Blog Post

Earnings: NWS: FIM Revenue Up 87 Percent; $62 million From Google

As noted in our earlier report, News Corp.’s (NYSE: NWS) “other” segment generated $23 million in operating profit for the quarter ending Dec. 31. 2007 — $22 million more than the same quarter last year — primarily due to strong growth at Fox Interactive Media, which in turn was aided by Google’s (NSDQ: GOOG) guaranteed revenue for MySpace.

Some of the details from Monday’s earnings call:
— FIM recorded $233 million total revenue for the News Corp. FYQ208, up 87 percent. The guaranteed payments from Google started in January 2007, so this should be the last quarter that will be compared to one without a payment for the life of the three-year deal. Google paid $62 million in the quarter.

— FIM ad revenues rose 43 percent, year over year and 31 percent sequentially.

— FIM’s operating profit was $47 million, compared with a loss of $11 million in the same quarter last year. CFO Dave DeVoe: The profit growth “reflects the revenue increases and lower management retention amortization — and it