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News Corp 1Q earnings beat Street; revenue close

Associated Press Modified: November 6, 2012 at 5:16 pm •  Published: November 6, 2012

The company said it expects full-year adjusted operating income in the year through next June to grow in the "high single- to low double-digit" percentages from the $5.6 billion made in the most recent fiscal year. The forecast excludes the $224 million spent on the U.K. probe in fiscal 2012.

The company is in the midst of a plan to split into two companies, one housing its newspapers, Australian operations and for-profit education business, and the other its more profitable TV and movie businesses.

Despite the split, analysts remain concerned that company founder Murdoch would use company cash — which grew to $12 billion in the quarter from $9.6 billion at the end of June — to spend on expensive acquisitions.

Last week, Murdoch used Twitter to criticize the announced merger between Pearson PLC's Penguin Books and Bertelsmann SE's Random House as a "faux merger disaster." That sparked speculation that he would make a bold bid to buy Penguin and merge it with News Corp.'s HarperCollins.

Chief Operating Officer Chase Carey said he was not about to "comment on Rupert's tweets."

"I'm not going to get too deep into the rumors on what we're buying or what we're looking at," he said.