News Corporation (SKY Italia) Reports Second Quarter

NEW YORK, NY — News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for its second fiscal quarter ended December 31, 2008 with adjusted operating income of $818 million declining 42% as compared to operating income of $1.4 billion reported a year ago.

Direct Broadcast Satellite Television

SKY Italia reported second quarter operating income of $10 million, a decrease of $52 million versus the $62 million in operating income reported a year ago, as local currency revenue growth of 6% was more than offset by increased operating expenses associated with higher subscriber volume, increased marketing and sports rights costs.

The local currency revenue growth primarily reflects net subscriber additions of 322,000 over the past 12 months, bringing SKY Italia’s subscriber base to over 4.7 million at quarter-end. The local currency revenue improvement in the second quarter versus the prior year was reduced due to the change in the timing of revenue recognition
associated with expanded soccer programming, which is now broadcast throughout fiscal 2009, as compared to only ten months of programming in fiscal 2008. This programming change shifts a portion of soccer revenues that were previously recognized in the last three fiscal quarters into the first quarter of the fiscal year.

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