News Corp. Reports $6.4 Billion Loss

According to a report in the Los Angeles Times, News Corp. reported a $6.4 billion loss for the most recent quarter, which ended on Dec. 31. News Corp. was also forced to take an $8.4 billion write-down on its newspaper, television and information service business units.

Chief Executive Rupert Murdoch blamed the loss on the grim economy, saying, "Our results for the quarter are a direct reflection of the grim economic climate. While we anticipated a weakening, the downturn is more severe and likely lasting longer than previously thought."

Before the charge, News Corp. reported an adjusted operating income of $818 million for its second fiscal quarter ended Dec. 31, down 42 percent from the $1.4 billion it reported a year ago.

News Corp.'s film group, including Fox movie studio, reported an operating income of $112 million, compared with $403 million in the year earlier period.

The 72 percent drop in film group operating incomes reflects the prior year's DVD releases of The Simpsons Movie, Live Free or Die Hard and Fantastic Four: Rise of the Silver Surfer. The current quarter showed the marketing costs associated with the worldwide theatrical releases of The Day the Earth Stood Still and Max Payne, and the successful domestic release of Marley & Me.

Television reported an adjusted operating income of $18 million for the quarter, down 92 percent from the $227 million News Corp. reported a year ago. The large drop reflects the recession's effect on the ad market and the higher costs of programming and sports licenses. News Corp. owns the Fox broadcast network and cable channels Fox News and FX.