News Corp profit rises on cable and TV ratings

By Kenneth Li

NEW YORK (Reuters) - Rupert Murdoch's News Corp (NWSa.N: Quote, Profile, Research, Stock Buzz) said on Wednesday its quarterly net profit tripled on higher advertising sales at the Fox TV network and Fox News Channel, as well as a big one-time gain from its stock swap with Liberty Media (LINTA.O: Quote, Profile, Research, Stock Buzz).

The owner of 20th Century Fox and MySpace said its fiscal third-quarter profit rose to $2.7 billion, or 91 cents per share, from $871 million, or 27 cents per share, in the year-ago period. The latest results included a $1.7 billion gain from its swap with Liberty Media.

News Corp said profit excluding special items was 30 cents per share, but it was not immediately clear if that was comparable to the average analysts' forecast for 31 cents per share compiled by Reuters Estimates.

Revenue rose 16 percent to $8.75 billion, compared to the average Wall Street forecast of $8.6 billion.

Pali Research analyst Richard Greenfield said News Corp continued to log strong operating income growth from its television division compared to peers.

"You've now got three straight quarters of industry-leading growth," Greenfield said. "When will investors give them credit for their growth?"

Operating income at News Corp's television division, which includes the FOX TV network and TV stations, rose 53 percent from lower prime-time programming costs and higher advertising sales from its broadcast of the Super Bowl.

Fox News Channel contributed to the company's cable network operating profit growth of 17 percent.