News Corp on Thursday night forecast a worse than expected 30% drop in operating income this year and unveiled a $6.4bn quarterly loss. Rupert Murdoch’s media group took an $8.4bn non-cash writedown to reflect the deteriorating outlook for its television channels and Dow Jones, the publisher it acquired for $5.6bn in 2007. It cut its earnings forecasts for the second time in three months, warning that advertising revenues and consumer confidence had fallen further since November, when it predicted that net income would fall to “low- to mid-teens” this fiscal year. Murdoch said News Corp was acting at the “bleakest” point to cut costs and improve margins to emerge stronger when markets turn.

This entry was posted by Gwen Robinson on Friday, February 6th, 2009 at 5:46 and is filed under Capital markets, People. Tagged with news corp, rupert murdoch. Edit this entry.