SKY Italia subscribers down 42,000 in 2Q 2012

Wednesday, August 8th, 2012 
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NEW YORK, NY — News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months and full year ending June 30, 2012.

Direct Broadcast Satellite Television

Full Year Segment Results

SKY Italia generated annual segment operating income of $254 million, a $22 million, or 9%, increase compared to the prior year. The improvement was due to lower programming costs resulting from the absence of FIFA World Cup costs and lower marketing costs related to the prior year’s rebranding campaign. Local currency revenue for the year was consistent with the prior year. SKY Italia’s year-end subscriber base declined to 4.9 million due to the net reduction of approximately 71,000 subscribers during the year, reflecting the continued challenging economic environment in Italy.

Fourth Quarter Segment Results

SKY Italia generated quarterly segment operating income of $89 million, compared to $145 million of operating income reported in the same period a year ago. Quarterly local currency revenue was down 5% from the corresponding period of the prior year driven by lower subscription revenues reflecting a lower subscriber base.

The quarter also reflects increased expenses related to subscriber retention efforts. SKY Italia experienced a net reduction of approximately 42,000 subscribers during the quarter.