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NEWS CORP PROFITS TAKE
A HIT
Is News Corp's future dimming? That's a question
many analysts are asking after the Rupert Murdoch firm announced
its financial results for the fourth quarter ended 30 June
1999.
The company announced a loss of $10 million
compared with a net profit of $233 million in the corresponding
period last year. Revenues were a wee bit higher at $3.27
billion as against $3.24 billion last year. For the year ended
30 June, the company notched up revenues of $13.59 billion
as against $12.84 billion in the previous year. Profits, however,
took a beating on a year-on-year basis too, dipping to $678
million compared with $1.14 billion last year.
The fourth quarter earnings were mainly hurt
by costs related to the transition of the 40% News Corp-owned
satellite service BSkyB from analogue to digital. Profits
at the Fox Entertainment Group were somewhat shaved by the
losses at Fox News Channel, while 22 television stations owned
by News Corp reported record profits. The company's newspaper
division's operating income dipped as costs increased at Australian
and UK newspapers.
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