News Corporation Reports Record Full Year Operating Income of $4.45 Billion; Growth of 15% over Fiscal 2006



    Full Year Earnings Per Share from Continuing Operations Increases 24% to
$1.08; Cash from Operations of $4.1 Billion

    Fourth Quarter Operating Income Grows 18% to $1.2 Billion on Revenue
Growth of 9%

    NEW YORK, August 8 /CNW/ - FULL YEAR FINANCIAL HIGHLIGHTS

    --  15% operating income growth driven by record results at Filmed
Entertainment, Cable Network Programming, Magazines and Inserts and Direct
Broadcast Satellite segments.

    
            -- Filmed Entertainment delivers operating income contribution
               of $1.2 billion, up 12%, on strong theatrical release slate
               and continued success of film and television home
               entertainment titles.

            -- Cable Network Programming operating income up 26% on
               affiliate revenue growth at the Fox News Channel, the FX
               Network and the Regional Sports Networks and increased
               contributions from the Fox International Channels.

            -- SKY Italia generates operating income of $221 million, an
               improvement of $182 million versus a year ago, reflecting
               net subscriber additions of 368,000 over the past 12 months
               as the subscriber base expands to 4.2 million.

            -- Print businesses aggregate operating income increases 16%
               on strength of free-standing inserts and in-store marketing
               products at Magazines and Inserts. Newspaper segment
               comparisons benefit from a $99 million redundancy provision
               taken in prior year's second quarter results.

            -- Fox Interactive Media achieves first year of profitability
               on strength of advertising and search revenue growth at
               MySpace.
    

    FULL YEAR STRATEGIC HIGHLIGHTS

    --  Purchased nearly $1.3 billion of stock under the authorized $6.0
billion stock repurchase program bringing total purchases to $3.9 billion.

    --  Entered into an agreement with Liberty Media Corporation to acquire
Liberty's 16.3 percent interest in News Corporation (approximately 325 million
shares of Class A Common Stock and 188 million shares of Class B Common Stock)
in exchange for the Company's interest in The DIRECTV Group, three Regional
Sports Networks and approximately $588 million of cash.

    --  Completed sale of investment in Sky Brasil, a Brazilian DTH platform,
for $302 million, and a portion of investment in Phoenix Satellite Television
Holdings for approximately $164 million.

    --  Announced plan to sell nine television stations and explore strategic
options for the News Outdoor Group.

    News Corporation (NYSE:   NWS, NWSA; ASX: NWS, NWSLV) today reported fourth
quarter net income from continuing operations of $890 million ($0.28 per share
on a diluted combined basis(1)) an increase of $172 million or 24% from the
$718 million ($0.23 per share on a diluted combined basis(1)) reported in the
fourth quarter a year ago. The year-on-year growth primarily reflects
increased consolidated operating income partially offset by a decrease in
Other income, primarily from the unrealized change in fair value of certain
outstanding exchangeable debt securities.

    For the full year, net income from continuing operations was $3.4 billion
($1.08 per share on a diluted combined basis(1)), an increase of $614 million,
or 22%, from the $2.8 billion ($0.87 per share on a diluted combined basis(1))
reported in fiscal 2006. The full year results primarily reflect increased
consolidated operating income, higher equity earnings of affiliates and an
increase in Other income, which mainly includes gains from the sale of Sky
Brasil and Phoenix Satellite Television Holdings partially offset by a
decrease from the unrealized change in fair value of certain outstanding
exchangeable debt securities.

    Fourth quarter consolidated operating income of $1.2 billion increased
18% over the $1.0 billion reported a year ago on revenues of $7.4 billion, up
9% from the $6.8 billion reported in the fourth quarter of fiscal 2006. The
year-on-year operating income growth for the quarter was primarily driven by
double-digit percentage increases at the Cable Network Programming, Direct
Broadcast Satellite Television, Magazine and Inserts and Newspaper segments.

    Record full year operating income of $4.45 billion increased 15% over the
$3.9 billion reported a year ago on revenues of $28.7 billion, up 13% from the
$25.3 billion reported in fiscal 2006. The full year operating income growth
was led by record contributions from the Filmed Entertainment, Cable Network
Programming, Direct Broadcast Satellite, and Magazines and Inserts segments
and by a $136 million improvement at the Newspaper segment.

    Commenting on the results, Chairman and Chief Executive Officer Rupert
Murdoch said:

    "News Corporation once again delivered robust financial results in fiscal
2007 with our fifth consecutive year of record profits on double-digit revenue
and operating income growth. While we continued to benefit from the strength
of our traditional assets, we also generated significant financial momentum
across our developing platforms, including $221 million of profits at SKY
Italia, continued growth at our international cable channels and the first
full year of profitability at Fox Interactive Media. The continued expansion
of these assets and the further evolution of our traditional businesses in the
digital world will pave the way for sustained growth in the years to come.

    "We also took several strategic steps during the year which we expect
will unlock increased value for our shareholders. We continued to be
aggressive with our stock buyback program, repurchasing nearly $1.3 billion
worth of shares. This does not reflect the significant stock buyback that will
take place when the Company's deal with Liberty Media closes later this
calendar year. In addition to the stock swap with Liberty for DIRECTV, we have
also announced our intention to explore opportunities to divest our interest
in several television stations, as well as News Outdoor. Our ability to
capitalize on attractive valuations for these assets will further strengthen
our balance sheet and, along with the momentum we are generating across our
diverse asset base, provide additional financial flexibility heading into
fiscal 2008."

    (1) See supplemental financial data on page 14 for detail on earnings per
share

    
    Consolidated Operating Income          3 Months Ended  12 Months Ended
                                              June 30,        June 30,
                                            2007    2006    2007    2006
                                           ------- ------- ------- -------
                                                    US $ Millions

    Filmed Entertainment                   $  106  $  200  $1,225  $1,092
    Television                                385     403     962   1,032
    Cable Network Programming                 284     194   1,090     864
    Direct Broadcast Satellite Television     155      84     221      39
    Magazines and Inserts                      81      65     335     307
    Newspapers                                203     170     653     517
    Book Publishing                            21      (6)    159     167
    Other                                     (17)    (82)   (193)   (150)
                                           ------- ------- ------- -------
    Total Consolidated Operating Income    $1,218  $1,028  $4,452  $3,868
                                           ------- ------- ------- -------
    

    REVIEW OF OPERATING RESULTS

    FILMED ENTERTAINMENT

    The Filmed Entertainment segment reported fourth quarter operating income
of $106 million versus $200 million in the same period a year ago, which
included strong theatrical results from Ice Age: The Meltdown. For the full
year, record operating income of $1.2 billion increased 12% as compared with
the $1.1 billion reported in fiscal 2006.

    Current year fourth quarter film results were largely driven by the
worldwide home entertainment success of Night at the Museum and the pay-tv
availability of Ice Age: The Meltdown and X-Men: The Last Stand. The quarter
also included the initial results and releasing costs for several successful
theatrical releases, including Fantastic Four: Rise of the Silver Surfer,
which has grossed over $240 million in worldwide box office to date, and Live
Free or Die Hard, which has delivered over $320 million in worldwide box
office since its June 27th release.

    For the full year, record film results were primarily driven by the
worldwide theatrical and home entertainment success of The Devil Wears Prada,
Borat: Cultural Learnings of America for Make Benefit Glorious Nation of
Kazakhstan, Night at the Museum and Little Miss Sunshine. Also contributing to
this year's results were the home entertainment and pay-tv availability of Ice
Age: The Meltdown, X-Men: The Last Stand, Walk the Line and Fantastic Four.

    Twentieth Century Fox Television (TCFTV) reported increased results for
the fourth quarter and full year with continued momentum in home entertainment
sales, most notably from Prison Break and 24. Additionally, several of TCFTV's
series have been nominated for Emmy awards, including Boston Legal, which was
nominated for Outstanding Drama Series.

    TELEVISION

    The Television segment reported fourth quarter operating income of $385
million, a decrease of $18 million versus the same period a year ago, as
increased contributions from the FOX Broadcasting Company were more than
offset by losses from the first year of MyNetworkTV and lower results from Fox
Television Stations and STAR. For the full year, higher contributions at the
FOX Broadcasting Company and Fox Television Stations were more than offset by
losses at MyNetworkTV and lower contributions from STAR.

    At the FOX Broadcasting Company (FBC), fourth quarter and full year
operating results improved significantly versus fiscal 2006 as higher pricing
and increased volume drove primetime advertising revenue growth. The
advertising growth was partially offset in the fourth quarter by higher
prime-time programming costs on increased license fees for several returning
series, including 24, American Idol and House, all of which contributed to FBC
finishing as the top-rated network among Adults 18-49 this past broadcast
season. In addition to the increased advertising revenues, full year operating
income growth also reflects lower prime-time programming costs from the
cancellation of several series included in prime-time a year ago. The full
year results were partially offset by the impact of ratings softness for Major
League Baseball's post-season and increased National Football League
programming costs.

    Fox Television Stations' (FTS) fourth quarter operating income decreased
5% from the same period a year ago as revenue growth from the FOX-affiliated
stations was more than offset by lower revenues at the MyNetworkTV affiliated
stations. For the full year, operating income increased 3% versus fiscal 2006
as higher political advertising revenues and the continued success of local
news were partially offset by higher production costs from the local news
expansion, spending on local station internet initiatives and lower
contributions from the MyNetworkTV affiliated stations.

    STAR's fourth quarter and full year operating income decreased versus the
comparable periods a year ago, as advertising and subscription revenue growth
was more than offset by higher programming costs. The increased advertising
revenues reflect the broadcast on STAR PLUS of Kaun Banega Crorepati 3,
India's version of Who Wants to Be a Millionaire, while subscription revenue
growth was primarily driven by an increase in DTH subscribers in India.

    CABLE NETWORK PROGRAMMING

    Cable Network Programming reported fourth quarter operating income of
$284 million, an increase of $90 million over the fourth quarter a year ago,
and record full year operating income of $1.1 billion, an increase of $226
million over fiscal 2006. The 46% fourth quarter and the 26% full year growth
reflects higher contributions from the Fox News Channel, the Regional Sports
Networks (RSNs), the FX Network (FX) and the Fox International Channels.

    The Fox News Channel (FNC) reported operating income growth of 41% for
the fourth quarter and 33% for the full year, primarily from increased
affiliate rates driving affiliate revenue growth. The fourth quarter also
included higher advertising revenue on increased rates and additional volume
as ratings increased in both prime-time and on a 24-hour basis. For the full
year, FNC's viewership was over 75% higher than its nearest competitor in
primetime and nearly 60% higher on a 24-hour basis.

    At our other cable channels (including the RSNs, FX, Fox International
Channels and SPEED) operating profit increased 49% from last year's fourth
quarter results and 24% versus fiscal 2006. Higher contributions at the RSNs
for both the fourth quarter and full year were primarily the result of
increased affiliate rates and additional subscribers, as well as from
advertising revenue growth. The increased revenues were partially offset by
higher programming costs largely associated with broadcasting additional
professional games. At FX, operating income growth in the fourth quarter and
full year was driven primarily by lower programming expenses versus the prior
year, which included NASCAR, as well as by increased affiliate revenues from
higher rates and additional subscribers.

    DIRECT BROADCAST SATELLITE TELEVISION

    SKY Italia reported fourth quarter operating income of $155 million, an
increase of $71 million, or 85%, compared to a year ago and full year
operating income of $221 million, growth of $182 million over the $39 million
reported a year ago. The fourth quarter and full year improvements primarily
reflect the addition of 368,000 net new subscribers over the past 12 months,
bringing SKY Italia's subscriber base to 4.2 million at year-end. The related
revenue growth was partially offset in the fourth quarter and full year by
increased programming costs associated with the larger subscriber base, as
well as by higher costs associated with new channel offerings. These increased
costs were mitigated by the absence of expenses associated with the FIFA World
Cup which was broadcast in the fourth quarter a year ago. The full year
results also include increased costs associated with broadcasting additional
Series A and Series B soccer matches.

    MAGAZINES AND INSERTS

    The Magazines and Inserts segment reported fourth quarter operating
income of $81 million, an increase of $16 million versus the $65 million
reported in the quarter a year ago, and full year operating income of $335
million, an increase of $28 million over the $307 million reported in fiscal
2006. The 25% fourth quarter and 9% full year growth was primarily the result
of increased demand for in-store marketing products and also from lower
printing costs and increased page volume for free-standing inserts.

    NEWSPAPERS

    The Newspapers segment reported fourth quarter operating income of $203
million, an increase of $33 million compared with the same period a year ago,
and full year operating income of $653 million, a $136 million increase versus
fiscal 2006. The quarterly and full year increases reflect increased
contributions from both the U.K. and Australian newspaper groups, which
included favorable foreign currency fluctuations.

    The U.K. newspaper group reported operating income growth in local
currency terms for both the fourth quarter and full year as advertising and
circulation revenue declines were more than offset by lower promotional and
employee costs. Additionally, the full year improvement reflects the inclusion
in the second quarter a year ago of a $99 million redundancy provision
associated with the development of new color printing operations.

    The Australian newspaper group reported a slight fourth quarter and full
year operating income decline in local currency terms as advertising revenue
growth was offset by increased newsprint and production costs. Advertising
revenue gains were primarily driven by the strength of retail, real estate and
employment advertising. The full year results also include a modest increase
in circulation revenues on higher cover prices.

    BOOK PUBLISHING

    HarperCollins reported fourth quarter operating income of $21 million, an
improvement of $27 million versus the fourth quarter of fiscal 2006. Full year
operating income of $159 million declined $8 million from prior year results
that included strong sales of The Chronicles of Narnia by C.S. Lewis. Current
quarter results were led by sales of The Dangerous Book for Boys by Conn and
Hal Iggulden and The Reagan Diaries by Ronald Reagan. In addition to these
titles, full year results included strong sales of Marley and Me by John
Grogan, The Measure of a Man by Sidney Poitier and Michael Crichton's Next.
During the fourth quarter, HarperCollins had 53 books on The New York Times
bestseller list, including 8 titles that reached the number one spot, and for
the full year HarperCollins had 128 books on The New York Times bestseller
list, including 16 titles that reached the number one position.

    OTHER ITEMS

    A dividend of $0.06 per Class A share and a dividend of $0.05 per Class B
share has been declared and is payable on October 17, 2007. The record date
for determining dividend entitlements is September 12, 2007.

    Following the end of the fiscal year, the Company entered into a
definitive merger agreement with Dow Jones & Company to acquire all of the
outstanding shares of Dow Jones in a transaction valued at approximately $5.6
billion. Members of the Bancroft family and related trusts owning
approximately 37% of Dow Jones voting stock have agreed to vote their shares
in favor of the transaction. The transaction is subject to approval by the Dow
Jones stockholders, regulatory approvals and other customary closing
conditions, and is expected to be completed in the fourth quarter of calendar
2007. The Company has agreed, upon closing of the transaction, to appoint a
member of the Bancroft family or another mutually acceptable person to the
Company's Board of Directors.

    In June 2007, the Company announced its plan to sell nine of its FOX
network affiliated television stations as well as its intention to explore
strategic options for the News Outdoor Group.

    In April 2007, the previously announced share exchange agreement with
Liberty Media Corporation was approved by News Corporation's Class B common
stockholders. Upon completion, Liberty will exchange its entire 16.3 percent
interest in News Corporation (approximately 325 million shares of Class A
Common Stock and 188 million shares of Class B Common Stock) for the Company's
entire interest in The DIRECTV Group, three Regional Sports Networks and $588
million of cash, subject to adjustment. The transaction remains subject to
customary closing conditions including various regulatory approvals.
Completion is expected during the second half of calendar 2007 and, when
consummated, will be immediately accretive to News Corporation's earnings per
share.

    In August 2006, the Company completed its previously announced sale of
its investment in Sky Brasil, a Brazilian DTH platform, to The DIRECTV Group
for $302 million, which was received in fiscal 2005. As a result of this
transaction, the Company recognized a pre-tax gain of approximately $261
million, which is included in Other, net in the Consolidated Statement of
Operations.

    Also in August 2006, the Company sold a portion of its equity investment
in Phoenix Satellite Television Holdings for approximately $164 million. The
Company recognized a pre-tax gain of approximately $136 million on the sale,
which is included in Other, net in the Consolidated Statement of Operations.
The Company has retained a 17.6% stake in Phoenix after this transaction.

    Effective July 1, 2005, the Company adopted, as required, Emerging Issues
Task Force Topic No. D-108 (Topic D-108), which calls for the use of the
direct value method, rather than the residual value method previously used by
the Company, when performing the annual impairment test under SFAS 142. As a
result, the Company recorded a noncash charge of $1.0 billion, net of tax, or
$0.31 per share on a diluted combined basis, in fiscal 2006, to reduce the
intangible balances attributable to its television stations' FCC licenses.
This charge has been reflected as a cumulative effect of accounting change,
net of tax, in the Consolidated Statement of Operations for the twelve months
ended June 30, 2006.

    On June 13, 2005, the Company announced that its Board of Directors
approved a stock repurchase program, under which the Company was authorized to
acquire up to an aggregate of $3.0 billion in the Company's Class A and Class
B common stock. On May 10, 2006, the Board authorized an increase of that $3.0
billion buyback to $6.0 billion. As of August 8, 2007, the Company has
purchased over $3.9 billion of stock under the program. We are committed to
completing the remaining $2.1 billion of the buyback, but it may be suspended
or discontinued at any time.

    REVIEW OF EQUITY EARNINGS OF AFFILIATES' RESULTS

    Fourth quarter net earnings from affiliates were $272 million versus $278
million in the same period a year ago. For the full year, net earnings from
affiliates were $1,019 million compared with earnings of $888 million in
fiscal 2006. The full year improvement was primarily due to increased earnings
from The DIRECTV Group as a result of subscriber growth and increased pricing,
as well as from lower expenses from the set-top receiver lease program. The
improvements at The DIRECTV Group were partially offset by the absence of
equity earnings from Innova, sold in February 2006, and Sky Brasil, sold in
August 2006. Additionally, the full year and fourth quarter results include
increased costs associated with the launch of broadband at BSkyB.

    The Company's share of equity earnings of affiliates is as follows:

    
                                                  3 Months     12 Months
                                                     Ended        Ended
                                                   June 30,     June 30,
                                 % Owned          2007  2006   2007   2006
                                 -------          ----  ----  ------  ----
                                                       US $ Millions
    BSkyB                            39%  (a)(b)  $ 63  $ 83  $  336  $369
    Other affiliates             Various  (c)(b)   209   195     683   519
                                                  ----  ----  ------  ----
    Total equity earnings of
     affiliates                                   $272  $278  $1,019  $888
                                                  ----  ----  ------  ----
    

    

    (a) Due to BSkyB's stock repurchase program, News Corporation's
        ownership in BSkyB increased to 39% as of June 30, 2007 from
        approximately 38% as of June 30, 2006.

    (b) Please refer to each respective companies' earnings releases and
        SEC filings for detailed information.

    (c) Primarily comprised of The DIRECTV Group, Gemstar-TV Guide
        International, Fox Cable Networks affiliates, Sky Network
        Television Limited, Innova (through February 16, 2006) and Sky
        Brasil (through August 23, 2006).
    

    Foreign Exchange Rates

    Average foreign exchange rates used in the year-to-date results are as
follows:

    
                                               12 Months Ended
                                                  June 30,
                                              2007        2006
                                           ---------- ------------

    Australian Dollar/U.S. Dollar                0.79         0.75
    U.K. Pounds Sterling/U.S. Dollar             1.93         1.78
    Euro/U.S. Dollar                             1.30         1.22
    

    To receive a copy of this press release through the Internet, access News
Corp.'s corporate Web site located at http://www.newscorp.com

    Audio from News Corp.'s conference call with analysts on the fourth
quarter and fiscal year results can be heard live on the Internet at 4:30 PM.
Eastern Daylight Time today. To listen to the call, visit
http://www.newscorp.com

    Cautionary Statement Concerning Forward-Looking Statements

    This document contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's views and assumptions regarding future
events and business performance as of the time the statements are made. Actual
results may differ materially from these expectations due to changes in global
economic, business, competitive market and regulatory factors. More detailed
information about these and other factors that could affect future results is
contained in our filings with the Securities and Exchange Commission. The
"forward-looking statements" included in this document are made only as of the
date of this document and we do not have any obligation to publicly update any
"forward-looking statements" to reflect subsequent events or circumstances,
except as required by law.

    

    CONSOLIDATED STATEMENTS OF
     OPERATIONS                          3 Months Ended   12 Months Ended
                                            June 30,         June 30,
                                          2007    2006     2007     2006
                                         ------- ------- -------- --------
                                          US $ Millions (except per share
                                                      amounts)

    Revenues                             $7,367  $6,782  $28,655  $25,327
    Expenses:
       Operating                          4,645   4,477   18,645   16,593
       Selling, general and
        administrative                    1,255   1,056    4,655    3,982
       Depreciation and amortization        242     214      879      775
       Other operating charges                7       7       24      109
                                          ------  ------  -------  -------
    Operating income                      1,218   1,028    4,452    3,868
    Other income (expense):
       Interest expense, net               (118)   (135)    (524)    (545)
       Equity earnings of affiliates        272     278    1,019      888
       Other, net                          (134)    (49)     359      194
                                          ------  ------  -------  -------
    Income from continuing operations
     before income tax expense and
     minority interest in subsidiaries    1,238   1,122    5,306    4,405
       Income tax expense                  (328)   (381)  (1,814)  (1,526)
       Minority interest in
        subsidiaries, net of tax            (20)    (23)     (66)     (67)
                                          ------  ------  -------  -------
    Income from continuing operations       890     718    3,426    2,812
       Gain on disposition of
        discontinued operations, net of
        tax                                   -     134        -      515
                                          ------  ------  -------  -------
    Income before cumulative effect of
     accounting change                      890     852    3,426    3,327
       Cumulative effect of accounting
        change, net of tax                    -       -        -   (1,013)
                                          ------  ------  -------  -------
    Net income                           $  890  $  852  $ 3,426  $ 2,314
                                          ------  ------  -------  -------

    Basic earnings per share:
    Income from continuing operations
       Class A                            $0.30   $0.24    $1.14    $0.92
       Class B                            $0.25   $0.20    $0.95    $0.77
    Net income
       Class A                            $0.30   $0.28    $1.14    $0.76
       Class B                            $0.25   $0.24    $0.95    $0.63

    Diluted earnings per share:
    Income from continuing operations
       Class A                            $0.30   $0.24    $1.14    $0.92
       Class B                            $0.25   $0.20    $0.95    $0.77
    Net income
        Class A                           $0.30   $0.28    $1.14    $0.76
        Class B                           $0.25   $0.24    $0.95    $0.63
    

    
    CONSOLIDATED BALANCE SHEETS                             June    June
                                                             30,     30,
                                                            2007    2006
                                                           ------- -------
    Assets                                                  US $ Millions
    Current assets:
    Cash and cash equivalents                              $ 7,654 $ 5,783
    Receivables, net                                         5,842   5,150
    Inventories, net                                         2,039   1,840
    Other                                                      371     350
                                                           ------- -------
    Total current assets                                    15,906  13,123
                                                           ------- -------


    Non-current assets:
    Receivables                                                437     593
    Investments                                             11,413  10,601
    Inventories, net                                         2,626   2,410
    Property, plant and equipment, net                       5,617   4,755
    Intangible assets, net                                  11,703  11,446
    Goodwill                                                13,819  12,548
    Other non-current assets                                   822   1,173
                                                           ------- -------
    Total non-current assets                                46,437  43,526
                                                           ------- -------
    Total assets                                           $62,343 $56,649
                                                           ------- -------

    Liabilities and Stockholders' Equity
    Current liabilities:
    Borrowings                                             $   355 $    42
    Accounts payable, accrued expenses and other current
     liabilities                                             4,545   4,047
    Participations, residuals and royalties payable          1,185   1,007
    Program rights payable                                     940     801
    Deferred revenue                                           469     476
                                                           ------- -------
    Total current liabilities                                7,494   6,373
                                                           ------- -------

    Non-current liabilities:
    Borrowings                                              12,147  11,385
    Other liabilities                                        3,319   3,536
    Deferred income taxes                                    5,899   5,200
    Minority interest in subsidiaries                          562     281
    Commitments and contingencies

    Stockholders' Equity:
    Class A common stock, $0.01 par value per share             21      22
    Class B common stock, $0.01 par value per share             10      10
    Additional paid-in capital                              27,333  28,153
    Retained earnings and accumulated other comprehensive
     income                                                  5,558   1,689
                                                           ------- -------
    Total stockholders' equity                              32,922  29,874
                                                           ------- -------
    Total liabilities and stockholders' equity             $62,343 $56,649
                                                           ------- -------
    

    
    CONSOLIDATED STATEMENTS OF CASH FLOWS                12 Months Ended
                                                              June 30,
                                                           2007     2006
                                                         -------- --------
                                                           US $ Millions
    Operating activities:
    Net income                                           $ 3,426  $ 2,314
    Gain on disposition of discontinued operations, net
     of tax                                                    -     (515)
    Cumulative effect of accounting change, net of tax         -    1,013
                                                         -------- --------
    Income from continuing operations                      3,426    2,812
    Adjustments to reconcile income from continuing
     operations to cash provided by operating
     activities:
      Depreciation and amortization                          879      775
      Amortization of cable distribution investments          77      103
      Equity earnings of affiliates                       (1,019)    (888)
      Cash distributions received from affiliates            255      233
      Other, net                                            (359)    (194)
      Minority interest in subsidiaries, net of tax           66       67
      Change in operating assets and liabilities, net of
       acquisitions:
         Receivables and other assets                       (169)    (765)
         Inventories, net                                   (360)    (508)
         Accounts payable and other liabilities            1,314    1,622
                                                         -------- --------
    Net cash provided by operating activities              4,110    3,257
                                                         -------- --------

    Investing activities:
      Property, plant and equipment, net of acquisitions  (1,308)    (976)
      Acquisitions, net of cash acquired                  (1,059)  (1,989)
      Investments in equity affiliates                      (121)     (89)
      Other investments                                     (328)     (28)
      Proceeds from sale of investments and other non-
       current assets                                        740      412
      Proceeds from disposition of discontinued
       operations                                              -      610
                                                         -------- --------
    Net cash used in investing activities                 (2,076)  (2,060)
                                                         -------- --------

    Financing activities:
      Borrowings                                           1,196    1,159
      Repayment of borrowings                               (198)    (865)
      Issuance of shares                                     392      232
      Repurchase of shares                                (1,294)  (2,027)
      Dividends paid                                        (369)    (431)
                                                         -------- --------
    Net cash used in financing activities                   (273)  (1,932)
                                                         -------- --------

    Net increase (decrease) in cash and cash equivalents   1,761     (735)
    Cash and cash equivalents, beginning of year           5,783    6,470
    Exchange movement on opening cash balance                110       48
                                                         -------- --------
    Cash and cash equivalents, end of year               $ 7,654  $ 5,783
                                                         -------- --------
    

    
    SEGMENT INFORMATION                  3 Months Ended   12 Months Ended
                                            June 30,         June 30,
                                          2007    2006     2007     2006
                                         ------- ------- -------- --------
                                                   US $ Millions

    Revenues

    Filmed Entertainment                 $1,454  $1,785  $ 6,734  $ 6,199
    Television                            1,434   1,343    5,705    5,334
    Cable Network Programming             1,095     934    3,902    3,358
    Direct Broadcast Satellite
     Television                             865     749    3,076    2,542
    Magazines and Inserts                   275     258    1,119    1,090
    Newspapers                            1,196   1,058    4,486    4,095
    Book Publishing                         295     256    1,347    1,312
    Other                                   753     399    2,286    1,397
                                         ------- ------- -------- --------
                                         $7,367  $6,782  $28,655  $25,327
                                         ------- ------- -------- --------


    Operating Income

    Filmed Entertainment                 $  106  $  200  $ 1,225  $ 1,092
    Television                              385     403      962    1,032
    Cable Network Programming               284     194    1,090      864
    Direct Broadcast Satellite
     Television                             155      84      221       39
    Magazines and Inserts                    81      65      335      307
    Newspapers                              203     170      653      517
    Book Publishing                          21      (6)     159      167
    Other                                   (17)    (82)    (193)    (150)
                                         ------- ------- -------- --------
                                         $1,218  $1,028  $ 4,452  $ 3,868
                                         ------- ------- -------- --------
    

    NOTE 1 - SUPPLEMENTAL EARNINGS PER SHARE DATA

    Earnings per share is presented on a combined basis as the Company will
not be required to present the two class method beginning in fiscal 2008.
Currently under US GAAP, earnings per share is computed individually for the
Class A and Class B shares. Class A non-voting shares carry rights to a
greater dividend than Class B voting shares through fiscal 2007. As such, net
income available to the Company's common stockholders is allocated between our
two classes of common stock. The allocation between classes was based upon the
two-class method. Earnings per share by class and by total weighted average
shares outstanding (Class A and Class B combined) is as follows:

    
                                               3 Months
                                                 Ended     12 Months Ended
                                               June 30,       June 30,
                                              2007   2006   2007    2006
                                             ------ ------ ------ --------

    Basic earnings per share:
    Income from continuing operations
         Class A                              $0.30  $0.24  $1.14   $0.92
         Class B                              $0.25  $0.20  $0.95   $0.77
         Total                                $0.28  $0.23  $1.09   $0.88
    Gain on disposition of discontinued
     operations, net of tax
         Class A                                 $-  $0.04     $-   $0.17
         Class B                                 $-  $0.04     $-   $0.14
         Total                                   $-  $0.04     $-   $0.16
    Income before cumulative effect of
     accounting change
         Class A                              $0.30  $0.28  $1.14   $1.09
         Class B                              $0.25  $0.24  $0.95   $0.91
         Total                                $0.28  $0.27  $1.09   $1.04
    Cumulative effect of accounting change,
     net of tax
         Class A                                 $-     $-     $-  $(0.33)
         Class B                                 $-     $-     $-  $(0.28)
         Total                                   $-     $-     $-  $(0.32)
    Net income
         Class A                              $0.30  $0.28  $1.14   $0.76
         Class B                              $0.25  $0.24  $0.95   $0.63
         Total                                $0.28  $0.27  $1.09   $0.72

    Diluted earnings per share:
    Income from continuing operations
         Class A                              $0.30  $0.24  $1.14   $0.92
         Class B                              $0.25  $0.20  $0.95   $0.77
         Total                                $0.28  $0.23  $1.08   $0.87
    Gain on disposition of discontinued
     operations, net of tax
         Class A                                 $-  $0.04     $-   $0.17
         Class B                                 $-  $0.04     $-   $0.14
         Total                                   $-  $0.04     $-   $0.16


    Income before cumulative effect of
     accounting change
         Class A                              $0.30  $0.28  $1.14   $1.09
         Class B                              $0.25  $0.24  $0.95   $0.91
         Total                                $0.28  $0.27  $1.08   $1.03
    Cumulative effect of accounting change,
     net of tax
         Class A                                 $-     $-     $-  $(0.33)
         Class B                                 $-     $-     $-  $(0.28)
         Total                                   $-     $-     $-  $(0.31)
    Net income
         Class A                              $0.30  $0.28  $1.14   $0.76
         Class B                              $0.25  $0.24  $0.95   $0.63
         Total                                $0.28  $0.27  $1.08   $0.72

    Weighted average shares outstanding
     (diluted), in millions:
         Class A                              2,177  2,189  2,191   2,216
         Class B                                987    987    987   1,012
                                              -----  -----  -----  -------
         Total                                3,164  3,176  3,178   3,228
                                              -----  -----  -----  -------
    

    NOTE 2 - OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION

    Operating income before depreciation and amortization, defined as
operating income plus depreciation and amortization and the amortization of
cable distribution investments, eliminates the variable effect across all
business segments of non-cash depreciation and amortization. Since operating
income before depreciation and amortization is a non-GAAP measure it should be
considered in addition to, not as a substitute for, operating income, net
income, cash flow and other measures of financial performance reported in
accordance with GAAP. Operating income before depreciation and amortization
does not reflect cash available to fund requirements, and the items excluded
from operating income before depreciation and amortization, such as
depreciation and amortization, are significant components in assessing the
Company's financial performance. Management believes that operating income
before depreciation and amortization is an appropriate measure for evaluating
the operating performance of the Company's business segments. Operating income
before depreciation and amortization, which is the information reported to and
used by the Company's chief decision maker for the purpose of making decisions
about the allocation of resources to segments and assessing their performance,
provides management, investors and equity analysts a measure to analyze
operating performance of each business segment and enterprise value against
historical and competitors' data.

    The following table reconciles operating income before depreciation and
amortization to the presentation of operating income.

    
                                                 3 Months     12 Months
                                                   Ended         Ended
                                                 June 30,      June 30,
                                                2007   2006   2007   2006
                                               ------ ------ ------ ------
                                                      US $ Millions

    Operating income                           $1,218 $1,028 $4,452 $3,868
    Depreciation and amortization                 242    214    879    775
    Amortization of cable distribution
     investments                                   21     25     77    103
                                               ------ ------ ------ ------
    Operating income before depreciation and
     amortization                              $1,481 $1,267 $5,408 $4,746
                                               ------ ------ ------ ------
    

    
                          For the Three Months Ended June 30, 2007
                                       (US $ Millions)
                   -------------------------------------------------------
                                                              Operating
                                                                income
                                                                (loss)
                                              Amortization      before
                    Operating  Depreciation     of cable      depreciation
                     income         and        distribution       and
                      (loss)    amortization   investments    amortization
                   ---------- -------------- -------------- --------------

    Filmed
     Entertainment $     106  $           23 $      -       $     129
    Television           385              25        -             410
    Cable Network
     Programming         284              14       21             319
    Direct
     Broadcast
     Satellite
     Television          155              51        -             206
    Magazines and
     Inserts              81               2        -             83
    Newspapers           203              77        -             280
    Book Publishing       21               2        -             23
    Other                (17)             48        -             31
                   ---------- -------------- -------------- --------------
    Consolidated
     Total         $   1,218  $          242 $     21       $    1,481
                   ---------- -------------- -------------- --------------
    

    
                          For the Three Months Ended June 30, 2006
                                       (US $ Millions)
                   -------------------------------------------------------
                                                              Operating
                                                                income
                                                                (loss)
                                              Amortization      before
                    Operating  Depreciation     of cable      depreciation
                     income         and        distribution       and
                      (loss)    amortization   investments    amortization
                   ---------- -------------- -------------- --------------

    Filmed
     Entertainment $     200  $           22 $            - $         222
    Television           403              22              -           425
    Cable Network
     Programming         194              13             25           232
    Direct
     Broadcast
     Satellite
     Television           84              51              -           135
    Magazines and
     Inserts              65               2              -            67
    Newspapers           170              67              -           237
    Book Publishing       (6)              2              -            (4)
    Other                (82)             35              -           (47)
                   ---------- -------------- -------------- --------------
    Consolidated
     Total         $   1,028  $          214 $           25 $       1,267
                   ---------- -------------- -------------- --------------
    

    
                          For the Twelve Months Ended June 30, 2007
                                       (US $ Millions)
                   -------------------------------------------------------
                                                              Operating
                                                                income
                                                                (loss)
                                              Amortization      before
                    Operating  Depreciation     of cable      depreciation
                     income         and        distribution       and
                      (loss)    amortization   investments    amortization
                   ---------- -------------- -------------- --------------

    Filmed
     Entertainment $   1,225  $           85 $            - $       1,310
    Television           962              93              -         1,055
    Cable Network
     Programming       1,090              56             77         1,223
    Direct
     Broadcast
     Satellite
     Television          221             191              -           412
    Magazines and
     Inserts             335               8              -           343
    Newspapers           653             284              -           937
    Book Publishing      159               8              -           167
    Other               (193)            154              -           (39)
                   ---------- -------------- -------------- --------------
    Consolidated
     Total         $   4,452  $          879 $           77 $       5,408
                   ---------- -------------- -------------- --------------
    

    
                          For the Twelve Months Ended June 30, 2006
                                       (US $ Millions)
                   -------------------------------------------------------
                                                              Operating
                                                                income
                                                                (loss)
                                              Amortization      before
                    Operating  Depreciation     of cable      depreciation
                     income         and        distribution       and
                      (loss)    amortization   investments    amortization
                   ---------- -------------- -------------- --------------

    Filmed
     Entertainment $   1,092  $           85 $            - $       1,177
    Television         1,032              88              -         1,120
    Cable Network
     Programming         864              51            103         1,018
    Direct
     Broadcast
     Satellite
     Television           39             172              -           211
    Magazines and
     Inserts             307               7              -           314
    Newspapers           517             263              -           780
    Book Publishing      167               7              -           174
    Other               (150)            102              -           (48)
                   ---------- -------------- -------------- --------------
    Consolidated
     Total         $   3,868  $          775 $          103 $       4,746
                   ---------- -------------- -------------- --------------
    




For further information:

For further information: News Corporation Investor Relations Reed Nolte,
212-852-7092 or Press Inquiries Andrew Butcher, 212-852-7070

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