Sydney, May 14: Shares in Rupert Murdoch's News Corp. surged more than two per cent here today after the global media giant posted a better than expected third quarter result which reversed its worst losses. The company reported in New York that its net profit for the three months to march rose to USD 275 million, driven by a strong performance in its film and television divisions after a year-earlier loss of 3.99 billion dollars.
The result took its nine-month net profit to 626 million dollars, compared to a loss of 4.52 billion dollars in the previous corresponding period, which had included huge writedowns on its stake in Gemstar.
The outcome impressed investors in the United States, sending News Corp. American depository receipts up 2.92 per cent yesterday as several large houses including Merrill Lynch and Goldman Sachs issued positive notes on the company.
News corp. had rallied slightly here yesterday in anticipation of the profit announcement, then after the rise on wall street they were 24 cents, or 2.1 per cent, stronger at 11.67 Australian dollars by mid-session in Sydney.
"The market was expecting a good result and they came out at the top end of those upgraded expectations," WTM Wilson analyst Nick Burmester said. "So they're up there again today."
News Corp. chief financial officer David Devoe said in New York that he expected the company to report 2002-2003 operating income in the low 30 per cent range, up from previous guidance in the low to mid-20 per cent growth rate above fiscal 2002 operating income level. Bureau Report