News Corp. Fiscal 3Q TV Revenue Up 1.4%

News Corp. on Wednesday reported fiscal third quarter television segment revenue of $1.22 billion, up 1.4% from $1.20 billion in the year-earlier quarter.

Television segment operating income was $196 million, an increase of $25 million or 15% versus $171 million in the same period a year ago. The company said the increase reflects a near doubling of retransmission consent revenues and lower programming costs at the Fox Broadcasting Co. These improvements, the company said, were partially offset by lower national and local advertising revenues, primarily reflecting lower primetime ratings driven by declines at American Idol, now in its 12th season.

The company as a whole reported $9.54 billion of total revenue for the three months ending March 31, 2013, a $1.14 billion or 14% increase over the $8.40 billion of revenue reported in the prior year quarter. Approximately 55% of the revenue increase reflects growth at the cable network programming, filmed entertainment and television segments, partially offset by lower revenues at the publishing segment.

Commenting on the results, Chairman-CEO Rupert Murdoch said: “In our fiscal third quarter News Corp. achieved organic growth across our cable, film and television segments and, through the consolidation of Sky Deutschland and sale of stakes in SKY New Zealand and Phoenix Satellite Television, we advanced our strategic agenda to simplify our global portfolio. We also announced our plans to broaden our core cable business with the unveiling of our national sports channel Fox Sports 1 and our third branded FX channel, FXX. Both initiatives underscore our strategy of maximizing existing assets and leadership positions to drive sustainable growth and long-term value.

“We are on target to complete the proposed separation of our businesses near the end of our fiscal year. As we prepare to launch two new industry leaders with new News Corp. and 21st Century Fox, I am more confident than ever of the long-term value the separation will unlock for the company and its shareholders.”