3rd Quarter Results

RNS Number:0280L
News Corporation Ld
13 May 2003





NEWS CORPORATION REPORTS THIRD QUARTER OPERATING INCOME GROWTH OF 25% TO $685
MILLION



REVENUES INCREASE 14% TO $4.4 BILLION



NET PROFIT BEFORE OTHER ITEMS INCREASES 26% TO $298 MILLION






QUARTER HIGHLIGHTS



*         Television segment operating income up 82% as primetime ratings growth
in the quarter of 32% drives advertising revenues at the broadcast network and
television stations.

*         Strong ratings and advertising growth at Fox News Channel and FX as
well as higher affiliate revenues at the Regional Sports Networks lift operating
income 30% at Cable Network Programming despite the cost of covering the war.

*         Robust home entertainment sales of film and television titles and the
continued success of theatrical releases result in operating income growth of
25% at Filmed Entertainment.

*         Magazines and Inserts and Book Publishing segments continue to deliver
year-over-year earnings growth.  Higher circulation and advertising revenues at
majority of newspapers offset by cover price initiatives at The Sun in the U.K.





NEW YORK, NY, May 13, 2003 - The News Corporation Limited (NYSE: NWS, NWS.A)
today reported third quarter consolidated revenues of $4.4 billion, a 14%
increase over the $3.8 billion in the prior year, and consolidated operating
income of $685 million, up 25% over the $549 million a year ago.  The
year-on-year growth was driven primarily by double-digit increases in the Filmed
Entertainment, Television and Cable Network Programming segments and solid
contributions by the Magazines and Inserts and Book Publishing segments.



Net profit for the fiscal third quarter was $275 million, an increase of $4.3
billion over the $4.0 billion net loss reported in the third quarter a year ago,
which included a $4.1 billion write-down of the Company's carrying value of its
Gemstar investment.  Net profit before other items was $298 million compared to
$236 million reported in the prior year.





Management Review of Performance



The Statement of Financial Performance, Statement of Financial Position,
Statement of Cash Flows and Supplemental Financial Data for the three and nine
months ended March 31st are attached.  The following commentary is made in
respect to those statements, including an analysis of certain information
contained therein.



Net Profit (LOSS) Attributable to Members of the Parent Entity



The reported net profit (loss) attributable to members of the parent entity
consisted of the following items:
                                             3 Months Ended                 9 Months Ended
                                             March 31,                      March 31,
                                                 2003           2002        2003              2002
                                                      US $ Millions (except per ADR amounts)

Revenue                                      $   4,388       $  3,845       $  12,882      $  11,366

Operating income                                 685            549            1,962          1,403

Associated entities before other items           (26)           (12)           (161)          (68)
Interest expense, net                            (111)          (124)          (350)          (394)
Dividends on exchangeable preferred              (13)           (13)           (38)           (37)
securities

Profit before income tax expense, outside        535            400            1,413          904
equity interest and other items
Income tax expense                               (169)          (125)          (445)          (271)
Outside equity interest                          (68)           (39)           (188)          (111)
Net profit before other items                    298            236            780            522

Other items, net of tax and outside equity
interest: a
Group                                            (9)            (4,227)        (23)           (4,472)
Associated entities                              (14)           1              (81)           (573)
Total other items                                (23)           (4,226)        (104)          (5,045)

Net profit (loss) attributable to members of $   275         $  (3,990)     $  676         $  (4,523)
the parent entity
Earnings per ADR on net profit before other  $   0.23        $  0.18        $  0.59        $  0.41
items, net
Weighted average number of ADRs outstanding      1,287          1,264          1,285          1,233
in millions (diluted)



The following commentary discusses the major components of these results.






Consolidated Operating Income                3 Months Ended                9 Months Ended
                                             March 31,                     March 31,
                                             2003             2002         2003              2002
                                             US $ Millions                 US $ Millions

Filmed Entertainment                         $  201         $  161         $  556         $  398
Television                                      207            114            560            279
Cable Network Programming                       95             73             334            165
Magazines & Inserts                             76             72             186            171
Newspapers                                      115            126            274            313
Book Publishing                                 23             22             129            105
Other                                           (32)           (19)           (77)           (28)
Consolidated Operating Income                $  685         $  549         $  1,962       $  1,403




CHAIRMAN'S COMMENTS



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



"We are extremely pleased with our third quarter results, which continued the
financial and operating momentum we achieved throughout the first half of the
fiscal year.  Revenue and operating income growth of 14% and 25%, respectively,
despite the economic impact of the war in Iraq, speaks to the underlying
strength of our core assets.  Our cable networks, led by the ratings dominance
of Fox News, and our television businesses, led by the impressive ratings
turnaround at the broadcast network, each delivered double-digit operating
income growth and greatly strengthened their competitive positions.   Our film
business, including our home entertainment products, continued its success.  And
our print businesses continued to deliver significant operating income while
weathering the U.K. price war.



"The financial and operational momentum of our businesses has provided us with
the opportunity to build on our global distribution strengths through the
acquisition of key platforms in Italy and the U.S.  With our recently completed
purchase of Sky Italia and our announced agreement to acquire a 34% interest in
Hughes Electronics, we have the opportunity to elevate two leading multi-channel
television platforms to more profitable levels while at the same time enhancing
the value of our existing assets.   The continued success of our core
businesses, complemented by the rapid development of acquired and emerging
platforms, will allow us to prosper in both the near and long-term."



Third quarter net losses from associated entities before other items were $26
million versus losses of $12 million a year ago.  The year-over-year decline was
primarily due to the inclusion of Stream losses partially offset by the
recognition of BSkyB earnings in the current year quarter. A detailed discussion
of the components of associated entities' losses is provided later in the
release.



Third quarter net profit before other items increased to $298 million ($0.23 per
ADR) versus $236 million ($0.18 per ADR) in the prior year primarily due to
higher consolidated operating income.



The Company reported a loss from other items in the quarter of $23 million
versus a loss of $4.2 billion a year ago.  The loss in the third quarter a year
ago primarily included a write-down of the Company's carrying value of its
Gemstar investment.





REVIEW OF OPERATING RESULTS



FILMED ENTERTAINMENT



The Filmed Entertainment segment reported third quarter operating income of $201
million versus $161 million reported in the same period a year ago.  The 25%
increase was driven by the continued worldwide home entertainment performance of
Ice Age as well as several strong domestic home entertainment performances,
including Brown Sugar, One Hour Photo, Swimfan and The Banger Sisters.   These
contributions were partially offset by the marketing costs for several
successful third and fourth quarter theatrical releases including Just Married
and Daredevil, both of which opened at number one at the box office, and X2:
X-Men United, which brought in a record-breaking $155 million worldwide in its
first weekend and has grossed over $271 million worldwide since its release.
Prior-year results included the worldwide home entertainment performance of
Moulin Rouge and the domestic home entertainment release of Kiss of the Dragon.




Twentieth Century Fox Television (TCFTV) contributions increased compared to the
third quarter a year ago, primarily reflecting higher syndication profits from
The X-Files and Dharma & Greg.   Additionally, continued momentum in home
entertainment sales, most notably from The Simpsons and Buffy the Vampire
Slayer, contributed to the year-on-year growth.  During this broadcast season,
several of TCFTV's shows have achieved solid ratings, including 24, The
Simpsons, King of the Hill, Bernie Mac and Reba, which have achieved
double-digit growth among Adults 18-49.





TELEVISION



The Television segment reported third quarter operating income of $207 million,
an increase of $93 million versus the same period a year ago, primarily
reflecting significant improvement at the FOX Broadcasting Company in addition
to higher contributions from the Fox Television Stations and STAR.



At the Fox Broadcasting Company (FBC), third quarter operating income improved
by $85 million compared to a year ago, largely the result of substantial ratings
growth in primetime.  Additionally, the prior year's results included losses
related to the broadcast of Super Bowl XXXVI.   The 32% ratings improvement in
the quarter compared to a year ago was fueled by the success of American Idol 2,
Joe Millionaire and 24 and included FBC's first-ever sweeps victory among Adults
18-49.  This revenue growth from these higher ratings as well as stronger
pricing was slightly offset by higher promotional costs for mid-season
replacements.



Fox Television Stations (FTS) third quarter operating income grew 2% over the
prior year despite the current quarter impact of pre-emptions for war coverage
and the benefit a year ago from FBC's broadcast of Super Bowl XXXVI.
Current-year results were driven by stronger advertising revenue primarily as a
result of FBC's primetime success during the quarter and FTS' ratings growth in
local news programming.   The revenue growth was partially offset by higher
promotional costs during the February sweeps.



STAR, bolstered by a 23% increase in revenues, more than doubled its operating
income versus prior year despite absorbing start-up losses from the Xing Kong
Wei Shi channel in China, which was granted additional landing rights in
Mainland China during the quarter.  STAR's revenue increase was the result of
26% subscription revenue growth, primarily at the STAR Plus channel in India,
and 12% advertising growth generated mainly at STAR Plus and STAR News.





CABLE NETWORK PROGRAMMING



Cable Network Programming, comprising the Fox News Channel, Fox Cable Networks
(including the Regional Sports Networks (RSNs), the FX Channel (FX) and SPEED
Channel), the Los Angeles Dodgers and other cable-related businesses, reported
third quarter operating income of $95 million, an improvement of $22 million or
30% over last year's results.  This success reflects strong revenue growth
across all of the Company's primary cable television channels, mitigated by the
impact of war coverage at Fox News.



The Fox News Channel (FNC) reported operating income growth of 9% compared to
the third quarter a year ago.  Double-digit revenue growth, primarily from
increased ad sales, more than offset significant pre-emptions and higher costs
associated with covering the war.  FNC finished the quarter as the highest-rated
basic cable channel in primetime, making it the first news channel to achieve
this distinction since 1991.   Viewership during the quarter increased 80% in
primetime and 92% on a 24-hour basis compared to a year ago as FNC achieved the
highest 24-hour ratings growth among all cable news channels.



Fox Cable Networks' operating profit improved 37% during the quarter, primarily
driven by double-digit revenue growth at both the RSNs and FX. The revenue
increase at the RSNs was largely due to an increase in the number of DTH
subscribers and higher advertising sales versus a year ago.  The growth at FX
was the result of increases in both advertising and affiliate revenues - fueled
by ratings gains, higher advertising pricing and a 6% increase in subscribers
over the past year.  During the quarter, FX debuted the second season of The
Shield, which increased its ratings in Adults 18-49 and Adults 18-34 versus its
first season, in addition to winning Golden Globes for Best Drama Series and
Best Actor in a Drama Series.





MAGAZINES AND INSERTS



The Magazines and Inserts segment reported third quarter operating income of $76
million, an increase of $4 million versus a year ago.   The improvement was
primarily driven by higher contributions from the Free Standing Inserts division
principally as a result of increased demand for packaged goods pages.











NEWSPAPERS



The Newspaper segment reported third quarter operating income of $115 million, a
9% decrease versus the same period a year ago as advertising revenue gains were
more than offset by circulation revenue declines in the U.K. as a result of The
Sun's discounted pricing to match the competition.



The U.K. newspaper group reported a 26% operating income decline in local
currency terms for the third quarter compared to a year ago, as an increase in
advertising revenue was more than offset by circulation revenue declines.  The
improvement in advertising was primarily driven by growth at The Sun and The
News of the World on the strength of higher classified and display
advertisements.  Circulation revenue declined as higher revenues at The Times
and The Sunday Times were more than offset by cover price reductions at The Sun.
  As a result of this initiative, The Sun has expanded its circulation by 3% and
its competitive lead by 8% compared to the third quarter a year ago.



The Australian newspaper group reported a 6% increase in operating income in
local currency terms, driven by an 8% increase in advertising revenue over a
year ago and a 3% increase in circulation revenue.  Advertising growth was
driven primarily by strength in display advertising, with continued growth in
retail and real estate and a strong rebound in the national category.
Classified advertising also experienced strong growth, particularly in
employment.





BOOK PUBLISHING



HarperCollins reported operating income of $23 million versus $22 million in the
same period a year ago.   The solid quarterly results reflected the strong
performance across all divisions worldwide and an array of bestsellers led by
Zondervan's blockbuster sales of The Purpose Driven Life.  During the quarter,
HarperCollins had 51 books on The New York Times bestseller lists, including six
titles that reached #1.





OTHER



Subsequent to quarter-end, the Company, along with Telecom Italia, completed the
previously announced acquisition of the Italian pay-TV business Telepiu from
Vivendi Universal and combined it with Stream.  News Corporation now owns 80.1%
of the combined entity.



On April 9, the Company and Fox Entertainment Group, Inc. (FEG), an 80.6%-owned
News Corporation subsidiary, announced a definitive agreement to acquire 34% of
Hughes Electronics for approximately $6.6 billion in cash and stock.  The
closing of this transaction is subject to a number of conditions, including
approval by General Motors shareholders, a favorable ruling from the Internal
Revenue Service and regulatory clearance.  At closing, News Corporation's
ownership interest will be transferred to FEG, in exchange for $4.5 billion in
promissory notes and approximately 74.2 million shares in FEG, increasing News
Corporation's ownership interest in FEG to approximately 82%.







REVIEW OF ASSOCIATED ENTITIES RESULTS



Third quarter net losses from associated entities before other items were $26
million versus losses of $12 million a year ago.  The year-over-year decline was
primarily due to the inclusion of Stream losses partially offset by the
recognition of BSkyB earnings in the current year quarter.



The Company's share of associated entities' earnings (losses) is as follows:


                                                3 Months Ended               9 Months Ended
                                                March 31,                    March 31,
                                 % Owned           2003           2002*          2003            2002*
                                                US $ Millions                US $ Millions
Platforms:
BSkyB                             35.4%    (a)    $   27        $   -          $   46        $    (27)
                                           (b)
FOXTEL - Australia                25.0%               (2)           (2)            (6)            (6)
Sky Latin America:
     Sky Brasil                   48.5%    (c)        1             (8)            (56)           (21)
     Innova - Mexico              30.0%               (10)          (1)            (27)           (20)
     Other                       Various              (5)           (9)            (19)           (31)
Stream                            50.0%    (d)        (50)          -              (150)          -
Channels:
Fox Sports Cable Networks        Various              (1)           (5)            8              (1)
STAR Associates:
     ESPN STAR Sports             50.0%               1             -              2              (4)
     Other STAR                  Various   (e)        (2)           (3)            (7)            (5)
Other Associates                 Various   (f)        15            16             48             47
Total associated entities'                            (26)      $   (12)       $   (161)     $    (68)
earnings (losses) before other
items
Other items                                       $   (14)          1              (81)          (573)

Total associated entities'                        $   (40)        $ (11)        $  (242)       $ (641)
earnings (losses)







Further details on the associated entities follow.



(a) The Company's investment basis in BSkyB was negative from December 31, 2001
through November 11, 2002.  Accordingly, the Company's share of BSkyB's results
were not recognized during this period.

(b) For the nine months ended March 31, 2002, the Company's share of BSkyB was
36.3%.

(c) For the nine months ended March 31, 2002, the Company's share of Sky Brasil
(formerly NetSat) was 36%.

(d) The Company's share of Stream's start-up losses were not included through
March 31, 2002.

(e) Primarily comprising Phoenix Satellite Television, Taiwan Cable Systems, and
Hathway Cable.

(f) Primarily comprising Gemstar-TV Guide International, Independent Newspapers
Limited, Queensland Press, The National Geographic Channels, Fox Family
Worldwide (until it was sold in October 2001), and Fox Sports International
(until the remaining interest was purchased and consolidated in December 2001).

 *Certain prior year amounts have been reclassified to conform to the current
fiscal year presentation.




BSkyB (in STG) - United Kingdom              3 Months Ended                9 Months Ended
                                             March 31,                     March 31,
                                                2003           2002        2003               2002
                                             Millions (except              Millions (except
                                             subscribers)                  subscribers)

Revenues                                      # 819          # 707           # 2,330        # 2,028

EBITDA before exceptional items(1)              123            79              325            190
Depreciation and amortization                   (56)           (49)            (164)          (150)
Operating profit before exceptional items       67             30              161            40

Net income (loss) before exceptional items   #  15          #  (29)        #   51          #  (254)

AGAAP adjustment (in US$) (2)                   19             23              48             113

News' 35/36% share (in US$)                  $  27          $  7           $   77          $  (20)
Investment basis adjustment (a)                 -              (7)             (31)           (7)
News' reportable share (in US$)               $ 27           $ -             $ 46          $  (27)

Net Debt (excluding capitalized leases)                                      # 1,317       #  1,693

Ending Subscribers                                                         10,628,000      10,098,000
DTH Subscribers                                                             6,712,000       5,887,000



BSkyB's quarterly revenues increased 16% largely due to DTH subscriber growth,
an increase in average revenue per subscriber and improved advertising revenues.
  EBITDA before exceptional items increased 56% due to increased revenues,
partially offset by higher programming expenses from increased sports rights
costs (mainly soccer and cricket) as well as higher marketing and subscriber
management costs.


FOXTEL (in A$) - Australia                 3 Months Ended                  9 Months Ended
                                           March 31,                       March 31,
                                           2003                2002        2003               2002
                                           Millions (except                Millions (except
                                           subscribers)                    subscribers)

Revenues                                   A$  180         A$  136         A$ 468          A$ 387

EBITDA (1)                                     (9)             (10)           (29)            (31)
Depreciation and amortization                  (13)            (12)           (37)            (35)
Operating loss                                 (22)            (22)           (66)            (66)

Net loss                                   A$  (13)        A$  (16)        A$ (43)         A$ (46)

News' reportable 25% share (in US$)        $   (2)         $   (2)         $  (6)          $  (6)

Ending Subscribers (including Optus)                                          1,047,000       793,000



FOXTEL's revenues for the quarter increased 32% principally due to the inclusion
of Optus wholesale subscribers as of December 1, 2002, an increase of 11% in
satellite subscribers compared to a year ago and higher average revenue per
subscriber. EBITDA losses for the quarter decreased by A$1 million against the
prior year as the increase in revenues was offset by Optus license fee costs,
increased sports programming and Fox Footy Channel costs.  While total
subscribers including Optus fell during the quarter, this reflected a drop in
Optus subscribers with FOXTEL subscribers increasing during the period.




Sky Brasil (in US$)                          3 Months Ended                9 Months Ended
                                             March 31,                     March 31,
                                             2003              2002        2003              2002
                                             Millions (except              Millions (except
                                             subscribers)                  subscribers)

Revenues (in local currency)                 R$ 140         R$ 108         R$ 408         R$ 364

Revenues                                      $ 40           $ 46           $ 119          $ 146

EBITDA(1)                                       2              (4)            (4)            (6)
Depreciation and amortization                   (3)            (3)            (9)            (10)
Operating loss                                  (1)            (7)            (13)           (16)

Net income (loss)                            $  2           $  (24)        $  (134)       $  (59)

News' reportable 48.5%/36% share       (in   $  1           $  (8)         $  (56)        $  (21)
US$)

Net Debt (excluding capitalized leases)                                     $ 211         $  211

Ending Subscribers                                                            740,000        710,000



Sky Brasil's revenues grew 30% in local currency terms compared to the prior
year quarter, principally due to a higher subscriber base and increased average
revenue per subscriber. This was partly offset by increased programming costs,
mainly relating to the Brazilian Soccer Championships. Currency fluctuations had
a minimal effect on EBITDA for the quarter as the effect on revenues and
expenses were offsetting. The decrease in net loss principally reflects the
favorable impact of foreign currency fluctuations due to the strengthening of
the Brazilian Real on U.S. dollar denominated liabilities during the quarter.


Innova (in US$) - Mexico                  3 Months Ended                  9 Months Ended
                                          March 31,                       March 31,
                                          2003               2002         2003                2002
                                          Millions (except                Millions (except
                                          subscribers)                    subscribers)

Revenues (in local currency)              Ps  858         Ps  797         Ps  2,497       Ps  2,357

Revenues                                  $   79            $ 87            $ 243           $ 256

EBITDA(1)                                     24              16              74              34
Depreciation and amortization                 (16)            (20)            (53)            (62)
Operating income (loss)                       8               (4)             21              (28)

Net loss                                    $ (32)          $ (5)           $ (90)          $ (68)

News' reportable 30% share (in US$)         $ (10)          $ (1)           $ (27)          $ (20)

Net Debt (excluding capitalized leases)                                     $ 352           $ 369

Ending Subscribers                                                            780,000         727,000



Innova's revenues, which grew 8% in local currency terms in the quarter,
decreased on a reported basis due to the decline of the average Mexican Peso
versus the U.S. dollar. Innova's EBITDA growth principally reflects the absence
of costs associated with the satellite dish repositioning that was completed in
the prior year, combined with lower marketing and promotion costs. The increase
in net loss principally reflects the unfavorable impact of foreign currency
fluctuations due to the weakening of the Mexican Peso on U.S. dollar denominated
liabilities during the quarter.



Fox Sports Cable                          3 Months Ended                  9 Months Ended
Networks* (in US$)                        March 31,                       March 31,
                                          2003                2002        2003                2002
                                          Millions (except                Millions (except
                                          subscribers)                    subscribers)

Net income (loss)                         $   (1)         $   (11)        $   8           $   (35)

AGAAP Adjustments (2)                         -               6               -               34

News' reportable share*                   $   (1)         $   (5)         $   8           $   (1)

Ending Subscribers                                                        44,110,000      50,556,000



The decrease in net loss reported by Fox Sports Cable Networks for the quarter
primarily reflects the effect of cost savings at the Metro Channels and improved
results at the Rainbow RSNs.  Also contributing to the improvement was lower
amortization expense due to the adoption of SFAS 142.


*Various associated interests ranging from 20 percent to 50 percent, primarily comprising Regional Programming
Partners (including Madison Square Garden), Sunshine Network (until January 2002), Fox Sports Bay Area, Fox Sports
Chicago, National Sports Partnership and National Advertising Partnership.






ESPN STAR Sports (in US$) - Asia      3 Months Ended                9 Months Ended
                                      March 31,                     March 31,
                                         2003           2002        2003                    2002
                                      Millions                      Millions

Revenues                              $  34          $  30          $   110             $   92

EBITDA(1)                                4              3               11                  -
Depreciation and amortization            (1)            (1)             (4)                 (5)
Operating income (loss)                  3              2               7                   (5)

Net income (loss)                     $  1           $  1           $   3               $   (7)

News' reportable 50% share            $  1           $  -           $   2               $   (4)




Revenue for the quarter reflects increased subscription revenues principally due
to subscriber and rate growth in India and Hong Kong, as well as higher
advertising revenues from New Zealand cricket events. EBITDA improved $1 million
as the increase in revenues was partially offset by higher programming and
production costs associated with the New Zealand cricket events.









Foreign Exchange Rates



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


                                                9 Months Ended
                                                March 31,
                                                2003              2002

Australian Dollar/U.S Dollar                       0.57           0.51
U.K. Pounds Sterling/U.S. Dollar                   1.57           1.44









1 EBITDA, defined as operating income (loss) plus depreciation and amortization,
eliminates the variable effect across all associated entities of non-cash
depreciation and amortization.  Since, EBITDA is a non-GAAP measure it should be
considered in addition to, not as a substitute for, operating income (loss), net
income (loss), cash flow and other measures of financial performance reported in
accordance with GAAP.  EBITDA does not reflect cash available to fund
requirements, and the items excluded from EBITDA, such as depreciation and
amortization, are significant components in assessing the associated entities'
financial performance.



2 Principally reflects adjustments for reporting under Australian Generally
Accepted Accounting Principles ("AGAAP") relating to identifiable intangible
amortization.







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



Audio from News Corp's conference call with analysts on the third quarter
results can be heard live on the Internet at 9:00 a.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.







CONTACTS:
Reed Nolte, Investor Relations                                         Andrew Butcher, Press Inquiries
212-852-7092                                                                              212-852-7070


STATEMENT OF FINANCIAL PERFORMANCE (a)                  3 Months Ended                      9 Months Ended
                                         Note              March 31,                          March 31,
                                                    2003             2002               2003             2002
                                                               US $ Millions (except per ADR amounts)

Sales revenue                            1    $     4,388     $       3,845      $     12,882     $       11,366
Operating expenses                                  (3,703)           (3,296)          (10,920)           (9,963)
Operating income                         1          685               549              1,962              1,403

Net loss from associated entities                   (40)              (11)             (242)              (641)

Borrowing costs                                     (143)             (157)            (434)              (492)
Interest income                                     32                33               84                 98
Net borrowing costs                                 (111)             (124)            (350)              (394)



Dividend on exchangeable preferred                  (13)            (13)               (38)               (37)
securities


Other items before income tax, net                  (31)              (4,237)          (57)               (4,379)
Profit (loss) from ordinary activities              490               (3,836)          1,275              (4,048)
before income tax

Income tax expense on:
   Ordinary activities before change in             (169)           (125)              (445)              (271)
accounting policy and other items


   Other items                                      22              9                  34                 (52)


Net income tax expense                              (147)           (116)              (411)              (323)





Net profit (loss) from ordinary                     343             (3,952)            864              (4,371)
activities after tax





Net profit attributable to outside                  (68)            (38)               (188)            (152)
equity interests





Net Profit (Loss) Attributable to               $    275           $ (3,990)         $  676            $ (4,523)
Members of the Parent Entity





Net exchange gains (losses) recognized              74              (23)               252              211
directly in equity





Other items recognized directly in                   -               -                  86               (140)
equity





Total change in equity other than those      $    349          $ (4,013)         $  1,014          $ (4,452)
resulting from transactions with owners
as owners





Basic/diluted earnings per ADR on net
profit (loss) attributable to members of
the parent entity





Ordinary ADRs                                 $0.19           $(2.82)            $0.45            $(3.29)


Preferred limited voting ordinary ADRs        $0.22           $(3.38)            $0.55            $(3.95)





Ordinary and preferred limited voting         $0.21           $(3.16)            $0.51            $(3.69)
ordinary ADRs










STATEMENT OF FINANCIAL POSITION                                            March 31,           June 30,
                                                                             2003                2002
ASSETS                                                                             US $ Millions
Current Assets
Cash                                                                    $   4,861           $   3,574
Receivables                                                                 3,692               3,276
Inventories                                                                 1,164               1,091
Other                                                                       256                 319
Total Current Assets                                                        9,973               8,260

Non-Current Assets
Receivables                                                                 477                 449
Investments in associated entities                                          3,745               3,878
Other investments                                                           902                 966
Inventories                                                                 2,448               2,387
Property, plant and equipment                                               3,787               3,762
Publishing rights, titles and television licenses                           20,483              19,936
Goodwill                                                                    253                 257
Other                                                                       425                 398
Total Non-Current Assets                                                    32,520              32,033

Total Assets                                                            $   42,493          $   40,293

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Interest bearing liabilities                                            $   35              $   1,047
Payables                                                                    4,632               4,553
Tax liabilities                                                             265                 478
Provisions                                                                  230                 129
Total Current Liabilities                                                   5,162               6,207

Non-Current Liabilities

Interest bearing liabilities                                                7,811               7,662
Payables                                                                    2,529               2,286
Tax liabilities                                                             662                 245
Provisions                                                                  661                 679
Total Non-Current Liabilities Excluding Exchangeable Preferred              11,663              10,872
Securities

Exchangeable preferred securities                                           1,348               953
Total Liabilities                                                           18,173              18,032

Shareholders' Equity
Contributed equity                                                          17,173              17,137
Reserves                                                                    624                 530
Retained profits                                                            2,573               1,843

Shareholders' equity attributable to members of the parent entity           20,370              19,510
Outside equity interests in controlled entities                             3,950               2,751

Total Shareholders' Equity                                                  24,320              22,261
Total Liabilities and Shareholders' Equity                              $   42,493          $   40,293





STATEMENT OF CASH FLOWS                                                     9 Months Ended March 31,
                                                                            2003                2002
Operating Activity                                                                US $ Millions

Net profit (loss) attributable to members of the parent entity         $   676             $   (4,523)
Adjustment for non-cash and non-operating activities:
Equity earnings, net                                                       179                 98
Depreciation and amortization                                              313                 291
Provisions                                                                 311                 132
Other items, net                                                           104                 5,045
Change in assets and liabilities:

   Receivables                                                             (436)               (301)
   Inventories                                                             (101)               (10)
   Payables                                                                486                 367

Cash provided by operating activity                                        1,532               1,099

Investing and other activity

Property, plant and equipment                                              (253)               (215)
Investments                                                                (951)               (1,743)

Repayment of loan by associate                                             96                  -

Proceeds from sale of non-current assets                                   100                 2,356


Cash (used in) provided by investing activity                              (1,008)             398


Financing activity

Issuance of debt and exchangeable preferred securities                     2,075               -
Repayment of debt and exchangeable preferred securities                    (2,494)             (1,222)
Issuance of shares                                                         1,228               65
Dividends paid                                                             (91)                (96)
Leasing and other finance costs                                            (2)                 (1)

Cash provided by (used in) financing activity                              716                 (1,254)

Net increase in cash                                                       1,240               243
Opening cash balance                                                       3,574               2,842
Exchange movement on opening balance                                       47                  22

Closing cash balance                                                   $   4,861           $   3,107









Note 1 - SEGMENT DATA                                     3 Months Ended                    9 Months Ended

                                                              March 31,                         March 31,
BY GEOGRAPHIC AREAS                                     2003            2002              2003             2002

                                                         US $ Millions                     US $ Millions
Revenues


United States                                     $     3,370    $      2,962      $      9,929     $      8,714
United Kingdom                                          657             584               1,888            1,729
Australasia                                             361             299               1,065            923
                                                  $     4,388    $      3,845      $      12,882    $      11,366

Operating Income



United States                                     $     538      $      388        $      1,590     $      1,012
United Kingdom                                          102             127               241              313


Australasia                                             45              34                131              78


                                                  $     685      $      549        $      1,962     $      1,403


BY INDUSTRY SEGMENT


Revenues



Filmed Entertainment                          $   1,166       $  1,057         $   3,383         $  3,113


Television                                        1,126          1,073             3,593            3,203


Cable Network Programming                         545            465               1,601            1,305


Magazines and Inserts                             264            241               673              635


Newspapers                                        701            606               1,980            1,787


Book Publishing                                   247            242               920              844


Other                                             339            161               732              479


                                              $   4,388       $  3,845         $   12,882        $  11,366








Operating Income

Filmed Entertainment                          $   201         $  161           $   556           $  398


Television                                        207            114               560              279


Cable Network Programming                         95             73                334              165


Magazines and Inserts                             76             72                186              171


Newspapers                                        115            126               274              313


Book Publishing                                   23             22                129              105


Other                                             (32)           (19)              (77)             (28)


                                              $   685         $  549           $   1,962         $  1,403




Note 2 - SUPPLEMENTAL FINANCIAL DATA



The Company considers net profit before other items to be an important indicator
of the Company's operating performance on a consolidated basis.  Net profit
before other items, defined as net profit (loss) attributable to members of the
parent entity before other items related to the Company and associated entities,
net of applicable income tax expenses and outside equity interests, eliminates
the effect of transactions that are considered significant by reason of their
size, nature or effect on the Company's financial performance for the year. Net
profit before other items should be considered in addition to, not as a
substitute for the Company's operating income, net profit (loss) attributable to
members of the parent entity, cash flows and other measures of financial
performance prepared in accordance with generally accepted accounting principles
in Australia.  Net profit before other items does not reflect cash available to
fund requirements, and the items excluded from net profit before other items,
such as other revenues and expenses, are significant components in assessing the
Company's financial performance.



The following table reconciles certain components of net profit (loss)
attributable to members of the parent entity as presented on page 2 of this
release to the presentation required under Australian GAAP as required by
Australian Accounting Standard AASB 1018 "Statement of Financial Performance" on
page 12 of this release.


                                                       3 Months Ended                     9 Months Ended

                                                          March 31,                          March 31,
                                                    2003             2002             2003             2002

                                                    US $ Millions                      US $ Millions

Total other items (page 2)                 $         (23)   $       (4,226)    $     (104)    $       (5,045)
Reclassification of other items -
associated
                                                       14               (1)             81                573
Entities
Reclassification of income tax and net
profit attributable to outside equity                (22)              (10)           (34)                 93
   interest
Other items before income tax, net      $            (31)         $ (4,237)       $   (57)         $  (4,379)
(page 12)


Associated entities before other items     $         (26)   $          (12)    $     (161)    $          (68)
(page 2)
Reclassification of other items -
associated entities                                  (14)                 1           (81)              (573)
    
Net loss from associated entities (page    $         (40)   $          (11)    $     (242)    $         (641)
12)


Income tax expense (page 2)                $        (169)   $         (125)    $     (445)    $         (271)
Reclassification of income tax expense
on  other items                                        22                 9             34               (52)
Net income tax expense (page 12)           $        (147)   $         (116)    $     (411)    $         (323)


Outside equity interest (page 2)           $         (68)   $          (39)    $     (188)    $         (111)
Reclassification of outside equity
interest on other items, net                            -                 1              -               (41)
    


Net profit attributable to outside      
equity interest (page 12)                          $ (68)            $ (38)       $  (188)           $  (152)







SUPPLEMENTAL FINANCIAL DATA (continued)


                                                    3 Months Ended                   9 Months Ended

                                                      March 31,                        March 31,
                                                 2003            2002            2003             2002

                                                    US $ Millions                    US $ Millions



Net profit before other items (page 2)   $        298     $        236    $        780    $       522


Other items before income tax, net               (31)          (4,237)            (57)        (4,379)


Reclassification of income tax and net
profit attributable to outside equity              22               10              34           (93)
   interest


Reclassification of other items -
associated  entities                             (14)                1            (81)          (573)

Net profit (loss) attributable to       
members of the    parent entity (page
12)                                      $        275     $    (3,990)    $        676    $   (4,523)



Earnings per ADR on net profit before    
other items, net (page 2)               $        0.23    $         0.18  $          0.59 $          0.41

Earnings per ADR on other items before
income tax, net                                (0.02)           (3.35)          (0.04)         (3.55)

Earnings per ADR on reclassification of
income tax and net profit attributable
to outside equity interest                       0.01             0.01            0.02         (0.08)
Earnings per ADR on reclassification of
other items - associated entities               (0.01)                -          (0.06)         (0.47)

Basic/diluted earnings per ADR on net    
profit (loss) attributable to members of
the parent entity (page 12)               $       0.21     $     (3.16)    $       0.51    $    (3.69)







--------------------------


a Previously referred to as "abnormal items".  This caption has been changed to
be consistent with the presentation contained in the Statement of Financial
Performance on page 12 of this release.






a Following the issuance in June 2002 of the revised Australian Accounting
Standard AASB 1018 "Statement of Financial Performance" this statement has been
reformatted from previous presentations to be consistent with the format
prescribed in the revised Australian Accounting Standard.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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