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5/8/2013 6:21 PM ET
Media mogul Rupert Murdoch's News Corp. (
NWS:
Quote,
NWSA:
Quote), Wednesday reported a triple-fold jump in third-quarter
profit
, on growth at Cable Network Programming, Filmed Entertainment, Television segments, as well as gains from raising its stake in German media company Sky Deutschland. Earnings were in line with Wall Street estimates, while sales exceeded expectations.
The company's Class A shares are gaining more than 3.5 percent in after-hours trade on the Nasdaq, following the announcement of results.
Results for the quarter were aided by a gain of about $2 billion as News Corp. raised its stake in Sky Deutschland to 55 percent earlier this year. Also was a gain of $321 million from the March sale of its 44 percent stake in SKY Network Television Ltd.
Revenues for the quarter grew 14 percent to $9.54 billion from $8.40 billion last year. On average, 21 analysts polled by Thomson Reuters expected revenues of $9.14 billion for the quarter.
News Corp., which is spinning off its publishing and
entertainment businesses
, reported total operating income of $1.36 billion, an increase of 4 percent.
Operating income at Cable Network Programming unit grew 17 percent from last year to $993 million, on contributions from Regional Sports Networks and FX Networks.
Filmed entertainment segment operating income was higher by $17 million at $289 million, while Television
business gained 15 percent to $196 million. Its Direct broadcast satellite television segment reported operating loss of $11 million, partly on lower contributions from SKY Italia.
The Publishing unit continued its lackluster run, posting operating income of $85 million, down $45 million from a year ago, hurt by lower ad revenues at the Australian newspapers and integrated marketing services businesses.
Overall, the New York-based company reported quarterly net income of $2.85 billion or $1.22 per share, compared with $937 million or $0.38 per share last year.
Excluding one-time gains and losses, adjusted earnings for the quarter were $834 million or $0.36 per share, compared with $921 million or $0.37 per share last year.
Analysts had consensus earnings estimate of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.
News Corp. in June revealed plans to separate its publishing unit and entertainment
business
into two publicly-traded companies. The move came after its British newspaper unit got involved in a phone hacking scandal that led to the closing of its 168-year old 'News of the World' tabloid in July 2011.
As per plans, the media and entertainment company will be christened 21st Century Fox, which will be home to a portfolio of cable and broadcasting networks and properties, including FOX, STAR, film studio Twentieth Century Fox Film, among others. Rupert Murdoch will serve as chairman and CEO of the proposed 21st Century Fox. Its newspaper and publishing assets, including the Wall Street Journal, will remain under the banner of News Corp.
Meanwhile, News Corp. board has approved an increase to the earlier authorized stock repurchase program from $5 billion to $10 billion. Through May 7, the company purchased more than $6.6 billion of Class A common stock at an average price of $19.50 per share.
NWSA closed Wednesday at $31.86, down 1.03%, on a volume of 21.9 million shares on the Nasdaq. In after hours, the stock gained $1.14 or 3.58%.
NWS closed at $31.98, down 0.96%, on a volume of 3.2 million shares. In after hours, the stock gained $1.07 or 3.35%.
