Twenty-First Century Fox 2008 Annual Report Download - page 60

NEWSCORP
Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Channel (US), which was consolidated beginning in October 2007, and the international National Geographic entities, which were consolidated
beginning in January 2007.
Net income—Net income increased 57% for the fiscal year ended June 30, 2008 as compared to the fiscal year ended June 30, 2007. The
increase in Net income was primarily due to an increase in Other, net resulting from the gain recorded on the closing of the Exchange, as well as
the operating income increases noted above. These increases were partially offset by decreased earnings from equity affiliates and increased
interest expense noted above.
Segment Analysis:
The following table sets forth the Company’s revenues and operating income by segment for fiscal 2008 as compared to fiscal 2007.
2008 2007 Change % Change
For the years ended June 30, ($ millions)
Revenues:
Filmed Entertainment $ 6,699 $ 6,734 $ (35) (1)%
Television 5,807 5,705 102 2%
Cable Network Programming 4,993 3,902 1,091 28%
Direct Broadcast Satellite Television 3,749 3,076 673 22%
Magazines and Inserts 1,124 1,119 5 **
Newspapers and Information Services 6,248 4,486 1,762 39%
Book Publishing 1,388 1,347 41 3%
Other 2,988 2,286 702 31%
Total revenues $32,996 $28,655 $4,341 15%
Operating income (loss):
Filmed Entertainment $ 1,246 $ 1,225 $ 21 2%
Television 1,126 962 164 17%
Cable Network Programming 1,269 1,090 179 16%
Direct Broadcast Satellite Television 419 221 198 90%
Magazines and Inserts 352 335 17 5%
Newspapers and Information Services 767 653 114 17%
Book Publishing 160 159 1 1%
Other 42 (193) 235 **
Total operating income $ 5,381 $ 4,452 $ 929 21%
** not meaningful
Filmed Entertainment (20% and 23% of the Company’s consolidated revenues in fiscal 2008 and 2007, respectively)
For the fiscal year ended June 30, 2008, revenues at the Filmed Entertainment segment decreased $35 million, or 1%, as compared to fiscal
2007. The revenue decrease was primarily due to a decrease in worldwide home entertainment revenues as the fiscal year ended June 30, 2007
included the successful worldwide home entertainment performance of Ice Age: The Meltdown with no comparable release in fiscal 2008. This
decrease was partially offset by higher worldwide theatrical revenues. The fiscal year ended June 30, 2008 included the successful worldwide
theatrical and home entertainment performances of The Simpsons Movie,Alvin and the Chipmunks,Live Free or Die Hard, Juno, and Fantastic Four:
Rise of the Silver Surfer. Also included in fiscal 2008 were the theatrical releases of What Happens in Vegas, The Happening, Horton Hears a Who!
and their related initial releasing costs, as well as the costs relating to the theatrical release of Meet Dave which was released subsequent to
June 30, 2008. Additional titles contributing to fiscal year ended June 30, 2008 were the worldwide home entertainment and pay television
performances of Night at the Museum,Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan and Eragon. The fiscal
year ended June 30, 2007 included the initial releasing costs of Live Free or Die Hard, as well as the successful theatrical and home entertainment
performances of Night at the Museum, Devil Wears Prada, Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan
and Fantastic Four: Rise of the Silver Surfer. Also contributing to fiscal year ended June 30, 2007 was the worldwide home entertainment and pay
television performance of Ice Age:The Meltdown, X-Men: The Last Stand and Walk the Line.
For the fiscal year ended June 30, 2008, the Filmed Entertainment segment’s Operating income increased $21 million, or 2%, as compared to
fiscal 2007. The increase was primarily due to lower releasing and production costs partially offset by the revenue decrease noted above.
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