Hey hey, My MySpace From CNNMoney.com

Category myspace | Permalink | 23. February 2007

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News Corp. says that revenue from its popular social networking site tripled in the most recent quarter; company also vows that Fox will win this year’s ratings battle.
News Corp. president and chief operating officer Peter Chernin suggested that the company’s rapidly growing online division, which includes the popular social networking unit MySpace, could beat the company’s revenue targets for this fiscal year and will be profitable in 2008.

The comments came during a conference call with analysts Wednesday morning to discuss News Corp’s (Charts) fiscal second-quarter results, which beat analysts’ expectations.
Chernin said that revenues from MySpace grew 25 percent from the fiscal first quarter, which ended in September, and tripled from a year ago. He said that total sales for Fox Interactive Media, which includes MySpace, could top the company’s expectations of $500 million in sales this fiscal year, which ends in June.

David DeVoe, News Corp.’s chief financial officer, added that Fox Interactive Media generated about $125 million in revenue during the quarter, up 70 percent from last year. A majority of that came from MySpace, he said, but the unit did post a slight loss.

But Chernin said that Fox Interactive Media would be profitable in 2008, driven by improvements in advertising technology. He suggested that operating profits should be in the range of 20 percent for Fox Interactive Media, a remark that prompted News Corp. chairman Rupert Murdoch to say that this estimate was “pessimistic” and that margins should be higher than 20 percent.

Murdoch added that News Corp. had no interest in spinning off Fox Interactive Media or MySpace. From : www.msnfind.com

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