Ad Slump Hits NewsCorp’s Quarterly Earnings

17 August 2001

News Corporation yesterday posted a fall in quarterly profits, as the advertising slowdown continues to batter its TV units.

Profits totalled $145 million in the three months to June, down from $184m in the same quarter last year and in line with analysts’ expectations.

At the television units, including the Fox network, operating income tumbled from $241m last year to $185m, hurt by falling ad revenue and the rising cost of sports programming.

The decline in advertising also affected the media giant’s newspaper arm, which includes The Times and best-selling tabloid The Sun in Britain, the New York Post and Australia’s Daily Telegraph. Operating income at the unit sank 25% year-on-year to $121m.

The biggest success was the film division, which narrowed last year’s loss of $53m to only $4m.

News source: BBC Online Business News (UK)