MUMBAI: US media conglomerate News Corp has reported $9.54 billion of total revenue for the third quarter ended 31 March, 2013. This was a $1.14 billion or a 14 per cent increase over the $8.40 billion of revenue reported in the prior year quarter.

Approximately 55 per cent of the revenue increase reflects growth at the cable network programming, film and television segments, partially offset by lower revenues at the publishing segment. The balance of the growth primarily relates to the inclusion of Sky Deutschland and Fox Sports Australia revenues.

The company reported third quarter total segment operating income of $1.36 billion, as compared to $1.31 billion reported a year ago. The improvement was led by operating income growth at the company?s Cable Network Programming, Film and Television segments. The third quarter results included $42 million of costs related to the ongoing investigations initiated upon the closure of The News of the World as compared to $63 million in the corresponding period of the prior year. This year?s third quarter results also included $25 million of costs related to the proposed separation of the company?s entertainment and publishing businesses. Excluding these costs from both years, third quarter adjusted total segment operating income of $1.43 billion increased $54 million or four per cent from $1.38 billion reported in the third quarter of the prior year.

The company reported quarterly net income attributable to stockholders of $2.85 billion, as compared to $937 million reported in the corresponding period of the prior year. This quarter?s pre-tax results included $2.43 billion of income in Other, net, principally related to gains on the acquisition of an additional ownership stake in Sky Deutschland and the sale of the ownership stake in Sky Network Television in New Zealand, as well as a $11 million gain from the company?s participation in BSkyB?s share repurchase program, which is reflected in the equity earnings of affiliates.

These gains were partially offset by $56 million of restructuring charges, primarily related to the company?s international newspaper businesses. Excluding the net income effects of these items, the costs related to the investigations in the UK and the proposed separation of the company?s entertainment and publishing businesses, along with comparable items in both years, third quarter adjusted earnings per share was $0.36 versus the adjusted prior year quarter result of $0.37.

News Corp chairman and CEO Rupert Murdoch said, "In our fiscal third quarter News Corp achieved organic growth across our cable, film and television segments and through the consolidation of Sky Deutschland and sale of stakes in Sky New Zealand and Phoenix Satellite Television, we advanced our strategic agenda to simplify our global portfolio."

"We also announced our plans to broaden our core cable business with the unveiling of our national sports channel Fox Sports 1 and our third branded FX channel, FXX. Both initiatives underscore our strategy of maximising existing assets and leadership positions to drive sustainable growth and long-term value," he added.

"We are on target to complete the proposed separation of our businesses near the end of our fiscal year. As we prepare to launch two new industry leaders with new News Corporation and 21st Century Fox, I am more confident than ever of the long-term value the separation will unlock for the company and its shareholders," Murdoch concluded.

The quarter included $42 million and $63 million, respectively, of costs related to the ongoing investigations in the UK. The three months ended 31 March, 2013 include $25 million of costs related to the proposed separation of the company?s entertainment and publishing businesses. Excluding these charges, adjusted total segment operating income is $1,429 and $1,375 million in the three months ended March 31, 2013 and 2012, respectively.

The nine months include $165 million and $167 million, respectively, of costs related to the ongoing investigations in the U.K. The nine months ended 31 March, 2013 include $53 million of costs related to the proposed separation of the company?s entertainment and publishing businesses. Excluding these charges, adjusted total segment operating income is $4.5 and $4.3 billion in the nine months ended March 31, 2013 and 2012, respectively.

Cable Network Programming reported quarterly segment operating income of $993 million, a $147 million or 17 per cent increase over the prior year quarter, driven by a 17 per cent increase in revenue. Operating income contributions from the domestic channels increased by 16 per cent. Revenue growth across all domestic channels, led by strong growth at the company?s regional sports networks and FX Networks, was partially offset by increased programming and marketing costs at the company?s FX Networks and National Geographic Channels.

The company?s international cable channels? quarterly earnings contributions increased by 21 per cent from the same period a year ago, reflecting strong operating profit growth at the Fox International Channels (Fic), partially offset by the adverse impact of the strengthened US dollar.

Affiliate revenue grew by 11 per cent and 42 per cent at the domestic and international cable channels, respectively. Domestic network growth reflects higher rates across all networks, led by growth at the RSNs, Fox News Channel and FX Networks. Approximately 60 per cent of the international affiliate revenue increase reflects strong local currency growth at the non-sports channels at Fic and Star. The balance of the growth was attributable to the new sports channels, including Fox Star Sports Asia and Eredivisie Media and Marketing (EMM), partially offset by the impact of the strengthened US dollar.

Ad revenue at the domestic cable channels grew by two per cent in the quarter over the prior year period driven by double-digit growth at the FX Networks and National Geographic Channels, partially offset by lower advertising revenues at the Fox News Channel, due to the absence of the presidential primaries which occurred in the prior year, and at the RSNs, due to the broadcast of fewer National Basketball Association (NBA) games.

Nearly two-thirds of the international cable channels? 30 per cent ad revenue improvement reflects strong local currency growth at the non-sports channels at FIC and Star. The balance of the growth was attributable to the new sports channels, including Fox Star Sports Asia and EMM networks, partially offset by the impact of the strengthened US dollar.

Expenses at Cable Network Programming grew by 17 per cent in the quarter over the corresponding period in the prior year. More than two-thirds of this increase was attributable to the new international sports networks at FIC and Star, including the investment in BCCI cricket rights in India. The balance of the increase was due to higher programming and marketing costs at the FX Networks and National Geographic Channels, partially offset by reduced NBA rights costs at the RSNs resulting from the broadcast of fewer games.

Mumbai: A parliamentary committee?s recommendation to bring the news industry - both print and TV - under a media council to clamp down on the beast called ?paid news? has got the news TV industry?s goose.

The committee also recommended that the Press Council of India should be revamped to keep a close tab on print media?s love for paid news. In case, this is done, it is imperative that another statutory body be set up to monitor electronic media.

The committee had insinuated that this was necessary as industry?s self regulation mechanism had failed to check the menace of paid news.

The News Broadcasters? Association (NBA) is quite clear that such high handed measures are not needed. Says NBA president & NDTV group CEO Narayan Rao: "With all due respect to the parliamentary committee, I beg to differ. I believe self-regulation is the best way forward. The late Justice Verma?s committee has done a fabulous job in this respect. The mechanism of self regulation has been working well over the years."

Seconding Rao is IBN7 editor-in-chief Ashutosh, with a caveat. Says he: "Self regulation should be encouraged and should be extended to the areas of regional journalism as well."

Rao highlights that paid news is a beast that can be tamed and there are mechanisms within the NBA to keep it in check. "There is an advisory on our website and we have a code of ethics for the broadcasting industry. If there is any instance of paid news, we take very strict action against it."

The parliamentary committee has recommended that media owners or other interested parties should not be a part of the proposed media council.

Ashutosh believes that this could prove to be quite unhealthy for the fourth estate. "Any form of regulation which is funded and undertaken by the government specially in the political system of India, is dangerous for a democracy," he says.

"The Indian constitution and the judiciary guarantee the press its freedom to speech and expression. Any step which curbs this is totally counter-productive and undemocratic," adds a pretty agitated BAG Network chairperson and MD Anuradha Prasad.

Rao says rather than harping on paid news, the focus of the entire news broadcasting ecosystem - including the government - should be on reworking its flawed business model. "There is a high dependence on ad revenue which promotes the menace of paid news. The faulty rating system, the TRP rat race and the lack of subscription revenues are the areas that we should focus on."