Printer Friendly

NEWS CORPORATION LIMITED REPORTS RESULTS FOR THE FIRST QUARTER

    NEWS CORPORATION LIMITED REPORTS RESULTS FOR THE FIRST QUARTER
    NEW YORK, Nov. 7 /PRNewswire/ -- The News Corporation Limited (NYSE: NWS) today issued the following results for the three months ended Sept. 30, 1991:
    -- Operating revenue down 4 percent to $2.7 billion.
    -- Operating profit before abnormal items up 315 percent to $107.5 million.
    -- Profit after abnormal items up 95 percent to $106.5 million.
    -- Earnings per share before abnormal items up 200 percent to $0.36.
                     THE NEWS CORPORATION LIMITED
                    Unaudited Consolidated Results
               (Dollars in thousands, except per share data)
      Three months ended Sept. 30              1991        1990
    Revenues (A)                            $2,662,481   $2,782,221
    Operating income (A)                       420,241      333,774
    Other income (expense)
     Dividends                                   6,416       16,580
     Associated companies profit/(loss)        (39,608)         156
     Interest expense (net)                   (255,510)    (285,442)
    Operating profit before income
     tax expense and abnormal items (B)        131,539       65,068
    Income tax expense (C)                       8,037        8,520
    Operating profit before minority
     interests and abnormal items              123,502       56,548
    Minority interests in subsidiary companies  16,049       30,688
    Operating profit before abnormal items     107,453       25,860
    Abnormal items (net) (D)                      (990)      28,862
    Operating profit and abnormal items        106,463       54,722
    Earnings per share
     Operating profit before abnormal items      $0.36        $0.12
     Abnormal items                                 --        $0.09
     Operating profit and abnormal items         $0.36        $0.21
      Three months ended Sept. 30                1991        1990
    Revenues
     United States                             1,706,800   $1,565,072
     United Kingdom                              446,192      601,751
     Australia and Pacific Basin                 509,489      615,398
                                               2,662,481    2,782,221
    Operating income
     United States                               269,205      262,018
     United Kingdom                               61,335      (19,058)
     Australia and Pacific Basin                  89,701       90,814
                                                 420,241      333,774
    By Industry
    Revenues
     Newspapers                                  694,517      750,741
     Magazines                                   235,570      321,175
     Television                                  305,726      352,618
     Filmed entertainment                        622,767      399,659
     Book publishing                             465,084      555,580
     Other                                       338,817      402,448
    Total                                      2,662,481    2,782,221
    Operating income
     Newspapers                                  122,903      113,992
     Magazines                                    48,854       59,065
     Television                                   52,345      (19,349)
     Filmed entertainment                         48,503       15,464
     Book publishing                             101,692      101,752
     Other                                        45,944       62,850
    Total                                        420,241      333,774
    (A) Supplementary segment information by geographic area
    (B) Included in operating profit before income tax for holding
    company and subsidiaries are:
      Interest on borrowings                      270,285      306,990
      Interest income                              14,775       21,548
      Net interest expense                        255,510      285,442
      Depreciation and amortization                58,087       85,932
      Foreign exchange trading gains                   --        6,946
    (C) Income tax expense comprises of:
      Holding and subsidiary companies              7,290        7,517
      Associated companies                            747        1,003
      Total                                         8,037        8,520
    (D) Abnormal items (net of tax)
      Holding and subsidiary companies            (16,433)       6,992
      Associated companies                         15,443       21,870
      Total                                          (990)      28,862
    Commentary Group Result
    The News Corporation today reported after-tax profits before abnormal items for the quarter ended Sept. 30, 1991 of A$107.5 million (A$0.36 cents per share) an increase of 315 percent from the same period last year of A$25.9 million (A$0.12 per share).  This result includes losses from equity-accounted investments of A$39.8 million compared to a profit of less than A$1 million a year ago.
    Profits increased despite a fall in revenues of 4 percent to A$2.7 billion from A$2.8 billion, which was due in large part to the sale of businesses in the United States and Australia.  Profit after abnormal items was A$106.5 million compared to the prior-year period of A$54.7 million.
    Operating profit increased to A$420.0 million from A$333.8 million in the comparable period.  This result includes higher profits from Twentieth Century Fox Film in the United States and substantially improved newspaper operations in the United Kingdom.  Earnings for the quarter also reflect the elimination of operating losses at Sky television.  In November 1990, Sky merged with its only competitor and is now accounted for as an equity investment.  Last year's result also included profits from nine U.S. magazines, which were sold in June 1991, and the benefit of approximately A$7 million in foreign exchange trading gains.
    Losses from equity interests reflects results from Ansett and East- West Airlines, the company's airline interests in Australia, BSkyB, the company's television operations in the U.K. and Super Zeitung, a newly launched newspaper in eastern Germany.
    Interest expense declined as a result of lower interest rates and preference dividends decreased due to the redemption of these shares.
    On Oct. 21, the company announced that two of its subsidiaries had issued US$175 million of exchangeable preference shares in a private placement to three investors.
    On Oct. 23, the company announced the flotation of 55 percent of its Australian magazine and commercial printing operations, which will raise approximately A$682 million and is expected to close in December.
    The company announced on Oct. 31 that it was preparing an offering of approximately US$450 million of equity and a separate offering of not less than US$250 million of long term debt.  The purpose of the offerings is to permit the company to reduce bank indebtedness, to strengthen its financial position and to add to its working capital. The equity offering will be subject to the approval of News Corporation shareholders at an extraordinary meeting to be held on Dec. 6, 1991.
    United States
    Operating profits in the U.S. improved by 3 percent despite poor economic conditions and the sale of eight magazines and one newspaper in June 1991.
    Profits at Twentieth Century Fox Film were higher than last year while results at Fox Broadcasting Company and the Fox Television Station group were maintained at last year's levels.  Rating at Fox Broadcasting increased significantly year to year.  For the month of September, Fox Broadcasting ranked number one in the key demographic categories of men aged 18-34 and all persons 12-34; Fox ranked number two in adults 18-34.
    Improved margins at HarperCollins led to relatively flat results for the company's book publishing division.  Revenues declined, in large part, due to the sale of the Gordon and Gotch book publishing division in Australia.
    United Kingdom
    Operating profit in the United Kingdom was better than a year ago due to improved operating margins at the company's five newspapers arising from reduced staffing and a full quarter's benefit of cover price increases.
    The effects of the merger of Sky television, as discussed earlier, also led to improved results in the U.K.
    Australia
    Operating profits in Australia and Hong Kong were basically even compared to a year ago despite deteriorating economic conditions and a reduction in revenues.
    Cost cutting throughout the division and the benefits from the merger of two newspapers in Sydney and Melbourne, and the closure of a Sunday newspaper in Melbourne, aided results.
    Equity Companies
    Sky exhibited tremendous growth in total homes reached by the six- channel service and in pay movie subscribers during the quarter.
    Total homes reached in the U.K. at the end of September was 2.4 million, compared to 1.6 million when the business merged with its only competitor, BSB.  The launch of a new comedy channel in early October brings to six the number of channels now available via Sky.
    Before the launch of the Comedy Channel and with only five channels, Sky captured approximately 30 percent of the total viewing time in homes equipped to receive Sky during the 13 week period ended Aug. 4, 1991, according to an independent television rating agency.
    The company's 50 percent-owned equity interest in Ansett Transport Industries and East-West Airlines in Australia, continued to show losses, although September saw record traffic levels and load factors.
    -0-         11/7/91
    /CONTACT:  Peter Rosenthal or Martha Cid of Howard J. Rubenstein Associates, 212-489-6900, for News Corporation/
    (NWS) CO:  News Corporation Limited ST:  New York IN:  PUB SU:  ERN SM-OS -- NY011 -- 2113 11/07/91 10:17 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 7, 1991
Words:1337
Previous Article:ALCO STANDARD REPORTS FISCAL YEAR RESULTS
Next Article:FUJIFILM STARTS OPERATIONS AT VIDEOTAPE FACTORY IN GREENWOOD, S.C.
Topics:


Related Articles
BALLY MANUFACTURING RESTRUCTURING PROCEEDING AS PLANNED; CORPORATION REFUTES ACCURACY OF NEWS SERVICE REPORT
THE NEWS CORPORATION LIMITED HIGHLIGHTS FROM ATTACHED REPORT TO AUSTRALIAN STOCK EXCHANGES FOR THE NINE MONTHS ENDED MARCH 31, 1993
The Immune Response Corporation Announces First Quarter 1997 Financial Results
The Immune Response Corporation Announces First Quarter 1998 Financial Results
PR Newswire National Summary Thurs., April 27, 2000 to 10 A.M. EDT.
LSI Logic Reiterates First Quarter 2003 Guidance; Announces Webcast of Wilf Corrigan's Presentation Today to Goldman Sachs Conference.
MidCarolina Financial Corporation reports Q1 results.
Oak Financial Corporation reports Q1 results.
First Merchants Corporation reports Q2 results.
First Financial Corporation reports Q2 results.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters