News Corp reports jump in profit
Published: 9th May 2012 22:41:03
Rupert Murdoch's News Corporation has reported a jump in quarterly profits, boosted by its cable networks and its Hollywood film unit.
Net profit for the three months to March rose to $1bn (£620m) from $682m in the same period the previous year.
Mr Murdoch has become embroiled in a phone-hacking scandal in the UK at the News of the World tabloid.
But it has not had a negative impact on News Corp's shares over the past year - they have risen by 10% in that time.
The results included a $63m charge "related to the costs of the ongoing investigations initiated upon the closure of the News of the World".
Last week News Corp's board gave their backing to Mr Murdoch, their chief executive and chairman, after a UK parliamentary media committee report accused him of being "not a fit person" to run a major international business.
Deputy chairman Chase Carey reaffirmed that support on Wednesday in a conference call after the financial results were released.
He said Mr Murdoch was "one of the smartest and most forward-thinking executives of our time and both I and the board rebut any notion that he is unfit to run the company".
The now-defunct News of the World was owned by News International, itself a subsidiary of News Corp.
News Corp's fiscal third-quarter results showed a 2% rise in revenue to $8.4bn.
I believe we are better situated than ever to capitalise on the increasing global demand for our superior content”
The firm also said it was doubling its share buyback programme to $10bn.
News Corp owns the Fox television networks and 20th Century Fox film studio, as well as newspapers in the US, UK and Australia.
Operating income at its cable networks increased by 15% to $846m, with large growth seen in the US, Latin America and Asia.
Its entertainment unit saw a near-10% rise in operating income to $272m, boosted by the film Alvin and the Chipmunks: Chipwrecked.
But operating income fell 11% to $171m at its broadcast television unit, which did not air the Super Bowl this year and saw ratings for American Idol fall.
"Once again, News Corporation showed strong operational momentum in the quarter, driven by significant growth at our cable network programming and filmed entertainment segments," Mr Murdoch said in a statement.
"With our disciplined approach to monetising our brands, I believe we are better situated than ever to capitalise on the increasing global demand for our superior content."
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Harvard CitationBBC News, 2012. News Corp reports jump in profit [Online] (Updated 9th May 2012)
Available at: http://www.ukwirednews.com/news/1427539/News-Corp-reports-jump-in-profit [Accessed 31st Jul 2014]
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They called it the Greatest Factory on Earth.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
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