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News Corporation (NWS) reported a second quarter net income of $254 million against a $6.4 billion loss a year ago. Newscorp said the return to profit was underpinned by revenue growth of 10% to US$8.7 billion.

Chairman and CEO Rupert Murdoch said he believed company was now entering a period of sustained growth.

“Our strong top-line revenue growth demonstrates that News Corporation is emerging from this recession with renewed vigor and strength,” Mr Murdoch said.

”We continue to reap the benefits from the restructuring and cost containment measures we instituted before the downturn began and I am pleased that our unrelenting focus has translated to growth across our businesses that will reward stockholders for years to come.”

Mr Murdoch also mentioned the film Avatar which was nominated for 9 oscars yesterday.

”We have a strong management team that knows how to nurture our core businesses, while taking prudent, creative risks like Avatar that lead the industry forward,” he said.

The global media giant said it had been stung by a $500 million pre-tax charge related to litigation brought against Integrated Marketing Services business.

Stripping away one-off charges in both the second quarter and the previous corresponding quarter Newscorp said earnings per share 25c per share, against 15c per share a year ago.

In the prior year second quarter, the Company recorded a non-cash impairment charge of approximately $8.4 billion in the midst of the global financial crisis, the company noted.

The company’s Filmed Entertainment division reported second quarter operating income of $324 million, nearly triple what was reported in the same period a year ago. The result was boosted by Avatar which remains number one in the box office after seven weeks release and has earned over $2 billion.

Fox News channel continued to grow, posting a 51% jump in operating income, helping the cable news division operating income to soar 35% to just over $604 million.

At the close Tuesday, Newscorp shares were trading at $16.87.

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