- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- Twilight, Inc., A Worldwide Craze
- Oprah to Leave Syndication in 2011
- Sony's E-Reader Shortage and the Digital Book Battle
- Salesforce.com Brings Facebook and Twitter's Social Capabilities to Businesses
- Sumner Redstone's Companies Face Off Yet Again
- Can YouTube Revolutionize Citizen Journalism?
- What MGM's Sale Could Say About Value of Content
More Videos
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- Twilight, Inc., A Worldwide Craze
- Oprah to Leave Syndication in 2011
- Sony's E-Reader Shortage and the Digital Book Battle
- Salesforce.com Brings Facebook and Twitter's Social Capabilities to Businesses
- Sumner Redstone's Companies Face Off Yet Again
- Can YouTube Revolutionize Citizen Journalism?
- What MGM's Sale Could Say About Value of Content
RSS FEED
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- No Thanksgiving Rest for Retailers in Sales Race
- More Asia Executives Resigned to Economy Flights: Survey
- Attraction of Switzerland to Businesses
- UK's Darling to Downgrade 2009 Growth Forecast
- Oil Falls Toward $73 Amid Dubai Debt Jitters
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- Dubai Debt Delays Revive Fear of Financial Crisis
- US Markets Bracing for Selloff on Dubai Debt Worries
- US Dollar Falls to 14-Year Low Against the Yen
- ING Prices Share Issue at Hefty Discount
- No Thanksgiving Rest for Retailers in Sales Race
- UK's Darling to Downgrade 2009 Growth Forecast
- Tommy Hilfiger's Estate in Conn. Sells for $20 Million
- Cheap Robotic Hamsters Are Holiday's Unlikely Craze
- Almunia Set to Take Neelie Kroes' EU Competition Job
Media Money
Text Size 
 |
Mark Lennihan / AP News Corp.'s headquarters in New York. |
But what really shook the stock—sending it down 11 percent in after-hours trading Wednesday and down even more Thursday—is its outlook. The company expects operating profit in its current fiscal year, which ends June 30, to be down double digits (a low to mid teen percentage drop). Just three months ago the company expected a four to six percent increase in operating profit over the same period.
It's been a tough year for NWS [NWS
Loading...
()
] stock—so far this year the stock is trading down over 60 percent, which looks like it's around a 12 year low. Murdoch remained positive on the earnings conference call, saying he believes the company is doing better than the marketplace. He also pointed to the strong growth of Fox Interactive Media, the division that includes MySpace, which showed a 17 percent increase in revenue. But even that division showed a slower growth rate than in recent quarters.
The acquisition of Dow Jones [DJ
Loading...
()
] last September benefited News Corp's newspaper division—helping sales at the newspaper group rise 37 percent. But Murdoch said ad revenue at Dow Jones has declined more than the company expected. There's no question that ad sales are struggling industry-wide, and News Corp's local TV networks really suffered from that. Murdoch acknowledged that less reliance on ad markets would be preferable—as illustrated by a 31 percent increase in operating income for its Cable TV operations, driven by higher subscription fees. News Corp may boast that its Fox network brings in top ratings, but that didn't help save the company's bottom line.
Now all eyes shift to Disney [DIS
Loading...
()
], reporting after the bell: Will it weather the slowdown better than its competitors?
More from CNBC.com
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes