SKY Italia subscriber base at 4.8 million

Wednesday, May 6th, 2009
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NEW YORK, NY — News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported third quarter net income of $2.7 billion ($1.04 per share) compared with net income of $2.7 billion ($0.91 per share) reported in the third quarter a year ago.

Direct Broadcast Satellite Television

SKY Italia reported third quarter operating income of $63 million, a decrease of $34 million versus the $97 million in operating income reported a year ago, as local currency revenue growth of 7% was more than offset by increased operating expenses associated with higher subscriber volume, increased marketing and sports rights costs.

Local currency revenue growth primarily reflects net subscriber additions of 290,000 over the past 12 months, bringing SKY Italia’s subscriber base to 4.8 million at quarterÂ’s end. This revenue growth in the third 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, compared with 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.

The total churn for the nine months ended March 31, 2009 was approximately 467,000 subscribers on an average subscriber base of 4.7 million, as compared to churn of approximately 337,000 subscribers on an average subscriber base of 4.4 million in the corresponding period of fiscal 2008.

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