News Corp (NWS) Q4 2003 earnings summary

Executive summary

• FY03 was described as the strongest year to date, with record results across filmed entertainment, cable programming, book publishing, Australian newspapers, pan-Asian operations and U.S. television stations.

• Revenue rose 15% to US$17.5B and operating income increased 36% to a record US$2.5B; stronger cash flow supported debt reduction and a stronger balance sheet.

Financial highlights

• FY03 revenue was US$17.474B vs. US$15.195B in FY02; operating income was US$2.532B vs. US$1.855B.

• Net profit was US$1.046B vs. a US$6.265B net loss in FY02; income before Other items was US$1.100B vs. US$636M.

• On the Australian-dollar reporting basis, revenue was A$29.913B and operating income A$4.352B; attributable net profit was A$1.808B vs. an A$11.962B loss in FY02.

• FY03 reported results included A$378M pre-tax net loss from Other items, including a Gemstar impairment, debt-extinguishment losses and asset charges; excluding Other items, income was A$1.898B.

Outlook and guidance

• Sky Italia began service in July 2003 to more than 2M subscribers; growth and eventual meaningful profit contribution were expected, supported by Italy's limited free-to-air and cable options.

• The proposed Hughes acquisition was targeted for completion by year-end 2003 or early 2004, subject to shareholder, tax and regulatory approvals.

• The outlook emphasized operating momentum across businesses and plans to apply global platform expertise to new opportunities; forward-looking statements were cautioned as uncertain and not guarantees of performance.