Murdoch Blames NewsCorp Shares Sag on Wall Street

14 November 2005

News Corporation chairman/ceo Rupert Murdoch last week announced to the world his displeasure that the gnomes of Wall Street had failed to appreciate the wondrous financial performance of the Murdoch family business.

Irked that its share price in the real world lags well below that of his own estimation - the stock is down 23% since the beginning of the year, underperforming peer media companies which in turn trail the broader market - the Australian/American media mogul insisted that the company is delivering stronger financial growth than its peers.

Admitting that the little matter of John Malone's 19% stake in NewsCorp is "clearly a distraction", Murdoch senior reported a fiscal first quarter net loss. This is attributable to a $1 billion (€851.8m; £572.7m) non-cash charge resulting from accounting changes to the value of its TV station licenses.

However, he was quick to point out that revenue rose 10% to $5.7bn, courtesy of significant advertising gains from Fox News and successes at the group's movie studio.

Hyped the mogul: "This was our fifteenth consecutive quarter reporting year-on-year operating income and revenue growth, and we delivered strong gains across nearly all of our operating segments.

Data sourced from Financial Times Online; additional content by WARC staff