NEW YORK, Nov 5 (Reuters) - Rupert Murdoch's News Corp cut its full-year forecast and posted a worse-than-expected 30 percent drop in quarterly profit because of falling TV advertising. Shares dived 12 percent. The international media conglomerate said display advertising at its Web holdings, including the MySpace social network, was beginning to weaken, and that it was instituting stringent cost-cutting measures company wide. "We're managing down headcount wherever appropriate," Murdoch told analysts on a conference call, adding his company had a good handle on its costs and "we'll ratchet them down accordingly." "The businesses across the board are challenged right now by weakening markets, and our group-wide results are further impacted by progressively weak foreign currencies when translating these to U.S. dollars," he said.
News Corp's assets include: the Fox TV network, 20th Century Fox movie studio, BSkyB and The Wall Street Journal.
News Corp now expects fiscal 2009 operating income to fall in low- to mid-teen percentage terms, compared to its previous forecast for growth of 4 percent to 6 percent.
Fiscal first-quarter 2009 net income was $515 million, down from $732 million in the same quarter a year ago. The decline was because of lower TV ad sales as well as a drop in equity contributions from affiliates, including $447 million in losses from Premiere AG, the German pay TV company in which it owns a sizable stake.
Earnings per share in the quarter ended Sept. 30 fell to 20 cents from 23 cents, with a lower number of shares outstanding. Analysts were expecting profit of 22 cents per share.
Overall operating income fell 9 percent to $953 million and revenue rose 6.3 percent to $7.5 billion.
From Robert MacMillan
The pressures on now, boys.
No wonder O'Reilly is practically calling for investation into Nielsen. His ratings in the "key demo" haven't been so hot lately. He decided he would slip right into his comfort zone and accuse Nielsen of some "liberal conspiracy" nonsense. Turns out Susan Whiting ( CEO of Nielsen ) had something to say to O'Reilly. Keith Olbermann used this story as part of his WORST section of Countdown:
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