News Corp upgrades guidance for 2009/10

News Corp has upgraded its guidance for operating income for 2009/10.

During a briefing for its first quarter results on Thursday, the company said its annual operating income was now expected to grow in the high single to low double-digits above its fiscal 2009 adjusted result.

News Corp chairman and chief executive Rupert Murdoch said the outlook for the business was encouraging.

"As we look ahead I am seeing some encouraging trends in most of our businesses," he said during a teleconference.

Speaking on the group's cable television business: "As strong as our cable channel business is today, it still has a lot of room for expansion."

"In fact, I believe the longer term opportunity for growth will dwarf what we have accomplished thus far."

The company earlier reported an 11 per cent rise in first quarter net profit and said its operations are "well placed" to take advantage of improving global conditions.

The company reported net income of $US571 million ($A632.13 million) for the three months to September 30, compared with $US515 million ($A570.13 million) in the prior corresponding period.

First quarter consolidated operating income, or earnings before interest and taxes (EBIT), was $US1.042 billion ($A1.15 billion), up nine per cent from the $US953 million ($A1.06 billion) reported a year ago.