News Corp's publishing business loss at $2.1 billion in fiscal 2012
09 Feb 2013
News Corp, Rupert Murdoch's media company, fell the most in around three months following profit cut forecast due to declining ratings for shows such as ''American Idol'' and ''X Factor.''
In December, News Corp revealed loss at its publishing business of $2.1 billion for fiscal 2012 due to restructuring, declining sales and the costs of a UK hacking scandal.
Operating income would see growth by a ''mid- to high-single- digit'' percentage for the fiscal year ending in June, the company said on a conference call late yesterday, down from an earlier forecast of growth exceeding 10 per cent.
Chief operating officer Chase Carey said on the conference call that the company had a very disappointing year ratings-wise. The company was working to improve them, he added.
News Corp fell 2.3 per cent to $27.56 in New York, the largest drop since 14 November. Shares were down 3.2 per cent at $26.60 at the close in Sydney, the biggest fall since 4 June, with volume around triple the three-month average.
The TV ratings slump set back Murdoch's plans to split his company in two, separating the publishing division from his more profitable entertainment businesses.
The plans were aimed at creating a faster-growing company with the freeing up of News Corp's 20th Century Fox film studio and the Fox cable and broadcast networks from the weight of newspapers, where ad dollars and circulation were falling industry wide.
