Murdoch’s News Corp Loses £69m

Rupert Murdoch has said that his media company, News Corporation, will lose £69m as a result of the terrorist attacks in the United States.

Speaking at the company’s annual meeting in Adelaide, Australia, he told shareholders: “Advertising is going through a very uncertain time. We have been in a recessionary period for the last six or eight months and following the events of 11 September, things suddenly became very much worse.”

He confirmed that earnings at the group’s UK newspaper business, which includes The Sun, the News of the World and The Times would be below expectations. “Last year’s financial results were up about 10% on the prior year. We originally budgeted for another 10%, whereas the increase this year will be flatter than that,” he said.

Despite a “nasty increase in costs” across the company, Murdoch said: “Revenue bookings for both our TV stations and TV network have been stronger than in the past several months and strong rays of sunshine are appearing.”

He also spoke of BSkyB’s success with Sky Digital: “There’s no one in the UK who can touch it and its not slowing down,” he said. “Unlike newspapers or broadcasting television, 95% of the revenue comes from the viewers and not from the advertisers. This adds a tremendous dimension to the company.”

Prior to the terrorist attacks on America BSkyB reported as strong set of full year results announcing an 25% increase in revenues and a growing number of subscribers to Sky Digital (see Sky Still Strong Despite Pre-Tax Losses).

www.newscorp.com BSkyB: 020 7705 3000

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