News Corporation chief Rupert Murdoch has professed himself more than satisfied with the performance of the company and claims to have no intention of stepping down.
Speaking at News Corp’s AGM in Adelaide this week, Murdoch said that the group was “very confident” of meeting its earnings targets given the encouraging outlook.
“All the signs of the American economy are very strong, they are very strong here in Australia and they are pretty iffy in Europe generally,” he added.
News Corp makes around 75% of its revenue in the United States and is banking on a recovery in national TV advertising to boost earnings at the Fox Network. The company is looking to extend its influence further with the acquisition of US satellite operator DirecTV. The $6.6 billion deal is currently awaiting regulatory approval (see Murdoch Puts The Case For Sky America).
After 30% growth last year, News Corp is predicting that operating income will grow by around 10% this year. Cumulative earnings growth of 20% remains the company’s long term target.
Murdoch refused to comment on speculation that he is planning to install his younger son James in the chief executive’s seat at BSkyB (see BSkyB Shareholders Express Concern Over Ball Successor). News Corp has a 35% stake in the satellite broadcaster but the chairman merely told shareholders: “I am confident the best candidate will be appointed.”
However, Murdoch backed down in one area, agreeing to withdraw a controversial share options package for senior executives. He accepted that it would be wrong for him to cast the votes of his family’s Cruden investment arm because he could ultimately benefit himself from the proposal.
Nonetheless, pretenders to the throne at News Corp will be disappointed to hear that Murdoch’s appetite for the business remains as keen as ever. The 72-year old said that he has no plans to retire and would have to be “carried out” when his number is up.
