News Corp earnings beat projections on cable strength

LOS ANGELES Tue Nov 6, 2012 9:47pm GMT

Passers-by walk near the News Corporation building in New York June 28, 2012. REUTERS/Keith Bedford

Passers-by walk near the News Corporation building in New York June 28, 2012.

Credit: Reuters/Keith Bedford

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LOS ANGELES (Reuters) - Rupert Murdoch's News Corp on Tuesday reported quarterly profit that beat analyst expectations thanks to growth at the company's cable television networks.

Shares jumped 2.4 percent after hours.

The media giant that owns Fox Broadcasting and The Wall Street Journal said adjusted earnings per share reached 43 cents for the quarter that ended in September. Analysts on average had expected 37 cents, according to Thomson Reuters I/B/E/S.

Revenue for the quarter came in at $8.1 billion (5.0 billion pounds), a 2 percent increase from a year earlier.

Shares of the company rose in after-hours trading to $24.85, up 2.4 percent from their close on Nasdaq of $24.28.

News Corp said it took a $67 million charge in the quarter for costs related to ongoing investigations into a phone hacking scandal at British tabloid News of the World, which the company has closed.

At its cable networks, operating income rose 23 percent to $953 million, lifted by growth at regional sports networks, the FX cable network and Fox News Channel.

(Reporting By Lisa Richwine; Editing by Gary Hill, Andrew Hay and David Gregorio)

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