News Corp. Profit Up 69% in Quarter

News Corp. said its fiscal third-quarter profit jumped 69%, as advertisers flocked to its “American Idol” television show and Fox News Channel.

Net income in the quarter ended March 31 increased to $465 million, or 31 cents a share, from $275 million, or 23 cents, a year earlier, the Sydney, Australia-based company said in a statement. Sales rose 19%, to $5.2 billion.

Television profit increased 25%, boosted by higher ad rates for the Fox TV network’s “American Idol,” the second-most-watched U.S. program this season. “American Idol,” Fox’s only top 10 hit, has lifted the network to third place from fourth among major broadcasters since the show returned in January.

“It has a halo effect for the whole schedule,” said Peter Mirsky, an analyst at Oppenheimer & Co., who rates News Corp. shares “buy” and doesn’t own them.

Operating income at the television unit rose to $259 million from $207 million.

Controlled by Rupert Murdoch, the fourth-biggest media company expects total operating income this year to increase as much as 19%, Chief Financial Officer David Devoe said on a conference call with analysts and investors.

“American Idol” will fetch $1 million for 30-second advertising spots in the May 26 finale of the program, Murdoch said on the conference call. Advertisers have paid as much as $700,000 for 30 seconds on recent episodes.

“We’re particularly pleased with the rebound of the Fox Broadcasting Co., which after a lethargic fall is regaining its momentum,” the 73-year-old Murdoch said. “So far, ‘American Idol’ has been the catalyst.”

News Corp.’s American depositary receipts, each representing four common shares, fell 88 cents to $36.50 on the New York Stock Exchange.

David Mantell, an analyst at Loop Capital Markets, said the shares fell as part of a general decline related to concerns about interest rates.

“The entire market is getting battered and they’re going down with it, despite having reported strong quarters,” he said.

News Corp.’s results topped analysts’ forecasts.