Twenty-First Century Fox 2003 Annual Report Download - page 8

ach year, as I have sat down to summarize for
you the previous twelve months of activity at
News Corporation, I have done so with pride –
but also with some reluctance and inevitable
repetition. The reluctance has come from my
belief that no single letter can accurately
describe the yearlong progress of a company as diverse
and dynamic as ours. The repetition has been my annual
restatement of our Company’s vision, a vision that has
not changed or blurred in the past 50 years. This consis-
tency may not have made for spectacular reading over the
decades; however, I am pleased to report that it has made
for a spectacular company. This year, our overwhelming
success prompts me to write you with pleasure – and
without reluctance – of a Company whose yearly adherence
to its vision has delivered outstanding earnings, great
strength and even greater prospects.
Throughout News Corporation’s evolution, our goal has
been to create a Company as unified, as logical and as
creative as possible. Our vision has been one of a media
company that is as well-integrated as it is international;
one capable of delivering short-term results as well as
building long-term value. We have worked to build a com-
pany with the agility to seize strategic opportunities when
they arise, with the foresight to anticipate challenges
and with little patience for conventional wisdom. In fiscal
2003, that vision translated into record results.
Financially and operationally, the past fiscal year was
the single most successful in News Corporation’s history.
Our full-year revenues rose 15 percent to US$17.5 billion
and our operating income increased 36 percent to a record
US$2.5 billion. We posted record profits at our film, cable
television and book publishing businesses as well as
at our Australian newspapers, our pan-Asian operations
and our U.S. television stations group. We grew audi-
ences and market share and improved operating margins
Company-wide. Our increased cash flow enabled us to
lower debt and substantially strengthen our balance sheet.
The News Corporation Limited 6
CHIEF EXECUTIVE’S
review
And with two major agreements forged during the year,
the Company is in excellent position – strategically as well
as operationally – to build on our success going forward.
Perhaps most significantly, in fiscal 2003, these many
gains were broadly distributed across all our segments.
At our television segment, operating income rose
US$393 million to US$851 million, spurred by dramatic
improvements at the FOX Broadcasting Company as well
as the mounting success of the Fox Television Stations
and STAR. At the network, hit shows like American Idol
and Joe Millionaire helped FOX to lift full-year primetime
ratings by 16 percent while winning both the February
and May sweeps among Adults 18-49 for the first time
ever. Just as important, FOX achieved ratings gains across
its schedule as shows from The Simpsons to 24 and from
That ‘70s Show to Bernie Mac all increased their viewer-
ship. As a result, the network finished the 2002-2003
broadcast season number one among Teens, number one
among Adults 18-34 and a very close number two among
Adults 18-49.
Meanwhile, strong advertising revenues and climbing
market share across our Fox Television Stations helped
the group to post considerable gains in revenue and
operating income. By following our duopoly strategy, we
have substantially lowered operating costs and increased
efficiency across our stations group. As with any industry
We posted record profits at
our film, cable television and
book publishing businesses
as well as at our Australian
newspapers, our pan-Asian
operations and our U.S.
television stations group.
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