Movies and bounce in TV ads lift News Corp

Rupert Murdoch's News Corp last night posted a second-quarter profit on blockbuster movies such as Ice Age and an improved TV advertising market in the US, bouncing back from a year-earlier loss caused by a large write-off.

News Corp, which owns the Fox television network, 20th Century Fox film studios and several satellite and newspaper properties, said its net profit rose to $239m (£148m) compared with a loss of $606m a year earlier.Revenues rose 14 per cent to $4.7bn.

Operating income at its filmed entertainment business more than doubled to $255m, while operating income at thetelevision unit rose to $165m from $113m a year ago.

But its newspapers unit saw operating income fall by 10 per cent to $102m, with the tabloid cover price war between News Corp's The Sun and The Mirror hitting circulation revenues.

Talking to analysts after the results, Peter Chernin, News Corp's president, said it was still interested in buying a US satellite business, but it would not be drawn into another bidding war. Mr Murdoch has previously said it was interested in DirecTV, the US satellite business owned by Hughes, after its agreed deal with EchoStar collapsed last year.