News on track to split in two by 30 June

News on track to split in two by 30 June

News Corporation will hold an investor day for the Australian investment community on June 5 ahead of the company’s split into two on 30 June, president and chief operating officer Chase Carey said today.

B&T Magazine
Posted by B&T Magazine

Speaking on a conference call this morning following the company’s earnings update from New York, Carey confirmed that more details would be provided for investors on 28 May in New York, and 5 June in Australia about the new publishing company that will retain the News Corporation name.

The entertainment company – to be called 21st Century Fox – will hold an investor day in early August ahead of an earnings release, he said.

Regarding the split, chairman and CEO Rupert Murdoch said: “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 Corporation 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.”

In other news from the earnings briefing, the global company reported $revenues of 9.54 billion for the three months ending 31 March 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. The balance of the growth primarily relates to the inclusion of Sky Deutschland AG (Sky Deutschland) and Fox Sports Australia revenues.

Publishing reported quarterly segment operating income of $85 million, a $45 million decrease from the $130 million reported in the same period a year ago. Increased contributions from the UK newspapers, which benefitted from the launch of the Sunday edition of The Sun in February 2012, were more than offset by lower advertising revenues at the Australian newspapers and integrated marketing services businesses.