News Corporation Reports Second Quarter Earnings Per Share of $1.01 on Net Income Attributable to Stockholders of $2.38 Billion

Wed Feb 6, 2013 4:05pm EST

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Total Segment Operating Income Increases 6% to $1.58 Billion on Revenue of $9.43
Billion
NEW YORK--(Business Wire)--
News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported $9.43
billion of total revenue for the three months ending December 31, 2012, a $450
million or 5% increase over the $8.98 billion of revenue reported in the prior
year quarter. The revenue increase was led by $398 million or 18% growth at the
Company`s Cable Network Programming segment. 

The Company reported second quarter total segment operating income(1) of $1.58
billion compared to $1.50 billion reported a year ago. The improvement was led
by operating income improvements at the Company`s Cable Network Programming and
Television segments. The second quarter results included $56 million of costs
related to the ongoing investigations initiated upon the closure of The News of
the World as compared to $87 million in the corresponding period of the prior
year. This year`s second quarter results also included $23 million of costs
related to the proposed separation of the Company`s entertainment and publishing
businesses. Excluding these costs from both years, second quarter adjusted total
segment operating income of $1.66 billion increased $75 million or 5% from $1.58
billion reported in the second quarter of the prior year. 

The Company reported quarterly net income attributable to stockholders of $2.38
billion ($1.01 per share), compared to $1.06 billion ($0.42 per share) reported
in the corresponding period of the prior year. This quarter`s pre-tax results
included $1.40 billion of income in Other, net, principally related to gains on
the acquisitions of additional ownership stakes in FOX SPORTS Australia and Fox
Star Sports Asia (formerly ESPN Star Sports), as well as a $131 million gain
from the Company`s participation in British Sky Broadcasting`s ("BSkyB") share
repurchase program, which is reflected in Equity earnings of affiliates. These
gains were partially offset by $65 million of restructuring and impairment
charges, primarily related to the Company`s international newspaper businesses.
Excluding the net income effects of these items, the costs related to the
investigations in the U.K. and the proposed separation of the Company`s
entertainment and publishing businesses, along with comparable items in both
years, second quarter adjusted earnings per share(2) was $0.44 compared with the
adjusted prior year quarter result of $0.39. 

Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch
said: 

"News Corporation`s fiscal second quarter performance reflects our strong
momentum. Double-digit gains in our Cable and Television businesses, along with
improvements in our Publishing segment, drove revenue and earnings growth even
as we seized opportunities to invest in our core businesses for long-term and
sustainable growth. 

"The strategies we executed against in the quarter continue to bolster News
Corporation's competitive position and enhance our ability to benefit from
global demand for content, especially sports programming. As we make progress
toward the proposed separation of our entertainment and publishing businesses
later this year, I am confident in the future prospects for both businesses." 

____________________________________________________________ 

(1)Total segment operating income is a non-GAAP financial measure.See page 12
for a description of total segment operating income and for a reconciliation of
total segment operating income to income before income tax expense.

(2)See page 15 for a reconciliation of reported net income and earnings per
share to adjusted net income and adjusted earnings per share.

                                                                                                                                                      
 REVIEW OF SEGMENT OPERATING RESULTS                                                                                                                  
                                                                                                                                                      
 Total Segment Operating Income (Loss)                  3 Months Ended                                        6 Months Ended                          
                                                        December 31,                                          December 31,                            
                                                        2012                            2011                  2012                    2011            
                                                        US $ Millions                                                                                 
                                                                                                                                                      
 Cable Network Programming                              $       945                     $    882              $    1,898              $    1,657      
 Filmed Entertainment                                           383                          393                   783                     740        
 Television                                                     224                          189                   380                     322        
 Direct Broadcast Satellite Television                          (20     )                    6                     3                       125        
 Publishing                                                     234                          218                   291                     328        
 Other                                                          (186    )                    (191   )              (397   )                (290   )   
 Total Segment Operating Income *                       $       1,580                   $    1,497            $    2,958              $    2,882      
                                                                                                                                                      


 *    The three months ended December 31, 2012 and 2011 include $56 million and $87 million, respectively, of costs related to the ongoing investigations in the U.K. The three months ended December 31, 2012 include $23 million of costs related to the proposed separation of the Company`s entertainment and publishing businesses. Excluding these charges, adjusted total segment operating income is $1,659 and $1,584 million in the three months ended December 31, 2012 and 2011, respectively.  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
      The six months ended December 31, 2012 and 2011 include $123 million and $104 million, respectively, of costs related to the ongoing investigations in the U.K. The six months ended December 31, 2012 include $28 million of costs related to the proposed separation of the Company`s entertainment and publishing businesses. Excluding these charges, adjusted total segment operating income is $3,109 and $2,986 million in the six months ended December 31, 2012 and 2011, respectively.      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            


CABLE NETWORK PROGRAMMING

Cable Network Programming reported quarterly segment operating income of $945
million, a $63 million or 7% increase over the prior year quarter, driven by an
18% increase in revenue. Operating income contributions from the domestic
channels increased 9%. Double-digit revenue growth at the Regional Sports
Networks ("RSNs"), Fox News Channel, FX Network and National Geographic Channels
was partially offset by increased programming costs, including expanded college
football and Ultimate Fighting Championship ("UFC") coverage, as well as higher
costs at the RSNs related to the benefit recognized in the prior year as a
result of the National Basketball Association ("NBA") lockout. The Company`s
international cable channels` quarterly earnings contributions increased 3% from
the same period a year ago, reflecting strong operating profit growth at the
non-sports channels at Fox International Channels ("FIC") and STAR, partially
offset by the costs associated with the inaugural broadcasts of BCCI cricket and
the adverse impact of the strengthened U.S. dollar. 

Affiliate revenue grew 13% and 42% at the domestic and international cable
channels, respectively. Domestic network growth reflects higher rates across all
networks, led by growth at the Fox News Channel and RSNs. Approximately 40% of
the international affiliate revenue increase reflects strong local currency
growth at the non-sports channels at FIC and STAR. The balance of the growth was
principally from the inclusion of Fox Pan American Sports ("FPAS") and Fox Star
Sports Asia, partially offset by the impact of the strengthened U.S. dollar. 

Advertising revenue at the domestic cable channels grew 8% in the quarter over
the prior year period driven by growth across most networks. The international
cable channels` advertising revenue improved 29% from the prior year quarter.
Nearly two-thirds of the international cable revenue increase reflects strong
local currency growth at the non-sports channels at FIC and STAR. The balance of
the growth was from the inclusion of FPAS and Fox Star Sports Asia, partially
offset by the impact of the strengthened U.S. dollar. 

Expenses at Cable Network Programming grew 26% in the quarter over the
corresponding period in the prior year due to increased sports programming
costs, including increased rights costs at the RSNs related to the timing
benefit in the prior year resulting from the NBA lockout, rights fees for BCCI
cricket in India, expanded college football coverage, UFC rights fees, as well
as expenses associated with the consolidation of the FPAS and Fox Star Sports
Asia networks. These increases were partially offset by reduced National Hockey
League rights costs at the RSNs resulting from this season`s lockout. 

FILMED ENTERTAINMENT

Filmed Entertainment reported quarterly segment operating income of $383
million, as compared to the $393 million reported in the same period a year ago.
Quarterly results reflect the successful worldwide theatrical performances of
Taken 2, which has grossed approximately $375 million in worldwide box office to
date, and Life of Pi, which has grossed over $500 million in worldwide box
office and is nominated for eleven Academy Awards including Best Picture. In
aggregate, the Fox film studios garnered thirty-one Academy Award nominations,
the most of any studio. In addition, the quarterly results include the
successful worldwide home entertainment performance of Ice Age: Continental
Drift. Prior year second quarter film results included the successful worldwide
home entertainment performances of Rio, Rise of the Planet of the Apes and
X-Men: First Class. 

TELEVISION

Television reported quarterly segment operating income of $224 million, an
increase of $35 million or 19% versus the same period a year ago. This increase
reflects a more than doubling of retransmission consent revenues and increased
local advertising at the Fox Television Stations driven by political advertising
revenues. These improvements were partially offset by lower national advertising
revenues, primarily reflecting lower primetime ratings at the Fox Broadcast
Network and three fewer World Series games in the current year, as well as
increased costs associated with expanded college football coverage. 

DIRECT BROADCAST SATELLITE TELEVISION

SKY Italia generated a quarterly segment operating loss of $20 million, compared
to operating income of $6 million reported in the same period a year ago. The
decline was driven by higher programming expenses, including nearly $30 million
of rights costs primarily associated with expanded UEFA Champions and Europa
League coverage. Although reported U.S. dollar revenue declined reflecting the
impact of the strengthened U.S. dollar, quarterly local currency revenue was
essentially in line with the corresponding period of the prior year. SKY Italia
experienced a net reduction of approximately 28,000 subscribers during the
quarter, bringing total subscribers to 4.83 million. 

PUBLISHING

Publishing reported quarterly segment operating income of $234 million, a $16
million improvement from the $218 million reported in the same period a year
ago. Increased contributions from the U.K. newspapers which benefitted from the
launch of the Sunday edition of The Sun in February 2012, integrated marketing
services driven by higher custom publishing revenues, and book publishing
businesses related to the acquisition of Thomas Nelson, Inc., a Christian book
publisher, more than offset lower advertising revenues at the Australian
newspapers. 

OTHER

The Other segment quarterly operating loss of $186 million improved slightly
from the $191 million reported the same period a year ago. The current year
quarterly results included $56 million of costs related to the ongoing
investigations initiated upon the closure of The News of the World, as compared
to $87 million of comparable costs included in the prior year quarterly results,
as well as $23 million of costs related to the proposed separation of the
Company`s entertainment and publishing businesses. As a result of the Company`s
acquisition of Consolidated Media Holdings in November, the second quarter
results also included a benefit from the consolidation of FOX SPORTS Australia.
This benefit was largely offset by an increased operating loss at Amplify, the
Company`s education business, reflecting increased product development costs. 

OTHER ITEMS

Eredivisie Media & Marketing

In November 2012, the Company acquired a controlling 51% ownership stake in
Eredivisie Media & Marketing CV ("EMM") for approximately $350 million, of which
$325 million was cash and $25 million was contingent consideration. EMM is a
media company that holds the collective media and sponsorship rights of the
Dutch Premier League. The remaining 49% of EMM is owned by the Dutch Premier
League and the global TV production company Endemol. 

Fox Star Sports Asia (formerly ESPN Star Sports)

In November 2012, the Company acquired the remaining 50% interest in ESPN Star
Sports ("ESS") that it did not already own for approximately $220 million, net
of cash acquired. Accordingly, the results of ESS are included the Company`s
consolidated results of operations beginning in November 2012. Subsequent to its
acquisition, the Company rebranded the ESS channel group Fox Star Sports Asia. 

Consolidated Media Holdings

In November 2012, the Company acquired Consolidated Media Holdings Ltd. ("CMH"),
a media investment company that operates in Australia, for approximately $2.2
billion which consisted of cash of $2 billion and assumed debt of $235 million.
CMH had a 25% interest in Foxtel and a 50% interest in FOX SPORTS Australia. The
remaining 50% of Foxtel is owned by Telstra Corporation Limited, one of
Australia`s leading telecommunications companies. The acquisition doubled the
Company`s stakes in FOX SPORTS Australia and Foxtel to 100% and 50%,
respectively. Accordingly, the results of FOX SPORTS Australia are included the
Company`s consolidated results of operations beginning in November 2012. Prior
to November 2012, the Company accounted for its investment in FOX SPORTS
Australia under the equity method of accounting. The Company`s investment in
Foxtel was and continues to be accounted for under the equity method of
accounting. 

YES Network & Sports Time Ohio

In December 2012, the Company acquired a 49% equity interest in the Yankees
Entertainment and Sports Network ("YES"), a New York City-based RSN, for $584
million. In addition, simultaneous with the closing of this transaction, the
Company paid approximately $250 million of upfront costs on behalf of YES. Under
the purchase agreement, after three years, News Corporation may acquire an
additional 31% stake in the YES Network that could bring its total ownership
stake to 80%. 

In December 2012, the Company also acquired Sports Time Ohio, a RSN serving the
Cleveland, Ohio market, for an estimated total purchase price of approximately
$270 million, of which $130 million was paid in cash. The balance of the
purchase price represents the fair value of deferred payments and payments that
are contingent upon achievement of certain performance objectives. 

Sky Deutschland

In January 2013, the Company reached an agreement with Sky Deutschland AG ("Sky
Deutschland") and its new bank syndicate to support both a new financing
structure and the issuance of €438 million (approximately $585 million) of new
equity, which includes the outstanding €144 million (approximately $195 million)
of equity under the capital measures announced by Sky Deutschland in February
2012. Sky Deutschland finalized the equity offering in early February 2013 and
the Company acquired, through a combination of a private placement and a rights
offering, approximately 92 million additional shares of Sky Deutschland
increasing its ownership to approximately 55%. The aggregate cost of the shares
acquired by the Company was approximately €410 million (approximately $550
million). As a result of these transactions, the results of Sky Deutschland will
be included in the Company`s consolidated results of operations in the fiscal
third quarter of 2013. In addition, the Company has committed to guarantee Sky
Deutschland`s new €300 million (approximately $400 million) five-year bank
credit facility, which will replace Sky Deutschland`s existing bank debt
facilities (to be repaid in full). Additionally, News Corporation will act as
guarantor to the German Football League for Sky Deutschland`s Bundesliga
broadcasting license for the 2013/14 to 2016/17 seasons in an amount up to 50%
of the license fee per season. News Corporation has also agreed to extend the
maturity of existing shareholder loans. 

Share repurchases

On May 9, 2012, News Corporation announced that its Board of Directors approved
an increase to the previously authorized stock repurchase program from $5
billion to $10 billion. Through February 5, 2013, the Company has purchased
nearly $6.3 billion of Class A common stock under the program, at an average
price of $19.13 per share. As a result of the stock repurchase program, diluted
weighted Class A shares outstanding of 2,346 million in this year`s quarter
declined 7% from 2,515 million in the same period a year ago. 

Dividends

The Company has declared a dividend of $0.085 per Class A and Class B share.
This dividend is payable on April 17, 2013 with a record date for determining
dividend entitlements of March 13, 2013. 

Intent to pursue separation of entertainment and publishing businesses

On June 28, 2012, News Corporation announced that it intends to pursue the
separation of its publishing and its media and entertainment businesses into two
distinct publicly traded companies. The global publishing company that would be
created through the proposed transaction would consist of the Company`s
publishing businesses, its education division and other Australian assets. The
global media and entertainment company would consist of the Company`s cable and
television assets, filmed entertainment, and direct satellite broadcasting
businesses. Following the separation, each company would maintain two classes of
common stock: Class A Common and Class B Common Voting Shares. The separation is
expected to be completed in approximately one year from the date of
announcement. In addition to final approval from the Board of Directors and
stockholder approval of certain amendments to the Company`s Restated Certificate
of Incorporation, the completion of the separation will be subject to receipt of
regulatory approvals, opinions from tax counsel and favorable rulings from
certain tax jurisdictions regarding the tax-free nature of the transaction to
the Company and to its stockholders, further due diligence as appropriate, the
execution of certain agreements relating to the distribution, and the filing and
effectiveness of appropriate filings with the SEC. On December 21, 2012, New
Newscorp LLC filed an initial Form 10 registration statement and News
Corporation filed a preliminary proxy statement with the Securities and Exchange
Commission in connection with the separation. The Company has also applied for
certain regulatory approvals and tax rulings required to enable the separation
to be completed as described. There can be no assurances given that the
separation of the Company's businesses as described will occur. 

REVIEW OF EQUITY EARNINGS (LOSSES) OF AFFILIATES` RESULTS

Quarterly earnings from affiliates were $174 million as compared to $142 million
in the same period a year ago. The increased contributions from affiliates are
primarily due to higher contributions from BSkyB, including the Company`s $131
million pre-tax gain related to the its participation in BSkyB`s share
repurchase, partially offset by one-time costs resulting from Hulu`s purchase of
Providence Equity Partners` ownership stake and the absence of contributions
from NDS, which was sold in July 2012. 

The Company`s share of equity earnings (losses) of affiliates is as follows:

                                                          3 Months Ended                               6 Months Ended                         
                                                          December 31,                                 December 31,                           
                                          % Owned         2012                      2011               2012                      2011         
                                                          US $ Millions                                                                       
 BSkyB                                    39%(1)          $    298                  $    174           $    507                  $    315     
 Other affiliates                         Various(2)           (124  )                   (32  )             (143  )                   (52  )  
 Total equity earnings of affiliates                      $    174                  $    142           $    364                  $    263     
                                                                                                                                              


     (1)    Please refer to BSkyB`s earnings releases for detailed information.                                                     
     (2)    Primarily comprised of Sky Deutschland, Hulu, Australian and STAR equity affiliates, as well as NDS in the prior year.  
                                                                                                                                    


Foreign Exchange Rates

Average foreign exchange rates used in the quarter-to-date profit results are as
follows:

                                         3 Months Ended          
                                         December 31,            
                                         2012              2011  
                                                                 
 Australian Dollar/U.S. Dollar           1.04              1.01  
 U.K. Pounds Sterling/U.S. Dollar        1.61              1.57  
 Euro/U.S. Dollar                        1.30              1.35  
                                                                 


To receive a copy of this press release through the Internet, access News
Corporation`s corporate Web site located at http://www.newscorp.com. 

Audio from News Corporation`s conference call with analysts on the second
quarter results can be heard live on the Internet at 4:30 p.m. Eastern Standard
Time today. To listen to the call, visit http://www.newscorp.com. 

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995.These statements are
based on management`s views and assumptions regarding future events and business
performance as of the time the statements are made.Actual results may differ
materially from these expectations due to changes in global economic, business,
competitive market and regulatory factors.More detailed information about these
and other factors that could affect future results is contained in our filings
with the Securities and Exchange Commission.The "forward-looking statements"
included in this document are made only as of the date of this document and we
do not have any obligation to publicly update any "forward-looking statements"
to reflect subsequent events or circumstances, except as required by law.

                                                                                                                                                                                
 CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                                          
                                                                        3 Months Ended                                          6 Months Ended                                  
                                                                        December 31,                                            December 31,                                    
                                                                        2012                        2011                        2012                         2011               
                                                                        US $ Millions (except share related amounts)                                                            
                                                                                                                                                                                
 Revenues                                                               $    9,425                  $    8,975                  $    17,561                  $    16,934        
                                                                                                                                                                                
                                                                                                                                                                                
 Operating expenses                                                          (5,869  )                   (5,583  )                   (10,717  )                   (10,336  )    
 Selling, general and administrative expenses                                (1,666  )                   (1,614  )                   (3,276   )                   (3,141   )    
 Depreciation and amortization                                               (310    )                   (281    )                   (610     )                   (575     )    
 Impairment and restructuring charges                                        (65     )                   (36     )                   (217     )                   (127     )    
 Equity earnings of affiliates                                               174                         142                         364                          263           
 Interest expense, net                                                       (266    )                   (257    )                   (533     )                   (515     )    
 Interest income                                                             37                          29                          68                           65            
 Other, net                                                                  1,400                       125                         2,775                        (5       )    
 Income from continuing operations before income tax expense                 2,860                       1,500                       5,415                        2,563         
 Income tax expense                                                          (402    )                   (373    )                   (661     )                   (650     )    
 Net income                                                                  2,458                       1,127                       4,754                        1,913         
 Less: Net income attributable to                                            (77     )                   (70     )                   (140     )                   (118     )    
 noncontrolling interests                                                                                                                                                       
 Net income attributable to News Corporation stockholders               $    2,381                  $    1,057                  $    4,614                   $    1,795         
                                                                                                                                                                                
                                                                                                                                                                                
 Weighted average shares:                                                    2,346                       2,515                       2,358                        2,563         
                                                                                                                                                                                
 Net income attributable to News Corporation stockholders per share:    $    1.01                   $    0.42                   $    1.96                    $    0.70          
                                                                                                                                                                                


                                                                                                                
 CONSOLIDATED BALANCE SHEETS                                         December 31,                June 30,       
                                                                     2012                        2012           
 Assets:                                                             US $ Millions                              
 Current assets:                                                                                                
 Cash and cash equivalents                                           $        7,806              $      9,626   
 Receivables, net                                                             7,760                     6,608   
 Inventories, net                                                             3,282                     2,595   
 Other                                                                        896                       619     
 Total current assets                                                         19,744                    19,448  
                                                                                                                
 Non-current assets:                                                                                            
 Receivables                                                                  449                       387     
 Investments                                                                  7,441                     4,968   
 Inventories, net                                                             5,024                     4,596   
 Property, plant and equipment, net                                           5,857                     5,814   
 Intangible assets, net                                                       7,149                     7,133   
 Goodwill                                                                     15,875                    13,174  
 Other non-current assets                                                     1,206                     1,143   
 Total assets                                                        $        62,745             $      56,663  
                                                                                                                
                                                                                                                
 Liabilities and Equity:                                                                                        
 Current liabilities:                                                                                           
 Borrowings                                                          $        273                $      273     
 Accounts payable, accrued expenses and other current liabilities             5,260                     5,405   
 Participations, residuals and royalties payable                              1,899                     1,691   
 Program rights payable                                                       1,665                     1,368   
 Deferred revenue                                                             1,163                     880     
 Total current liabilities                                                    10,260                    9,617   
                                                                                                                
 Non-current liabilities:                                                                                       
 Borrowings                                                                   16,184                    15,182  
 Other liabilities                                                            4,200                     3,650   
 Deferred income taxes                                                        2,447                     2,388   
 Redeemable noncontrolling interests                                          649                       641     
 Commitments and contingencies                                                                                  
 Equity:                                                                                                        
 Class A common stock, $0.01 par value                                        15                        15      
 Class B common stock, $0.01 par value                                        8                         8       
 Additional paid-in capital                                                   15,898                    16,140  
 Retained earnings and accumulated other comprehensive income                 12,231                    8,521   
 Total News Corporation stockholders' equity                                  28,152                    24,684  
 Noncontrolling interests                                                     853                       501     
 Total equity                                                                 29,005                    25,185  
 Total liabilities and equity                                        $        62,745             $      56,663  
                                                                                                                


                                                                                                                                      
 CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                
                                                                                  6 Months Ended December 31,                         
                                                                                        2012                            2011          
                                                                                  US $ Millions                                       
 Operating activities:                                                                                                                
 Net Income                                                                       $     4,754                     $     1,913         
 Adjustments to reconcile net income to cash provided by operating activities:                                                        
 Depreciation and amortization                                                          610                             575           
 Amortization of cable distribution investments                                         44                              47            
 Equity earnings of affiliates                                                          (364    )                       (263    )     
 Cash distributions received from affiliates                                            306                             253           
 Impairment charges, net of tax                                                         35                              -             
 Other, net                                                                             (2,775  )                       5             
 Change in operating assets and liabilities, net of acquisitions:                                                                     
 Receivables and other assets                                                           (986    )                       (1,202  )     
 Inventories, net                                                                       (920    )                       (758    )     
 Accounts payable and other liabilities                                                 267                             26            
 Net cash provided by operating activities                                              971                             596           
                                                                                                                                      
 Investing activities:                                                                                                                
 Property, plant and equipment, net of acquisitions                                     (370    )                       (485    )     
 Acquisitions, net of cash acquired                                                     (2,830  )                       (488    )     
 Investments in equity affiliates                                                       (610    )                       (37     )     
 Other investments                                                                      (46     )                       (158    )     
 Proceeds from dispositions                                                             1,860                           321           
 Net cash used in investing activities                                                  (1,996  )                       (847    )     
                                                                                                                                      
 Financing activities:                                                                                                                
 Borrowings                                                                             987                             -             
 Repayment of borrowings                                                                (235    )                       (32     )     
 Issuance of shares                                                                     139                             15            
 Repurchase of shares                                                                   (1,434  )                       (2,477  )     
 Dividends paid                                                                         (297    )                       (305    )     
 Purchase of subsidiary shares from noncontrolling interests                            (8      )                       -             
 Other, net                                                                             8                               -             
 Net cash used in financing activities                                                  (840    )                       (2,799  )     
                                                                                                                                      
 Net decrease in cash and cash equivalents                                              (1,865  )                       (3,050  )     
 Cash and cash equivalents, beginning of period                                         9,626                           12,680        
 Exchange movement on opening cash balance                                              45                              (198    )     
 Cash and cash equivalents, end of period                                         $     7,806                     $     9,432         
                                                                                                                                      


                                                                                                                                
 SEGMENT INFORMATION                        3 Months Ended                              6 Months Ended                          
                                            December 31,                                December 31,                            
                                            2012                   2011                 2012                    2011            
                                            US $ Millions                                                                       
 Revenues                                                                                                                       
                                                                                                                                
 Cable Network Programming                  $   2,559              $   2,161            $   5,008               $   4,281       
 Filmed Entertainment                           2,067                  2,063                3,812                   3,841       
 Television                                     1,532                  1,520                2,491                   2,443       
 Direct Broadcast Satellite Television          890                    947                  1,707                   1,869       
 Publishing                                     2,149                  2,130                4,167                   4,199       
 Other                                          228                    154                  376                     301         
 Total Revenues                             $   9,425              $   8,975            $   17,561              $   16,934      
                                                                                                                                
                                                                                                                                
 Segment Operating Income (Loss)                                                                                                
                                                                                                                                
 Cable Network Programming                  $   945                $   882              $   1,898               $   1,657       
 Filmed Entertainment                           383                    393                  783                     740         
 Television                                     224                    189                  380                     322         
 Direct Broadcast Satellite Television          (20    )               6                    3                       125         
 Publishing                                     234                    218                  291                     328         
 Other                                          (186   )               (191   )             (397    )               (290    )   
 Total Segment Operating Income *           $   1,580              $   1,497            $   2,958               $   2,882       
                                                                                                                                


 *    The three months ended December 31, 2012 and 2011 include $56 million and $87 million, respectively, of costs related to the ongoing investigations in the U.K. The three months ended December 31, 2012 include $23 million of costs related to the proposed separation of the Company`s entertainment and publishing businesses. Excluding these charges, adjusted total segment operating income is $1,659 and $1,584 million in the three months ended December 31, 2012 and 2011, respectively.  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
      The six months ended December 31, 2012 and 2011 include $123 million and $104 million, respectively, of costs related to the ongoing investigations in the U.K. The six months ended December 31, 2012 include $28 million of costs related to the proposed separation of the Company`s entertainment and publishing businesses. Excluding these charges, adjusted total segment operating income is $3,109 and $2,986 million in the six months ended December 31, 2012 and 2011, respectively.      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            


NOTE 1 - TOTAL SEGMENT OPERATING INCOME AND SEGMENT OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION

The Company evaluates the performance of its operating segments based on segment
operating income, and management uses total segment operating income as a
measure of the performance of operating businesses separate from non-operating
factors. Total segment operating income and segment operating income before
depreciation and amortization are non-GAAP measures and should be considered in
addition to, not as a substitute for, net income, cash flow and other measures
of financial performance reported in accordance with GAAP. In addition, these
measures do not reflect cash available to fund requirements. These measures
exclude items, such as impairment and restructuring charges, which are
significant components in assessing the Company`s financial performance. Segment
operating income before depreciation and amortization also excludes depreciation
and amortization which are also significant components in assessing the
Company`s financial performance. 

Management believes that total segment operating income and segment operating
income before depreciation and amortization are appropriate measures for
evaluating the operating performance of the Company`s business and provide
investors and equity analysts a measure to analyze operating performance of the
Company`s business and enterprise value against historical data and competitors`
data. Total segment operating income and segment operating income before
depreciation and amortization is the primary measure used by our chief operating
decision maker to evaluate the performance of and allocate resources to the
Company`s business segments. 

Total segment operating income does not include: Impairment and restructuring
charges, discontinued operations, Equity earnings of affiliates, Interest
expense, net, Interest income, Other, net, Income tax expense and Net income
attributable to noncontrolling interests. 

Segment operating income before depreciation and amortization is defined as
segment operating income plus depreciation and amortization and the amortization
of cable distribution investments and eliminates the variable effect across all
business segments of depreciation and amortization. Depreciation and
amortization expense includes the depreciation of property and equipment, as
well as amortization of finite-lived intangible assets. Amortization of cable
distribution investments represents a reduction against revenues over the term
of a carriage arrangement and, as such, it is excluded from segment operating
income before depreciation and amortization. 

The following table reconciles segment operating income before depreciation and
amortization to income from continuing operations before income tax expense.

                                                                                                                                                          
                                                                    3 Months Ended                                  6 Months Ended                        
                                                                    December 31,                                    December 31,                          
                                                                    2012                       2011                 2012                   2011           
                                                                    US $ Millions                                                                         
                                                                                                                                                          
 Segment Operating income before depreciation and amortization      $   1,913                  $   1,801            $   3,612              $   3,504      
 Depreciation and amortization                                          (310   )                   (281   )             (610   )               (575   )   
 Amortization of cable distribution investments                         (23    )                   (23    )             (44    )               (47    )   
 Total Segment Operating income                                         1,580                      1,497                2,958                  2,882      
 Impairment and restructuring charges                                   (65    )                   (36    )             (217   )               (127   )   
 Equity earnings of affiliates                                          174                        142                  364                    263        
 Interest expense, net                                                  (266   )                   (257   )             (533   )               (515   )   
 Interest income                                                        37                         29                   68                     65         
 Other, net                                                             1,400                      125                  2,775                  (5     )   
 Income from continuing operations before income tax expense        $   2,860                  $   1,500            $   5,415              $   2,563      
                                                                                                                                                          


                                            For the Three Months Ended December 31, 2012                                                                                     
                                            (US $ Millions)                                                                                                                  
                                            Segment Operating                                                                                                                
                                            income (loss) before                 Depreciation                   Amortization of                      Segment                 
                                            depreciation and                     and                            cable distribution                   Operating income        
                                            amortization                         amortization                   investments                          (loss)                  
 Cable Network Programming                  $        1,013                       $      (45    )                $        (23      )                  $       945             
 Filmed Entertainment                                416                                (33    )                         -                                   383             
 Television                                          246                                (22    )                         -                                   224             
 Direct Broadcast Satellite Television               56                                 (76    )                         -                                   (20     )       
 Publishing                                          349                                (115   )                         -                                   234             
 Other                                               (167     )                         (19    )                         -                                   (186    )       
 Consolidated Total                         $        1,913                       $      (310   )                $        (23      )                  $       1,580           
                                                                                                                                                                             


                                                                                                                                                                             
                                            For the Three Months Ended December 31, 2011                                                                                     
                                            (US $ Millions)                                                                                                                  
                                            Segment Operating                                                                                                                
                                            income (loss) before                 Depreciation                   Amortization of                      Segment                 
                                            depreciation and                     and                            cable distribution                   Operating income        
                                            amortization                         amortization                   investments                          (loss)                  
 Cable Network Programming                  $        943                         $      (38    )                $        (23      )                  $       882             
 Filmed Entertainment                                416                                (23    )                         -                                   393             
 Television                                          210                                (21    )                         -                                   189             
 Direct Broadcast Satellite Television               84                                 (78    )                         -                                   6               
 Publishing                                          324                                (106   )                         -                                   218             
 Other                                               (176     )                         (15    )                         -                                   (191    )       
 Consolidated Total                         $        1,801                       $      (281   )                $        (23      )                  $       1,497           
                                                                                                                                                                             


                                                                                                                                                                             
                                            For the Six Months Ended December 31, 2012                                                                                       
                                            (US $ Millions)                                                                                                                  
                                            Segment Operating                                                                                                                
                                            income (loss) before                 Depreciation                   Amortization of                      Segment                 
                                            depreciation and                     and                            cable distribution                   Operating income        
                                            amortization                         amortization                   investments                          (loss)                  
 Cable Network Programming                  $        2,029                       $      (87    )                $        (44      )                  $       1,898           
 Filmed Entertainment                                849                                (66    )                         -                                   783             
 Television                                          423                                (43    )                         -                                   380             
 Direct Broadcast Satellite Television               151                                (148   )                         -                                   3               
 Publishing                                          521                                (230   )                         -                                   291             
 Other                                               (361     )                         (36    )                         -                                   (397    )       
 Consolidated Total                         $        3,612                       $      (610   )                $        (44      )                  $       2,958           
                                                                                                                                                                             


                                                                                                                                                                             
                                            For the Six Months Ended December 31, 2011                                                                                       
                                            (US $ Millions)                                                                                                                  
                                            Segment Operating                                                                                                                
                                            income (loss) before                 Depreciation                   Amortization of                      Segment                 
                                            depreciation and                     and                            cable distribution                   Operating income        
                                            amortization                         amortization                   investments                          (loss)                  
 Cable Network Programming                  $        1,779                       $      (75    )                $        (47      )                  $       1,657           
 Filmed Entertainment                                802                                (62    )                         -                                   740             
 Television                                          364                                (42    )                         -                                   322             
 Direct Broadcast Satellite Television               277                                (152   )                         -                                   125             
 Publishing                                          541                                (213   )                         -                                   328             
 Other                                               (259     )                         (31    )                         -                                   (290    )       
 Consolidated Total                         $        3,504                       $      (575   )                $        (47      )                  $       2,882           
                                                                                                                                                                             


NOTE 2 - ADJUSTED NET INCOME AND ADJUSTED EPS

The Company uses net income and earnings per share excluding Segment operating
profit adjustments, Impairment and restructuring charges, Equity affiliate
adjustments, "Other, net", and discontinued operations, net of tax ("adjusted
net income and adjusted diluted earnings per share") to evaluate the performance
of the Company`s operations exclusive of certain items that impact the
comparability of results from period to period. The calculation of adjusted net
income and adjusted diluted earnings per share may not be comparable to
similarly titled measures reported by other companies, since companies and
investors may differ as to what type of events warrant adjustment. Adjusted net
income and adjusted diluted earnings per share are not measures of performance
under generally accepted accounting principles and should not be construed as
substitutes for consolidated net income and earnings per share as determined
under GAAP as a measure of performance. However, management uses these measures
in comparing the Company`s historical performance and believes that they provide
meaningful and comparable information to investors to assist in their analysis
of our performance relative to prior periods and our competitors. 

The following tables reconcile reported net income and reported diluted earnings
per share ("EPS") to adjusted net income and adjusted diluted earnings per share
for the three months ended December 31, 2012 and 2011.

                                                                                                                                                                   3 Months Ended                                                 3 Months Ended                                  
                                                                                                                                                                   December 31,2012                                               December 31,2011                                
                                                                                                                                                                   Net income                                                     Net income                                      
                                                                                                                                                                   attributable to                                                attributable to                                 
                                                                                                                                                                   stockholders                       EPS                         stockholders                       EPS          
                                                                                                                                                                   (in US$ millions, except per share data)                                                                       
                                                                                                                                                                                                                                                                                  
 As reported                                                                                                                                                       $         2,381                    $    1.01                   $         1,057                    $    0.42    
                                                                                                                                                                                                                                                                                  
 Segment operating profit adjustments (net of provision for income taxes of $12 and $17 for the three months ended December 31, 2012 and 2011, respectively)(a)              67                            0.03                             70                            0.03    
                                                                                                                                                                                                                                                                                  
 Impairment and restructuring charges (net of provision for income taxes of $19 and $10 for the three months ended December 31, 2012 and 2011, respectively)                 46                            0.02                             26                            0.01    
                                                                                                                                                                                                                                                                                  
 Equity affiliate adjustments (net of provision for income taxes of $4 and $10 for the three months ended December 31, 2012 and 2011, respectively)(b)                       (70)                          (0.03)                           (34)                          (0.01)  
                                                                                                                                                                                                                                                                                  
 Other, net (net of provision for income taxes of $13 for the three months ended December 31, 2012 and 2011)                                                                 (1,387)                       (0.59)                           (138)                         (0.05)  
                                                                                                                                                                                                                                                                                  
 Rounding                                                                                                                                                                                                                                                                 (0.01)  
 As adjusted                                                                                                                                                       $         1,037                    $    0.44                   $         981                      $    0.39    


 (a)    Segment operating profit for the three months ended December 31, 2012 and 2011 was adjusted to exclude the expenses related to the ongoing investigations initiated upon the closure of The News of the World. The three months ended December 31, 2012 were also adjusted to exclude the expenses related to separation of the Company`s entertainment and publishing businesses.  
                                                                                                                                                                                                                                                                                                                                                                                            
 (b)    Equity earnings of affiliates for the three months ended December 31, 2012 and 2011 was adjusted to exclude from BSkyB results News Corporation`s gain on the BSkyB repurchase program. The three months ended December 31, 2012 were also adjusted to exclude from Hulu results one-time costs resulting from its purchase of the Providence Equity Partners` ownership stake.     


News Corporation
Investor Relations:
Reed Nolte, 212-852-7092
Joe Dorrego, 212-852-7856
or
Press Inquiries:
Julie Henderson, 212-852-7070
Nathaniel Brown, 212-852-7746
Dan Berger, 310-369-1274 

Copyright Business Wire 2013

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