While News Corp was gloomy about its Australian newspaper businesses -- with forecasts of more pain and cost cuts to come in the 2013 financial year -- its about to be 50% owned associate, Foxtel, confirmed that it is not only the biggest and most profitable media company in Australia, but it is about to become even bigger and more profitable in the wake of the Austar takeover.

News forecast a flat year for its about-to-be-divorced publishing business because of more cuts and weak revenue expectations for the Australian newspapers. But no such concerns for Foxtel: after the $2 billion Austar takeover, it's heading for earnings before interest, tax and depreciation and amortisation (EBITDA) of more than $950 million, perhaps a billion, for the current financial year.