Global media giant News Corporation
(ASX:NWS) has raised its full-year profit outlook despite posting a decline in third quarter earnings.
The conglomerate reported a profit of $US839 million for the three months to March 31, down from $US2.7 billion for the same period last year.
But CFO David DeVoe says the company expects its operating income for the year ending in June to be up by a percentage rate in the high 20s.
Previously, the company had said it expected a percentage gain in the low 20s.
But Mr DeVoe says the company’s movie studio earnings will be down about $US100 million from last year because of the timing of new film releases.
However, the company’s latest result was given a boost by the successful release of the movie, Avatar.
CEO Rupert Murdoch says the company is evaluating its options for deploying its cash reserves and will consider increasing its dividend payouts, repurchasing stock and paying down debt.
News Corporation posted a $4.163 billion loss for the 2009 financial year.
