Murdoch
News Corp. reported healthy quarterly profits, boosted by advertising revenue from traditional media - but all eyes are on its Fox Interactive Media (FIM) group.
News Corp.'s net profit rose 19 percent, in line with Wall Street expectations, and the company said it expects fiscal 2007 operating income growth of 14-16 percent, reports Reuters. Most analysts are looking at FIM, including its MySpace, as a source of future growth, despite a relatively minor contribution. CEO Murdoch apparently agrees.
"Most excitingly for me, our digital-media assets represent our next generation of growth, to become drivers in the same way Sky Italia or Fox News (Channel) or Star (Group) are for us today," he is quoted as saying. FIM and Google this week announced a search-based deal that guarantees Fox $900 million over years.
News Corp.'s fourth-quarter profit was $852 million, or 27 cents per share, up from profits year earlier of $717 million, or 22 cents per share. Revenue rose 11 percent to $6.8 billion.
