Rock, Paper, Scissors

The recession has crunched News Corp’s third quarter profits, especially from its TV and newspaper businesses. There, profits have collapsed. Operating profits fell 47% after the 42% fall in the second quarter. News Corp earned million against .4 billion. That’s the lowest quarterly result for more than three years. The company’s revenues surprised by falling .3 billion, or 15%, on lower ad sales, film income and the disposal of some assets, such as eight TV stations. Short of the dark days of 1980-81, this would have to be one of Rupert Murdoch’s worst quarters for earnings; profits from his Fox free-to-air TV business in the US slumped to just million in the March quarter, down a huge million from the same quarter of 2007-2008. This was after a similar collapse in the December quarter where the fell million to just million. To make that guidance (which would put operating income around .76 billion), News earnings would have to jump 80% from this quarter in the June three months to over .2 billion. Papers like the New York Post, the Wall Street Journal, the Times, The Sun, The Australian and The Herald Sun could only manage to earn just million in the quarter. That was down a huge million from the March quarter of the 2008 financial year. While the various papers earned lower profits in local currencies (the Australian dollar and UK pound) the stronger US dollar all but wiped them out. If it hadn’t been for the acquisition of the Dow Jones business (for which Murdoch paid .8 billion too much), newspapers would have turned in a loss on consolidation in US dollars. News Corp said operating income fell 42% in Australia (down 18% in the second quarter) as ad revenues dropped 16% (4% in the second quarter). In the UK ad revenues fell 21%. Marketing and other costs rose, circulation revenues only rose because of higher cover prices. News made no remark on the 20.55% plunge in sales of the once core New York Post in the March quarter.

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Loc_n_lol said:

Your puny guns may defeat the tank but they can't harm mah garg ! F34R !

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zpqrei said:

XZibit > You.

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