Sky Italia subscribers down 28,000 in 4Q 2012

Wednesday, February 6th, 2013
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2nd Quarter Fiscal 2013 Earnings Release

NEW YORK, NY — News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported $9.43 billion of total revenue for the three months ending December 31, 2012, a $450 million or 5% increase over the $8.98 billion of revenue reported in the prior year quarter.

Direct Broadcast Satellite Television

SKY Italia

SKY Italia generated a quarterly segment operating loss of $20 million, compared to operating income of $6 million reported in the same period a year ago. The decline was driven by higher programming expenses, including nearly $30 million of rights costs primarily associated with expanded UEFA Champions and Europa League coverage. Although reported U.S. dollar revenue declined reflecting the impact of the strengthened U.S. dollar, quarterly local currency revenue was essentially in line with the corresponding period of the prior year.

SKY Italia experienced a net reduction of approximately 28,000 subscribers during the quarter, bringing total subscribers to 4.83 million.

SKY Italia subscribers:

                                                 2012       2011
           ------------------------------------------  ---------
                  4Q         3Q         2Q         1Q         4Q
           ---------  ---------  ---------  ---------  ---------
Total      4,830,000  4,860,000  4,900,000  4,940,000  5,030,000
Net Adds    (28,000)   (40,000)   (42,000)   (86,000)     23,000

Sky Deutschland

In January 2013, the Company reached an agreement with Sky Deutschland AG (“Sky Deutschland”) and its new bank syndicate to support both a new financing structure and the issuance of €438 million (approximately $585 million) of new equity, which includes the outstanding €144 million (approximately $195 million) of equity under the capital measures announced by Sky Deutschland in February 2012. Sky Deutschland finalized the equity offering in early February 2013 and the Company acquired, through a combination of a private placement and a rights offering, approximately 92 million additional shares of Sky Deutschland increasing its ownership to approximately 55%. The aggregate cost of the shares acquired by the Company was approximately €410 million (approximately $550 million). As a result of these transactions, the results of Sky Deutschland will be included in the Company’s consolidated results of operations in the fiscal third quarter of 2013.