News Corporation Reports Third Consecutive Year of Double-Digit Revenue and Operating Income Growth; Full Year Operating Income Increases 22% to a Record $3.6 Billion on 15% Revenue Growth

-- Earnings Per Share Increases 28% to $0.69; Cash from Operations up 41% to a Record $3.4 Billion

-- Fourth Quarter Operating Income of $955 Million; a 42% Increase on Revenue Growth of 12%

FULL YEAR FINANCIAL HIGHLIGHTS

-- Record operating income at Cable Network Programming, Filmed Entertainment, Newspapers, Television, Magazines and Inserts and Book Publishing.

-- Cable Network Programming operating income up 44% on
advertising and affiliate revenue growth at all major
cable channels.

-- Continued robust home entertainment sales of film and
television titles drive Filmed Entertainment operating
income up 17%.

-- Television segment operating income increases slightly as
record operating income at STAR was offset by higher
programming costs at the FOX network and a soft U.S.
advertising market.

-- All print segments report higher earnings contributions
led by advertising growth and the inclusion of Queensland
Press' results within Australian newspapers, as well as
strong advertising at Magazines and Inserts' InStore
division.

-- SKY Italia operating results improve $104 million with the addition of more than 650,000 net subscribers.

FULL YEAR STRATEGIC HIGHLIGHTS

-- Completed reincorporation to the United States and acquired the outstanding 58% controlling interest in Queensland Press Pty Limited.

-- Acquired the outstanding 17.9% interest in Fox Entertainment Group, Inc.

-- Took full ownership of SKY Italia by acquiring Telecom Italia's 19.9% stake.

-- Restructured regional sports network partnership with Cablevision resulting in full ownership of FSN Ohio and FSN Florida.

-- Agreed to sell the Company's direct-to-home satellite TV platforms in Latin America to The DIRECTV Group, Inc., the Company's 34% investee, who plans to consolidate the DTH entities into a single platform in each major territory served.

-- Implemented a stock repurchase program authorizing the Company to acquire up to an aggregate of $3 billion of Class A and Class B common stock.

-- After year-end, formed Fox Interactive Media and agreed to acquire Intermix Media, Inc., including MySpace.com, which will double the Company's web traffic.

News Corporation (NYSE: NWS, NWSA; ASX: NWS, NWSLV) today reportedfourth quarter consolidated revenues of $6.1 billion, a 12% increaseover the $5.5 billion in the prior year, and full year revenues of$23.9 billion, an increase of 15% over the $20.8 billion in fiscal2004.

Consolidated operating income for the fourth quarter of $955million was up 42% over the $674 million a year ago. For the fullyear, operating income was $3.6 billion, an increase of 22% over the$2.9 billion reported in fiscal 2004. The operating income growthduring the fourth quarter and full year was driven by double-digitpercentage increases at the Filmed Entertainment, Cable NetworkProgramming, Magazines and Inserts and Newspaper segments, as well asby significant improvement at SKY Italia.

Net income for the fourth quarter was $717 million, ($0.22 dilutedearnings per share on a combined basis(1)), an increase of $288million from the $429 million ($0.15 diluted earnings per share on acombined basis(1)) reported in the fourth quarter a year ago. For thefull year net income was $2.1 billion, ($0.69 diluted earnings pershare on a combined basis(1)), an increase of $595 million from the$1.5 billion ($0.54 diluted earnings per share on a combined basis(1))reported in fiscal 2004. Fourth quarter and full year increases wereprimarily driven by higher consolidated operating income and animprovement in equity earnings of affiliates, while also reflectingthe inclusion of an unrealized gain on the change in fair value ofcertain outstanding exchangeable debt securities included in Otherexpense.

(1) See supplemental financial data on page 17 for detail onearnings per share.

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

"We are extremely pleased with the continued growth we achievedduring fiscal 2005 - our third consecutive year of record profits.What is pleasing about this past year is not just that we once againdelivered double-digit revenue and operating income growth acrossnearly all of our businesses but perhaps more significantly many ofour developing businesses turned profitable.

"SKY Italia delivered its first profitable quarter with theaddition of 650,000 subscribers over the past 12 months. STAR receivedapproval to launch a DTH service in India and doubled its earningscontributions. DIRECTV grew its subscriber base by 1.6 million andaggressively expanded its product offerings with the roll out ofadditional local channels and enhanced high definition and digitalvideo recorder capabilities. And BSkyB announced a new pricing andpackage structure while adding more than 400,000 subscribers andgenerating substantial profit growth.

"Over the past year we also completed our reincorporation to theUnited States, as well as obtained full ownership of several keyassets, including Queensland Press, the Fox Entertainment Group, SKYItalia and several regional sports networks. And we finished the yearin our strongest financial position ever with over $6 billion in cashfacilitating our $3 billion Dollar stock buyback program and enablingus to make strategic investments, especially in new media. So while wegenerated record financial results this past year, I believe we havemade the right strategic and operational moves to secure our momentumheading into fiscal 2006."
Consolidated Operating
Income 3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
--------- --------- --------- ---------
US $ Millions

Filmed Entertainment $ 109 $ 95 $ 1,058 $ 905
Television 344 351 952 950
Cable Network Programming 137 120 702 488
Direct Broadcast
Satellite Television 74 (26) (173) (277)
Magazines and Inserts 82 66 298 271
Newspapers 252 117 740 565
Book Publishing 12 5 164 157
Other (55) (54) (177)(a) (128)
--------- --------- --------- ---------
Total Consolidated
Operating Income $ 955 $ 674 $ 3,564 $ 2,931
--------- --------- --------- ---------

(a) The twelve months ended June 30, 2005 include $49 million ofcosts associated with the Company's reincorporation in the UnitedStates.

REVIEW OF OPERATING RESULTS

FILMED ENTERTAINMENT

The Filmed Entertainment segment reported fourth quarter operatingincome of $109 million, up $14 million from the $95 million reportedin the same period a year ago, and record full year operating incomeof $1.1 billion, up 17% from the $905 million reported in fiscal 2004.Current quarter and full year results primarily reflect solidworldwide theatrical and pay-TV revenues and strong contributions fromfilm and television home entertainment releases.

Fourth quarter film results were largely driven by the homeentertainment performances of Alien vs. Predator, Sideways andNapoleon Dynamite, as well as contributions from various catalogtitles including Ice Age. Additionally, the worldwide theatricaldistribution of Star Wars Episode 3: Revenge of the Sith and Mr. andMrs. Smith, as well as the pay-TV availability of Day After Tomorrowand Garfield contributed to the strong quarterly results. The currentquarter also included the initial results and related releasing costsfor Kingdom of Heaven, which has grossed over $200 million worldwidesince its May release, as well as the releasing costs for FantasticFour which premiered after the quarter and has grossed over $250million in worldwide box office. The fourth quarter a year agoincluded the domestic home entertainment performance of Cheaper by theDozen and the pay-TV availability of X-Men 2.

For the full year, record film results were primarily driven bythe worldwide home entertainment performances of Day After Tomorrow,Alien vs. Predator, Garfield, Dodgeball: A True Underdog Story, I,Robot and Napoleon Dynamite, as well as various catalog titles.Additionally, the full year included several strong theatricalreleases, most notably I, Robot, Alien vs. Predator, Hide and Seek,Sideways, Robots, Star Wars Episode 3: Revenge of the Sith and Mr. andMrs. Smith.

Twentieth Century Fox Television fourth quarter results primarilyreflect sustained momentum in home entertainment and internationalsales, particularly from The Simpsons. The increased full year resultsalso included the solid performance of The Simpsons, as well as stronghome entertainment sales of 24, Family Guy and King of the Hill.

TELEVISION

The Television segment reported fourth quarter operating income of$344 million, a decrease of $7 million versus the same period a yearago, and full year operating income of $952 million, a slight increaseover fiscal 2004. Both the quarter and full year results primarilyreflect higher contributions from STAR which were offset by a declineat the FOX Broadcasting Company (FBC).

Fox Television Stations' fourth quarter operating income declined5% from the same period a year ago as softness in the overalladvertising market and the negative impact of local people meters morethan offset the success of local morning newscasts. For the full year,operating income grew slightly as reduced entertainment programmingcosts from lower costing syndicated programming more than offset theexpansion of local news in several markets, as well as the advertisingmarket weakness and local people meter impact. The softness in thedomestic advertising market was also partially offset by revenuesgenerated from increased political advertising as well as FBC'sbroadcast of Super Bowl XXXIX.

At the FOX Broadcasting Company, fourth quarter and full yearoperating income decreased compared to a year ago as higheradvertising revenues from increased pricing were more than offset byincreased license fees on returning programs. The full year alsoincluded additional advertising revenues from FBC's airing of SuperBowl XXXIX, which were more than offset by license fees associatedwith the broadcast. FBC finished the broadcast season as the numberone network among Adults 18-49 led by the growth of returning seriesAmerican Idol and 24, as well as strong ratings from the new hitseries House and various sporting events.

STAR's fourth quarter and full year operating income more thandoubled on revenue growth of 24% and 14%, respectively, versus thecomparable periods a year ago. Revenue gains for both the fourthquarter and full year primarily reflect the continued strength of STARPlus and STAR Gold, as well as contributions from several new channelsin India.

CABLE NETWORK PROGRAMMING

Cable Network Programming reported fourth quarter operating incomeof $137 million, an increase of $17 million over the fourth quarter ayear ago and record full year operating income of $702 million, anincrease of $214 million over fiscal 2004. The 14% fourth quartergrowth and 44% full year growth reflect advertising and affiliatestrength at Fox News Channel, FX and the Regional Sports Networks. Thefull year results also reflect the lack of NHL programming costs atthe Regional Sports Networks due to the cancellation of the season andthe absence of losses from the Los Angeles Dodgers, which was soldduring the third quarter of fiscal 2004.

Fox News Channel (FNC) reported operating income growth of 30% forthe fourth quarter and 40% for the full year fueled primarily bydouble-digit advertising revenue growth, which was partially offset byhigher costs associated with covering international breaking newsstories. During the quarter FNC further increased its leadershipposition as the number one cable news channel, more than doubling theviewership of its nearest competitor in prime-time and nearly 90%higher on a 24-hour basis. The continued ratings strength in thequarter helped drive full year viewership up 30% in primetime and up17% on a 24-hour basis, the largest gains of any cable news channels.

At our other cable channels (including the Regional SportsNetworks (RSNs), the FX Channel (FX) and SPEED Channel) operatingprofit was in-line with the fourth quarter a year ago while growing32% for the full year. At the RSNs, fourth quarter and full yearrevenue gains, primarily from increased affiliate rates and additionalDBS subscribers, were offset by additional MLB and NBA events andincreased average rights fees versus the same period a year ago. Boththe quarter and full year results also included higher revenues andcosts associated with the consolidation of FSN Ohio and FSN Floridaafter acquiring a controlling stake in the fourth quarter of fiscal2005. At FX, double-digit revenue growth in the fourth quarter andfull year was driven by affiliate revenue growth from increased ratesand additional subscribers, as well as higher advertising revenuesfrom ratings growth and increased pricing. These revenue gains weremore than offset in the fourth quarter and partially offset in thefull year by higher programming costs primarily from additionalairings of original hit series The Shield and Rescue Me, as well asincreased movie costs.

DIRECT BROADCAST SATELLITE TELEVISION

SKY Italia reported fourth quarter operating income of $74million, an improvement of $100 million versus a loss of $26 million ayear ago on local currency revenue growth of 36%. For the full year,Sky Italia reported an operating loss of $173 million, an improvementof $104 million from the $277 million loss reported in fiscal 2004 onlocal currency revenue growth of 31%. These improvements primarilyreflect strong subscriber additions, with more than 650,000 net newsubscribers added over the past 12 months, bringing SKY Italia'ssubscriber base to more than 3.3 million at fiscal year end. The fullyear subscriber growth includes 78,000 net additions during the fourthquarter, an increase of 29% compared with the same quarter a year ago.The revenue growth was partially offset during the quarter and fullyear by increased programming spending primarily due to the broadcastof additional soccer matches and movie titles as well as the additionof ten new entertainment and news channels on the basic programmingtier.

MAGAZINES AND INSERTS

The Magazines and Inserts segment reported fourth quarteroperating income of $82 million, an increase of 24% versus the $66million reported in the fourth quarter a year ago and full yearoperating income of $298 million, a 10% increase over fiscal 2004. Thefourth quarter and full year growth was driven by higher contributionsfrom the InStore division on increased advertising.

NEWSPAPERS

The Newspapers segment reported fourth quarter operating income of$252 million, an increase of $135 million versus the same period ayear ago and full year operating income of $740 million, a 31%increase over fiscal 2004. Advertising strength throughout the year,particularly in Australia, and the inclusion of results from theQueensland Press Group beginning in the second quarter, drove theyear-on-year growth.

The Australian newspaper group reported a substantial increase infourth quarter and full year operating income in local currency termsversus fiscal 2004. The fourth quarter and full year results wereprimarily driven by a robust advertising market and the inclusion ofresults from the Queensland Press Group. Advertising revenue continuedto grow due to the strength of the national display and employmentclassified markets.

The U.K. newspaper group also reported strong operating incomegrowth in local currency terms in the fourth quarter and a modestdecline for the full year versus the comparable periods a year ago.Both fourth quarter and full year results were driven by circulationrevenue growth and lower marketing costs which were partially offsetin the quarter and more than offset for the year by higherdepreciation costs associated with the planned development of newcolor printing operations. The circulation revenue gains were a resultof sales growth at The Times, which moved fully to a compact version,as well as from increased cover prices across each of the majortitles.

BOOK PUBLISHING

HarperCollins reported fourth quarter operating income of $12million, an increase of $7 million versus the same period a year agoand full year operating income of $164 million, up $7 million overprior year results that included strong sales of Zondervan's ThePurpose Driven Life. Current quarter results were led by revenues fromLemony Snicket's A Series of Unfortunate Events, YOU: The Owner'sManual by Michael Roizen and Mehmet Oz, Freakonomics by Steven D.Levitt and Stephen J. Dubner and HarperCollins UK's The Times Su Doku.The full year also included strong sales of Winning by Jack Welch withSuzy Welch and ReganBooks' Juiced by Jose Canseco. During the fourthquarter, HarperCollins had 46 books on The New York Times bestsellerlist including six titles that reached number one and for the fullyear HarperCollins had 103 books on The New York Times bestseller listincluding 15 titles that reached the number one spot.

OTHER ITEMS

The Company has increased its dividend for fiscal 2005 to $0.12per share of Class A Common Stock and $0.10 per share of Class BCommon Stock. An interim dividend of $0.05 per Class A Common Stockand $0.02 per Class B Common Stock was previously paid on April 20,2005. The remaining $0.07 per Class A Common Stock and $0.08 per ClassB Common Stock has been declared and is payable on October 19, 2005.The record date for determining dividend entitlements is September 14,2005.

News Corporation announced today that its Board of Directors hasdetermined to extend the expiration date of the Company's stockholderrights plan for an additional two-year period. The rights plan, whichwas originally adopted on November 8, 2004, was scheduled to expire byits terms on November 8, 2005. One reason for the initial adoption ofthe rights plan was Liberty Media Corporation's decision to enter intoarrangements to acquire substantial amounts of News Corporation'svoting stock without prior discussions with, or notice to, NewsCorporation. As Liberty continues to own approximately 18% of theCompany's Class B Common Stock, and to prevent potential futureacquisitions of significant amounts of News Corporation voting stockby Liberty without consultation with the Board, the Board hasdetermined to extend the expiration of the stockholder rights planuntil Liberty Media Corporation and the Company reach a favorableresolution with respect to Liberty's ownership stake. In that event,the Board of Directors expects to redeem the existing stockholderrights plan and will also consider eliminating the Company'sclassified board structure. For more information about the Company'sexisting stockholder rights plan, see Exhibit B to Form 6-K (File No.1-09141) filed with the Securities and Exchange Commission on November8, 2004 and Exhibit 4.39 to Form 8-K (File No. 001-32352) filed withthe Securities and Exchange Commission on November 24, 2004.

On June 13, 2005 the Company announced the approval of a stockrepurchase program, under which it is authorized to acquire from timeto time up to $3 billion in the Company's Class A and Class B commonstock. The repurchases will be made through open market transactionsand the timing of such transactions and class of shares purchased willdepend on a variety of factors, including market conditions. Theprogram is expected to be completed within two years, but may besuspended or discontinued at any time. As of June 30, 2005 the Companyhas purchased approximately $530 million of stock under the program.

During the quarter the Company, along with Cablevision SystemsCorporation, completed its previously announced agreement torestructure its ownership of six regional sports networks held in thejointly owned Regional Programming Partners venture. As a result ofthis transaction, the Company now owns 100% of Fox Sports Ohio, FoxSports Florida, Fox Sports Net and National Advertising Partners andno longer has an ownership interest in Madison Square Garden and itsproperties, Fox Sports Chicago and Fox Sports New England.

Following the quarter, the Company announced that it signed adefinitive agreement to acquire Intermix Media, Inc. for approximately$580 million in cash, or the equivalent of $12 per common share. In aseparate transaction, Intermix announced that it exercised its optionto acquire the 47 percent of MySpace.com that it does not already own.Both MySpace.com and Intermix's more than 30 sites will become part ofNews Corporation's newly formed Fox Interactive Media unit. Thetransaction is expected to close in the fourth quarter of calendar2005 and is subject to certain customary conditions including approvalby the Intermix common and preferred stockholders.

REVIEW OF ASSOCIATED ENTITIES RESULTS

Fourth quarter net earnings from associated entities were $201million versus $82 million in the same period a year ago. For the fullyear, net earnings from associated entities were $355 million comparedwith earnings of $170 million in fiscal 2004. The year-on-yearimprovement in the fourth quarter was primarily due to increasedcontributions from BSkyB and The DIRECTV Group as well as thecomparatively favorable impact from foreign currency fluctuations atthe Latin American DTH platforms. The fourth quarter a year agoincluded the favorable results at Regional Programming Partners duemainly to the income recognized from the termination of a sportsbroadcast rights agreement.

The Company's share of associated entities' earnings (losses) isas follows:
3 Months Ended 12 Months Ended
June 30, June 30,
% Owned 2005 2004 2005 2004
---------- --------- --------- --------- ---------
US $ Millions US $ Millions
BSkyB 36.7% (a) $ 125 $ 66 $ 374 $ 265
The DIRECTV Group 33.9% (b) 31 (30) (186) (57)
Sky Brasil 49.7% 26 (17) 49 (37)
Innova 30.0% 10 - 27 (10)
FOXTEL 25.0% (3) (4) (20) (19)
Other Associates Various (c) 12 67 111 28
--------- --------- --------- ---------
Total associated
entities'
earnings
(losses) $ 201 $ 82 $ 355 $ 170
========= ========= ========= =========

Further details on the associated entities follow.

(a) Due to BSkyB's stock repurchase program, News' ownership in BSkyB
increased from 36.3% as of March 31, 2005 to 36.7% as of June 30,
2005. News' ownership was 35.3% as of June 30, 2004.

(b) The Company acquired a 34% interest in The DIRECTV Group on
December 22, 2003.

(c) Primarily comprising Gemstar-TV Guide International, Fox Cable
Networks associates, Sky Network Television Limited, and
Queensland Press (through November 12, 2004).

BSkyB (in STG and UK GAAP) (1)
------------------------------

3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Millions (except
Millions subscribers)

Revenues GBP 1,088 GBP 959 GBP 4,048 GBP 3,656
Operating income 213 130 702 481
Net income GBP 152 GBP 79 GBP 425 GBP 322
=========== =========== =========== ===========

News' reportable 36.7%
share (in US$ and US
GAAP) $ 125 $ 66 $ 374 $ 265
=========== =========== =========== ===========

Net debt GBP 379 GBP 429

Ending Subscribers 11,659,000 11,250,000
DTH Subscribers 7,787,000 7,355,000

The DIRECTV Group, Inc. (1)
---------------------------

3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004(a)
----------- ----------- ----------- -----------
Millions (except
Millions subscribers)

Revenues $ 3,188 $ 2,643 $ 12,560 $ 5,136
Operating income (loss) 312 (28) (1,738) (125)
Net income (loss) $ 162 $ (13) $ (1,177) $ (652)
=========== =========== =========== ===========

News' reportable 33.9%
share $ 31 $ (30) $ (186) $ (57)
=========== =========== =========== ===========

Net (cash) debt $ (637) $ 601

Ending Subscribers 14,670,000 13,040,000


(a) The Company acquired a 34% interest in The DIRECTV Group on
December 22, 2003.

Sky Brasil (in US$)
-------------------
3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Millions (except
Millions subscribers)

Revenues (in local
currency) R$ 216 R$ 184 R$ 803 R$ 670

Revenues $ 87 $ 61 $ 297 $ 228
Operating income 11 2 25 6
Net income (loss) $ 54 $ (34) $ 99 $ (74)
========== ========== ========== ==========

News' reportable 49.7%
share (in US$) $ 26 $ (17) $ 49 $ (37)
========== ========== ========== ==========

Net debt (excluding
capitalized leases) $ 214 $ 212

Ending Subscribers 885,000 806,000

Innova (in US$) (1)
-------------------

3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Millions (except
Millions subscribers)

Revenues (in local
currency) Ps 1,443 Ps 1,225 Ps 5,187 Ps 4,429

Revenues $ 128 $ 101 $ 448 $ 373
Operating income 37 23 117 72
Net income (loss) $ 36 $ - $ 91 $ (32)
============ ============ ============ ============

News' reportable
30.0% share (in
US$) $ 10 $ - $ 27 $ (10)
============ ============ ============ ============

Net debt (excluding
capitalized
leases) $ 224 $ 339

Ending Subscribers 1,184,000 939,000

FOXTEL (in A$ and Australian GAAP)
----------------------------------

3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Millions (except
Millions subscribers)

Revenues A$ 295 A$ 234 (a) A$ 1,064 A$ 872 (a)
Operating loss (11) (32) (128) (149)
Net loss A$ (15) A$ (26) A$ (109) A$ (109)
========== ========== ========== ==========

News' reportable 25%
share (in US$ and US
GAAP) $ (3) $ (4) $ (20) $ (19)
========== ========== ========== ==========

Net Debt (including
capitalized leases) A$ 528 A$ 323

Ending Subscribers
(including 157,000
and 196,000
wholesale
subscribers,
respectively) 1,180,000 1,100,000


(a) Amounts have been reclassified to conform to the current fiscal
year presentation.

(1) Please refer to respective companies' earnings releases for
detailed information.

Foreign Exchange Rates

Average foreign exchange rates used in the year-to-date profitresults are as follows:
12 Months Ended
June 30,
2005 2004
---------- ------------

Australian Dollar/U.S. Dollar 0.75 0.71
U.K. Pounds Sterling/U.S. Dollar 1.86 1.74
Euro/U.S. Dollar 1.27 1.19

To receive a copy of this press release through the Internet,access News Corp's corporate Web site located athttp://www.newscorp.com.

Audio from News Corp's conference call with analysts on the fourthquarter and full year results can be heard live on the Internet at4:45 PM. Eastern Daylight Time today. To listen to the call, visithttp://www.newscorp.com.

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain "forward-looking statements" withinthe meaning of the Private Securities Litigation Reform Act of 1995.These statements are based on management's views and assumptionsregarding future events and business performance as of the time thestatements are made. Actual results may differ materially from theseexpectations due to changes in global economic, business, competitivemarket and regulatory factors. More detailed information about theseand other factors that could affect future results is contained in ourfilings with the Securities and Exchange Commission. The"forward-looking statements" included in this document are made onlyas of the date of this document and we do not have any obligation topublicly update any "forward-looking statements" to reflect subsequentevents or circumstances, except as required by law.

CONSOLIDATED STATEMENTS OF OPERATIONS

3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
--------- --------- --------- ---------
US $ Millions (except per share amounts)

Revenues $ 6,108 $ 5,470 $ 23,859 $ 20,802
Expenses:
Operating expenses 3,976 3,674 15,901 13,942
Selling, general and
administrative 982 985 3,697 3,364
Depreciation and
amortization 195 137 648 565
Other operating charge - - 49 -
-------- -------- -------- --------
Operating income 955 674 3,564 2,931
Other income (expense):
Interest expense, net (131) (132) (536) (532)
Equity earnings of
affiliates 201 82 355 170
Other, net 163 152 178 186
-------- -------- -------- --------
Income before income tax
expense and minority interest
in subsidiaries 1,188 776 3,561 2,755
Income tax expense (447) (289) (1,220) (1,014)
Minority interest in
subsidiaries, net of tax (24) (58) (213) (208)
--------- -------- --------- --------
Net income $ 717 $ 429 $ 2,128 $ 1,533
========= ======== ========= ========

Basic earnings per share:
Class A $0.23 $0.16 $0.74 $0.58
Class B $0.19 $0.13 $0.62 $0.49

Diluted earnings per share:
Class A $0.23 $0.15 $0.73 $0.58
Class B $0.19 $0.13 $0.61 $0.48

CONSOLIDATED BALANCE SHEETS June 30, June 30,
2005 2004
----------- -----------
Assets US $ Millions
Current assets:
Cash and cash equivalents $ 6,470 $ 4,051
Cash on deposit - 287
Receivables, net 4,353 4,214
Inventories, net 1,516 1,530
Deferred income taxes 155 521
Other 285 396
----------- -----------
Total current assets 12,779 10,999
----------- -----------

Non-current assets:
Receivables 673 766
Investments 10,268 10,914
Inventories, net 2,366 2,669
Property, plant and equipment, net 4,346 3,796
Intangible assets 12,517 10,998
Goodwill 10,944 7,153
Other non-current assets 799 1,048
----------- -----------
Total non-current assets 41,913 37,344
----------- -----------
Total assets $ 54,692 $ 48,343
=========== ===========

Liabilities and Shareholders' Equity
Current liabilities:
Borrowings $ 912 $ 1,084
Accounts payable, accrued expenses and other
current liabilities 3,564 3,963
Participations, residuals and royalties payable 1,051 890
Program rights payable 696 654
Deferred revenue 426 467
----------- -----------
Total current liabilities 6,649 7,058
----------- -----------

Non-current liabilities:
Borrowings 10,087 9,080
Other liabilities 3,543 3,878
Deferred income taxes 4,817 3,620
Minority interest in subsidiaries 219 3,832
Commitments and contingencies
Shareholders' Equity:
Class A common stock, $0.01 par value 22 19
Class B common stock, $0.01 par value 10 11
Additional paid-in capital 30,044 23,636
Accumulated deficit and accumulated other
comprehensive loss (699) (2,791)
----------- -----------
Total shareholders' equity 29,377 20,875
----------- -----------
Total liabilities and shareholders' equity $ 54,692 $ 48,343
=========== ===========

CONSOLIDATED STATEMENTS OF CASH FLOWS
12 Months Ended
June 30,
2005 2004
----------- -----------
US $ Millions
Operating activities:
Net income $ 2,128 $ 1,533
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 648 565
Amortization of cable distribution
investments 117 129
Equity earnings of affiliates, net (355) (170)
Cash distributions received from investees 138 133
Other, net (178) (186)
Minority interest in subsidiaries, net of tax 213 208
Change in operating assets and liabilities,
net of acquisitions:
Receivables and other assets 7 (306)
Inventories, net 206 (320)
Accounts payable and other liabilities 447 809
----------- -----------
Net cash provided by operating activities 3,371 2,395
----------- -----------

Investing activities:
Property, plant and equipment (901) (361)
Acquisitions, net of cash acquired (69) (202)
Investments in associated entities (106) (3,237)
Other investments (27) (91)
Proceeds from sale of non-current assets 800 869
----------- -----------
Net cash used in investing activities (303) (3,022)
----------- -----------

Financing activities:
Issuance of debt 1,841 548
Repayment of borrowings and exchangeable
securities (2,110) (943)
Repurchase of shares (535) -
Issuance of shares 88 580
Cash on deposit 275 162
Dividends paid (240) (202)
----------- -----------
Net cash (used in) provided by financing
activities (681) 145
----------- -----------

Net increase (decrease) in cash and cash
equivalents 2,387 (482)
Cash and cash equivalents, beginning of period 4,051 4,477
Exchange movement on opening cash balance 32 56
----------- -----------
Cash and cash equivalents, end of period $ 6,470 $ 4,051
=========== ===========

SEGMENT INFORMATION 3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
--------- --------- --------- ---------
US $ Millions US $ Millions

Revenues

Filmed Entertainment $ 1,193 $ 1,378 $ 5,919 $ 5,187
Television 1,356 1,279 5,338 5,027
Cable Network Programming 831 668 2,688 2,409
Direct Broadcast
Satellite Television 693 486 2,313 1,665
Magazines and Inserts 294 250 1,068 979
Newspapers 1,146 914 4,083 3,425
Book Publishing 286 267 1,327 1,276
Other 309 228 1,123 834
--------- --------- --------- ---------
$ 6,108 $ 5,470 $ 23,859 $ 20,802
========= ========= ========= =========


Operating Income

Filmed Entertainment $ 109 $ 95 $ 1,058 $ 905
Television 344 351 952 950
Cable Network Programming 137 120 702 488
Direct Broadcast
Satellite Television 74 (26) (173) (277)
Magazines and Inserts 82 66 298 271
Newspapers 252 117 740 565
Book Publishing 12 5 164 157
Other (55) (54) (177)(a) (128)
--------- --------- --------- ---------
$ 955 $ 674 $ 3,564 $ 2,931
========= ========= ========= =========

(a) The twelve months ended June 30, 2005 include $49 million of costs
associated with our reincorporation in the United States.

NOTE 1 - SUPPLEMENTAL FINANCIAL DATA

Earnings per share is presented on a combined basis as the Companywill not be required to present the two class method beginning inFiscal 2008. Currently under US GAAP earnings per share is computedindividually for the Class A and Class B shares. Class A non-votingshares carry rights to a greater dividend than Class B voting sharesthrough fiscal 2007. As such, net income available to the Company'scommon stockholders is allocated between our two classes of commonstock. The allocation between classes was based upon the two-classmethod. Earnings per share by class and by total weighted averageshares outstanding (Class A and Class B combined) is as follows:
3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
--------- --------- --------- ---------
US $ Millions US $ Millions

Basic earnings per share:
Class A $0.23 $0.16 $0.74 $0.58
Class B $0.19 $0.13 $0.62 $0.49
Total $0.22 $0.15 $0.70 $0.55

Diluted earnings per share:
Class A $0.23 $0.15 $0.73 $0.58
Class B $0.19 $0.13 $0.61 $0.48
Total $0.22 $0.15 $0.69 $0.54

Weighted average shares
outstanding (diluted):
Class A 2,317 1,965 2,061 1,815
Class B 1,043 983 1,021 983
-------- -------- -------- --------
Total 3,360 2,948 3,082 2,798
======== ======== ======== ========

NOTE 2 - OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION

Operating income before depreciation and amortization, defined asoperating income plus depreciation and amortization and theamortization of cable distribution investments, eliminates thevariable effect across all business segments of non-cash depreciationand amortization. Since operating income before depreciation andamortization is a non-GAAP measure it should be considered in additionto, not as a substitute for, operating income, net income, cash flowand other measures of financial performance reported in accordancewith GAAP. Operating income before depreciation and amortization doesnot reflect cash available to fund requirements, and the itemsexcluded from operating income before depreciation and amortization,such as depreciation and amortization, are significant components inassessing the Company's financial performance. Management believesthat operating income before depreciation and amortization is anappropriate measure for evaluating the operating performance of theCompany's business segments. Operating income before depreciation andamortization, which is the information reported to and used by theCompany's chief decision maker for the purpose of making decisionsabout the allocation of resources to segments and assessing theirperformance, provides management, investors and equity analysts ameasure to analyze operating performance of each business segment andenterprise value against historical and competitors' data.

The following table reconciles operating income beforedepreciation and amortization to the presentation of operating income.
3 Months Ended 12 Months Ended
June 30, June 30,
2005 2004 2005 2004
-------- -------- -------- --------
US $ Millions US $ Millions

Operating income $ 955 $ 674 $ 3,564 $ 2,931
Depreciation and amortization 195 137 648 565
Amortization of cable distribution
investments 31 35 117 129
-------- -------- -------- --------
Operating income before
depreciation and amortization $ 1,181 $ 846 $ 4,329 $ 3,625
======== ======== ======== ========

For the Three Months Ended June 30, 2005
(US $ Millions)
---------------------------------------------------
Operating
income (loss)
Amortization before
Operating Depreciation of cable depreciation
income and distribution and
(loss) amortization investments amortization
--------- ------------- ------------- -------------

Filmed
Entertainment $ 109 $ 12 $ - $ 121
Television 344 31 - 375
Cable Network
Programming 137 9 31 177
Direct Broadcast
Satellite
Television 74 42 - 116
Magazines and
Inserts 82 2 - 84
Newspapers 252 71 - 323
Book Publishing 12 2 - 14
Other (55) 26 - (29)
--------- ------------- ------------- -------------
Consolidated Total $ 955 $ 195 $ 31 $ 1,181
========= ============= ============= =============

For the Three Months Ended June 30, 2004
(US $ Millions)
---------------------------------------------------
Operating
income (loss)
Amortization before
Operating Depreciation of cable depreciation
income and distribution and
(loss) amortization investments amortization
--------- ------------- ------------- -------------

Filmed
Entertainment $ 95 $ 13 $ - $ 108
Television 351 24 - 375
Cable Network
Programming 120 10 35 165
Direct Broadcast
Satellite
Television (26) 24 - (2)
Magazines and
Inserts 66 - - 66
Newspapers 117 47 - 164
Book Publishing 5 2 - 7
Other (54) 17 - (37)
--------- ------------- ------------- -------------
Consolidated Total $ 674 $ 137 $ 35 $ 846
========= ============= ============= =============

For the Twelve Months Ended June 30, 2005
(US $ Millions)
-------------------------------------------------------
Operating
income (loss)
Amortization before
Operating Depreciation of cable depreciation
income and distribution and
(loss) amortization investments amortization
---------- -------------- -------------- --------------

Filmed
Entertainment $ 1,058 $ 51 $ - $ 1,109
Television 952 92 - 1,044
Cable Network
Programming 702 39 117 858
Direct
Broadcast
Satellite
Television (173) 156 - (17)
Magazines and
Inserts 298 6 - 304
Newspapers 740 222 - 962
Book Publishing 164 6 - 170
Other (177) 76 - (101)
---------- -------------- -------------- --------------
Consolidated
Total $ 3,564 $ 648 $ 117 $ 4,329
========== ============== ============== ==============

For the Twelve Months Ended June 30, 2004
(US $ Millions)
-------------------------------------------------------
Operating
income (loss)
Amortization before
Operating Depreciation of cable depreciation
income and distribution and
(loss) amortization investments amortization
---------- -------------- -------------- --------------

Filmed
Entertainment $ 905 $ 54 $ - $ 959
Television 950 93 - 1,043
Cable Network
Programming 488 41 129 658
Direct
Broadcast
Satellite
Television (277) 152 - (125)
Magazines and
Inserts 271 5 - 276
Newspapers 565 157 - 722
Book Publishing 157 6 - 163
Other (128) 57 - (71)
---------- -------------- -------------- --------------
Consolidated
Total $ 2,931 $ 565 $ 129 $ 3,625
========== ============== ============== ==============