News Corporation Reports First Quarter Fiscal 2009

NEW YORK, NY — News Corporation (NYSE: NWS, NWSA; ASX: NWS, NWSLV) today reported first quarter consolidated operating income of $953 million, a decline of 9% as compared to the $1.05 billion reported a year ago.

Direct Broadcast Satellite Television

SKY Italia reported first quarter operating income of $165 million, an improvement of $117 million versus the $48 million in operating income reported a year ago on local currency revenue growth of 18%. The revenue growth includes the positive timing impact in this quarter from an expansion of soccer programming, which is now broadcast throughout fiscal 2009, as compared to only ten months of programming in fiscal 2008. The revenue growth was partially offset by increased operating expenses associated with higher subscriber related costs, as well as increased marketing costs. The improvement in operating income primarily reflects the timing of revenue recognition from expanded soccer programming and net subscriber additions of 359,000 added over the past 12 months, bringing SKY Italia’s subscriber base to over 4.6 million at quarter end.

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