News Corp profit up on Avatar, but outlook disappoints

[Newsjock]

Source: Reuters

News Corp's quarterly profit beat expectations thanks to the 3-D blockbuster "Avatar" and strong cable networks, but the media conglomerate's shares fell 4 percent after its outlook disappointed some investors.

The Rupert Murdoch-controlled company said its operating income would dip in the June quarter as it will release fewer films compared with the year-ago quarter. It also expects higher programing costs and lower network revenue at Fox Broadcasting.

... News Corp's cable networks unit reported a 38 percent rise in operating income to $588 million on strong performances from Fox News and regional sports networks among others.

... (Murdoch) said News Corp was in final discussions with a number of publishers, device makers and technology companies for an "innovative subscription model that will deliver content to consumers" to be announced in 3 to 4 weeks. But he declined to give further details.

Read more: http://finance.yahoo.com/news/News-Corp-profit-up-on-Avatar-rb-2271487515.html?x=0&.v=5

[Ruby the Liberal]

1. Too bad they lost ~$500m on MySpace

Which is reported as being worth basically nothing today.

Couldn't happen to a better bunch.

[Swagman]

2. profit may be OK...bu News Corp is riddled with debt

[depakid]

3. Oh please go with the "innovative" subscription model

It's been a pain to keep on adding scripts and programs to block fox and the Wall Street Journal from google news.