News Corp. Goes Deep Into Red With $6.4 Billion Net Loss

News Corp. has followed the conga line of media companies recently taking sharp financial quarterly losses.

On the heels of an $8.4 billion write-down of assets, the company stumbled across the financial reporting line with $6.4 billion lost for its fiscal second quarter.

As with other media companies, News Corp. had a sharp downturn in advertising across its television unit, with income plummeting 93% to $18 million from $245 million in the second quarter a year ago.

For its TV station business alone, there was a 44% decline in profits--despite increased political spending in 2008. Ad revenue at the TV stations alone dropped 19%.

News Corp.'s 20th Century Fox film division was stung as well--with income dropping 72% to $112 million against $403 million.

Just as with recent Time Warner and Walt Disney's results, the positive spot was News Corp.'s cable networks--including FX and Fox News--with income of $428 million, 27% higher versus the period a year ago. Fox News' operating income improved by 32%.

Newspaper and information-services income fell 9% to $179 million.

In addition to the Fox Television Network, News Corp. owns The Wall Street Journal, parent Dow Jones & Co, MySpace, newspapers throughout the United States, Britain and Australia, and satellite TV network Sky Italia.



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