News Corporation Reports Second Quarter Earnings Per Share of $1.01 on Net Income Attributable to Stockholders of $2.38 Billion

  News Corporation Reports Second Quarter Earnings Per Share of $1.01 on Net
  Income Attributable to Stockholders of $2.38 Billion

  Total Segment Operating Income Increases 6% to $1.58 Billion on Revenue of
                                $9.43 Billion

Business Wire

NEW YORK -- February 6, 2013

News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) today reported $9.43
billion of total revenue for the three months ending December 31, 2012, a $450
million or 5% increase over the $8.98 billion of revenue reported in the prior
year quarter. The revenue increase was led by $398 million or 18% growth at
the Company’s Cable Network Programming segment.

The Company reported second quarter total segment operating income^(1) of
$1.58 billion compared to $1.50 billion reported a year ago. The improvement
was led by operating income improvements at the Company’s Cable Network
Programming and Television segments. The second quarter results included $56
million of costs related to the ongoing investigations initiated upon the
closure of The News of the World as compared to $87 million in the
corresponding period of the prior year. This year’s second quarter results
also included $23 million of costs related to the proposed separation of the
Company’s entertainment and publishing businesses. Excluding these costs from
both years, second quarter adjusted total segment operating income of $1.66
billion increased $75 million or 5% from $1.58 billion reported in the second
quarter of the prior year.

The Company reported quarterly net income attributable to stockholders of
$2.38 billion ($1.01 per share), compared to $1.06 billion ($0.42 per share)
reported in the corresponding period of the prior year. This quarter’s pre-tax
results included $1.40 billion of income in Other, net, principally related to
gains on the acquisitions of additional ownership stakes in FOX SPORTS
Australia and Fox Star Sports Asia (formerly ESPN Star Sports), as well as a
$131 million gain from the Company’s participation in British Sky
Broadcasting’s (“BSkyB”) share repurchase program, which is reflected in
Equity earnings of affiliates. These gains were partially offset by $65
million of restructuring and impairment charges, primarily related to the
Company’s international newspaper businesses. Excluding the net income effects
of these items, the costs related to the investigations in the U.K. and the
proposed separation of the Company’s entertainment and publishing businesses,
along with comparable items in both years, second quarter adjusted earnings
per share^(2) was $0.44 compared with the adjusted prior year quarter result
of $0.39.

Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch
said:

"News Corporation’s fiscal second quarter performance reflects our strong
momentum. Double-digit gains in our Cable and Television businesses, along
with improvements in our Publishing segment, drove revenue and earnings growth
even as we seized opportunities to invest in our core businesses for long-term
and sustainable growth.

“The strategies we executed against in the quarter continue to bolster News
Corporation's competitive position and enhance our ability to benefit from
global demand for content, especially sports programming. As we make progress
toward the proposed separation of our entertainment and publishing businesses
later this year, I am confident in the future prospects for both businesses.”

____________________________________________________________

(1) Total segment operating income is a non-GAAP financial measure. See page
12 for a description of total segment operating income and for a
reconciliation of total segment operating income to income before income tax
expense.

(2) See page 15 for a reconciliation of reported net income and earnings per
share to adjusted net income and adjusted earnings per share.

                                                              
REVIEW OF SEGMENT OPERATING RESULTS
                        
Total Segment
Operating Income           3 Months Ended              6 Months Ended
(Loss)
                           December 31,                December 31,
                           2012       2011       2012       2011    
                           US $ Millions
                                                                       
Cable Network              $ 945         $ 882         $ 1,898       $ 1,657
Programming
Filmed Entertainment         383           393           783           740
Television                   224           189           380           322
Direct Broadcast             (20   )       6             3             125
Satellite Television
Publishing                   234           218           291           328
Other                       (186  )      (191  )      (397  )      (290  )
Total Segment              $ 1,580      $ 1,497      $ 2,958      $ 2,882 
Operating Income *
                                                                       

    The three months ended December 31, 2012 and 2011 include $56 million and
    $87 million, respectively, of costs related to the ongoing investigations
    in the U.K. The three months ended December 31, 2012 include $23 million
*  of costs related to the proposed separation of the Company’s entertainment
    and publishing businesses. Excluding these charges, adjusted total segment
    operating income is $1,659 and $1,584 million in the three months ended
    December 31, 2012 and 2011, respectively.
    
    The six months ended December 31, 2012 and 2011 include $123 million and
    $104 million, respectively, of costs related to the ongoing investigations
    in the U.K. The six months ended December 31, 2012 include $28 million of
    costs related to the proposed separation of the Company’s entertainment
    and publishing businesses. Excluding these charges, adjusted total segment
    operating income is $3,109 and $2,986 million in the six months ended
    December 31, 2012 and 2011, respectively.
    

CABLE NETWORK PROGRAMMING

Cable Network Programming reported quarterly segment operating income of $945
million, a $63 million or 7% increase over the prior year quarter, driven by
an 18% increase in revenue. Operating income contributions from the domestic
channels increased 9%. Double-digit revenue growth at the Regional Sports
Networks (“RSNs”), Fox News Channel, FX Network and National Geographic
Channels was partially offset by increased programming costs, including
expanded college football and Ultimate Fighting Championship (“UFC”) coverage,
as well as higher costs at the RSNs related to the benefit recognized in the
prior year as a result of the National Basketball Association (“NBA”) lockout.
The Company’s international cable channels’ quarterly earnings contributions
increased 3% from the same period a year ago, reflecting strong operating
profit growth at the non-sports channels at Fox International Channels (“FIC”)
and STAR, partially offset by the costs associated with the inaugural
broadcasts of BCCI cricket and the adverse impact of the strengthened U.S.
dollar.

Affiliate revenue grew 13% and 42% at the domestic and international cable
channels, respectively. Domestic network growth reflects higher rates across
all networks, led by growth at the Fox News Channel and RSNs. Approximately
40% of the international affiliate revenue increase reflects strong local
currency growth at the non-sports channels at FIC and STAR. The balance of the
growth was principally from the inclusion of Fox Pan American Sports (“FPAS”)
and Fox Star Sports Asia, partially offset by the impact of the strengthened
U.S. dollar.

Advertising revenue at the domestic cable channels grew 8% in the quarter over
the prior year period driven by growth across most networks. The international
cable channels’ advertising revenue improved 29% from the prior year quarter.
Nearly two-thirds of the international cable revenue increase reflects strong
local currency growth at the non-sports channels at FIC and STAR. The balance
of the growth was from the inclusion of FPAS and Fox Star Sports Asia,
partially offset by the impact of the strengthened U.S. dollar.

Expenses at Cable Network Programming grew 26% in the quarter over the
corresponding period in the prior year due to increased sports programming
costs, including increased rights costs at the RSNs related to the timing
benefit in the prior year resulting from the NBA lockout, rights fees for BCCI
cricket in India, expanded college football coverage, UFC rights fees, as well
as expenses associated with the consolidation of the FPAS and Fox Star Sports
Asia networks. These increases were partially offset by reduced National
Hockey League rights costs at the RSNs resulting from this season’s lockout.

FILMED ENTERTAINMENT

Filmed Entertainment reported quarterly segment operating income of $383
million, as compared to the $393 million reported in the same period a year
ago. Quarterly results reflect the successful worldwide theatrical
performances of Taken 2, which has grossed approximately $375 million in
worldwide box office to date, and Life of Pi, which has grossed over $500
million in worldwide box office and is nominated for eleven Academy Awards
including Best Picture. In aggregate, the Fox film studios garnered thirty-one
Academy Award nominations, the most of any studio. In addition, the quarterly
results include the successful worldwide home entertainment performance of Ice
Age: Continental Drift. Prior year second quarter film results included the
successful worldwide home entertainment performances of Rio, Rise of the
Planet of the Apes and X-Men: First Class.

TELEVISION

Television reported quarterly segment operating income of $224 million, an
increase of $35 million or 19% versus the same period a year ago. This
increase reflects a more than doubling of retransmission consent revenues and
increased local advertising at the Fox Television Stations driven by political
advertising revenues. These improvements were partially offset by lower
national advertising revenues, primarily reflecting lower primetime ratings at
the Fox Broadcast Network and three fewer World Series games in the current
year, as well as increased costs associated with expanded college football
coverage.

DIRECT BROADCAST SATELLITE TELEVISION

SKY Italia generated a quarterly segment operating loss of $20 million,
compared to operating income of $6 million reported in the same period a year
ago. The decline was driven by higher programming expenses, including nearly
$30 million of rights costs primarily associated with expanded UEFA Champions
and Europa League coverage. Although reported U.S. dollar revenue declined
reflecting the impact of the strengthened U.S. dollar, quarterly local
currency revenue was essentially in line with the corresponding period of the
prior year. SKY Italia experienced a net reduction of approximately 28,000
subscribers during the quarter, bringing total subscribers to 4.83 million.

PUBLISHING

Publishing reported quarterly segment operating income of $234 million, a $16
million improvement from the $218 million reported in the same period a year
ago. Increased contributions from the U.K. newspapers which benefitted from
the launch of the Sunday edition of The Sun in February 2012, integrated
marketing services driven by higher custom publishing revenues, and book
publishing businesses related to the acquisition of Thomas Nelson, Inc., a
Christian book publisher, more than offset lower advertising revenues at the
Australian newspapers.

OTHER

The Other segment quarterly operating loss of $186 million improved slightly
from the $191 million reported the same period a year ago. The current year
quarterly results included $56 million of costs related to the ongoing
investigations initiated upon the closure of The News of the World, as
compared to $87 million of comparable costs included in the prior year
quarterly results, as well as $23 million of costs related to the proposed
separation of the Company’s entertainment and publishing businesses. As a
result of the Company’s acquisition of Consolidated Media Holdings in
November, the second quarter results also included a benefit from the
consolidation of FOX SPORTS Australia. This benefit was largely offset by an
increased operating loss at Amplify, the Company’s education business,
reflecting increased product development costs.

OTHER ITEMS

Eredivisie Media & Marketing

In November 2012, the Company acquired a controlling 51% ownership stake in
Eredivisie Media & Marketing CV (“EMM”) for approximately $350 million, of
which $325 million was cash and $25 million was contingent consideration. EMM
is a media company that holds the collective media and sponsorship rights of
the Dutch Premier League. The remaining 49% of EMM is owned by the Dutch
Premier League and the global TV production company Endemol.

Fox Star Sports Asia (formerly ESPN Star Sports)

In November 2012, the Company acquired the remaining 50% interest in ESPN Star
Sports (“ESS”) that it did not already own for approximately $220 million, net
of cash acquired. Accordingly, the results of ESS are included the Company’s
consolidated results of operations beginning in November 2012. Subsequent to
its acquisition, the Company rebranded the ESS channel group Fox Star Sports
Asia.

Consolidated Media Holdings

In November 2012, the Company acquired Consolidated Media Holdings Ltd.
(“CMH”), a media investment company that operates in Australia, for
approximately $2.2 billion which consisted of cash of $2 billion and assumed
debt of $235 million. CMH had a 25% interest in Foxtel and a 50% interest in
FOX SPORTS Australia. The remaining 50% of Foxtel is owned by Telstra
Corporation Limited, one of Australia’s leading telecommunications companies.
The acquisition doubled the Company’s stakes in FOX SPORTS Australia and
Foxtel to 100% and 50%, respectively. Accordingly, the results of FOX SPORTS
Australia are included the Company’s consolidated results of operations
beginning in November 2012. Prior to November 2012, the Company accounted for
its investment in FOX SPORTS Australia under the equity method of accounting.
The Company’s investment in Foxtel was and continues to be accounted for under
the equity method of accounting.

YES Network & Sports Time Ohio

In December 2012, the Company acquired a 49% equity interest in the Yankees
Entertainment and Sports Network (“YES”), a New York City-based RSN, for $584
million. In addition, simultaneous with the closing of this transaction, the
Company paid approximately $250 million of upfront costs on behalf of YES.
Under the purchase agreement, after three years, News Corporation may acquire
an additional 31% stake in the YES Network that could bring its total
ownership stake to 80%.

In December 2012, the Company also acquired Sports Time Ohio, a RSN serving
the Cleveland, Ohio market, for an estimated total purchase price of
approximately $270 million, of which $130 million was paid in cash. The
balance of the purchase price represents the fair value of deferred payments
and payments that are contingent upon achievement of certain performance
objectives.

Sky Deutschland

In January 2013, the Company reached an agreement with Sky Deutschland AG
(“Sky Deutschland”) and its new bank syndicate to support both a new financing
structure and the issuance of €438 million (approximately $585 million) of new
equity, which includes the outstanding €144 million (approximately $195
million) of equity under the capital measures announced by Sky Deutschland in
February 2012. Sky Deutschland finalized the equity offering in early February
2013 and the Company acquired, through a combination of a private placement
and a rights offering, approximately 92 million additional shares of Sky
Deutschland increasing its ownership to approximately 55%. The aggregate cost
of the shares acquired by the Company was approximately €410 million
(approximately $550 million). As a result of these transactions, the results
of Sky Deutschland will be included in the Company’s consolidated results of
operations in the fiscal third quarter of 2013. In addition, the Company has
committed to guarantee Sky Deutschland’s new €300 million (approximately $400
million) five-year bank credit facility, which will replace Sky Deutschland’s
existing bank debt facilities (to be repaid in full). Additionally, News
Corporation will act as guarantor to the German Football League for Sky
Deutschland’s Bundesliga broadcasting license for the 2013/14 to 2016/17
seasons in an amount up to 50% of the license fee per season. News Corporation
has also agreed to extend the maturity of existing shareholder loans.

Share repurchases

On May 9, 2012, News Corporation announced that its Board of Directors
approved an increase to the previously authorized stock repurchase program
from $5 billion to $10 billion. Through February 5, 2013, the Company has
purchased nearly $6.3 billion of Class A common stock under the program, at an
average price of $19.13 per share. As a result of the stock repurchase
program, diluted weighted Class A shares outstanding of 2,346 million in this
year’s quarter declined 7% from 2,515 million in the same period a year ago.

Dividends

The Company has declared a dividend of $0.085 per Class A and Class B share.
This dividend is payable on April 17, 2013 with a record date for determining
dividend entitlements of March 13, 2013.

Intent to pursue separation of entertainment and publishing businesses

On June 28, 2012, News Corporation announced that it intends to pursue the
separation of its publishing and its media and entertainment businesses into
two distinct publicly traded companies. The global publishing company that
would be created through the proposed transaction would consist of the
Company’s publishing businesses, its education division and other Australian
assets. The global media and entertainment company would consist of the
Company’s cable and television assets, filmed entertainment, and direct
satellite broadcasting businesses. Following the separation, each company
would maintain two classes of common stock: Class A Common and Class B Common
Voting Shares. The separation is expected to be completed in approximately one
year from the date of announcement. In addition to final approval from the
Board of Directors and stockholder approval of certain amendments to the
Company’s Restated Certificate of Incorporation, the completion of the
separation will be subject to receipt of regulatory approvals, opinions from
tax counsel and favorable rulings from certain tax jurisdictions regarding the
tax-free nature of the transaction to the Company and to its stockholders,
further due diligence as appropriate, the execution of certain agreements
relating to the distribution, and the filing and effectiveness of appropriate
filings with the SEC. On December 21, 2012, New Newscorp LLC filed an initial
Form 10 registration statement and News Corporation filed a preliminary proxy
statement with the Securities and Exchange Commission in connection with the
separation. The Company has also applied for certain regulatory approvals and
tax rulings required to enable the separation to be completed as described.
There can be no assurances given that the separation of the Company's
businesses as described will occur.

REVIEW OF EQUITY EARNINGS (LOSSES) OF AFFILIATES’ RESULTS

Quarterly earnings from affiliates were $174 million as compared to $142
million in the same period a year ago. The increased contributions from
affiliates are primarily due to higher contributions from BSkyB, including the
Company’s $131 million pre-tax gain related to the its participation in
BSkyB’s share repurchase, partially offset by one-time costs resulting from
Hulu’s purchase of Providence Equity Partners’ ownership stake and the absence
of contributions from NDS, which was sold in July 2012.

The Company’s share of equity earnings (losses) of affiliates is as follows:

                             3 Months Ended         6 Months Ended
                                 December 31,             December 31,
                 % Owned         2012      2011     2012      2011
                                 US $ Millions
BSkyB            39%^(1)         $ 298      $ 174       $ 507      $ 315
Other            Various^(2)      (124 )      (32 )      (143 )      (52 )
affiliates
Total equity
earnings of                      $ 174        $ 142       $ 364        $ 263
affiliates
                                                                             

  (1)  Please refer to BSkyB’s earnings releases for detailed information.
    (2)   Primarily comprised of Sky Deutschland, Hulu, Australian and STAR
          equity affiliates, as well as NDS in the prior year.
          

Foreign Exchange Rates

Average foreign exchange rates used in the quarter-to-date profit results are
as follows:

                                    3 Months Ended
                                       December 31,
                                       2012    2011
                                                 
Australian Dollar/U.S. Dollar          1.04      1.01
U.K. Pounds Sterling/U.S. Dollar       1.61      1.57
Euro/U.S. Dollar                       1.30      1.35
                                                 

To receive a copy of this press release through the Internet, access News
Corporation’s corporate Web site located at http://www.newscorp.com.

Audio from News Corporation’s conference call with analysts on the second
quarter results can be heard live on the Internet at 4:30 p.m. Eastern
Standard Time today. To listen to the call, visit http://www.newscorp.com.

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management’s views and assumptions regarding future events and
business performance as of the time the statements are made. Actual results
may differ materially from these expectations due to changes in global
economic, business, competitive market and regulatory factors. More detailed
information about these and other factors that could affect future results is
contained in our filings with the Securities and Exchange Commission. The
“forward-looking statements” included in this document are made only as of the
date of this document and we do not have any obligation to publicly update any
“forward-looking statements” to reflect subsequent events or circumstances,
except as required by law.

                                                           
CONSOLIDATED
STATEMENTS OF
OPERATIONS
                     3 Months Ended                6 Months Ended
                     December 31,                  December 31,
                     2012         2011         2012          2011
                     US $ Millions (except share related amounts)
                                                                     
Revenues             $ 9,425        $ 8,975        $ 17,561        $ 16,934
                                                                     
                                                                     
Operating expenses     (5,869 )       (5,583 )       (10,717 )       (10,336 )
Selling, general
and administrative     (1,666 )       (1,614 )       (3,276  )       (3,141  )
expenses
Depreciation and       (310   )       (281   )       (610    )       (575    )
amortization
Impairment and
restructuring          (65    )       (36    )       (217    )       (127    )
charges
Equity earnings of     174            142            364             263
affiliates
Interest expense,      (266   )       (257   )       (533    )       (515    )
net
Interest income        37             29             68              65
Other, net             1,400         125           2,775          (5      )
Income from
continuing             2,860          1,500          5,415           2,563
operations before
income tax expense
Income tax expense     (402   )       (373   )       (661    )       (650    )
Net income             2,458          1,127          4,754           1,913
Less: Net income
attributable to
                       (77    )       (70    )       (140    )       (118    )
noncontrolling
interests
Net income
attributable to      $ 2,381       $ 1,057       $ 4,614        $ 1,795   
News Corporation
stockholders
                                                                     
                                                                     
Weighted average       2,346          2,515          2,358           2,563
shares:
                                                                     
Net income
attributable to
News Corporation     $ 1.01         $ 0.42         $ 1.96          $ 0.70
stockholders per
share:
                                                                             

                                                                  
CONSOLIDATED BALANCE SHEETS                          December 31,     June 30,
                                                     2012           2012
Assets:                                              US $ Millions
Current assets:
Cash and cash equivalents                            $   7,806        $ 9,626
Receivables, net                                         7,760          6,608
Inventories, net                                         3,282          2,595
Other                                                   896           619
Total current assets                                    19,744        19,448
                                                                        
Non-current assets:
Receivables                                              449            387
Investments                                              7,441          4,968
Inventories, net                                         5,024          4,596
Property, plant and equipment, net                       5,857          5,814
Intangible assets, net                                   7,149          7,133
Goodwill                                                 15,875         13,174
Other non-current assets                                1,206         1,143
Total assets                                         $   62,745       $ 56,663
                                                                        
                                                                        
Liabilities and Equity:
Current liabilities:
Borrowings                                           $   273          $ 273
Accounts payable, accrued expenses and other             5,260          5,405
current liabilities
Participations, residuals and royalties payable          1,899          1,691
Program rights payable                                   1,665          1,368
Deferred revenue                                        1,163         880
Total current liabilities                               10,260        9,617
                                                                        
Non-current liabilities:
Borrowings                                               16,184         15,182
Other liabilities                                        4,200          3,650
Deferred income taxes                                    2,447          2,388
Redeemable noncontrolling interests                      649            641
Commitments and contingencies
Equity:
Class A common stock, $0.01 par value                    15             15
Class B common stock, $0.01 par value                    8              8
Additional paid-in capital                               15,898         16,140
Retained earnings and accumulated other                 12,231        8,521
comprehensive income
Total News Corporation stockholders' equity              28,152         24,684
Noncontrolling interests                                853           501
Total equity                                            29,005        25,185
Total liabilities and equity                         $   62,745       $ 56,663
                                                                        

                                                                
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   6 Months Ended December 31,
                                                     2012        2011   
                                                   US $ Millions
Operating activities:
Net Income                                         $  4,754         $ 1,913
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization                         610             575
Amortization of cable distribution investments        44              47
Equity earnings of affiliates                         (364    )       (263   )
Cash distributions received from affiliates           306             253
Impairment charges, net of tax                        35              -
Other, net                                            (2,775  )       5
Change in operating assets and liabilities, net
of acquisitions:
Receivables and other assets                          (986    )       (1,202 )
Inventories, net                                      (920    )       (758   )
Accounts payable and other liabilities               267           26     
Net cash provided by operating activities            971           596    
                                                                      
Investing activities:
Property, plant and equipment, net of                 (370    )       (485   )
acquisitions
Acquisitions, net of cash acquired                    (2,830  )       (488   )
Investments in equity affiliates                      (610    )       (37    )
Other investments                                     (46     )       (158   )
Proceeds from dispositions                           1,860         321    
Net cash used in investing activities                (1,996  )      (847   )
                                                                      
Financing activities:
Borrowings                                            987             -
Repayment of borrowings                               (235    )       (32    )
Issuance of shares                                    139             15
Repurchase of shares                                  (1,434  )       (2,477 )
Dividends paid                                        (297    )       (305   )
Purchase of subsidiary shares from                    (8      )       -
noncontrolling interests
Other, net                                           8             -      
Net cash used in financing activities                (840    )      (2,799 )
                                                                      
Net decrease in cash and cash equivalents             (1,865  )       (3,050 )
Cash and cash equivalents, beginning of period        9,626           12,680
Exchange movement on opening cash balance            45            (198   )
Cash and cash equivalents, end of period           $  7,806        $ 9,432  
                                                                             

                                                
SEGMENT INFORMATION      3 Months Ended              6 Months Ended
                         December 31,                December 31,
                         2012        2011        2012         2011
                         US $ Millions
Revenues                                                       
                                                                      
Cable Network            $ 2,559       $ 2,161       $ 5,008        $ 4,281
Programming
Filmed Entertainment       2,067         2,063         3,812          3,841
Television                 1,532         1,520         2,491          2,443
Direct Broadcast           890           947           1,707          1,869
Satellite Television
Publishing                 2,149         2,130         4,167          4,199
Other                     228         154         376          301    
Total Revenues           $ 9,425      $ 8,975      $ 17,561      $ 16,934 
                                                                      
                                                                      
Segment Operating
Income (Loss)
                                                                      
Cable Network            $ 945         $ 882         $ 1,898        $ 1,657
Programming
Filmed Entertainment       383           393           783            740
Television                 224           189           380            322
Direct Broadcast           (20   )       6             3              125
Satellite Television
Publishing                 234           218           291            328
Other                     (186  )      (191  )      (397   )      (290   )
Total Segment            $ 1,580      $ 1,497      $ 2,958       $ 2,882  
Operating Income *
                                                                      

    The three months ended December 31, 2012 and 2011 include $56 million and
    $87 million, respectively, of costs related to the ongoing investigations
    in the U.K. The three months ended December 31, 2012 include $23 million
*  of costs related to the proposed separation of the Company’s entertainment
    and publishing businesses. Excluding these charges, adjusted total segment
    operating income is $1,659 and $1,584 million in the three months ended
    December 31, 2012 and 2011, respectively.
    
    The six months ended December 31, 2012 and 2011 include $123 million and
    $104 million, respectively, of costs related to the ongoing investigations
    in the U.K. The six months ended December 31, 2012 include $28 million of
    costs related to the proposed separation of the Company’s entertainment
    and publishing businesses. Excluding these charges, adjusted total segment
    operating income is $3,109 and $2,986 million in the six months ended
    December 31, 2012 and 2011, respectively.
    

NOTE 1 – TOTAL SEGMENT OPERATING INCOME AND SEGMENT OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION

The Company evaluates the performance of its operating segments based on
segment operating income, and management uses total segment operating income
as a measure of the performance of operating businesses separate from
non-operating factors. Total segment operating income and segment operating
income before depreciation and amortization are non-GAAP measures and should
be considered in addition to, not as a substitute for, net income, cash flow
and other measures of financial performance reported in accordance with GAAP.
In addition, these measures do not reflect cash available to fund
requirements. These measures exclude items, such as impairment and
restructuring charges, which are significant components in assessing the
Company’s financial performance. Segment operating income before depreciation
and amortization also excludes depreciation and amortization which are also
significant components in assessing the Company’s financial performance.

Management believes that total segment operating income and segment operating
income before depreciation and amortization are appropriate measures for
evaluating the operating performance of the Company’s business and provide
investors and equity analysts a measure to analyze operating performance of
the Company’s business and enterprise value against historical data and
competitors’ data. Total segment operating income and segment operating income
before depreciation and amortization is the primary measure used by our chief
operating decision maker to evaluate the performance of and allocate resources
to the Company’s business segments.

Total segment operating income does not include: Impairment and restructuring
charges, discontinued operations, Equity earnings of affiliates, Interest
expense, net, Interest income, Other, net, Income tax expense and Net income
attributable to noncontrolling interests.

Segment operating income before depreciation and amortization is defined as
segment operating income plus depreciation and amortization and the
amortization of cable distribution investments and eliminates the variable
effect across all business segments of depreciation and amortization.
Depreciation and amortization expense includes the depreciation of property
and equipment, as well as amortization of finite-lived intangible assets.
Amortization of cable distribution investments represents a reduction against
revenues over the term of a carriage arrangement and, as such, it is excluded
from segment operating income before depreciation and amortization.

The following table reconciles segment operating income before depreciation
and amortization to income from continuing operations before income tax
expense.

                                                  
                         3 Months Ended                6 Months Ended
                         December 31,                  December 31,
                         2012         2011        2012        2011
                         US $ Millions
                                                               
Segment Operating
income before            $ 1,913         $ 1,801       $ 3,612       $ 3,504
depreciation and
amortization
Depreciation and           (310  )         (281  )       (610  )       (575  )
amortization
Amortization of
cable distribution        (23   )        (23   )      (44   )      (47   )
investments
Total Segment              1,580           1,497         2,958         2,882
Operating income
Impairment and
restructuring              (65   )         (36   )       (217  )       (127  )
charges
Equity earnings of         174             142           364           263
affiliates
Interest expense,          (266  )         (257  )       (533  )       (515  )
net
Interest income            37              29            68            65
Other, net                1,400         125         2,775       (5    )
Income from
continuing               $ 2,860        $ 1,500      $ 5,415      $ 2,563 
operations before
income tax expense
                                                                             

                For the Three Months Ended December 31, 2012
                  (US $ Millions)
                  Segment                                     
                  Operating
                  income                            Amortization
                  (loss)           Depreciation     of               Segment
                  before
                  depreciation     and              cable            Operating
                  and                               distribution     income
                  amortization     amortization     investments      (loss)
Cable Network     $  1,013         $   (45   )      $   (23   )      $ 945
Programming
Filmed               416               (33   )          -              383
Entertainment
Television           246               (22   )          -              224
Direct
Broadcast            56                (76   )          -              (20   )
Satellite
Television
Publishing           349               (115  )          -              234
Other               (167   )         (19   )         -            (186  )
Consolidated      $  1,913        $   (310  )      $   (23   )      $ 1,580 
Total
                                                                             

                                                            
                  For the Three Months Ended December 31, 2011
                  (US $ Millions)
                  Segment
                  Operating
                  income                            Amortization
                  (loss)           Depreciation     of               Segment
                  before
                  depreciation     and              cable            Operating
                  and                               distribution     income
                  amortization     amortization     investments      (loss)
Cable Network     $  943           $   (38   )      $   (23   )      $ 882
Programming
Filmed               416               (23   )          -              393
Entertainment
Television           210               (21   )          -              189
Direct
Broadcast            84                (78   )          -              6
Satellite
Television
Publishing           324               (106  )          -              218
Other               (176   )         (15   )         -            (191  )
Consolidated      $  1,801        $   (281  )      $   (23   )      $ 1,497 
Total
                                                                             

               
                  For the Six Months Ended December 31, 2012
                  (US $ Millions)
                  Segment                                     
                  Operating
                  income                            Amortization
                  (loss)           Depreciation     of               Segment
                  before
                  depreciation     and              cable            Operating
                  and                               distribution     income
                  amortization     amortization     investments      (loss)
Cable Network     $  2,029         $   (87   )      $   (44   )      $ 1,898
Programming
Filmed               849               (66   )          -              783
Entertainment
Television           423               (43   )          -              380
Direct
Broadcast            151               (148  )          -              3
Satellite
Television
Publishing           521               (230  )          -              291
Other               (361   )         (36   )         -            (397  )
Consolidated      $  3,612        $   (610  )      $   (44   )      $ 2,958 
Total
                                                                             

               
                  For the Six Months Ended December 31, 2011
                  (US $ Millions)
                  Segment                                     
                  Operating
                  income                            Amortization
                  (loss)           Depreciation     of               Segment
                  before
                  depreciation     and              cable            Operating
                  and                               distribution     income
                  amortization     amortization     investments      (loss)
Cable Network     $  1,779         $   (75   )      $   (47   )      $ 1,657
Programming
Filmed               802               (62   )          -              740
Entertainment
Television           364               (42   )          -              322
Direct
Broadcast            277               (152  )          -              125
Satellite
Television
Publishing           541               (213  )          -              328
Other               (259   )         (31   )         -            (290  )
Consolidated      $  3,504        $   (575  )      $   (47   )      $ 2,882 
Total
                                                                       

NOTE 2 – ADJUSTED NET INCOME AND ADJUSTED EPS

The Company uses net income and earnings per share excluding Segment operating
profit adjustments, Impairment and restructuring charges, Equity affiliate
adjustments, “Other, net”, and discontinued operations, net of tax (“adjusted
net income and adjusted diluted earnings per share”) to evaluate the
performance of the Company’s operations exclusive of certain items that impact
the comparability of results from period to period. The calculation of
adjusted net income and adjusted diluted earnings per share may not be
comparable to similarly titled measures reported by other companies, since
companies and investors may differ as to what type of events warrant
adjustment. Adjusted net income and adjusted diluted earnings per share are
not measures of performance under generally accepted accounting principles and
should not be construed as substitutes for consolidated net income and
earnings per share as determined under GAAP as a measure of performance.
However, management uses these measures in comparing the Company’s historical
performance and believes that they provide meaningful and comparable
information to investors to assist in their analysis of our performance
relative to prior periods and our competitors.

The following tables reconcile reported net income and reported diluted
earnings per share (“EPS”) to adjusted net income and adjusted diluted
earnings per share for the three months ended December 31, 2012 and 2011.

                   3 Months Ended                 3 Months Ended
                    December 31,2012                  December 31,2011
                    Net income                     Net income     
                    attributable                      attributable
                    to                                to
                    stockholders    EPS         stockholders    EPS
                    (in US$ millions, except per share data)
                                                                           
As reported         $   2,381          $ 1.01         $    1,057         $ 0.42
                                                                           
Segment operating
profit
adjustments (net
of provision for
income taxes of
$12 and $17 for         67               0.03              70              0.03
the three months
ended December
31, 2012 and
2011,
respectively)^(a)
                                                                           
Impairment and
restructuring
charges (net of
provision for
income taxes of
$19 and $10 for         46               0.02              26              0.01
the three months
ended December
31, 2012 and
2011,
respectively)
                                                                           
Equity affiliate
adjustments (net
of provision for
income taxes of
$4 and $10 for          (70)             (0.03)            (34)            (0.01)
the three months
ended December
31, 2012 and
2011,
respectively)^(b)
                                                                           
Other, net (net
of provision for
income taxes of
$13 for the three       (1,387)          (0.59)            (138)           (0.05)
months ended
December 31, 2012
and 2011)
                                                                           
Rounding                                                            (0.01)
As adjusted         $   1,037          $ 0.44         $    981           $ 0.39

      Segment operating profit for the three months ended December 31, 2012
      and 2011 was adjusted to exclude the expenses related to the ongoing
(a)  investigations initiated upon the closure of The News of the World. The
      three months ended December 31, 2012 were also adjusted to exclude the
      expenses related to separation of the Company’s entertainment and
      publishing businesses.
      
      Equity earnings of affiliates for the three months ended December 31,
      2012 and 2011 was adjusted to exclude from BSkyB results News
(b)   Corporation’s gain on the BSkyB repurchase program. The three months
      ended December 31, 2012 were also adjusted to exclude from Hulu results
      one-time costs resulting from its purchase of the Providence Equity
      Partners’ ownership stake.

Contact:

News Corporation
Investor Relations:
Reed Nolte, 212-852-7092
Joe Dorrego, 212-852-7856
or
Press Inquiries:
Julie Henderson, 212-852-7070
Nathaniel Brown, 212-852-7746
Dan Berger, 310-369-1274