Twenty-First Century Fox 2004 Annual Report Download - page 6

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Fiscal 2004 was an outstanding
year for News Corporation.
Financially, strategically and
operationally, the Company
met – and in most cases
exceeded – all of its key
objectives for the year: record
revenues and profits in US$
terms; record cash flow gen-
eration; double-digit profit
gains at nearly all operating
segments; the completion of
the transformative DIRECTV
deal; the swift development
of SKY Italia; and, with
the announcement of our
intention to reincorporate
the Company in the United
States later this calendar
year, the promise of a new
and more prosperous era for
News Corp. shareholders.
Our success is due, in large
measure, to the diligence,
dedication and vision of the
Company’s management and
employees. Above all else,
each of us is guided by a
desire to give our customers
the two things they most
demand from a media compa-
ny: quality and choice.
Whether in our films or TV
shows, our newspapers or
books, our magazines or pay-
TV distribution platforms,
what inspires us at News
Corp. – this year as in every
year – is a desire to give our
readers and viewers higher
quality options when it
comes to the news, sports,
and entertainment products
they use. And if our financial
results prove nothing else, it
is that this year, as in previ-
ous years, we have delivered
on that promise.
Last year, I wrote of our
intention to be as “integrated”
as we were “international,”
and as focused on delivering
short-term results as on
building long-term value.
Looking back on the achieve-
ments of the past 12 months,
it’s clear to me that our
commitment to these prin-
ciples is what drove our
success.
We’ve now set the standard
for how a media company
of the 21st century should
look. Our assets are global,
with operations across
five continents. Our assets
are diversified, encompass-
ing businesses that create
content and those that
distribute that content. Our
assets are balanced, between
those whose revenues are
dependent on advertising,
and those that are not. And
our assets are of varying
maturities, neatly divided
between those generating
significant profits today and
those positioned to deliver
growth tomorrow.
This is why we were able
to deliver such solid results
this past year. Full year rev-
enues rose 20 percent to US$21
billion and our operating
income increased 21 percent
to US$3.1 billion, both record
numbers for the Company.
Our Filmed Entertainment,
Cable Network Programming,
Television, Book Publishing
and Newspapers segments
posted record profits. At the
same time, we significantly
strengthened our balance
sheet, continuing our pro-
gram to pay down debt.
And even as we enjoyed
the success of this past
year, we were also taking
decisive strategic steps that
we believe position us for
further growth in 2005 and
beyond.
Most importantly, this
past April, we announced
our intention to change our
place of incorporation from
Australia to the United
States. We undertook this
move for one reason: to
create greater value for
our shareholders. For more
than 80 years, the Company
has proudly called Australia
its home. It is where the
Company was founded, nur-
tured, and from where we get
our entrepreneurial spirit.
Australia is our spiritual
home, and will always remain
so. But over the past two
decades, as more of the
Company’s revenues and
profits have come from our
US-based businesses, it has
become increasingly clear
to us that without a pri-
mary listing on the New
York Stock Exchange and eli-
gibility on US indices, our
shareholders would never
experience the full benefits
of our achievements.
Consequently, using a
process that will allow
us to move our domicile
without financial cost to
the Company or the over-
whelming majority of its
shareholders, we have put
forth for your approval a plan
that the News Corporation
Board of Directors unani-
mously believes will make
the Company a more attrac-
tive investment for current
and future shareholders. The
Chief Executive’s Review
Year ended June 30, 2004 2003 2002
Revenues $ 29,428 $ 29,913 $ 29,014
Operating Income $ 4,302 $ 4,352 $ 3,542
Associated entities, before Other items $ 367 $ (159) $ (314)
Income before Other items $ 2,366 $ 1,898 $ 1,217
Other items, net $ (54) $ (90) $ (13,179)
Net Profit $ 2,312 $ 1,808 $ (11,962)
Earnings per share
Income before Other items $ 0.42 $ 0.36 $ 0.23
Net Profit $ 0.41 $ 0.34 $ (2.43)
Financial Position
Assets $ 73,738 $ 67,747 $ 71,441
Debt $ 12,470 $ 12,429 $ 15,441
Financial Highlights
(Australian dollars, in Millions except for Earnings Per Share)
Rupert Murdoch, Chairman and Chief Executive
NEWS CORPORATION ANNUAL REPORT 2004
NEWS CORPORATION ANNUAL REPORT 2004