News Corp maintains earnings guidance

Rupert Murdoch's media empire News Corporation has maintained earnings guidance for the 2012/13 financial year.

News Corp chief financial officer David DeVoe said earnings before interest and tax (EBIT) were expected to grow in the "high singles to low double digit range" in 2012/13, from an adjusted $US5.6 billion ($A5.43 billion) in 2011/12.

The guidance was unchanged from what the company forecast at its 2011/12 full year results presentation in August.

Mr DeVoe, speaking to analysts as News Corp delivered its first quarter results on Wednesday, said 2012/13 EBIT would be boosted by the acquisition of Consolidated Media Holdings in Australia and ESPN Star Sports in Asia.

However, the contribution of those two deals would be offset by marketing costs associated with the initial releases of News Corp's Dreamworks animation distribution deal, he said.

The guidance excluded the impact of the phone hacking scandal in the UK and costs related to the proposed separation of News Corp's publishing and entertainment business.

News Corp booked $US224 million ($A217.17 million) in charges relating to the UK scandal in 2011/12, Mr DeVoe said, and took a further $US67 million ($A64.96 million) charge in the first quarter of the current financial year.

News Corp reported net profit of $US2.23 billion ($A2.16 billion) for the three months to September 30, 2012, up from $US738 million ($A715.50 million) in the prior corresponding period.

Revenue rose two per cent to $US8.14 billion ($A7.89 billion), News Corp said.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9367-0.0001-0.02%
    AUDUSD=X
    0.55770.000.00%
    AUDGBP=X
    0.67810.000.00%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg