The gains in movie studios and cable networks have helped the company offset the losses from newspaper and magazine division.
The cable networks, including Fox News and FX, posted $1.61 billion as revenue, and $495 million as operating income. The revenue has increased by 10.5 percent and operating income has risen 41 percent, compared to $1.45 billion and $350 million reported in the same period last year, respectively.
The strong results in this division have largely been due to successful box office performance of "Ice Age: Dawn of the Dinosaurs", resulting which the company posted $1.52 billion as movie revenue, 21 percent increase from $1.26 billion; and $391 million as profits, 56 percent increase from $251 million last year.
Company raises forecast for 2010
Based on strong results in the quarter gone by, the company has raised its forecast for the rest of the year, saying that 2010 will be the year of stability.
Addressing reporters during the conference call, Murdoch stated that there has been a "marked improvement from last year" and the company “appears to be emerging from the bottom of the cycle".
Based on this, adjusted operating profits are expected to rise in the “high single to low double digits” on percentage basis in the coming year.
News Corp to give new focus to MySpace
As the company has been struggling with its social networking site, News Corp also admitted that MySpace is no longer a strong contender to social networking sites like Facebook and Twitter. To regain the lost ground, News Corp will seek to rebuild MySpace, with emphasis on entertainment.
"I think we got spread a bit wide and thin and what we're focusing on is sort of the heart of our business going forward really being a social network around key content," said President and Chief Operating Officer Chase Carey. "We're not trying to compete with Facebook or beat Twitter. We're trying to create a unique experience."
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