than-expected quarterly earnings and revenue on Wednesday, citing growth at its popular cable network channels.
The New York-based media conglomerate earned 39 cents an adjusted share on revenue of $9 billion. Wall Street had been looking for net income of 34 cents a share on sales of $8.9 billion.
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During the same period a year ago, News Corp. earned 29 cents an adjusted share on revenue of $8.76 billion.
Shares of News Corp., the parent of FOX Business, slipped slightly in after-hours trading. The stock closed higher by 12 cents at $19.62.
Chairman and Chief Executive Officer Rupert Murdoch said in a statement, “The significant growth we reported in the quarter in the Cable Network Programming, Television and Filmed Entertainment segments clearly validates our strategy to develop and distribute superior wide-ranging content. I am particularly pleased with the success of our business strategies in spite of the uncertain economic conditions that we continue to face.”
In the statement, News Corp. said the revenue increase was led by growth at the company’s Cable Network Programming, Television and Filmed Entertainment segments.
The growth was partially offset by declines at the News Corp.’s Publishing and other segments, primarily an $87 million charge, or 3 cents per share, related to the costs of ongoing investigations into phone hacking at the now-closed The News of the World newspaper in London.
News Corp. reported second quarter total segment operating income of $1.50 billion, a 16% increase over the $1.29 billion of total segment operating income reported a year ago.
This improvement was led by a more than doubling of contributions at the company’s Filmed Entertainment segment, as well as strong double-digit increases at the Cable Network Programming and Television segments.
Fiscal second quarter net income, excluding one-time charges, came to $1.06 billion versus net income of $642 million a year ago.