The Operating income performace for the 6 months to 31 Dec was good, up to US$2,465M from US$1,995M.
Bottom line effected by reduction in:
- Affiliates - down to $196M from $492; and - Other, net - down to $187M from $446M
The decrease in affiliates is explained by :
"Second quarter net losses from affiliates were $50 million versus net earnings of $249 million in the same period a year ago. The $299 million decrease was primarily driven by lower contributions from BSkyB due to the write-down of its ITV investment."
This is probably a one off. Similiarly, the credit for other net in the prior year appears to have been a one-off credit. Consequently comparisons at the bottom line appear to be distorting the very healthy operation growth picture.
Macquarie Equities have forecast NWS earnings as:
2008 - 125.4 2009 - 153.5 2010 - 166.0
With a 12 month price target of A$33.43
Regards
SP
NWS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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