News Corp. Profit Rises on Viewer, Ad Gains

News Corp., the media company controlled by Rupert Murdoch, said second-quarter profit rose 51% as cable networks such as the Fox News Channel gained viewers and newspaper advertising sales increased.

Net income in the quarter ended Dec. 31 climbed to $361 million, or 30 cents a share, from $239 million, or 24 cents, in the year-earlier period, the Sydney, Australia-based company said. Sales rose 19% to $5.58 billion from $4.68 billion.

An improved ad market helped boost profit at News Corp.’s cable channels and newspapers, the units that grew fastest. Murdoch bought control of U.S. satellite television service DirecTV in the quarter, part of a plan to own content and the means of distributing it. The same strategy prompted Comcast Corp.’s bid Wednesday for Walt Disney Co.

“It validates the strategy that News Corp. has been able to put in place,” said David Joyce, an analyst at Guzman & Co. in Miami. “News Corp. will still be more of a global play, versus what Disney and Comcast might look like, but that expansion might come in the future.”

Profit at the cable network group rose 55% to $187 million.

Murdoch’s oldest business, newspapers, provided the highest profit growth. Profit from newspapers jumped 67% to $170 million from a year earlier. TV profit rose 2% to $168 million.

News Corp.’s U.S.-traded shares rose 90 cents to $38.60 on the New York Stock Exchange.