Cable Channels Lift News Corp.’s Profit

Fueled by the strength of its cable channels and retransmission fees at Fox Broadcasting, News Corporation reported a 4 percent increase in operating income, to $1.36 billion, in the three months that ended March 31, reports Amy Chozick at nytimes.com.

Net income at News Corporation climbed to $2.85 billion, or $1.22 a share, compared with $937 million, or 38 cents a share, in the same period last year, the company reported on Wednesday. Revenue increased by 14 percent, to $9.54 billion, largely on the strength of an 11 percent increase from domestic television affiliates and a 2 percent increase in advertising revenue at its cable channels, which include FX and Fox News.

News Corporation is expected to complete a split of its entertainment assets and publishing divisions into two publicly traded companies by the end of its fiscal year this summer. But the company’s third-quarter results already read as if they came from two distinct companies, with the publishing assets dragging on overall profits.

That division, which includes The Wall Street Journal, The New York Post and HarperCollins, had a $45 million decrease in operating income compared with the same period a year ago, largely because of weakness at the company’s Australian newspapers. The company’s cable channels reported an increase of 17 percent, or $147 million, in operating income, to $993 million.

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