News Corporation deep in the red due to write-downs
News Corporation, which is controlled by US media mogul Rupert Murdoch, suffered a billion-dollar loss in the last quarter due to the economic crisis and enormous write-downs. The bottom line was a loss of 6.4 billion dollars.
News Corporation, which is controlled by US media mogul Rupert Murdoch, suffered a billion-dollar loss in the last quarter due to the economic crisis and enormous write-downs. The bottom line was a loss of 6.4 billion dollars.
According to SDA, turnover fell by more than eight percent to 7.9 billion dollars. The group announced rigorous savings and job cuts on Thursday evening in New York. News Corp. had to make write-downs of around 8.4 billion dollars in its second quarter alone, mainly on goodwill in the TV business and in the newspaper and news division.
"The downturn is even more severe and probably longer than initially thought," Murdoch admitted. The figures were worse than analysts had expected. The share price fluctuated between gains and losses in after-hours trading. Like its competitors, News Corporation is suffering from the clear reluctance of advertising customers in the recession. Industry giants Walt Disney and Time Warner also suffered a sharp drop in profits at the end of the year and are skeptical about the future.
In addition to newspapers such as the Times of London and the Wall Street Journal, the US group also owns the Fox television channels, the Hollywood studio Twentieth Century Fox, the German TV channel Premiere and the online network My Space.
According to SDA, turnover fell by more than eight percent to 7.9 billion dollars. The group announced rigorous savings and job cuts on Thursday evening in New York. News Corp. had to make write-downs of around 8.4 billion dollars in its second quarter alone, mainly on goodwill in the TV business and in the newspaper and news division.
"The downturn is even more severe and probably longer than initially thought," Murdoch admitted. The figures were worse than analysts had expected. The share price fluctuated between gains and losses in after-hours trading. Like its competitors, News Corporation is suffering from the clear reluctance of advertising customers in the recession. Industry giants Walt Disney and Time Warner also suffered a sharp drop in profits at the end of the year and are skeptical about the future.
In addition to newspapers such as the Times of London and the Wall Street Journal, the US group also owns the Fox television channels, the Hollywood studio Twentieth Century Fox, the German TV channel Premiere and the online network My Space.
