Figures are in US dollars
News Corporation (NWS) reported a net loss of $3.4 billion for the year to 30 June 2009 against a profit of $5.4 billion in the previous year. Reporting in the US overnight Newscorp said the disappointing result was due to a slump in advertising and further write downs, despite being offset by a 32% growth in the cable network programming division.
Chairman and CEO, Rupert Murdoch, said the current trading environment had been challenging, though the outlook for the future was brighter.
”We have strengthened all our franchises and are particularly well placed for the coming recovery,” Mr Murdoch said.
"I am certain that News Corporation is poised to profit, and deliver strong returns, as the economy rebounds.”
Mr Murdoch said that progress had been made in the cable network programming.
Mr Murdoch added that News Corporation planned to charge reader fees for all its news Web sites.
"Quality journalism is not cheap,” Mr Murdoch said.
Looking over the previous year, Newscorp said it had recorded an $8.9 billion pre-tax non-cash impairment charge related to goodwill and identifiable intangible assets, while another $312 million was lost on restructuring charges.
Across all departments, Newscorp, with the exception of the cable news, reported softer earnings figures.
“The past year has been the most difficult in recent history, and our 2009 financial performance clearly reflects the weak economic environment that we confronted throughout the year,” Mr Murdoch said.
“I am pleased that we are reporting adjusted operating income right in line with the guidance we previously provided during the last six months which reflects a decline of approximately 30%,” he added.
The Filmed Entertainment division reported fourth quarter operating income of $203 million, 8% down from $220 million in the previous corresponding period.
The division was propped up by strong contributions from key films including Slumdog Millionaire and Marley & Me. Between Ice Age 3, X-Men Origins and Night at the Museum 2, the company reported box office receipts of nearly $1.5 billion.
The division was weighed by lower Twentieth Century Fox television receipts. The Television segment reported adjusted operating income for the full year decreased 85% to $174 million.
However, cable revenues climbed. For the full year, operating income increased 32% to $1.7 billion.
The Fox News Channel operating income, as compared to the prior year, increased 50% for both the fourth quarter and the full year, primarily from increased affiliate revenues.
News Corporation owns movies studios 20th Century Fox, My Space, Dow Jones and television and newspaper interests across the globe.
At the close of business Wednesday, Newscorp shares were down 31c at $14.42.
