News Corp. Sales May Have Gained on `American Idol,' Super Bowl
May 14th, 2008
May 7 (Bloomberg) — News Corp., the media company controlled by Rupert Murdoch, may report higher third-quarter sales today on increased advertising revenue from Fox Broadcasting's “American Idol'' and February's Super Bowl.
Sales probably rose 14 percent to $8.61 billion, the average of 15 analysts' estimates compiled by Bloomberg. Net income may have gained 2.2 percent to $890.5 million, or 33 cents a share, based on the average projection of 10 analysts.
Fox television sales probably climbed 17 percent in the quarter ended March 31, UBS AG analyst Michael Morris said. The Super Bowl broadcast drew a record audience while “Idol,'' TV's most-watched show, capitalized on a 100-day writers strike to obtain record ad prices. The live singing competition doesn't rely on scripts in the same way as sitcoms and dramas.
“Where most broadcast networks had less inventory, News Corp., with strong new programming, was better positioned for growth,'' said Morris, who is based in New York and has recommended buying the stock since becoming UBS's lead analyst on News Corp. last April.
News Corp. plans to release the results at 4 p.m. New York time and hold a 4:30 p.m. conference call. Morris wants Murdoch, News Corp.'s chairman and chief executive officer, to discuss his strategy for Fox Interactive Media, owner of the MySpace social-networking unit, and for satellite broadcaster Sky Italia.
“We're looking for insight on what's going on at those businesses and why we should be optimistic about growth going forward,'' Morris said.
News Corp. spokeswoman Teri Everett declined to comment.
News Corp.'s earnings growth was probably dragged down by a 35 percent drop in profit at the film unit and losses at British Sky Broadcasting Group Plc, in which News Corp. has a 39 percent stake, according to Sanford C. Bernstein & Co. analyst Michael Nathanson in New York.
Tags: 14, american, idol, may
May 15th, 2008 at 12:47 am
Where’s ‘around here’?And I didn’t say it was smart or stupid, just a viable alternative to the ubiquitous assumption that credit is absolutely necessary.Still, it’s not unequivocally stupid, just depends on the circumstances and available opportunities.
May 15th, 2008 at 1:37 am
If you can’t get a credit card but you have a checking account, you can easily get a debit card that acts, looks, and smells like a credit card online.If you can’t get THAT, you can get a prepaid debit card that you refill at a drug store.edit: fixed embarrassing word error in first paragraph.
May 15th, 2008 at 2:28 am
And that same credit is used to plug the hole of a broken health care system which no one has the stones to fix.I’m not disagreeing with the bulk of the comments here that people who can’t manage credit generally should not be allowed go out and buy consumer items. I just think that the credit crisis really imperils people in other ways which go beyond the big television screens at Best Buy, is all.
May 15th, 2008 at 3:18 am
I’m not saying giving credit solves this, I’m saying this is just the way it is. I would love for credit to die, I would love for my wages to rise, and I would love for house prices to sink… but it’s not going to happen anytime soon.Credit increases the cost of goods due to factoring in defaults and the cost merchants must pay to the credit companies to process purchases. That’s the only reason I use a credit card (other than to increase my credit score) - I get 1-4% cashback on my purchases… otherwise that money would be lost to the credit-inflated price.
May 15th, 2008 at 4:09 am
Yes, since people with shitty credit are obviously the ones doing all the impulse buying and not undertaking any kind of comparison shopping.
May 15th, 2008 at 4:59 am
Most Americans never travel outside the country, so a passport is not as common an item as you might suppose…
May 15th, 2008 at 5:50 am
Funny you should mention that. Bernanke unveiled some plans to actually rein in credit card companies today.It’s mostly intended to head off the Democratic Congress from doing it for him. But, still, it’s a remarkable thing for this Fed, with this Administration.
May 15th, 2008 at 6:41 am
But wouldn’t that destroy the credit card companies business model?
May 15th, 2008 at 7:31 am
Reward money is a carrot on a stick. If you are responsible with the card, then you are a minority.
May 15th, 2008 at 8:22 am
Those things that you say make for a high quality of life, in my opinion, are still just things. When I think of a high quality of life, healthy, happy friends and family are what come to mind. Perhaps the ability to share the wine, art or GTA 4 with those people would be a better definition of what a high quality life should be. Then again, to each his own.
May 15th, 2008 at 9:12 am
Yes, one could never imagine how higher interest rates might affect someone with good credit scores…because we all write a check for houses or new cars. That’s…obvious.Your zip code 90210, by any chance?
May 15th, 2008 at 10:03 am
With sane mortgage terms, it is a good deal for people in the right situation. Of course the equity in the house is going down…that’s the point. When it is passed on to the family they either get a mortgage on it or sell it. It’s a way to continue to use your asset (the house) wile drawing equity from it.I don’t see the problem. Of course, any financial instrument can be used improperly, but this seems like good sense and a good deal if done properly.