Even media giant empire News Corporation has announced a $6.41 billion loss in the second quarter of its fiscal year. Group CEO Robert Mudoch explained job cuts are to be expected.
AFP - News Corp. reported a huge quarterly loss on Thursday and chairman Rupert Murdoch said the grim economic climate would force job cuts at his sprawling media empire.
News Corp. reported a 6.41 billion dollar loss in the second quarter of its fiscal year compared with an 832 million dollar net profit in the corresponding quarter a year ago.
"Our results for the quarter are a direct reflection of the grim economic climate," Murdoch said in a statement.
"While we anticipated a weakening, the downturn is more severe and likely longer lasting than previously thought.
"As a result, we have been taking actions to preserve a solid level of operational profitability and a strong balance sheet without sacrificing future growth," the News Corp. chairman and chief executive said.
"We are implementing rigorous cost-cutting across all operations and reducing head count where appropriate," Murdoch added.
"We believe our businesses are well positioned to withstand a lengthy downturn and to emerge stronger as the current economic situation improves."
Murdoch did not say which News Corp. units were targeted for job cuts or announce any figures.
News Corp. owns the Fox, STAR and SKY television networks, social network MySpace, book publisher HarperCollins and newspapers in the United States, Britain and Australia among other properties.
Its US newspapers include The Wall Street Journal and New York Post.
News Corp. said its results for the quarter which ended on December 31 were impacted by 8.4 billion dollars in one-time charges, including a writedown of the value of its Federal Communications Commission (FCC) licenses.
New Corp. reported adjusted operating income of 818 million dollars, a drop of 42 percent from the same quarter a year ago, and earnings per share of 12 cents, well below analysts' expectations of 19 cents.
Date created : 2009-02-05