News Corp reported a flat quarterly net profit of US$2.7 billion (S$3.94 billion) on Wednesday as one-time items helped compensate for a slide in advertising revenue. -- PHOTO: REUTERS
WASHINGTON - MEDIA giant News Corp reported a flat quarterly net profit of US$2.7 billion (S$3.94 billion) on Wednesday as one-time items helped compensate for a slide in advertising revenue.
In a conference call with analysts following the release of the results, Mr Murdoch said it is 'increasingly clear that the worst is over' and News Corp well postioned to benefit from a rebound.
Weak advertising led to a 99 per cent drop in operating income in the quarter in the television division to US$4 million and a 97 per cent fall in operating income in the newspapers segment to US$7 million.
News Corp posted earnings per share of US$1.04 for the third quarter of its fiscal year, up from US$0.91 in the same quarter a year ago.
Its results for the quarter were boosted by the US$1.2 billion reaped from the partial sale of its holdings in NDS Group and another US$1.2 billion from a favourable tax settlement.
News Corp also benefited from an extraordinary profit in the same quarter last year on a US$1.7 billion asset and stock exchange with Liberty Media Corp.
Excluding the one-time gains, News Corp's operating income fell by 47 per cent in the first three months of this year to US$755 million from US$1.4 billion in the same quarter last year.
Revenue fell 16 per cent to US$7.4 billion as the decline in advertising revenue which has hit newspapers across the United States was also felt at News Corp.
'Our third quarter results directly reflect the continuing weakness of the global economic climate,' News Corp chairman Rupert Murdoch said in a statement.
'Despite this tough environment, we have proven resilient in several key areas this quarter,' he said. 'We continued to make necessary operational adjustments to ensure our businesses are performing at optimum levels.
'We are working daily to increase market share and strengthen our core businesses, even in this very challenging environment,' he said. -- AFP
